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Budget irrelevant without implementation


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Budget irrelevant without implementation

9th March 2023

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Democratic Alliance in the Northern Cape is resolved to monitor the implementation of the provincial budget, as tabled yesterday.

Compliance with laws and the ability to manage public finances are particularly critical for the spending of conditional grants, which account for almost 25% of the provincial budget. But we know that all departments are not capable of managing conditional grants or infrastructure projects properly, after all, the province started the current financial year by surrendering more than R31 million back to the National Treasury because departments did not spend their grants fully. That was 37% of the conditional grants we received.

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It is an absolute indictment that we are giving back millions of rands when the provincial need is so high. We cannot afford to give back a third of our money every year simply because departments are not implementing the correct procedures.

We also cannot afford to be indebted before the financial year even begins. The MEC for Finance, Economic Development & Tourism acknowledged yesterday that a deficit of R150 million is projected for the 2023/24 financial year, which hasn’t even begun yet. This can come as no surprise, considering that four departments had overdrafts at the end of the previous financial year and another three had accrual-adjusted deficits.

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Until we get the basic implementation and governance right, we will continue to have the same problem every year. For the sake of service delivery in the Northern Cape, we must ensure that public funds are spent for public benefit.

 

Issued by Fawzia Rhoda, MPL - DA Northern Cape Provincial Spokesperson on Finance

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