Remarks by KwaZulu-Natal Premier, Mr Sihle Zikalala, delivered at the Post-Budget Business Breakfast held at the Inkosi Albert Luthuli International Convention Centre, Durban
Programme Director HOD Magagula
MEC for Finance, Mr Ravi Pillay
EThekwini Metro Representative, Cllr Fawzia Peer
MEC for Social Development Hon. Khoza
MEC for art, sports, Culture & Recreation Hon. Mavimbela
Director General, Dr Nonhlanhla Mkhize
Absa Managing Executive Mr Ronnie Mbatsane
Absa executives
The panelists
Distinguished guests
Ladies and gentlemen
I wish applaud the MEC and the Department of Finance for hosting this very strategic session which offer us an great opportunity to analyse and digest the allocation of R138 Billion Provincial Budget.
We are grateful of this session because it give the expression of the thrust of State of the Province Address that “Together, Creating Our Common Future”. We believe that the business people, academics and civic leaders have a significant role to play in our quest to grow KwaZulu-Natal. We share a conviction that as citizens of this province we all long for one goal. That is, to see a prosperous, economically thriving and peaceful province where all people can realize their full potential.
As posited by Scholar John Schaar, this common future “will not be a result of choices among alternative paths offered by the present but a place that is created first in mind next in will then in activity”. The future, he contends, is not some place we are going to but a place we are creating. “The paths are not to be discovered but made and the activity of making the future changes both the maker and the destination.”
We are mindful that reaching the ideal common future, we strive for, will only be possible through cooperation with stakeholders including business, labour and civil society. It is precisely for this reason why as the sixth administration, we continue to work hard to build strong social compacts.
These social compacts become even more important now that we are faced with serious economic challenges. As we all know, we have hit tough economic times. Just last week we learned from Statistics SA that by the end of last year we had entered into a technical recession, as the economy had contracted for two consecutive quarters.
If the situation continues we will continue to see growth in unemployment as the economy will not be able to create jobs. Already the latest statistics indicate that in KwaZulu-Natal our expanded unemployment rate which takes into account discouraged job seekers, is at 41.9%.
As government we are very determined to overcome this, but we are fully aware that it will be no easy feat and that we will require cooperation from all our social partners.
The economic challenges we face as a country have also resulted in fiscal budget cuts which are part of efforts to reduce spending in all three tiers of government. As a result of this, our budget as a province had to be reduced by R1 billion.
However, despite these cuts we remain committed to accelerating service delivery. That is why great care was taken to ensure that we offset these cuts without affecting service delivery items. The situation we are faced with enjoins us to try and do even more with the little resources that we have.
As I stated during the State of the Province Address, our provincial priorities are: Basic services (especially access to clean potable water); Job creation; Growing the economy; Growing SMMEs and cooperatives; Education, health, and skills development; Human settlements and sustainable livelihoods; Building a peaceful province and Building a caring and incorruptible government.
The provincial Budget for 2020/2021 is therefore a firm expression of our commitment to executing the tasks and priorities I have listed above. We are also making significant investments on infrastructure. In the next financial year we are committing R13.9 billion on infrastructure development. The figure increases to R17 billion if you include infrastructure spent by Human Settlements.
We believe that investing heavily on infrastructure is vital in stimulating economic growth. Growing the economy of this province, as I have said, is one of the key priorities we have set ourselves as a province.
Last month, February 2020, the Provincial Executive Council resolved that we must reignite the efforts to drive economic growth, with a dedicated focus on Manufacturing, Agriculture and Agro-processing, Tourism and Ocean economy. Before July 2020, we are intending to convene a Summit to focus on growing manufacturing in the province.
We cannot depend on primary commodities to create much needed jobs, our main focus is on value addition and turn the notion that South Africa only consume what is produced in other countries, we must ensure production in all facets of the economy.
We are also intending to strength the capacity to the state to deal and ensure proper services to all. At the summit of our agenda is the creation of capable, efficient and response developmental state. All our departments and spheres of government will work towards building synergy and silo mentality. We should respond to application and suggestions with seriousness and responsiveness. We also want all departments and municipalities to be effective in implementation.
Fellow Compatriots, let me assure you that going forward there will be strict monitoring of expenditure. We are also going to work hard to improve efficiencies in government so that we get value for money as we continue to improve the lives of the people of this province. This is why The Premier’s Office working together with the Provincial Treasury will drive Operation Clean Audit. This campaign is a comprehensive plan to ensure that all departments and entities improve on their audit outcomes and that we cut down on irregular expenditure.
The plan includes interventions to strengthening capacity and improve financial governance. We will also be focusing on improving the quality of financial management and reporting. Most importantly we are resolute about enforcing consequence management where there is evidence of wrongdoing.
Supply Chain Management is also one area that will be receiving attention. One of the things we will be doing is to ensure that a detailed audit of certain high value procurement is performed before contracts are signed by accounting officers.
Conclusion
As the government of KwaZulu-Natal we are focussed on improving the lives for all citizens of this province. That is why we will ensure that each and every rand is spent wisely.
We are looking forward to fruitful engagements in this session and I hope you will share with us ideas on how we can further boost the economy of the province for the benefit of all our people.
Let's Grow KwaZulu-Natal together.
I thank you
