DA WELCOMES R1,2 BILLION EASTERN CAPE ADJUSTMENTS BUDGET

The Democratic Alliance welcomes the additional funding for Health (R568 million) and Education (R466 million) in the Adjustments Appropriation Bill tabled in the legislature this afternoon. This however will not be enough, as the health department will still overspend.

Of deep concern is the decline in the equitable share over the next three financial years of R5,1 billion due to the province’s weighted average decreasing, as a result of the new census figures.

This has severe implications for service delivery.

I agree with MEC Phumulo Masualle when he says that under expenditure on conditional grants is criminal. However, he did not spell out what action would be taken against officials responsible for this continued under expenditure. It’s high time that the full weight of the Public Finance Management Act was brought to bear against those officials responsible for financial mismanagement.

It is quite clear that the Easter Cape is standing on a fiscal cliff.

Unless there is tight financial management and real accountability for non-performance, we could go over the edge.