R145 million added to grants’ budget

MBOMBELA - The MEC for finance, economic development and tourism, Pat Ngomane, said the provincial government has experienced a decline in revenue collection due to the impact of Covid-19 on commercial and industrial activities.

This was said during the tabling of the 2020/21 adjustment budget last Tuesday.

“The virus and lockdown measures have adversely affected the world, national as well as the provincial economies. The

GDP figures for the second quarter of

2020 confirmed the significant impact of Covid-19 on all economic sectors, except for agriculture. While Mpumalanga recorded job losses in the construction, manufacturing, trade and tourism industries during this period, a labour force survey of StatsSA indicates that the province gained 49 000 jobs in agriculture, finance, community and social services, as well as private households between July and September.

“The executive council has approved savings amounting to R128.5 million to fund unavoidable provincial pressures as detailed in the Bill. The equitable share will be adjusted downward by a net of R1,477 billion from R44,2 billion to R42,7 billion. The conditional grants will, however, increase by a net of R145,4 million from R7,872 billion to R8,17 billion.”

The budget of the Office of the Premier is reduced by R12,5 million from R315,2 million to R302,6 million.

The provincial legislature retains R17,8 million, which include its own revenue and unspent funds from the previous financial year, its baseline will decrease from R375,8 million to R372 million.

The baseline of the provincial treasury is reduced from R407 million to R 382,3 million.

Cooperative governance and traditional affairs decreases by a net of R8,6 million from R521,1 million to R512,4 million.

“The department receives special allocations to intervene in the Bushbuckridge, Nkomazi and eMalahleni municipalities and prepares for the efficient and effective management of natural disasters as we approach the rainy season,” he said.

Agriculture, rural development, land and environmental affairs' budget is reduced by a net of R39,7 million from R1,192 billion to R1,152 billion.

“A special allocation of R4 million is added to the baseline of this department to deal with the foot-and-mouth disease.”

The budget of economic development and tourism is increased from R1,108 billion to R1,109 billion. Included in this allocation is R10 million towards the implementation of the provincial tourism recovery plan.

Even though education's budget is decreased by a net of R 695,6 million from R22,948 billion to R22,252 billion, the department receives R490,8 million for the implementation of the Presidential Employment Initiative.

The budget of public works, roads and transport has decreased by a net of R23,5 million from R4,720 billion to R4,697 billion. The allocation to community safety, security and liaison has gone down by a net of R44,3 million from R1,475 billion to R1,430 billion.

Health's budget will be reduced by a net of R620,7 million from R16,775 billion to R16,154 billion.

The budget for culture, sport and recreation has been increased by a net of R26,6 million from R487,4 million to R514 million.

"Social development’s budget will be increased by a net of R71 million from R1,691 billion to R1,762 billion. Included in this allocation is R40,9 million for the food relief programme in response to Covid-19.

"The allocation to human settlements will decrease by R19,1 million from R1,559 billion to R1,540 billion," he concluded.