The Treasury, along with the government in Gauteng, will make up a R390 million annual revenue shortfall created by changes made to the\u00a0 e-toll system in 2015.<\/p>\n
According to BusinessDay<\/a>, tax payers will fund the South African National Roads Agency Limited (Sanral) for the next 22 years, after Cyril Ramaphosa announced a new funding structure to a toll system which has been widely rejected by the public.<\/p>\n A new e-toll dispensation announced in May last year, resulted in fees being cut by 50%, a cap on fees and discounts on outstanding fees.<\/p>\n According to the Opposition to Urban Tolling Alliance (Outa), government has at its peak, generated less than a quarter of revenue required by Sanral.<\/p>\n Deputy President Cyril Ramaphosa said that for the deal to work, Gauteng and the SA government had to fill a R600 million to R700 million gap.<\/p>\n Gauteng Finance and e-Government MEC Barbara Creecy announced an allocation of R123 million by the Gauteng government during her 2015\/16 financial year mini budget speech in November.<\/p>\n According to BusinessDay, Sanral will again look to raise R400 million from bond auctions, beginning in February, and ending in November.<\/p>\n Sanral chief financial officer Inge Mulder told the business paper that the R390 million would be adjusted for inflation and traffic growth every year, ‘with the exact amount to be reflected in the Appropriation Bill, published with the finance minister\u2019s budget speech’.<\/p>\n Using Gauteng taxes to pay e-tolls is a massive waste: Outa<\/a><\/strong><\/p>\n 5 reasons why e-tolls failed in South Africa<\/a><\/strong><\/p>\nMore on e-tolls<\/h3>\n