Gauteng budget spend reaches 97% average

4th October 2019

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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The Gauteng departments of Health, Education and Infrastructure Development have driven the Gauteng Provincial Government’s collective 97% spend of its total adjusted budget for the 2018/19 financial year.

Aggregately, the province spent R119.5-billion of its R122-billion budget for the year, Gauteng Finance and e-Government MEC Nomantu Nkomo-Ralehoko revealed on Friday.

The audited budget expenditure report for 2018/19 shows that big service delivery departments recorded expenditure rates of between 96% and 99%.

“We welcome this high level of spending that was done in accordance with financial rules and regulations to deliver services to citizens. But we must continue to improve planning to ensure that we spend 100% of our budget,” Nkomo-Ralehoko said.

Changes in the method of procurement of core services, as well as shortcomings in the proper planning of projects prior to implementation, had resulted in some departments spending less than the province-wide average.

However, the necessary rollover processes have been done.

Meanwhile, the departments spent 97% of their infrastructure budgets in the year under review, while a total amount of R20.5-billion was spent on conditional grants budgets.

“The underspending was, again, a factor of the disjuncture between planning and budgeting that had an impact on implementation of funded projects and programmes,” Nkomo-Ralehoko said, adding that infrastructure gives citizens access to services, provides jobs and boosts economic activity.

“These funds were used in building and upgrading of schools, roads, clinics, hospitals, libraries, community care facilities and children’s homes.”

The provincial government also collected R6.8-billion from own revenue sources, including motor vehicle licences, gambling, betting taxes and hospital patient fees in the year under review, surpassing its revenue collection target by 11.4%, or about R700-million.

Last month, Gauteng’s audit outcomes showed that 15 departments and entities maintained clean audits in 2018/19, while an additional 17 departments and entities of the provincial government achieved unqualified audit opinions.

Edited by Creamer Media Reporter

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