KwaNulu-Natal Finance MEC Nomsa Dube-Ncube has tabled the provincial budget, which at R139-billion, is focused on economic recovery, job creation and rebuilding infrastructure.

Similar to the national economic performance, the KwaZulu-Natal province continues to rebound from the contraction of 6.4% induced by Covid-19 in 2020. 

The provincial economy is estimated to have grown at 4.2% in 2021, with real output projected to retreat somewhat by 1.7% in 2022 and 2023.

While KwaZulu-Natal’s economy has shown positive signs of a full recovery, provincial employment remains unacceptably low. The number of employed people dropped by 5.1% in the third quarter of 2021. 

Unfortunately, youth unemployment also continued to rise, mainly when measured using the expanded definition, which incorporates discouraged work seekers.

The province's education department got a bigger share of funding, at R1.8-billion, with Dube-Ncube noting that this year’s budget allocation would prioritise education infrastructure and strengthen training and skills development.

There are additions made to the provincial fiscus for the 2022 wage agreement. The province also received a significant injection of funds into education with respect to the Presidential Youth Employment Initiative (PYEI).

“Our main goal is to make young people and the people of KwaZulu-Natal capable of sustaining themselves independently using their skills to survive.

"It is the technical skills that will grow the economy of our province and enable our people to compete with the best in the world. We are allocating resources to allow government to provide on-the-job experience through internship and learnership programmes," the MEC comments.

She emphasises that government is using the PYEI and the KwaZulu-Natal Youth Empowerment Fund to promote and sustain the youth entrepreneurship revolution.

“We are allocating infrastructure and funding to enable young people to take charge of the future. We want them to occupy front seats of key sectors such as the digital economy," she says.

The province continues to invest in infrastructure development with the budget over the medium-term expenditure framework (MTEF) amounting to R18.6-billion, R19-billion and R18.7-billion. This includes both equitable share and conditional grant-funded infrastructure.

The Department of Transport has been allocated R25.9-billion over the three years of the MTEF. The department’s activities in infrastructure delivery and maintenance, as well as transportation services, are cross-cutting.

“It is acknowledged that there must be considerable capital investment in road infrastructure to support the National Development Plan and Medium-Term Strategic Framework priorities. Hence, there is significant investment in maintenance and repairs, upgrades and additions to existing infrastructure, as well as rehabilitations, renovations and refurbishments to existing infrastructure,” Dube-Ncube says.

The provincial Health Department has been allocated R1.5-billion to, among other things, continue fighting the Covid-19 pandemic, while social development will receive R41.5-million to fund nonprofit organisations.