The Gauteng Provincial Government (GPG) generated a total of R1.890 billion from provincial revenue sources including interest earned from investments, motor vehicle licenses, gambling and betting taxes and hospital patient fees in the first six months of this financial ending September.
The amount represents approximately 55.36% of the total projected appropriation of R3, 415 billion for the current financial year.
This is according to the Gauteng Provincial Government’s Revenue, Expenditure and Cash Flow Report for the Second Quarter 2012/13.
“The monthly trend collection of GPG for the first six months of this financial year was at R315, 136 million, which was higher than the target of R254, 065 million. If this trend continues, there is a strong possibility that we will achieve the projected main appropriation,” Gauteng Finance MEC Mandla Nkomfe said.
Nearly all departments with the exception of Sports, Arts, Culture and Recreation recorded higher revenue collection in this period. In fact Gauteng Provincial Treasury surpassed its main appropriation by R46, 422 million or 84.40% due to, amongst other things, interest earned on short term investment from surplus funds.
Office of the Premier also surpassed its main appropriation by 7.27%. The Gauteng Department of Agriculture Rural Development collected R1, 249 million or 90.83% of its main appropriation; this high collection is attributed to financial transactions that entailed collection of departmental debts.
“The figures outlined above are in line with our strategy to improve the collection of revenue in the coming years in order to fund provincial outcomes, which include improving the quality of the public education system, provision of responsive health care services and facilitating inclusive economic growth,” Nkomfe said.
The MEC’s view is underscored by the fact that over the past two financial years, GPG’s Own Revenue Generated has been on the upward trend. In 2010/11 the province generated R2.8 billion, a R100 million more that the projected annual target of R2.7 billion. Then last year total revenue collected reached R3.589, which was R496.6 million more than the projected annual target.
The provincial government’s strategy in this regard is aimed at optimising revenue collection in order to ensure that GPG departments present credible revenue projections. The following measures have been implemented in order to achieve this objective:
- Enhance collection within the motor vehicle licensing revenue source
- Collect outstanding debts in particular funds owed to the Gauteng Department of Health from other provinces
- Align monthly rental fees charged to employees who live in state houses to market rates
- Introduce the Electronic Data Interchange in most public hospitals in the province to ensure that all patients who are on medical aid are billed within 15 days after discharge, thereby ensuring better revenue collection.
In addition to this, particular emphasis will be placed on the sale of advertising space on government owned property including buildings, car parks and highways. Furthermore employee parking fees which have not been increased since 1995 are being reviewed and the casino tax which is the lowest in the country and has remained the same over the past 13 years is also under the spotlight.
“As we have said before, the demand for public services is growing particularly in Gauteng due to in migration. Unfortunately this increase has not been matched by government revenue growth trends. As a result, we must intensify measures to collect revenue from our sources because every rand counts when it comes to resourcing our outcomes,” Nkomfe explained.
Analysing the period leading to the end of the financial year in March, Nkomfe emphasised that GPG needs to collect R1, 524 billion or 44.64% of the main appropriation. “We must collect R254, 065 million per month for the remaining of this financial year in order to achieve our targeted. I therefore urge the Gauteng Provincial Treasury to work closely with departments to ensure that we meet and possibly surpass the goals we have set ourselves in this regard,” Nkomfe added.
Enquiries:
John Sukazi
Tel: 011 355 2161
Cell: 083 772 4885
E-mail: john.sukazi@gauteng.gov.za
