MEC to tell legislature how province can do more with less

ALL EYES will be on MEC of Finance Ivan Meyer today, as he tells citizens exactly how the province plans to plug the fiscal gap left by the higher than anticipated public sector wage bill, high unemployment, and an impending drought disaster that has put additional pressures on coffers.

With an estimated net shortfall of about R2.3 billion over the next three years and R746 391 million for this year resulting from the higher than anticipated wage agreements between national government and the civil service, Meyer will take to the podium in the provincial legislature with one major question hanging over his head: How can we do more with less?

Meyer will table the province’s MediumTerm Budget Policy Statement (MTBPS) – which provides the economic, fiscal and policy context within which the budget will be formulated over the next three years – and the provincial Adjustment’s Appropriation Bill.

“The MTBPS further provides the budget policy framework to support service delivery and drive the policy imperatives of the provincial government, within the current constrained economic and fiscal environment,” Meyer added.

Stressing that the public sector wage settlement had a significant impact on the province’s budget, Meyer said the key objective was to continue balancing public finances, and maintaining fiscal stability in a tighter economic environment.

“A unique aspect of the medium-term budget is the measures we’ve taken to address the shortfalls – resulting from the higher than anticipated wage agreements national government concluded with employees within the civil service – without compromising front-line services such as the health and education sectors,” Meyer said.

And he stressed that there’s little or no room for additional spending priorities, and the adjusted budget he will table is largely meant to achieve realignment, fiscal sustainability and financial prudence.

He said his department had been working around the clock to ensure that the budget allocated toward essential frontline services were protected while ensuring that it supported economic growth.

And Meyer will need to ensure a sustainable fiscal base for providing essential front-line services in health, education, and human settlements.

“The key objective is to continue balancing public finances, and maintain fiscal stability in a tighter economic environment. Therefore the budgets allocated toward essential front-line services need to be protected while supporting economic growth,” he stressed.

He added that to ensure fiscal stability, the shortfalls resulting from the higher-thananticipated wage agreements were addressed through allocations largely for the most personnel intensive provincial departments – health and education.

“It leaves us a bit more vulnerable than before, but it must not be allowed to shift us from our commitment to responsible fiscal management,” he added.