Province on a slippery slope
The hill of hope that MEC for finance Oscar Mabuyane referred to in his adjustments budget is just an illusion.
It is in fact the slippery slope of poor governance.
The Eastern Cape is suffering under the yoke of declining revenue due to the mismanagement of the economy and state capture, which has cost the country R100bn.
This is well illustrated by the R3.014bn in equitable share that we will lose in the 2021/2022 financial year due to the number of people who are leaving the province.
Bad governance does not create the right environment for economic growth, it chases investors away.
When it comes to belttightening, the provincial government’s belt is still too loose.
In the last financial year this province spent at least R1.4bn on non-core business, including catering (R101.5m), consultants (R541.3m) and transport and accommodation (R792m).
One would have expected MEC Mabuyane to announce bigger cuts than the R45m he mentioned.
Over the next three years, the provincial government will have to find an extra R3.016bn to fund the increase in the wage bill, which will have to be redirected away from other service delivery programmes.
This further compounds the crisis in which the Eastern Cape finds itself, due to the wage bill absorbing 65% of the budget.
We do, however, welcome the additional R108m in education, for the refurbishment of school hostels, and the R300m for the health department to be able to pay its suppliers.
A DA government will bring change to the financial management of this province, that will ensure money that is meant for the people will be prioritised for the people and not lavished on non-core expenditure.
Bobby Stevenson, DA MPL and
shadow MEC for finance Eastern Cape Provincial Legislature