6.1%

Cut in non-essential spending during the previous year

higher than usual as a result of additions to enable provinces to continue to provide public health and schooling in line with population growth.

Several allocations were reduced, including R4 billion from the previous baselines of various provincial conditional grants and a R1.6bn reduction to the provincial equitable share in a bid to support fiscal consolidation and reprioritisation.

Gordhan also said three new conditional grants would take effect in 2017/18. The grants are expected to expand access to early childhood development and improve facilities, provide for increased employment of social workers and improve opportunities for learners with profound disabilities.

“The auditor-general has called for stronger leadership within provinces to remedy financial management challenges,” Gordhan said. “Better cash management is needed to ensure suppliers are paid on time. Improved oversight is needed to curb unauthorised expenditure.” – ANA