MBOMBELA – The MEC for finance, economic development and tourism, Mr Sikhumhuzo Eric Kholwane, will finally table the provincial adjustment budget for the 2016/17 financial year on Friday.
On Tuesday afternoon the Mpumalanga Provincial Legislature adopted a motion to postpone the tabling thereof as the National Assembly had not yet passed the Division of Revenue Amendment Bill.
The bill was tabled three weeks ago by finance minister, Mr Pravin Gordhan, with the medium-term budget policy statement.
It makes provision for changes in the allocations to provinces and local governments in the current financial year.
In two sittings since, a quorum of MPs could not be reached to approve the bill.
It was eventually passed with 228 votes in favour, 86 votes against, and zero abstentions later on Tuesday.
Kholwane told reporters at the time, “Parliament is still in the process of passing the bill. For that reason we cannot go forward and table the provincial adjustments budget.”
The budget highlights key government priorities, the size of the spending envelope, the proposed division of revenue and local government allocations.
It also sets policy directives for departments and public entities to be fully aware of their spending.
According to provincial treasury spokesman, Mr Letshela Jonas, the department was ready to table the adjustment on Tuesday but it needed to adhere to the bill, should it be passed.
“Without legislation anyone can spend as they want. That then creates a situation where government does not follow proper channels in spending,”
he said.
