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Related Topics |
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According to Capital Expenditure (Capex) data for the public sector (government) published by Statistics South Africa on 26 July 2015, total Capex by the public sector increased from R29.997billion in 2014 to R31.005billion in 2015 (a relatively weak increase of just 3.36% year on year). While this is a clear indication that government is tightening it's expenditure belt, there were certain stand outs.
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Gauteng Department of Finance
Gauteng department of financed reported an increase in capital expenditure from R11.8million in 2014 to a whopping R445.2million in 2015. Thats an increase of 3553.2% year on year. A far cry from the 3.36% mentioned above. When the figure is looked at in more detail as published it provides more details into what exactly Gauteng department of Finance spent the money on.
The following main Capex groups are reported on and it shows the values reported by the Gauteng department of Finance for both 2014 and 2015:
Description |
2014 |
2015 |
Percentage change |
New construction works |
0% |
||
Plant, machinery and equipment |
9 563 000 |
319 306 000 |
3 239% |
Transport equipment |
1 532 000 |
1 587 000 |
3.6% |
Land and existing buildings |
0.0 |
0.0 |
0% |
Other fixed assets |
697 000 |
124 374 000 |
17 744% |
Investment property |
0.0 |
0.0 |
0% |
Leased assets |
0.0 |
0.0 |
0% |
Readers will note the massive increase in the expenditure on two groupings, being Plant, machinery and equipment, that went up from around R9.5million in 2014 to over R319million in 2015 (in increase of 3 239% from 2014 to 2015), and Other fixed assets that increased from R697 000 to R124.4million (an increase of 17 744% from 2014 to 2015). Now one wonders what "Plants, machinery and equipment" Gauteng's department of finance could possibly have bought that made capex shout up from R9.6million in 2014 to R319.3million in 2015. Even more puzzling is the increase in "Other fixed assets" which showed a spike from less than R700 000 to spending over just over R124million.
In coming weeks will will unpack the capital expenditure on national, provincial and municpal level and highlight a few more of the interesting cases observed, similar to this case.
In coming weeks will will unpack the capital expenditure on national, provincial and municpal level and highlight a few more of the interesting cases observed, similar to this case.