The Gauteng finance department had reprioritised R333\u00a0million towards the Gauteng broadband network and other information and communication technologies.<\/p>\n
This is according to Gauteng finance MEC Barbara Creecy, who said that South Africa was at a crossroads as the weakening current account deficit and rising public debt highlighted the need for fiscal consolidation.<\/p>\n
Presenting the prepared medium term budget policy statement (MTBPS) to the provincial legislature in Johannesburg, Creecy said the economic environment had changed significantly since 2009.<\/p>\n
“When the recession took hold in 2009, government responded to the crisis by using the fiscal framework as a tool to stimulate the economy,” Creecy said.<\/p>\n
“Borrowing was relatively cheap and low domestic inflation limited cost pressures on public sector budgets.”<\/p>\n
The depreciation of the rand meant fuel and other imported goods were more expensive, which had led to a current account deficit.<\/p>\n
“The cost of borrowing money has risen and the debt to GDP ratio is expected to rise to 42.8% by 2017\/18,” the MEC said.<\/p>\n
“We are at a crossroad: this weakening current account deficit and the rising public debt highlight the need to strengthen fiscal consolidation.”<\/p>\n
However, slow economic growth required government to maintain its fiscal stimulus into the economy, and prioritise service delivery.<\/p>\n
“We must maintain a proper balance between these two realities,” Creecy said.<\/p>\n
She said Finance Minister Nhlanhla Nene highlighted these challenges in his MTBPS on October 22, with budget cuts taking place across the three spheres of government.<\/p>\n
“The Gauteng contribution to the proposed budget reductions from our equitable share… is R1.3 billion,” Creecy said.<\/p>\n
This meant that tough times were ahead, especially as the provinces’ needs had changed little.<\/p>\n
“As the financial resources shrink, the Gauteng population is, as we all know on the increase, and is rising faster than the national average due to in-migration from other provinces,” Creecy said.<\/p>\n
The provincial government sought to maintain spending on quality services, increase spending on infrastructure, eliminate waste and corruption, and look for ways to increase revenue and alternate funding.<\/p>\n
“At the outset let me make it quite clear that while we are talking about improving discipline in government spending, we are absolutely not talking about austerity measures,” she said.<\/p>\n
Total appropriation had been adjusted upward by R237.7 million to R87.2 billion.<\/p>\n
In terms of re-prioritisation, the economic development department planned to use R24.7 million in its baseline, added to an extra R160\u00a0million redirected from the gambling board to fund township enterprise development.<\/p>\n
R30 million was set aside for the Automated Fare Collection System.<\/p>\n
This would see Gauteng residents travelling on different modes of transport using a single ticket.<\/p>\n
“In addition, R22 million will be used to conduct a feasibility study on the extension of the Gautrain network to different regions within the province,” Creecy said.<\/p>\n
The education department had reprioritised R60\u00a0million towards infrastructure delivery.<\/p>\n
In terms of additional resources among certain departments, health was allocated R369.4 million, with R308\u00a0million of that amount set aside for increased expenditure on non-negotiable items.<\/p>\n
“It will also be used for the maintenance of medical and allied equipment as well as diesel for the boilers used in hospitals,” Creecy said.<\/p>\n
The education department received R300\u00a0million to fund an increase in personnel costs due to pupil growth in Gauteng, the opening of new schools and the filling of vacant teacher posts.<\/p>\n
The human settlements department received R133.7\u00a0million to “kick-start the programme of radical spatial transformation”.<\/p>\n
Community Safety received R58.9\u00a0million to fund spending pressures and initiatives for reducing road fatalities, while agriculture and rural development received R18.7 million.<\/p>\n
Broadband to save Gauteng R162 million<\/strong><\/a><\/p>\n