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The MEC for Finance and Economic Affairs in Gauteng will have good news for all the people of Gauteng tomorrow (5 June 2001) when he adds the budget vote 3 of the Department of Finance and Economic Affairs. He will point out that the budget of vote 3 should be viewed within the framework of the mission and vision of the Department.

A total of R550 million, or 71% is planned for spending to grow the provincial economy and R224 million or 29% to be spent on promoting the priority of good governance in the province.

The best news he will have is that all major own revenue items exceeded budget. The establishment of the treasury cash desk has ensured that the department maximises the returns on the cash reserves in the money market. The treasury desk had an internal target of R50 million, but even exceeded this by some R29 million, an increase of over 50%. Moleketi said that the department budgeted R75 million for interest income for the present year. After only two months, at the end of May, the department has earned R25 million in interest alone.

The Gauteng economy represents the largest economic sub-region in South Africa. According to the latest data published by Econometrics, the Gauteng economy accounts for 41% of the Gross Domestic Product, and 22% of the total population of the country. A sharp increase indeed from the 38% and 18% that was previously reported.

Turning to the flagship of economic development in Gauteng, Moleketi will say that Blue IQ was launched in the previous financial year, with a R1, 2 billion budget and a further R500 million allocated for the fourth year. It has the mandate to deliver ten mega-projects in Gauteng. A total of R152, 7 million was spent on the various projects in the financial year 2000/2001 and implementation is moving rapidly.

The Gauteng Automotive Cluster, Wadeville Alrode Industrial Corridor, Cradle of Humankind World Heritage Site, Dinokeng, the Newtown Cultural Precinct, Constitution Hill, the Innovation Hub, the Johannesburg International Airport Industrial Development Zone, the City Deep Container Depot Industrial Development Zone, as well as the Gautrain Rapid Rail Link are all on track and work has started. Moleketi invited everyone to go and see what is happening in Newtown where Gauteng is being turned into a construction site.

Another important development is the Shared Services Centre, which aims at delivering quality service delivery and good governance. This centre is the first of its kind in the country and it is being implemented over a three-year period.

Contact: Yolisa Tyantsi at 082-905-1147.

Issued by Finance and Economic Affairs, Gauteng

4 June 2001