Issued by: Department of Finance
18 November 1999
INTRODUCTION
The legislature appropriated R15,708 billion of expenditure for the Gauteng Province in March 1999. An additional R690 million has been made available to Gautentg in the Division of Revenue Bill, 1999, Additional Allocations fromnational revenue. Also received is an amount of R25 million fromthe University of Pretoria being their contribution towards the costs of construction of Pretoria Academic Hospital.
DISCUSSION
In the course of managing the finances of the Province, additional revenue might become available and/or changes to the main estimates might become necessary. Section 4 of the Provincial Exchequer Act (Act 1 of 1994) provides for the tabling of an Adjustment Appropriation Bill to give effect to these changes.
The amount of R690 million made available from the National Revenue fund is made up of the following:
R'000
The Adjustment Appropriation Bill also provides fr the shifting of expenditure between and within Votes that have been approved by Treasury during the year. A total of R301 million has been suspended from varous departments to the department of Public Transport and Public Works for the purchase of motor vehicles and for the public works programme.
There has also been a suspension of R7,703 million from the department of Health to other departments for the inter-departmental HIV/AIDS programme. Cabinet also agreed to allocated R15 million to the department of Finance and Economic Affairs to fund the intermediary work done regarding the Shared Services Centre and Economic Growth and Job Creation initiatives. An amount of R13 million has been allocated for these pusposes and the remaining R2 million has been set aside as the provinces's contribution towards the millenium celebrations that is coordinated by the Gauteng Tourism Agency.
SOCIAL IMPACT
The additional allocation will add value to the lives of the people of this province, by addressing all transforation imperatives that will ensure quality in the provision of the core social services.
FINANCIAL IMPLICATIONS
Additional funding made available will certainly have a positive contribution to the economy of this province, and ensure taht departments are functional.
PERSONNEL COSTS
Emanating fromthe recent report by the Commission investigating hospitals, it has been agreed that an additional R25 million be made available to the department of Health to address the shortage of critical staff.
WELFARE GRANTS
The Executive has approved that the R145 million that was not appropriated at the time of the main budget be utilised from this surplus to fund certain critical activities. R90 million has been allocated to the department of Social Services and Population Development to cover the projected shortfall on the welfare grant budget. This shortfall is due to the greater than anticipated increase in the number of beneficiaries in the social security programmes, especially the child support grant.
CAPITAL PROGRAMME
In order to complete the construction of the five police stations an amount of R15 million has been allocated to the department of Safety and Liaison. An amount of R5,929 million for the communication strategy of the capital expenditure programme has been suspended from Health and Education to the Department of the Premier.
OTHER
Due to the stringency of the conditions that are attached to the alocation of the R212 million, this amount has not been allocated. It will be retained as a surplus to redeem the debt overhang from previous years.