9 November 2012

South Africa: Gauteng Provincial Government Departments Accelerate Spending to Meet Service Delivery Obligations

press release

Gauteng Provincial Government (GPG) departments spent R17.9 billion in the second quarter of the fiscal year ending September.

This brings the combined expenditure of the provincial government to R35.9 billion or about 52% of the total budget of R69.3 billion for 2012/13 fiscal year.

This is according to the Gauteng Provincial Government's 2012/13 Revenue, Expenditure and Cash Flow Report for the Second Quarter.

"Overall departments have achieved their spending and performance targets for this quarter. However it is important to emphasise that the clearing of accruals has had a significant impact on the current budget. Therefore departments are required to ensure that expenditure on non-essential items is curtailed to prevent further overspending," Gauteng Finance MEC Mandla Nkomfe said.

Departments such as Economic Development, Health, Education and Roads and Transport accelerated their spending in this period. This was due largely to expenditure on goods and services budgets, while compensation of employees also played a significant part in this regard.

MEC Nkomfe said work is underway to enhance spending on infrastructure in the province. "The province is busy with the implementation of the Gauteng Infrastructure Development Management System (GIDMS) that is envisaged to comprehensively address the capacity constraints that negatively impact on infrastructure delivery," he said.

The report details the following:

Cash Flow Position, Ring-fenced Funds;

Summary of funds requested against Budget and Balance of Voted Funds;

Consolidated Bank Balances, Summary of revenue collected by GPG;

Summary of Q2 Expenditure and

Expenditure analysis per Department as at as at 30 September 2012.

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