Issued by: Gauteng Provincial Government
Following recent press reports, there have been numerous request to this office for further information on the financing of the activities of the Gauteng Provincial Government.
The position is as follows:
1. In March this year, in presenting the 1995/6 budget, the MEC: Finance & Economic Affairs indicated that while Gauteng was only in position to pass budget of R10.778 billion, projected expenditure was R12.0 billion. so that Gauteng was facing a potential shortfall of R1.2 billion.
2. A `shortfall plan' in terms of which the entire R1.2 billion would be covered, was also tabled.
3. The shortfall derives from three main sources: the allocations of funds to health, education and welfare. Because of the need for redistribution, the allocations made by function committees to Gauteng was sharply lower than in 1994/5, and much lower than could be justified in terms of the needs for these services in Gauteng. Gauteng is already on record as fully supporting al redistribution, but also as insisting that the budget cuts to relatively advantaged provinces be manageable. For example, in principle there should be a national plan which transfers health workers from Gauteng to other provinces where the need is greater. Unfortunately the tendency has been to leave Gauteng to manage the problem on its own.
4. Accordingly the Gauteng Government adopted a twin-track strategy to cover the shortfall: (a) to seek additional funds from national government: and (b) to develop ways of sharply curtailing expenditure, while avoiding cutting services that are very much in need. On the first point, several submissions have been made to national departments and the Treasury Committee concerning the funding of the relevant functions. On the second point, a quick-scan performance review exercise has been completed, and follow-up strategies and processes are being developed.
5. Considerable progress has been made on covering the projected shortfall: recent indications are that the shortfall currently stands at about half of its original level. The Gauteng Provincial Government is optimistic that the shortfall will in fact be covered.
6. For clarification contact Jabu Moleketi at Tel: 240 1531/2