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.