The South African government injected over R202 billion into the economy last year, says Statistics South Africa (Stats SA) Capital Expenditure by Public Sector Survey released today.

The survey found that the total actual capital expenditure by public-sector institutions increased by R21bn from R181bn in 2011 to R202bn in 2012.

The bulk of spending went into new construction works, with plant, machinery, and equipment legging behind.

The fiscus spent at least R137bn on new construction works while R38bn was spent on plant, machinery, and equipment.

“The figures show that municipalities were under-spending on vital equipment related to service delivery,” said Statistician-General Pali Lehohla.

Public corporations spent the most, according to the Capital Expenditure by Public Sector statistical release.

Over a five-year period 2008-2012, the amount expended by public-sector institutions on new construction works (regarded as new buildings and work under-construction) more than doubled from R68 billion to R137 billion, said Mr Lehohla.

Mr Lehohla noted that there was a core-relation between bulk infrastructure and service delivery.

The total capital expenditure on plant, machinery and equipment by the public-sector institutions increased from R24 billion in 2011 to R38 billion in 2012.

Over a five year period, 2008-2012, the amount expended by public-sector institutions on plant, machinery and equipment (regarded as furniture, office equipment, rolling stock, etc.) gradually increased from R31 billion to R38 billion.

“Service delivery is influenced by long term infrastructure but municipalities are not investing adequately in equipment and machinery,” said Mr Lehohla.

“Employment-related costs in municipalities continue to grow. But there is no spending on equipment and machinery. This raises the question. Who is doing the work?” said Mr Lehohla.

Issued by Stats SA

Trevor Oosterwyk

Manager: Communications

Tel: (012) 310 8130

Cell: 082 908 9104

Email: TrevorO@statssa.gov.za