KZN owes R10-billion to service providers

Looking back on 100 days in office, KZN Premier Thami Ntuli has cited limited financial resources as a major setback in achieving timeous goals.

Speaking in Pietermaritzburg on Tuesday, Ntuli said the 7th administration will ensure it improves integration in planning and implementation so resources are ‘smartly used’.

He noted that service providers are owed R10-billion, forcing an average of R150-million in budget cuts over the next seven years, beginning in the 2025/26 financial year, to improve cash flow.

“The KwaZulu-Natal provincial government has had a declining contribution to the economic sector of 1.5% with a net impact on future growth and ability to attract private investment,” said Ntuli.

He said the situation analysis of the income statement shows expenditure is growing, while revenue (income) is declining.

“In an attempt to address this at the executive level, we agree that Provincial Treasury together with heads of department are charged to account and find opportunities to enhance collection efficiency, and review rates in their respective portfolios to close this unhealthy gap.

“Undoubtedly, we encourage both to look for unconventional sources of revenue, alternative funding models, public-private partnerships, or leveraging natural resources sustainably to have solid public finances,” said Ntuli.

Read more in ZO Weekender.

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