Reduced FS provincial budget a direct result of failed economic reforms

Issued by David van Vuuren MPL – DA Chief Whip of the Official Opposition in the Free State Legislature
10 Mar 2020 in Press Statements

The Democratic Alliance (DA) regards the provincial budget, presented by MEC for Finance Gadija Brown, as an acknowledgement of the failed management of the provincial government in addressing the reforms required to grow the Free State economy.

The overall provincial budget of the Free State has been reduced by R369 million of which R130 million has been allocated towards servicing South Africa’s national debt crisis.

Whilst the DA are pleased to see our national debt being reduced, it is worrying that the Free State has had a R118 million grant surrendered back to National Treasury as a result of the inability of the Department of Human Settlements to implement projects in the Free State.

The DA welcomes the fact that more money has been made available from the Departments of Public Works and COGTA towards reducing departmental debts towards municipalities who are under financial distress, however, it remains concerning that the provincial government does not service debts of provincial departments within shorter time frames.

Whilst there is a slight increase to the Department of Health and Education, it is not adequate to address the accruals within the Free State. An allocation of R11 million has been directed towards disaster management relief, however, the province does not witness nearly enough of this relief on the ground for our farming community (subsistence, emerging and commercial farmers).

What is of grave concern is that the provincial government continuously increases the budget of the Premier’s Office, specifically with regards to the reallocation of funds for student bursaries. Whilst the DA supports the financial assistance provided to deserving students, it is unthinkable that more money can be allocated towards the awarding of bursaries when the Premier’s Office habitually fails to meet its existing accruals from previous financial years that has plagued this Department after numerous budget cycles.

The MEC’s budget speech furthermore fails to address the serious issue of the lack of consequence management for poor financial performance within provincial departments and municipalities.

The DA would like to have seen a budget that cuts down on administrative expenditure, much of which is spent on the Office of the Premier and spend more on the creation of an enabling environment for economic growth, private sector investment and job creation.

The DA Chief Whip in the Free State Legislature, David van Vuuren MPL, will comment on today’s budget next week during the budget debate.