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Gauteng Budget Revision: R4.6bn Increase Aimed at Health and Infrastructure Development

Published November 28, 2023
1 years ago

Gauteng's financial landscape has undergone a significant shuffle as the provincial government allocates an additional R4.6 billion to its budget. Finance MEC Jacob Mamabolo has announced the key areas to benefit from this influx of funds, with a pronounced emphasis on health and infrastructure.


In a strategic move, half of the increased budget, amounting to R2.4 billion, has been channeled to the health department. This pivotal allocation is set to ensure that the recently agreed upon compensation for employees is satisfied, safeguarding the welfare and stability of one of the most crucial government sectors amidst a rigorous period.


Further endorsing Gauteng's commitment to connectivity and mobility, the department of roads and transport has been conferred R1.5 billion. This hefty sum includes a visionary project that will see new operating licensing regulations and the inception of new number plates, as previously outlined by the provincial premier in early 2023. The department is also tasked with a crucial endeavor as it receives R280 million dedicated to the rehabilitation of roads within the Emfuleni local municipality, a move that underscores the administration's resolve to enhance transport infrastructure.


Adding to the sphere of social welfare, R70 million has been earmarked for the department of social development, which is intended for procuring property that will be transformed into a homeless shelter. This allocation aligns with the province's commitment to fighting homelessness and providing care to vulnerable communities.


While the freshly augmented funds cater to these imperative developments, the fiscal adjustments have also resulted in downsized budgets for other departments. The department of human settlements endures the most significant reduction, surrendering over R499 million. Notably, education and the provincial treasury also encounter budget cuts of R62 million and R23 million, respectively, alongside the office of the premier which stands at a diminished sum of R58.6 million.


Addressing the energy crisis, which has steadily climbed the hierarchy of concerns for South African citizens, is at the forefront of the government's plan of action. Gauteng is piloting a green initiative, striking an agreement with City Power to deliver alternative energy solutions, a development that could be a harbinger for sustainability in the region. The province isn't halting its strides with energy alone; it is also probing ways to stabilize water supply, an equally vital resource.


Describing ongoing projects, MEC Mamabolo revealed that the department of infrastructure development is leading the charge in installing solar solutions on rooftops of government buildings, with a priority on health facilities. In addition, the quest to invigorate the business environment by streamlining regulatory processes is gaining traction. Gauteng is determined to accelerate efforts in cutting red tape in municipal administration and, by extension, bolstering investment appeal.


As Gauteng braces for reduced conditional grants and equitable shares in the 2024 medium-term period, proactive steps are being implemented to shore up provincial revenue. This includes prompt depositing of motor vehicle license collections into the government's coffers, opening new smart testing stations, revamping casino regulation for better tax collection, introducing Bingo licenses to level the economic playing field, and embracing e-commerce to enable online billing and payments for liquor traders.


This well-rounded adjustment to Gauteng's financial framework mirrors a strategic approach to resource allocation and development initiatives that address immediate concerns such as employee compensation and infrastructure while paving the way for a more sustainable and business-friendly future.



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