Gauteng Provincial Government (GPG) departments spent a total of R19.9 billion in the third quarter of the financial year. This is an increase of 11% compared to the second quarter and shows that GPG departments are accelerating expenditure to meet the service delivery needs of the people of Gauteng.
The combined expenditure of the provincial government in a nine month period ending December was R55.8 billion, which is just over 75% of the total adjusted budget of 74 billion for 2012/2013 financial year.
This is according to the Gauteng Provincial Treasury's (GPT) 2012/13 Revenue, Expenditure and Cash Flow Report for the Third Quarter that has been presented to the Gauteng Provincial Legislature.
Furthermore GPT's interventions in the Gauteng Department of Health (GDH) are continuing as planned. The process of appointing an Administrator as per the Exco decision taken last year is at an advanced stage. The provincial treasury is also working very closely with GDH to provide additional capacity in the procurement and financial management functions of the department.
"Our analysis is that although the provincial government has experienced some spending pressures, these will not lead to significant over expenditure by the end of the financial year," Gauteng Finance MEC Mandla Nkomfe said.
The provincial government's expenditure on infrastructure in the period to December was R5.9 billion. This represents a 10% increase compared to the third quarter of the previous financial year. The remainder of R3.1 billion will be spent by the end of the financial year.
As at the end of December, the Gauteng Department of Education (GDE) reported the highest expenditure of all departments that have an infrastructure component. This department spent R1.1 billion or 77% of their allocated infrastructure budget for the current financial year. One of the highlights of the work done by GDE in the third quarter was the completion of a new school in Olivenhoutbosch near Pretoria, which was built using alternative materials. It is one of the four schools that are being constructed using such material. Others will be completed by the end of the financial year.
"GDE has made good progress, however measures are being implemented to improve expenditure and performance levels of infrastructure portfolios of the GDH, Gauteng Department of Agriculture and Rural Development and the Gauteng Department of Infrastructure Development.," MEC Nkomfe explained. By the end of the third quarter expenditure on infrastructure stood at 66%, while expenditure on conditional grants was 67% of the total budget for this financial year.
The provincial treasury is working closely with departments to institutionalise the Gauteng Infrastructure Delivery Management System. Also, the department is building appropriate capacity for managing infrastructure projects and programmes because this is fundamental in order to reverse the prevailing trends on infrastructure delivery in the province.
"To augment these key strategic initiatives, consideration of alternative delivery approaches such as design and build methods, creative packaging of projects, usage of various construction materials is important in order to spread and enable flexible management of risk towards attainment of infrastructure delivery output," the MEC added.
The information is published in terms of the Public Finance Management Act, (PFMA), 1999 and the Division of Revenue Act.
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 Q3 Expenditure and
Expenditure analysis per Department as at as at 31 December 2012.
Issued by: Gauteng Finance