Infrastructure spending trends
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description
Infrastructure spending trends. The potential impact on growth . Labour multipliers for the construction sector. GDP multipliers for the construction sector. Direct 0.23 . Direct 3.5 . Total 1.21. Total 8.8. Induced 0.46 . Induced 2.0 . Indirect 0.52 . Indirect 3.3 . - PowerPoint PPT Presentation
Transcript of Infrastructure spending trends
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Infrastructure spending trends
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
Infrastructure spending based on NDP target of 10% of GDPPlanned MTEF and PICC Infrastructure spending
Rm
illion
- 20
13 p
rices
Infrastructure spending gap of approx. R 6.5 tril-lion
Spending Gap
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GDP multipliers for the
construction sectorDirect
0.23
Indirect 0.52
Induced0.46
Total 1.21
Labour multipliers for the
construction sectorDirect
3.5
Indirect 3.3
Induced2.0
Total 8.8
The potential impact on growth
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Actual infrastructure expenditure as a % of budgeted, 2012/13
Source: National Treasury Budget Review (2014)
Current levels of underspending
89%
83%
108%
50%
88%
National departments
Provincial departments
Local government
Extra-budgetary instritutions and publicprivate partnerships
State-owned companies
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Actual spending
Impact of underspending
EmploymentImpact
GDP Impact
Budgeted spending Actual spending Budgeted spending
Infrastructure spending 2013/14 R847 billion over 3 years
Assuming a 50% import component
Total local spending of approximatelyR400 billion
R26.1 billionR30.1 billion
Additional income into the economy
Additional income into the economy
Average number of Temporary jobs created over 3 year period
Average number of Temporary jobs created over 3 year period
720 000
840 000
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Institutions
41Infrastructure
66Economy
95
This little island is
beating us
Health and education
135Higher
education
95Labour market
116Financial markets
3Innovation
39
Overall ranking 53Inadequately educated workforce
Restrictive labour regulations
Inefficient government bureaucracy
How are we doing i.t.o. infrastructure?
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How are we doing i.t.o. infrastructure?
Quality of overall infrastructureOuality of roads
Quality of railroad infrastructureQuality of port infrastructure
Quality of air transport infrastructureAvailable airline seat km/week
Quality of electricity supplyMobile telephone subscriptions/100 pop.
Fixed telephone lines/100 pop. 10034
6341
4851
1125
101
Infrastructure
66
The Global Competitiveness Report (2013-2014)
What are we planning to spend?
THANK YOU Lullu Krugellullu.kpmg.co.za
