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Own revenue generation enables Gauteng to extend budget allocation by R1.9bn

15th November 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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Finance MEC Barbara Creecy has increased the Gauteng provincial government’s budget by R1.9-billion to R123.2-billion, compared with the R121.4-billion budget that was announced in March.

Presenting the Adjustment Budget and Medium Term Budget Policy Statement in the Gauteng Legislature, on Thursday, Creecy explained that the National Treasury had not allocated any further funds to the province.

“The Provincial Adjustment comes mainly from our own revenue collection. Fortunately, we have continued to outperform in this area, collecting over R6-billion in 2017/18.

“Gauteng has managed to collect R25.5-billion in own revenue over the past four and half years,” she explained.

The largest share is allocated for infrastructure, which has increased by R567.9-million.

The infrastructure spend includes R329-million for the provincial Department of Transport to complete current road repairs and upgrades. Of this amount, R42-million has been set aside for road maintenance in the Emfuleni municipality.

Gauteng has consistently increased spending on infrastructure through on and off budget initiatives to improve public facilities and create employment opportunities for citizens.

“Our infrastructure investment is estimated to have added R41-billion to the provincial economy over the last four and a half years, created or sustained 265 000 jobs and created 499 000 Expanded Public Works Programme (EPWP) opportunities,” Creecy stated.

She added that, in the next 18 months, infrastructure investment is expected to generate R15-billion for Gauteng’s economy, sustain 95 000 jobs and create 260 000 EPWP opportunities.

In 2017/18, the Gauteng provincial government spent R11.2-billion on infrastructure delivery, which was the fourth year in a row that it succeeded in spending more than 97% of the appropriated budget.

In these four years, the provincial government had built more than 30 new schools, rehabilitated another 33 schools, completed two provincial hospitals and three clinics, as well as eight new libraries and ten multipurpose combi-courts.

Additionally, government upgraded 110 km of roads and rehabilitated a further 345 km. A further 50 km of roads will be rehabilitated in the next six months.

Health and education has been allocated R722-million to protect frontline services in hospitals and schools. Government reported that additional allocations to health and education would cover increased salary costs resulting from the national wage settlement, as well as filling critical posts in education districts and schools.

There are also allocations to social development to ensure that community facilities comply with occupational health and safety regulations.

Sports, arts and culture has been allocated R86-million, to complete community libraries.

Pump station repairs on the Vaal river will see R20-million from the Gauteng provincial budget.

Creecy, meanwhile, said the province has aligned its work to fully contribute to the achievement of the National Economic Stimulus and Recovery Plan as announced by President Cyril Ramaphosa in September.

“Our target is to enhance our private sector partnerships, improve the ease of investing in Gauteng, ensure better public access to government services, improve the skills and employability of young people and protect our vulnerable citizens from the worst effects of unemployment and poverty,” she added.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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