MEC of Finance in KwaZulu-Natal, Ravi Pillay tabled his 2020/2021 Budget Speech recently.
In the presentation, he stated there would be budget cuts and admitted there were constraints affecting economic growth in the province.
Cuts will be effected in departments which show high expenditure on non-core activities (amounting to around R30-million per annum) and those which showed significant underspending on compensation of employees in the 2019/2020 financial year, and in the allocation of funds which have been kept in the Provincial Revenue Fund for the past few years.
MEC Pillay indicated constraints hampering economic growth included insufficient skills, highly skewed distribution of land and productive assets, low levels of competition and integration into global and regional value chains, limited or expensive connectivity, under-serviced historically disadvantaged settlements and the risk of climate shock.
However, he said this did not spell doom and gloom, as there would be ‘great focus’ on critical areas of priority such as job creation, basic services, education, health, skills development, human settlements and sustainable livelihood, aiming at a peaceful province and incorruptible government.
MEC Pillay also stated emphasis on education was indicated by receiving the highest budget from Treasury, of which part will dedicated to infrastructure and trying to address issues of overcrowding in schools.
He added focus would also be placed on the establishment of boarding schools, as part of the process of consolidating small and non-viable schools.
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A budget of R103-million will be set for this in the Zululand District.
Moreover, Zululand has a budget of R110-million for an upgrade of Musa Special Needs School and another R90-million for the upgrade of Dingukwazi Secondary School.
The department receiving the second-highest budget from Treasury was health.
It will have a spending cap of R6,3-billion on infrastructure development, while the bulk of the budget allocation was planned for delivery of Primary Health Care services. A total of 26 clinics in Zululand will benefit from the department’s plans to complete upgrades, plus the installation of monkey barriers and replacement of perimeter fencing. Additionally, the department has been allocated a budget of R155,1-million for the construction of outpatient, emergency and pharmacy facilities at Hlabisa Hospital (Nongoma).
The Department of Transport was the third to receive a big chunk from Treasury, and the bulk of its budget will go into construction of roads and the maintenance of the provincial network, including construction of new gravel roads, new blacktop roads, new causeways, and new pedestrian and vehicle bridges.
MEC Pillay said the department would also continue with road infrastructure development in rural areas.
The Budget Vote amounted to R138 182 164, broken down as follows:
· Office of the Premier – R800 198 · Provincial Legislature – R653 102 · Agriculture and Rural Development – R2 548 157
· Economic Development, Tourism and Environmental Affairs – R3 346 813
· Education – R57 246 803
· Provincial Treasury – R718 763
· Health – R48 057 681
· Human Settlements – R3 929 897
· Community Safety and Liaison – R249 103
· Sports and Recreation – R481 217
· CoGTA (Cooperative Governance and Traditional Affairs) – R1 879 146
· Transport – R11 635 486
· Social Development – R3 836 327 · Public Works – R1 778 409
· Arts and Culture – R1 021 062.
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