Each year, after the State of the Nation Address almost everyone anticipates for budget speech. Yesterday, on the 26th of February the National Finance Minister Pravin Godhan delivered the 2014/15 budget speech in Parliament. This is the Godhan’s fifth Speech in the administration of President Jacob Zuma.
Like, any other year, the speech left the public with mixed emotions. Some are happy and hopeful while others couldn’t care less about it, claiming that the speech is a bit predictable. After the anticipation, Godhan then told the public how the R1.25 trillion rand will be divided.
After thanking South Africans for their support, co-operation and encouragement, Godhan frankly told them that the world economy is still in difficulty, and global institutions are struggling to find their way. He went on to say that the country has established its economy after the 2008 world economy crisis, achieving a recovery in growth and jobs.
After all the students protests due to financial needs in higher institutions across the country, almost everyone was keen to hear the country’s plan in making sure that no young person is staying at home doing nothing because of financial problems. “We have spent R115 billion on higher education over the past five years, including R18.6 billion on the National Student Financial Aid Scheme. Allocations to the NSFAS amount to R19.4 billion over the next three years, and will assist over 500 000 students a year,” he said.
Godhan also announced that (NSFAS) increases from R5.1 billion last year to R6.6 billion in 2016/17. He went on to say that will increase the number of FET college bursaries to 292 000 and will assist over 236 000 students to attend university by 2016/17.
One of the challenges South Africa is currently facing is the issue of youth unemployment rate. In Janauary 2014, Finance24 reported that according to the World Economic Forum (WEF) Global Risk 2014 report, Cape Town on its own has the third-highest unemployment rate in the world between the ages of 18-24. The minister announced that the government has the strategy to reduce this. The strategy includes Implementation of the Community Work Programme in every municipality by 2017.
That gives hope to the youth of South Africa, we are really not sure if all the promises he made will be kept, but we hope for nothing but the best.
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Sources: http://www.fin24.com/Economy/SA-youth-unemployment-3rd-highest-in-world-20140120
Twitter: @Snazzy_Mkoko
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