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Gauteng will spend more than 240 billion over the next three years to increasing the numbers of people who receive quality social services; and this is in line Premier David Makhura’s vision of improving public healthcare, the education system, and building new integrated human settlements, Finance MEC Barbara Creecy announced today.

The MEC was tabling the province’s Medium Term Budget Policy Statement (MTBPS) at the Gauteng Provincial Legislature, which outlines the policy priorities that will influence the Provincial Budget in the period 2015 to 2017.

She said the MTBPS is presented in a difficult economic environment, which has led to a decline in available public funds at the time when the population of the province is increasing due to in-migration.

“But we remain resolute and focused on tackling the triple burden of poverty, unemployment and inequality with renewed vigour and energy.  Our fifteen year programme will ensure that our children grow up in safe and clean neighbourhoods, close to economic opportunities with a decent standard of living and a better future,” MEC said.

To demonstrate commitment towards funding provincial priorities, the Gauteng Provincial Treasury has undertaken a spending review to ensure that budgets are aligned to Ten Pillar Programme of radical transformation, modernisation and re-industrialisation. 

This process has been successful and an estimated amount of R2 billion within the existing budget has been redirected to the priorities of the Ten Pillar Programme programmes across the whole of provincial government.

In order to lift hundreds of thousands of Gauteng residents out of poverty and joblessness, the province will increase spending on strategic economic infrastructure.

“We will spend more than R32 billion on public infrastructure over the medium term. If one combines the joint spending of both provincial and local spheres of government in the Gauteng City Region this amount rises to R94 billion,” she said.

The MEC emphasised that better planning and co-ordination between different spheres of government on infrastructure priorities will ensure that funds allocated to infrastructure are used to the benefit of the people of Gauteng.

“Infrastructure is important to both service delivery and job creation. Therefore it cannot be acceptable that capacity challenges in departments continue to result in underspending on these programmes,” she said.

“I say this because we all agree that underspending on these programmes deprives communities of important amenities including roads, healthcare and social services as well as negatively impacting on job-creation efforts of government,” she added.

As an additional measure to ensure the sustainability of the budget in this difficult economic climate, Gauteng is devising ways and means to increase collection from its revenue sources including hospital patient fees and car licensing fees.

“Key initiatives in this regard include a review of the Gambling Tax, leveraging on our property portfolio and improving Health Patient Administration to optimise the collection of fees.

Issued by Gauteng Provincial Government