Treasury tables budget of R60 billion

During the tabling of the provincial budget by Treasury, MEC Seaparo Sekwati at the Legislative Chambers in Lebowakgomo, he declared that the provincial economic growth rate has been on a downward sloping trajectory since 2011.

He added that the 2010 World Cup fiscal expenditure could not sustain investor and consumer confidence for a protracted period, commodity prices slumped and the surge in crude oil prices weighed down on the local economy.

“It is disheartening to note that the official unemployment rate in the province as been rising even before the Covid-19 pandemic.It rose from 41,1% in the second quarter of 2019 to 46,9% in 2020 while the majority of the unemployed are youth.”

According to Sekwati, unemployment in Limpopo is perpetuated by the general low skills base where the unemployed people posses lower than the prerequisite skills.

Provincial Government remains committed to resuscitating the provincial economy to ensure economic growth and social prosperity for all.

The recovery will be underpinned by necessary structural reforms to augment sector productivity and overall accelerated growth by scaling public employment programmes, industrialisation through sector-led development and infrastructure development and building the capacity of the state to implement the industrialisation programme.

In the same breath the number of employed people in the province increased from 1,151 million in the second quarter of 2020 to 1,266 million in the third quarter of 2020. Sekwati has attributed the rebound to the relaxation of the lockdown regulations where most of the economic sectors were allowed to operate.

“In terms of expenditure, the focus of this year’s budget is to promote economic growth and address the unemployment challenges along with inequality and poverty. At the end of January 2021 the provincial expenditure is R55,4 billion, which is 77,6% of the 2020/21 adjusted budget. The low expenditure was mainly influenced by the lockdown as most activities were on hold.”

The provincial budget is financed mostly from the equitable share, conditional grants and provincial revenue.

He says the provincial equitable share decreases by 3,7% from R63,3 billion in 2020/21 to R60 billion in 2021/22 and the reduction is mainly due to the freeing of salary increases.

The provincial Department of Transport and Community Safety is set to be the biggest revenue contributor to the province at 46,9% and Treasury at 17,7%.

Sekwati says the compensation of employees is the biggest expense on the provincial budget as it accounts to 84,8% of the provincial allocation and is expected to fund a staff of 118 971 employees.

Financial allocations per department:

Office of the Premier

Office of the Premier is allocated R405 million. Included in the allocation is R58,1 million earmarked to implement ICT related projects in the province. The allocation increased by 5,6%.

Provincial Legislature

Provincial Legislature is allocated R395,5 million and the allocation has increased by 11,5% due to an increase in the baseline allocation for political party funding.

Department of Education

Education will receive an allocation of R32,7 billion which is 47,4% of the provincial allocation. Included in the allocation is an amount of R100 million to start the implementation of e-education in the province. A further R34,9 million for the Sanitary Dignitary projects. The allocation is a 3,5% decrease.

Department of Agriculture and Rural Development

Agriculture and Rural Development will receive an allocation of R1,548 billion which is an increase of 6%. The allocation includes R20,5 million for projects that are geared towards the revitalisation of agriculture and agro-processing.

Treasury

Treasury will receive an allocation of R364.9 million which is an increase of 4,4%. Included is an amount of R10,3 million for municipal support, and another R10,3 for municipal intervention.

Ledet

Economic Development, Environment and Tourism will receive an allocation of R1,395 billion, included is R40 million for the turnaround of Great North Transport.

Department of Health

Health will receive 32% of the provincial budget at R21,9 billion and the allocation has decreased by 2,8%. Included is an amount of R1,916 billion for Covid-19 support and vaccine rollout.

Department of Transport and Community Safety

Transport and Community Safety will receive an allocation of R2,09 billion, including a R39,3 million allocation for transfer to Gateway Airport Authority Limited (GAAL). The allocation increases by 3,5%.

Department of Public Works, Roads and Infrastructure

Public Works, Roads and Infrastructure will receive an allocation of R3,212 billion which is a decrease of 9%. Included is an allocation of R1,109 billion to Roads Agency Limpopo.

Department of Sport, Arts and Culture

Sport, Arts and Culture will receive an allocation of R473,4 million which is an increase of 10,5%. This includes R38,5 million for the provincial theater.

COGHSTA

Cooperative Governance, Human Settlements and Traditional Affairs will receive an allocation of R2,310 billion

Department of Social Development

Social Development will receive an allocation of R2,016 billion which is a decrease of 11,6% and includes R7,072 million Food Relief Function Shift, R13,940 million for the employment of social workers and R14,965 million for HIV, STI’s and gender-based violence.