30 years at this rate to eradicate housing backlog

African News Agency (ANA)

30 years at this rate to eradicate housing backlog
Investment in infrastructure a necessity

At the present rate of delivery, it would take 30 years and cost R600 billion to eradicate the estimated backlog of two million housing units using the RDP and informal settlement model of delivery.

This was among findings in a preview of the results of 27 performance and expenditure reviews contained in the BUDGET-EXPENDITURE REVIEWS: ‘30 years at this rate to eradicate housing backlog’, which was tabled in Parliament on Wednesday by South African Finance Minister Pravin Gordhan.

The statement found that a comparison of six housing programmes funded through the human settlement development grant showed that only 123,000 housing units were delivered per year, against the published number of 254,000 units.

The study calculated the full cost of an RDP house at R169,000, compared with a subsidy of just R90,000.

The additional costs are largely met from municipal infrastructure funding, the MTBPS said, adding that mobilisation of private finance was insufficient.

The reviews, which were co-initiated with the Department of Planning, Monitoring and Evaluation in 2013, scrutinise expenditure and programme performance data to assess and improve the cost effectiveness of public policy and budget planning. They are due to be published on October 31 by the National Treasury.

The statement added that the reviews, which were compiled by consultants, should be considered advisory submissions that do not necessarily reflect government’s views or assessment.

South Africa Today – South Africa News

SOURCEAfrican News Agency (ANA)