The NDP recognises that we need a better education system to address poverty and build a more capable workforce. Education is the largest single category of government expenditure. It is projected to increase by an annual average rate of 7% over the next three years to R287 billion in 2016-17. The school infrastructure backlog grant and education infrastructure grant will grow strongly over this spending period.
Employment and social security is the fastest growing function over the MTEF period, increasing by 14% to R75 billion in the outer year. The Community Works Programme will be operational in every municipality by the end of this three-year period.
Under the oversight of the Presidential Infrastructure Co-ordinating Commission, PICC, the rate of public investment will gather further momentum next year, and beyond, supporting social delivery, industrialisation and skills development. Projects that will get under way soon include a new dam in the Eastern Cape, rehabilitation of the main roadway between the Eastern Cape and KwaZulu-Natal, and a new coal-fired power station.
We are reviewing our financing and regulatory procedures to make them more flexible where needed, to provide for multiyear approvals and to shorten decision times. These efforts will need to be accompanied by strengthened technical capacity at municipal level, in particular.
The PICC is focusing on maintenance of infrastructure, with proposals to ring-fence budget allocations to ensure that we retain the usability and value of the infrastructure over the planned life cycle. The roll-out of infrastructure has been accompanied by programmes to support the local manufacture of components, ranging from buses to energy components. These create sustainable, decent jobs and are part of the legacy that the infrastructure roll-out plan will leave.
In the past twelve months, we have also seen new projects announced by the private sector in the auto sector, television, film and agroprocessing, building on government's investment programme and supported by our development finance institutions. These initiatives signal our shared commitment to invest today for the expansion of the economy and more inclusive growth.
On the subject of the Adjustments Appropriation, allow me to comment briefly on the 2012-13 outcome and the revised numbers for 2013-14. Both nationally and in provinces, there has been a commendable moderation in spending growth. I would like to acknowledge the support of Cabinet colleagues and the provincial executives in adhering to budget limits.
For the present year, the February Budget provided for an appropriation of R1,06 trillion. After taking into account the changes proposed in the Adjustments Appropriation Bill and the Division of Revenue Amendment Bill, expenditure this year will be R1,05 trillion, or 9% more than the 2012-13 outcome. The budget adjustments this year include, amongst others, R2,3 billion for national departments and provinces to cover inflation- related salary increases; R894 million rolled over from unspent balances in 2012-13; R500 million for expenditure financed by departmental revenue; and earmarked amounts for broadband connectivity in schools, troop deployments in the Democratic Republic of the Congo and repair of flood-damaged infrastructure. Details of further adjustments are set out in the Adjusted Estimates of National Expenditure.
As government, we acknowledge that we, too, must provide value for money. Although most government spending is effectively managed, there are many opportunities to cut or minimise costs and to stop abuse. In these difficult times, Cabinet, of its own volition, has decided to take a number of initiatives which will apply both to members of Cabinet and to officials in national, provincial and local government departments. This will also include state entities and state-owned enterprises.
I want to quote a good friend of President Zuma, the former President of Brazil, Lula da Silva, who said:
Poor countries must give an example of honesty, of ethics, so that we truly deserve the solidarity from millions and millions of people who would like to contribute but sometimes are not sure their money will go where it should go.
In respect of the executive, including provincial and municipal executives, Cabinet, of its own accord, has decided the following. In respect of cars, the cost limits for official cars will be standardised; I do not want to advertise any particular brand ... [Interjections.] They have not paid any fees for that. [Interjections.]