More money for new trains and digital TV

Pravin Gordhan. Image: GCIS

Tabling the Medium Term Budget Policy Statement in Parliament on Wednesday - his last mini budget of the current administration ahead of next year's elections - Finance Minister Pravin Gordhan announced that billions of rands would be spent on the digital migration project, rolling out of new train coaches and refurbishing research facilities for nuclear research.

As expected, Gordhan allocated additional funding to support the Passenger Rail Agency of South Africa's (PRASA) procurement of rolling stock. The agency plans to purchase more than 300 six-car trains over the next decade, with initial deliveries starting in 2015.

"We will invest more in other areas of transport," Gordhan said.

"Under the oversight of the Presidential Infrastructure Co-ordinating Commission, the rate of public investment will gather further momentum next year and beyond, supporting service delivery, industrialisation and skills development.

"Projects that will get underway soon include a new dam in the Eastern Cape, rehabilitation of the main roadway between Eastern Cape and KwaZulu-Natal and a new coal-fired power station," he said.

More money for digital TV. Image: Grant Cochrane Free Digital Photos

In the past few months, government has, through the Department of Communications, prioritised South Africa's migration of televisions services from an analogue to a digital signal to improve quality and accessibility in more remote areas.

This was also done to ensure that South Africa stays abreast of international standards.

Gordhan announced that money will also be made available to roll out set-top boxes to more than 5m low-income households in preparation for the switch to digital television in 2015.

The Department of Transport is, meanwhile, reviewing the impact of the taxi recapitalisation programme, and Gordhan said a portion of the programme's funding will be delayed until the end of the spending period.