1 minute read
7 Nov 2013
6:02 pm

Parliament approves additional funds to departments

The National Assembly approved Finance Minister Pravin Gordhan's Adjustments Appropriation Bill on Thursday.

Pravin Gordhan.

The Bill, which provides for additional allocations to government departments, was tabled with the medium-term budget policy statement on October 23.

Most of the additional funding went towards the state’s rising wage bill, at an added cost of more than R2 billion. At a national level, Treasury is handing out R1bn to cover salary increases, inflation related and otherwise.

Another R1.25bn is going to the provinces to pay for a R690 million upgrade in clerical posts and R563m for higher-than-expected salary increases.

The police ministry received a sizeable budget adjustment, of which R202m will pay for improving detective services and R20m will go towards the embattled crime intelligence division.

A further R444m will be spent on increasing visible policing. The adjustments also provided for an increase for the department of public enterprises, but the only parastatal to benefit was arms manufacturer Denel.

This included R57m to cover penalties on its onerous production contract to make parts for Airbus.

However, this was a considerable decrease, compared to payments of around R200m in recent years from the state’s R1.6bn indemnity cover to Denel linked to the contract.

The defence ministry received an additional R150m for sending troops to the Democratic Republic of Congo as part of the UN intervention force in the conflict-ridden central African nation.

Opposition parties objected to various of the additional funding being allocated on Thursday, but the bill was pushed through by the African National Congress majority in the House.