Budgeting to grow economy

Eastern Cape MEC for finance Lubabalo Mabuyane delivered his maiden provincial budget speech at the Bhisho Legislature on Tuesday March 5.

The speech discussed the current financial state of the province as well as what plans were in place moving forward.

According to Mabuyane, this year’s budget comes in at R82.1bn, a 2.7% increase from the previous budget.

One of the main focuses of the budget speech was how to grow the provincial economy. In particular, Mabuyane highlighted seven key steps the provincial government would be taking to achieve this goal:

● Investment in skills training;

● Promoting investment in various economic sectors;

● Investment in socio-economic infrastructure;

● Diversifying the economy;

● Transformation of the agricultural industry;

● Supporting small, medium and micro enterprises; and

● Establishing the Isiqalo Youth Fund to help young entrepreneurs.

Mabuyane said the provincial government was reviewing the estimated R121m budget from the department of rural development and agrarian reform’s (DRDAR) social development allocation to find ways it could be better utilised.

While growth was a big focus of the speech, Mabuyane also stressed that the province would still maintain essential social services. However, he said, the only way to truly reduce dependency on grants in the province was through the creation of jobs and teaching vital skills to citizens.

The MEC also promised major infrastructure projects throughout the province to help boost the economy.