Tooley tables Medium Term Budget Statement Policy

Provincial Treasury MEC Rob Tooley tabled the Limpopo Medium Term Budget Policy Statement in the Legislature and the first reading was done of the Limpopo Adjustment Appropriation Bill, 2016 last Wednesday.
The total adjustments for the 2016/17 financial year budget is R2,080 billion which will adjust the total provincial allocation from R56,969 billion to R58,058 billion, an increase of 3,7 %.
Revenue targets revised
Tooley sprang a surprise when he announced that the overall provincial own revenue target was revised from R1,063 billion to R1,455 billion, an increase of R391,9 million or 36,9%.
As at 30 September actual revenue collection was R778.8 million or 73,3 %, which is above the projections of R485,9 million or 45,7 percent. The province has over-collected by R292,8 million.
Spending on conditional grants
The province spending on conditional grants at the end of September was 46,3% in the current financial year, 2016/17. The highest spending departments to end of September 2016 are Economic Development, Environment and Tourism, Public Works, Roads and Infrastructure and Coghsta at R3,440 million or 99,9%, R614,010 million or 61,4 % and R671,313 million or 55,5 % respectively. The lowest spending departments are Agriculture, Education and Health.
Overall spending
There is an enormous improvement on the overall provincial spending, which is currently at 49,0% of the total original allocated budget.
Provincial receipts
The total provincial receipts will increase by R2,080 billion which comprise of conditional grants R671,8 million, i.e. rollovers to the value of R480,315 million which were approved by National Treasury.
Some of the additional money allocated is as follows:
Of the additional funding the Department of Education will receive a rollover of R66,4 million on equitable share and R17,5 million on conditional grants. An additional conditional grant amount of R185,5 million is allocated to the department for Education Infrastructure Grant of which R177,1 million is to be utilised for school infrastructure rehabilitation; and National School Nutrition Programme Grant of R8,4 million for shortfall caused by high food inflation and funds for feeding of learners and educators during catch up camps. In an endeavor to fund norms and standards towards the required norm, an additional R150,5 million is allocated to the department. Overall the departmental budget is adjusted upwards from R27,172 billion to R27,92 billion.
The Department of Health receives a rollover of R6,8 million on equitable share and R32,9 million on conditional grants. Additional funding amounting to R687,9 million will be allocated to the department to address budget pressures on compensation of employees – R200 million, goods and services – R400 million, litigation costs – R44,4 million and on payments for capital assets – R43,5 million to acquire medical and allied equipment for hospitals, clinics, community health centres and the emergency medical services college. Two hospitals proved that it is possible to do more with less while also promoting the spirit of Ubuntu and Zebediela and Elim hospitals are rewarded with incentive allocations of R3 million each for their dedication and hard work. These funds will be utilised to provide the two hospitals with critical medical equipment’s for continued provision of quality health services.
The Department of Public Works, Roads and Infrastructure among others, will receive an additional amount of R25,5 million for settlement of municipal rates and taxes and for the promotion of relations with the International Labour Organisation. The Treasury’s budget will be adjusted upwards by R42, 6 million of which R25 million will be to fund the support package to Thabazimbi Municipality.
The budget of Coghsta will be adjusted upwards by R527,7 million comprising of approved rollovers for the conditional grant of R394,8 million and equitable share of R6,2 million, additional funding for budget pressures on compensation of employees and Traditional Leaders amounting to R89,1 million and R37,6 million for refurbishment of Traditional Council offices, procurement of furniture in councils offices and vehicles.
Once-off allocations
The additional funds allocated to departments are meant to address provincial priorities that are of once-off in nature and may not be available over the MTEF period. Tooley said all departments will be consistently monitored to ensure that their budgets are managed effectively, economically and efficiently.
Treasury shall continue to implement stringent cost cutting measures and consolidate the implementation of sound fiscal practise to strengthen the people’s confidence in the economy. The province‘s development agencies will be engaged to ensure appropriate return on investment with the objective of making these institutions self-sustainable in the short to medium term.
The Treasury is of the opinion that the current budget cuts will not impact on the province’s ability to deliver the necessary quality services to the people of Limpopo.

Story and photo: NELIE ERASMUS
>>nelie.observer@gmail.com

Featured photo: Rob Tooley, MEC for Provincial Treasury.