The Eastern Cape Second Adjustment Budget Speech, delivered on 26 November 2020, mirrored the harsh line taken in the Medium-Term Budget Policy Statement (MTBPS). The total provincial budget has been reduced by R1.8-billion.
Before we explore what this means for socioeconomic rights and entitlements, particularly regarding health, it is useful to recall how provincial budgets are determined and consider what they need to prioritise.
Provinces have limited revenue-raising abilities. The bulk of provincial budgets come from transfers from the national government, with the lion’s share coming from the provincial equitable share. About 40% of all revenue raised by the government is allocated to the provincial equitable share, and a further 7% is allocated to provinces through conditional grants.
Mboweni on government using South African pension money, and winning back the people’s trust
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Government wants pension fund contributors and administrators to invest in its planned infrastructure development projects, but questions remain around corruption and whether the money will actually be put to correct use.
Responding to this issue in a written parliamentary Q&A, Finance minister Tito Mboweni acknowledged that government would have to work hard to “inspire confidence” when it came to the use of pensions for investment.
“The best way to inspire confidence in any government project is to generate economic growth, rid our country of corruption and inefficiency, and to ensure that the people of our country can trust public servants who manage the projects in which they invest their funds,” he said.
MPs call on Mboweni to review budget cuts
By Siyabonga Mkhwanazi
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Cape Town – MPs have called on Finance Minister Tito Mboweni to review the decision to cut the budgets of departments and entities, saying this would have dire consequences for departments.
They said that it was intolerable that the government planned to reduce departments’ budgets to fund SAA’s R10.5 billion bailout.
MPs said it was a matter of serious concern that the bailouts of state-owned entities (SOEs) had taken up 10% of the budget.
In the Medium-Term Budget Policy Statement the national Treasury had indicated that government guarantees to SOEs amounted to more than R500bn.
PHOTO: Getty Images
As the final negotiations in the 2021 budget process unfold, the government of the Eastern Cape, and the Department of Health in particular, are being asked to do more with less. It is now more urgent than ever to strengthen public primary healthcare, argue
Ektaa Deochand,
Daniel McLaren.
The Eastern Cape Second Adjustment Budget Speech, delivered on 26 November 2020, mirrored the harsh line taken in the Medium Term Budget Policy Statement (MTBPS). The total provincial budget has been reduced by R1.8 billion.
Before we explore what this means for current socio-economic rights and entitlements, particularly regarding health, it is useful to recall how provincial budgets are determined and consider what they need to prioritise.