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Gauteng gets budget of R143bn in 2021/22

11th March 2021

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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Gauteng Finance and e-Government MEC Nomantu Nkomo-Ralehoko has tabled a budget of R142.6-billion for the 2021/22 financial year, R143.5-billion for 2022/23 and R149-billion in 2023/24.

Presenting the 2021/22 Gauteng Provincial Budget to the Gauteng provincial legislature on March 11, 2021, she said that the largest share of the budget had been allocated for the social services delivered by Gauteng's departments of Health, Education and Social Development.

The Medium-Term Expenditure Framework (MTEF) budget focuses on defeating the Covid-19 pandemic; reigniting the Gauteng economy with an emphasis on job creation through reindustrialisation; refocussing social policy to address crime while confronting poverty and inequality; as well as improving and expanding service delivery while improving governance and oversight.

Nkomo-Ralehoko highlighted the economic devastation caused to the Gauteng economy by the pandemic, with gross domestic product (GDP) declining from R1.1-trillion in 2019 to R1-trillion in 2020.

At the height of lockdown restriction measures during the second quarter of the year, Gauteng’s GDP by region contracted by 50.5% quarter-on-quarter on an annualised rate and by 17.6% on a yearly basis.

“Over 600 000 jobs were lost during this quarter, accounting for the highest number of jobs losses in the country, and more people slipped deeper into poverty, widening the inequality gap further.”

The GDP is expected to recover by 3.2% in 2021, before stabilising at its long-term average of 1.9% between 2022 and 2024.

“The 2021/22 budget is geared towards supporting the strategic priorities of acting together with all in our communities to defeat [Covid-19] and to place our economy on a path of renewal and recovery.”

A total of R5.9-billion has been allocated over the 2021 MTEF, the bulk of which will be focusing on defeating the Cocid-19 pandemic. Of this the Health Department will receive R2.8-billion, largely in one-off allocations.

The existing baseline for medicine will also be boosted by R624-million. Funding has also been allocated for the data capturers necessary to help facilitate improved performance information management.

The vaccine rollout will be resourced through an injection of nearly R565-million in conditional grant funding.

The Department of Cooperative Governance and Traditional Affairs will receive a one-off amount of R20-million for the Ward-Based Covid-19 Response Committees.

The main appropriation for 2021/22 for the departments of Health and Education are R56.5-billion and R53.4-billion respectively, followed by the Department of Social Development with R5.8-billion, Human Settlements with R5.9-billion, Roads and Transport with R8.6-billion and Infrastructure Development with R3.2-billion.

Some R8.8-billion has been allocated to the departments of Economic Development; Cooperative Governance and Traditional Affairs; Community Safety; Agriculture and Rural Development; Sports, Arts, Culture and Recreation; e-Government; Provincial Treasury; and the Office of the Premier.

Edited by Creamer Media Reporter

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