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Mpumalanga MEC for finance delivers 2024/25 budget speech

The MEC for finance recently tabled her budget speech for the 2024/25 fiscal year. She said that the province’s revenue collection is expected to grow significantly.

When tabling her budget speech for the 2024/25 fiscal year, the Mpumalanga MEC for finance, economic development and tourism, Nompumelelo Hlophe, said even though the economy had recovered from the impact of Covid-19 in 2021 with a growth rate of 5.2%, the rate declined to 0.6% in 2022 and further dropped to an estimated 0.4% in 2023.

Hlophe said the last five years have been challenging in terms of job creation.

“We regrettably lost too many jobs in 2020 and 2021 due to Covid-19-related factors,” she said.

She added, however, that the tide is now turning.

“As Premier Refilwe Mtshweni-Tsipane indicated in the State of the Province Address, we are in the season of jobs, jobs, jobs and more jobs.

According to the latest Quarterly Labour Force Survey, the province recorded net job gains totalling 197 681 in 2022 and 2023, which is an outstanding performance under these difficult economic circumstances.

All industries contributed to this achievement, except agriculture and transport, which recorded job losses in the same period. The fourth quarter of 2023’s labour data shows almost 48 000 net job gains for the province,” Hlophe said.

She went on to say that the province’s own revenue collection is anticipated to grow by over 60% from R1.5b in 2019/20 to R2.4b in 2023/24.

“Motor vehicle registrations and licensing, interest from banking accounts and licensing fees on betting, casinos and horse-racing gambling were the primary contributors to this enhanced collection. We appeal to all departments and public entities to invest in revenue enhancement projects to assist the province in expanding services to citizens,” said Hlophe.

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Even though she didn’t say for sure how much each parastatal, such as the Mpumalanga Tourism and Park Agency and Mpumalanga Economic Regulator, would be receiving from the budget allocation, she mentioned that the umbrella Department of Economic Development and Tourism will receive about R1.4b from treasury.

“The total budget of the department includes various allocations to public entities within this vote,” she said.

The Department of Agriculture, Rural Development, Land and Environmental Affairs is allocated R1.5b, while the Department of Public Works, Roads and Transport is allocated R5.5b.

Of this budget, the Nkomazi community will be relieved to learn that the troublesome Driekoppies bridge will finally get its much-needed facelift to the tune of R40m.

ALSO READ: Party concerned about lack of construction on Driekoppies bridge after multiple budget allocations

Getting the largest chunk of the budget is the Department of Health, which receives R18.6b, which according to Hlophe will help ensure access to quality and equitable healthcare services in Mpumalanga.

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Bongekile Khumalo

Bongekile is a junior journalist focusing on community news in Mpumalanga, with also a distinctive interest in impactful human interest stories. She began her career in 2019 and was recognised as an upcoming journalist in 2020.

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