Madam Facilitator, Ms Nikiwe Bikitsha
Colleagues in the executive council of Gauteng
A warm welcome to Comrade Ignatius Jacobs, a former colleague in the executive council and now, Head of the newly established Gauteng Planning Commission
Leaders of the development finance institutions present
Leaders of civil society organisations, labour, youth, women and the non-governmental organisations (NGOs)
Leaders of business and the banking sector
Ladies and gentlemen
Let me start off by thanking all of you for taking time to be here today at this post budget presentation roundtable. I know certain quarters may want to raise the question about what purpose this gathering serves, given that we have already tabled the budget and announced plans as part of the programme of action of the Gauteng Provincial Government for the political year 2010 and the financial year 2010/11.
All of us would remember that prior to the 2009 election the ANC undertook a very extensive consultative process that culminated in the manifesto that is today the delivery blue print of the government. We have further elaborated the manifesto in the Medium Term Strategic Framework (MTEF) of government and these are a guide in the work we do and that includes the budget.
This work then requires that we constantly revert to our social partners, firstly, to ensure we are on course in the delivery of the envisaged outcomes and secondly, to strengthen the social partnership for the collaborative construction of our society.
Our approach to the budget
Given that we have characterised this as the era of renewal, a change in approach and how we do things has been mooted. We are institutionalising planning, monitoring and evaluation as just but one part of doing things differently. This year is a year of action and therefore it’s about measurable performance and accountable delivery.
We have now adopted a set of performance outcomes that will form the basis of how the work of government and the delivery of services is going to be implemented. We tabled before the legislature a budget of R61.7 billion approximately a 3.4 percent increase from last year. The budget presented decisively leads the assault against fragmented service delivery by being the first provincial budget that funds government’s seven priority outcomes rather than departments.
This approach ensures that the various departments are compelled to work together as a cohesive unit to deliver the required outcomes, making redundant the silo approach to service delivery.
The current fiscal and delivery space
It has been a continuous, historical mission of the national democratic revolution and it is
espoused in the Freedom Charter, that we seek to build a non-racial, non sexist and prosperous South Africa. The social objectives we have set for ourselves are born out of this. There is a concerted effort to focus on the social sector and a bulk of our resources (40 percent of the budget) has gone there. Some of the historical challenges continue to rear their ugly head as has been seen with the slow pace of delivery in some of our hospitals and the continued systemic problems we face in education.
Our schools must work; they must espouse excellence and produce quality graduates who are ready to meet the challenges of the global economy. Our hospitals and clinics must in practice be service points poised to effectively contribute to our drive to promote healthy lifestyles.
These institutions are meant to serve the public and part of our objective would be to ensure that we have skilled people able to drive the vision we espouse of a “working public service”.
In order for the economy to thrive, be competitive and create job opportunities; it must be supported by the infrastructure that is reliable and has the requisite capacity to meet the demands of a modern economy such as ours. This includes, amongst others, key provincial projects such as:
* Gautrain and Gauride
* Intelligent Transport Management System
* Consolidation of our information and communication technology (ICT) strategy and the Gauteng Broadband project (G-Link)
* Blue IQ
* Gauteng City Region Academy
Notwithstanding the fact that significant progress has been made in advancing the social and economic profile of the people of Gauteng since the dawn of democracy, the people of the province still need more to redress the socio-economic imbalances. We must of necessity create an environment where all residents can partake in meaningful economic activity.
One of the challenges that face all of us is that the supply side of things has not been commensurate with the demand. We are projecting over expenditure of approximately R2 billion this year. This is as expenditure continues to rise in line with the obligation to deliver more and faster to the masses of our people who have been waiting too long.
It is our intention to reduce the size of this deficit in each subsequent year of the MTEF. This will be accomplished through various initiatives including review of our own revenue streams, reprioritisation of projects in line with our mandate and cutting administrative and other non-core costs by consolidating efficiencies and improving our systems.
Moreover, we will aim to tighten controls in our expenditure to ensure that no funds are deviated from funding the agreed outcomes. We have also since completed the infrastructure audit of the province. This is accompanied by a plan to address the backlog identified. The audit shows that we have a R20 billion short falls in the funding required to address this backlog. Given the diminishing revenue streams we might not be in a position to meet the need.
Over the next three years; we require at least R32 billion for the development of new infrastructure in areas such as human settlements, schools, hospitals and clinics. We further need to mobilise external funding to resource strategic infrastructure projects, in the following areas:
* refurbishment and upgrade of health facilities,
* Kopanong precinct,
* housing development
* schools related projects
* Sedibeng sewage system and
* provincial road infrastructure development
Through the Gauteng Funding Agency we are currently exploring various financial mechanisms that would be used to raise alternative funding from private sector and other investors to invest in socio-economic infrastructure projects in the province. The financial mechanisms that are being explored are:
* equity investments
* soft equity or loan
* private public partnerships
* donations
* program linked loans and
* leveraging off existing provincial assets (land sale, lease and lease back).
So then madam facilitator today marks the continuation of the dialogue that began, for this term of government, during the period leading to the 2009 election. On the occasion of the budget presentation, we quoted Ben Okri and said: “If the things we face are greater and more important than the things we refuse to face, then at least we have begun the re-evaluation of our world. At least we have started to learn to see and live again. But if we refuse to face any of our awkward and deepest truths, then sooner or later, we are going to have to become deaf and blind. And then, eventually, we are going to have to silence our dreams, and the dreams of others. In other words, we die. We die in life”.
It is our intention, therefore that, we lay before you, our social partners some of these “awkward and deepest truths” that characterise our current fiscal space. Our approach is that of embracing ideas that will further propel us to meet the social and developmental objectives we have set for ourselves. I trust that you will deliberate and engage here today with this in mind as we collectively utilise our resources, financial and otherwise, to deliver services in an efficient manner.
Ke a leboga
Issued by: Department of Finance, Gauteng Provincial Government
4 March 2010
Source: Department of Finance, Gauteng Provincial Government (http://www.finance.gpg.gov.za/)
