Somyo calls for high levels of discipline

Eastern Cape MEC for finance and planning Sakhumzi Somyo tabled a R69.485-billion provincial budget yesterday which points to the start of long-awaited infrastructure projects.

But he gave little detail on how government will cut the bloated and costly public service.

Somyo told the provincial legislature the current tough economic times called for “innovative thinking and high levels of discipline” but he merely repeated references to cutting “non-core” cost items.

The MEC was challenged at an early morning media briefing about how little government appears to have done over successive years in dealing with challenges, including high salary costs.

The income budget in 2016-17 will be made up of:

lR58.06-billion (83.6%) in “equitable share” transfers from national government;

lR10.243-billion (14.7%) in ring-fenced conditional grants; and

lR1.182-billion (1.7%) in own revenue from departmental and enterprise activities.

Somyo said an extra R300-million in own revenue had been raised compared to initial estimates thanks to increases in collections by the boards overseeing gambling and betting, and liquor in the province.

The biggest expenditure item is on compensation of government employees including teachers and hospital staff, with 65% of the budget or R45.261-billion being allocated to salaries.

Education and health sectors reap the biggest share of government spending, with education securing R31.002-billion (44.5%) in total for the new year and health R20.244-billion (29.1%). Somyo said that government must “begin to derive value for the investment we are making in education”.

Among measures underway are allocations for appointing “capable principals” and implementing norms and standards by ensuring there is a teacher in front of our pupils.

The focus on salaries leaves just R24.224-billion to spend on capital infrastructure (R8.114-billion), goods and services across all departments.

That includes some R1.345-billion set aside to buy medicines in the health sector.

Of the capital infrastructure budget, R2.159-billion will go to the department of roads and public works, while 13 180 houses worth R1.991-billion will be built in the next financial year.

The education infrastructure budget will also receive R1.714-billion for new schools and hostels.

Health infrastructure of R1.402-billion will be rolled out, while an amount of R619-million will also be allocated through a revitalisation grant for health facilities.

With 81.8% of the budget being spent on provincial social services, the economic development sector, which includes rural development, roads and public works, and transport, has only received R9.566-billion.

This includes R463.951-million on the scholar transport programme and R470-million on subsidised bus services in rural areas which, in theory, are also social services.

The provincial treasury will also manage expenditure of R60-million for electrification in King Sabatha Dalindyebo local municipality as part of National Health Insurance infrastructure, R70-million for the R61 bypass around Mthatha’s CBD, R80-million for drought relief in Joe Gqabi district municipality, and R456-million for rural access roads.