Adjustments budget focuses on poverty alleviation
THE National Treasury has finally allocated R1.1 billion to Kwazulu-natal for its flood response.
This was revealed by KZN’S acting finance MEC, Bongi Sithole-moloi, as she tabled the provincial adjustments estimate budget at the provincial legislature in Pietermaritzburg yesterday.
“The funds allocated by the National Treasury to the province for the flood disaster response amount to R1.1bn,” said Sithole-moloi. The MEC said funds received from the National Treasury for the flood response were made up as follows:
Social Development’s equitable share received an additional R48.5 million, which will be used to provide support for the care and protection of flood victims placed in shelters.
Education received R95.1m for the reconstruction and rehabilitation
of schools damaged by the floods. The funds are in addition to the education infrastructure grant.
■ Transport received R589.3m towards the provincial roads maintenance grant for the repair of provincial roads damaged by the floods.
■ Human Settlements (provincial emergency housing grant) received R325.8m for the provision of 4 983 temporary residential units in flood-affected areas.
The R1.1bn was committed by the national government to KZN a few months ago to assist the province with recovery following the floods. However, its release was delayed.
Sithole-moloi said the adjustments budget was focused on poverty alleviation.
“At the centre of the adjustment perspective of the provincial budget is the ideal of reducing unemployment, eradicating poverty, and addressing inequality.”
She said the provincial economy showed a below-potential recovery of an estimated 3.8% last year following a substantial recession of 6.3% in 2020.
The national school nutrition programme grant was underspent by R53.9 million, and the full amount was approved for roll-over. It was important to note that the Education budget was overspent by R398.4m in aggregate.
The early childhood development grant under vote 13: Social Development was underspent by R82.4m, with R38.8m approved for rollover, and the balance to be surrendered to the national revenue fund.
The community library services grant under vote 10: Sport, Arts and Culture was underspent by R21m and the full amount was approved for rollover.
The Ilima/letsema projects grant under vote 3: Agriculture and Rural Development were underspent by R354 000, and this was not approved for rollover as the funds had already been rolled over from 2020/21 to 2021/22, and National Treasury did not approve the rollover for a second year.
“The (early childhood development) grant under vote 13: Social Development
was underspent by R82.4m. Eight departments indicated that they need additional funding for this, while the other six will be able to absorb the cost from within their budgets due to savings from vacancies.”
Funds were allocated to the following votes:
■ Vote 2: Provincial Legislature received R3.7m.
■ Vote 3: Agriculture and Rural Development received R34.2m. ■ Vote 5: Education received R1.6bn. ■ Vote 7: Health received R1bn. ■ Vote8: Human Settlements received R7.8m.
■ Vote 9: Community Safety and Liaison received R2.9m.
■ Vote 13: Social Development received R54.5m.
■ Vote 14: Public Works received R21.9m.
“The funds allocated by the National Treasury to KZN amounted to R3.2bn. In this regard, R2.2bn is added to the provincial equitable share, and R1bn is added to the conditional grant allocation.
“The National Treasury allocated R2.1bn to the province for the provisional 3% increase in salaries for all levels of employees,” she said.
Two departments indicated that they were able to absorb these costs from within their budget, owing to savings from vacancies, while others received an allocation that included:
Vote 1: Office of the Premier received R6.5m,
Vote 2: Provincial Legislature received R7m.