Provincial government spending on par
The province spent R57,7 billion, or 97,8%, of its total adjusted budget of R59 billion during the financial year which ended on 31 March.
POLOKWANE – Provincial Government Spokesperson, Phuti Seloba, said spending has decreased by 0,5% from the corresponding period for the previous financial year, when spending was at 98,3%. The report on the Limpopo Provincial Revenue and Expenditure as at 31 March was presented to the Executive Council (Exco) at the meeting last Wednesday.
The highest spending departments were Health, at 98,6% and Education at 98,3%.
The province spent a whopping R39,9 billion, or 98,6%, of the amount budgeted for compensation of employees, while goods and services spent comprises R8,3 billion, R422,6 million under targeted expenditure. The Department of Health however, overspent by R6,8 million and Social Development by R2, 6 million due to accruals.
Around R2,1 billion was spent on payment for capital assets, 89,7% of the amount budgeted for capital assets, while conditional grants overall expenditure was at R7,6 billion of an adjusted budget of R7,8 billion.
Altogether R5,3 billion was spent on provincial infrastructure. The amount comprises 96,1% of the adjusted amount budgeted for infrastructure while R1,4 billion was collected as provincial revenue. Overall the province under spent the adjusted budget by R1,3 billion or 2,2%.
The Department of Health stopped paying suppliers due to insufficient funds available at the end of the financial year, which led to a massive non-compliance during March in the 30-days compliance rate expected from departments during which they should pay invoices and claims. This led to a 75,53% compliance against the expected 95% compliance rate expected from departments.
The average percentage of payments in the province within the prescribed 30-day period stood at 90,05% during March, 4,95% below the expected compliance rate set for all departments. The Department of Health and Provincial Legislature are the culprits contributing to the non-achievement of the 95% set rate for 2016/17.
