Funds for e-tolls in South African Province Gauteng has been set aside to back an e-toll fees gap which occurred as a result of the reduced user charge dispensation, Finance and e-Government MEC Barbara Creecy has announced. He said they have set aside over US$8m.
There has been an increase in total provincial budget by R2.1 billion from R95.4-billion appropriated in March during the fine-tuning process. The new e-toll dispensation resulted in fees being cut by 50%, a cap on fees and discounts on outstanding fees.
Creecy said that South African province Gauteng would allocate R686-million to the departments of Health, Education and Social Development with regards to the Public Wage Bill settlement .She added that the distribution was done without compromising budgets for infrastructure, goods and services.
According to the Deputy President Cyril Ramaphosa, Gauteng and the South Africa government had to fill a R600-million to R700-million gap for the deal to work. In its announcement, the MEC on Tuesday said that Gauteng will fund 50% of the shortfall on this project.
The country’s Treasury announced that it had to cut government spending by R5 billion in 2015 to reimburse the R64-billion public sector wage agreement during its mini budget speech on October 21.
Referring to the drought that has hit South Africa, Creecy said that funds, which amounts to R74.7-million has been set aside to aid farmer support, animal health care and food security.
The National Roads Agency believes that e-tolls in South African province Gauteng will be of great economic importance to the country. But e-tolling has caused a major debate in South Africa with those opposed to the project saying it will hurt poorer communities.
