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TRL3702 ASSIGNMENT 2 SEMESTER 2 2024
- Institution
- University Of South Africa (Unisa)
TRL3702 ASSIGNMENT 2 SEMESTER 2 2024
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TRL 3702ASSIGNMENT2
SEMESTER 2
, 1. Evaluate the funding of non-tolled roads in South Africa. Do you think this is a
viable method of funding these roads? Substantiate your answer.
Funding of Non-Tolled Roads in South Africa: A Viable Approach?
The short answer is: yes, but with limitations and potential challenges.
The current funding model for non-tolled roads in South Africa, primarily through
government taxes and allocations, is a common approach globally. However, its
viability depends on several factors, including:
Advantages of the Current Model:
Equity: It distributes the cost of road infrastructure across the entire population,
rather than placing the burden on specific users.
Stability: Government funding can provide a more stable source of revenue
compared to user fees like tolls, which can be affected by economic fluctuations.
Accessibility: It ensures that roads are accessible to all, regardless of income, as
there's no direct cost to use them.
Challenges and Limitations:
Resource Constraints: Government budgets are often limited, and competing
priorities can divert funds away from road infrastructure.
Maintenance Backlog: The lack of sufficient funding can lead to a growing
maintenance backlog, resulting in deteriorating road conditions.
Inefficient Allocation: The allocation of funds may not always be optimal, potentially
leading to underfunding of critical roads or overfunding of less important ones.
Lack of Accountability: Without direct user fees, there may be less accountability for
the effective use of road funds.
Potential Alternatives and Enhancements:
To address these challenges, South Africa could consider:
Fuel Levy Increases: Increasing the fuel levy could generate additional revenue for
road infrastructure, but this could impact consumers' wallets.
Road User Charges: Implementing road user charges, such as vehicle registration
fees or distance-based tolls, could provide a more equitable and efficient way to fund
roads.
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