Members of the Executive Committees for FinanceIt is my singular honour and privilege to present the 2021 Budget. Today I table before this House:4. The Budget ReviewMadam Speaker last year we outlined a strategy to becoming a winning country.
These acts of human solidarity and sacrifice reflect a patriotic spirit that inspires us. Often, we speak about how we must leave this earth better than we found it for future generations. Today I want to leave you hopeful and outline how we will leave this economy in better shape for those who come after us.
We increase the contingency reserve from R5 billion to R12 billion to make provision for the further purchase of vaccines and to cater for other emergencies. Honourable members, getting our fiscal house in order is the biggest contribution we can make to support our Economic Reconstruction and Recovery Plan. Continuing on the path of fiscal consolidation during the economic fallout was a difficult decision. However, on this, we are resolute. We remain adamant that fiscal prudence is the best way forward. We cannot allow our economy to have feet of clay.
Operation Vulindlela, which I introduced to you last year, has already made demonstrable progress in accelerating the pace of implementation of high impact structural reforms. Government has committed to a R791.2 billion infrastructure investment drive to this end. We are already partnering with the private sector and other players to rollout infrastructure through initiatives such as the blended finance Infrastructure Fund.
We have cumulatively made R83.2 billion available for the public employment programmes since the 2020 Special Adjustments Budget. We are now augmenting this by R11 billion for the Presidential Youth Employment Initiative, taking the total funding for employment creation to nearly R100 billion. This is in response to the job creation targets for young people. outlined by the President.
The Department of Tourism has reprioritised R540 million over the medium term to establish the Tourism Equity Fund as one of the measures to support the tourism sector recovery. The fund will acquire equity stakes in existing tourism enterprises, support expansion of operations and development of new operations.
We owe a lot of people a lot of money. These include foreign investors, pension funds, local and foreign banks, unit trusts, financial corporations, insurance companies, the Public Investment Corporation and ordinary South African bondholders. Fuel levies will be increase by 27 cents per litre, comprising 15 cents per litre for the general fuel levy, 11 cents per litre for the Road Accident Fund levy and 1 cent per litre for the carbon fuel levy.a. a 340ml can of beer or cider will cost an extra 14cd. a bottle of 750 ml spirits, including whisky, gin or vodka, will increase by R5.50f. 25 grams of piped tobacco will cost an extra 47cIt is clear that excessive alcohol consumption can lead to negative social and health outcomes.
The local government equitable share is set to increase to 9.7 per cent of the Division of Revenue in 2023/24. We are aware that financial governance remains a challenge for many municipalities. Therefore, the Municipal Systems Improvement Grant is extended for the rollout of the District Development Model.
The Africa Continental Free Trade Agreement , part of which came into effect earlier this year, presents the opportunity to deepen our trade and financial linkages with the Continent. Following last year’s Budget. Though we face many difficulties, we must not lose sight of our place in the world, as well as our potential and responsibilities. Twenty-five years ago, on 8 May 1996, the occasion of the adoption of the South African Constitution, former President Thabo Mbeki delivered his seminal “I am an African” address at this podium.“Together with the best in the world, we too are prone to pettiness, petulance, selfishness and short-sightedness.
The Department of Public Enterprises and the National Treasury will be first to pilot a new budgeting methodology. The intention is to produce significantly re-costed budgets from 2022/23.The Department of Justice and Constitutional Development is allocated R1.8 billion to improve business processes. This allocation will support our brave law enforcement agents in the fight against crime and corruption.