KZN Budget: Province heading for the ‘red’ as contingency reserves are raided

7 March 2019

Today’s KZN Budget, tabled by Finance MEC, Belinda Scott, saw a province heading for the ‘red’ as more than half a billion rand was raided from the province’s contingency and cash reserves - in an attempt to bail out various Departments.

The funds include R350million from the contingency reserve, which is the province’s safety net, leaving a balance of R400 million, down from a projected R788 million. This is completely inadequate.

To compound the issue, both KZN’s Health and Public Works Departments are looking at a projected over-expenditure of R357million and R207million respectively. This could completely wipe out the contingency reserve, placing the province in a deficit.

The further R300million has been utilised to balance the budget, this from the R600 million held as cash reserve for the new parliamentary precinct – a project which the DA has consistently opposed on the basis of the current financial climate. The DA believes that the full R600 million should have been utilised to address budgetary constraints and ultimately try to and address our socio- economic disparities.

Today’s Budget also saw the ANC marking time ahead of the elections.

It was not a budget geared towards building the provincial economy or creating much-needed jobs. Today the MEC told us that a 6% increased infrastructure budget would create jobs. Yet despite R12.8billion being spent last year, the province lost thousands of jobs. This is a complete pipe-dream.

Today’s Budget was also a repeat performance of last year’s budget with further cuts on already strained critical service delivery Departments.

While the MEC stated that the allocation for Education and Health had increased in rand terms what she did not say is that as a percentage of the Budget, both of these Departments see a decrease. This is disingenuous.

Equally worrying is the MEC’s call on unions to support no salary increases for office bearers. This is completely out of touch with reality.

Other negatives within the Budget included the R208million allocation to the Cuban Doctor Programme. This money could be used to upgrade crumbling health infrastructure. Another is the ‘hot potato’ of learner transport again being bounced back to KZN’s Transport Department. This while millions of learners continue to wait for this service.

On a more positive note, the DA welcomes;

- A R9.6million allocation to COGTA, to strengthen support interventions within KZN’s collapsing municipalities. The DA will monitor exactly how this money is spent

- An increase in the Emergency Medical Rescue Services (EMRS) fund to fund the recruitment of approximately 150 staff to address a critical shortage

- The Health facility revitalisation grant increase of R200million and

- The Education infrastructure fund with an increase of R392million.

This past term of the KZN Legislature is indicative of the ANC-led provincial government’s inability to turn the province around financially, thereby limiting opportunities for the people of KZN, whether it be in effective and sustainable service delivery or in job creation.

On 8 May, the people of KZN will have a choice. They can choose to experience another five years of failing ANC promises or they can choose to elect a DA-led government – one which has shown that where it governs it delivers and which will bring about much needed hope and change in our province

Issued by Francois Rodgers, DA KZN Spokesperson on Finance, 7 March 2019