2024 DORA Bill: Allocation sets KZN up for total service delivery collapse

Issued by Francois Rodgers, MPL – Leader of the DA in the KZN Legislature/DA KZN Spokesperson on Finance
28 Nov 2023 in Press Statements

The DA has today rejected the 2024 Division of Revenue Amendment (DORA) Bill for KwaZulu-Natal’s (KZN) medium-term budget during a Sitting of the provincial Legislature.

There are several reasons for the DA’s decision, the first being that the current DORA allocation will collapse service delivery in our province.

KZN has been burdened with an unfunded mandate in terms of wage negotiations – a process the province has played no part in – while budgeted wage increases fall far short of the final negotiated increase. This has now compounded KZN’s fiscal constraints.

Yet another reason is that National treasury has tried to pull the wool over our eyes, stating that it will contribute R3.7billion to help fund the wage agreement shortfall. Yet, the reality is that it is only funding R2.5billion.y

This as the balance of R1.2billion will be taken from vital conditional grants and as KZN’s Department of Education (DoE) faces a R315million cut, Health faces a R365 million cut and Human Settlements faces a whopping R423 million cut.

Critical areas that face cuts are the Education infrastructure grant, the Health facility revitalisation grant and the Human Settlements development and informal settlements grants. All of these cuts will have a further negative impact on KZN’s already failing infrastructure.

According to a series of parliamentary replies to questions submitted by the DA, KZN’s provincial government departments face the following wage agreement shortfalls;

• Agriculture and Rural Development – R80million

• COGTA – R34.5million

• Health – R2.189billion

• Human Settlements/Public Works – R26.471million

• Social Development – R97.213million

• Education – R3.661billion

• Sports/Arts and Culture – R23.128million and;

• Community Safety and Transport – R41million.

(View full table here)

These figures represent a massive blow for KZN’s people who are already at the mercy of an ANC-run government that cannot provide even the most basic of services.

In 2024, KZN’s citizens will have the opportunity to rescue our province when they go to the polls and vote for a government that will ensure a capable state – one where service delivery is prioritized.