Today we are presenting the penultimate Budget Speech of the 2009-2014 Political Term of Office. This budget tells a story of how we have performed since the beginning of this term of government, and how we intend to consolidate our efforts in funding our priorities in the next financial year which is the last mile of the current political term of office.
As the Gauteng Provincial Government, it is it our view that we have an important story to tell in terms of fiscal management in the public sector. Ours is a story of difficult and often unpopular choices that we had to make in this this term of office, in response to the challenges that we faced, in particular, the global economic downturn that resulted in a sharp decline of the equitable share and the diminished collection rate from our own revenue sources.
The measures that we took during those days ensured that we remained prudent about overall spending, putting emphasis firmly on reprioritisation and better quality of expenditure. As a result of that, today we are able to reinforce infrastructure and capital expenditure budget without threatening fiscal sustainability and our ability to deliver basic public services to our people. We are indeed able to embrace a more confident and positive developmental trajectory that the Honourable Premier presented in her State of the Province Address last week.
In this context, the 2013/14 provincial budget marks the beginning of a new cycle of public spending in a way that makes a difference in our people’s lives. In line with Vision 2055, we will roll out massive infrastructure programmes, such as building of roads; building of and refurbishment of schools and hospitals; and connecting our people through the Gauteng Broadband Initiative.
The R76.9 billion budget that we are presenting contains many difficult decisions. All of us should ensure that we do not live beyond our means. We all should do away with the nice to have kind of programmes, and programmes that fail to deliver on our outcomes.
What this budget delivers are the necessary actions to restore strength and stability to our finances so we can be prepared and have the capacity to act further if needed. We need to build capacity to weather the incoming storms.
Infrastructure development has been identified as a catalyst for economic growth and job creation. As the provincial government, we share this believe and this is why we have set aside a budget of R25 billion over the next three years towards infrastructure investments.
In an effort to improve the delivery of infrastructure, EXCO has formally adopted the Gauteng Infrastructure Delivery Management System (GIDMS) which is structured in terms of portfolio management, programme management, project management, and operations and maintenance. As announced by the Minister of Finance, the implementation of GIDMS will be a condition to access infrastructure funding.
Our commitment to restoring effective controls and systems and improving efficiencies, capacity and management in the Department of Health is unwavering. As part of stabilising the health sector, an additional amount of R1.1 billion has been made available over the MTEF to supplement funding for the non-negotiable items that make the health institutions functional.
We are indeed delighted to announce today that Helen Joseph, Tembisa and Kalafong hospitals have been reclassified and assume the status of tertiary hospitals while Natalspruit and Zola hospitals will be commissioned in the 2013/14 financial year. The department has been allocated an amount of R1.5 billion over the MTEF to cater for operational costs of these hospitals. An additional allocation amounting to R2.2 billion over the MTEF is earmarked and has been made available for personnel.
As the provincial government, we remain committed to ensuring that our people are safe. We are concerned, therefore, about disturbing reports of domestic violence (that often results in loss of life, child abuse and rape. Our view is that this cannot go unchallenged. That is why we are allocating resources amounting to R88.6 million for implementation of programmes that support the reduction of incidences of crime/violence against women and children.
Furthermore, the provincial government continues to monitor the implementation of the Co-Created Policing Strategy and the Detective 10 Point Plan to ensure that there is a reduction in priority crimes. These strategies have made a significant impact in the reduction of priority crimes. We have taken a view therefore that we need to enhance their implementation going forward. That is why we are announcing today that these two strategies have been jointly allocated an amount of R18.2 million over the MTEF.
The increased number of people in the province as indicated in the Census 2011 has put the provision of social services under tremendous pressure since it has had to cope with more people moving into the region.
Furthermore, census information becomes critical in the manner in which resources are allocated to provinces through the equitable share formula. To this end, the equitable share formula has been revised. This has resulted in Gauteng receiving additional resources amounting to R1.4 billion; R2.9 billion; and R5.2 billion for the respective years of the MTEF after taking into consideration the reductions that have been imposed by national government.
Additional allocations:
1. Finance
The Department of Finance receives R5 million in 2013/14; R5.3 million in 2014/15 and R5.6 million in 2015/16 for the establishment and operations of the Project Management Office for the Gauteng Broadband Network initiative.
2. Office of the Premier
The Office of the Premier receives an amount of R31 million over the MTEF for the operationalisation of Gauteng 2055 vision, the development of the Infrastructure Master Plan and the capacitation of the Gauteng Planning Commission.
3. Sport, Arts, Culture and Recreation
In order to facilitate the construction of the women’s monument, ensure the sustainability of community libraries through co-funding, the rehabilitation of township facilities and refurbishment of Bob van Reenen stadium; the department is allocated a total of R85 million in 2013/14.
Enquiries:
John Sukazi, MEC Spokesperson
Tel: 011 355 2161
Cell: 083 772 4885
E-mail: john.sukazi@gauteng.gov.za
