Note to Editors: Please note Tim Brauteseth, MPL sound bite in English
Budgeting in any enterprise is not easy, let alone a provincial government. There are many competing demands, and they are all intensely politicised. However, KwaZulu-Natal’s people are fortunate that the challenge is being met by a Government of Provincial Unity (GPU) that consists of a sensible leadership which understands that things needed to change in order to avoid complete ruin.
It is testament to KwaZulu-Natal (KZN) Premier, Thami Ntuli’s vision that he chose a Finance MEC, namely Francois Rodgers, who has a proven business track record and respect for strong financial governance to present this historic first full GPU budget.
It is equally a testament to the commitment to a capable ethical state that the Premier chose an executive dedicated to working with the Finance MEC – an exercise that has already cut KZN’s deficit crisis in half.
Ahead of today’s budget tabling, the DA in KZN were watching closely to see whether MEC Rodgers could meet the following challenges:
• KZN’s equitable share from National Treasury: Our province was not getting its fair slice in an environment where the equitable share formula – set out in the Constitution – presents a veritable actuarial Gordian Knot. MEC Rodgers has however conquered the riddle that has now led to our province receiving its due and an increase to boot.
• Adequate budget allocations for provincial departments and entities: Now that KZN has its fair slice of the financial pie in the pantry, the MEC has risen to the challenge in allocating funds to KZN’s beleaguered government departments and entities – while avoiding major cuts – so that they can begin the slow path to financial recovery. Many departments have heeded his call to tighten belts and can now see some relief in sight.
• Taming the fiscal dragon that is Compensation of Employees (CoE): The MEC has already secured assurances that national wage agreements exceeding provincial budgetary estimates will be a spectre of the past. The tabling of the budget today makes it clear that these assurances will be kept and that the wage gap will be filled in key human resource heavy departments.
The MEC has been under attack during the past days for following a so-called neoliberal path that will supposedly doom KZN’s people. He has, in fact, done the opposite and has allocated the largest portion of additional funds to KZN’s social sector departments in response to the severe budget pressures they have experienced in recent years. The MEC has made it an imperative to protect our front-line departments.
Further encouraging initiatives presented by the MEC today include the introduction of live departmental financial dashboards reflecting creditors, debtors, cash balances and projected expenditure. This will greatly enhance the oversight functionality within the Legislature.
As SCOPA Chairperson, the pending approval of an e-procurement tool – that will stop wasteful and irregular expenditure in its tracks – is music to my ears. This falls in line with MECs mantra of ‘cutting the nice to haves to protect the must haves.’
The DA commends MEC Rodgers and his team on today’s budget. The MEC has put his money where his mouth is, while committing to ensuring that this is a budget that works for the people of our province. The development of a capable, ethical and developmental state remains key for the future of our province and we are finally on the right track.