The adjustment budget announced today by Gauteng MEC for Finance, Lebogang Maile, reflects some of the gross incompetence, negligence, and fiscal irresponsibility by the Gauteng Provincial Government (GPG) over several years.
This is mainly due to the deficit growth from R2 billion to R5.4 billion, a 270% growth.
This government will soon be bankrupt if it does not prioritise, and plan wisely based on the needs of its residents.
Furthermore, the provincial government will be paying more in servicing the e-Toll debt with an increase of almost R1,5 billion raising the debt payment for this year to R3,8 billion . It is important to note that the e-Tolls were an expenditure that Gauteng residents did not ask for, but which was forced upon them by an arrogant and uncaring government.
Having been rejected and eventually ended by the people of Gauteng, the Provincial Government made backhanded decisions to straddle the residents with financial constraints by taking money needed for essential services to pay off this debt.
We would laud the MEC for the R37.2 billion that is being directed to infrastructure if this province had a record of completing infrastructure projects on time and on budget. The financial challenges that we face from global headwinds will be mitigated by a local environment that is conducive to investment, and infrastructure is crucial for the attraction of businesses into the province and the creation of jobs.
Furthermore, GPG has rollovers of R1,2 billion. This money was meant for service delivery in the previous financial year and was not spent.
The number one offender is the Department of Health, with over half a billion rolled over, yet it fails to deliver adequate health care services and to pay supplier invoices within the stipulated 30 days. After Health, the Human Settlements Department rolled-over R215 million, yet fails to build houses and complete mega housing projects.
Community Safety rolled-over R171 million, while Johannesburg remains the epicenter for crime in the province.
Maile also speaks about the GPG helping municipalities with their finances, but his commitment has been made before, with no significant improvements in Emfuleni and Mogale local municipalities.
The water crisis also shows a complete dereliction of responsibility, and the adjustment budget does not speak to these realities.
The only solution to ensure adequate service delivery and value for money is for this government to adopt proper financial planning, consequence management, transparency, and good governance.
This can be achieved by clamping down on corruption, prioritising the basics by investing in infrastructure for economic growth, and fighting crime.
Enough with rollovers, as they promote under-expenditure while service delivery suffers.
A DA Gauteng Provincial Government would clamp down on under-expenditure, unnecessary debt, and most importantly irregular, unauthorized and fruitless and wasteful expenditure.
The people of Gauteng deserve honesty. We will not paint a successful picture while the deficit continues to grow.