Provincial Treasury: Budget Adjustments 2019/20 (Vote 3)

I am pleased today to table the adjusted estimates of Vote 3: Provincial Treasury.

The Provincial Treasury is responsible for implementing the provincial Fiscal Strategy by:

• continuing to focus on proper expenditure management, proper revenue management and maintaining a balanced budget in the Western Cape; and
   
• continuing to apply the principles of allocative efficiency, fiscal sustainability, fiscal consolidation and fiscal discipline in the Western Cape.

The Provincial Treasury does so to maintain stability, credibility and transparency when it comes to the budget in the Western Cape.

Allocations and adjustments

The main appropriation of R357,353 million has been adjusted down by R19,344 million to R338,009 million for the 2019/20 financial year.

I will not deal in detail with all the adjustments, which are set out in the Adjusted Estimates of Provincial Revenue and Expenditure for 2019.

I do however believe that it is important that we highlight some of these and how they are linked to the fiscal strategy in the Western Cape.

We will

• shift an amount of R395 000 to Vote 1: Department of the Premier for Broadband Connectivity for the Client Walk-in Centre in respect of the Supplier Evidence Bank.

This will allow those suppliers who want to do business with the Western Cape government to more readily access us and get the information they need to respond to government tenders in the Western Cape.

We will:

• Shift R17,63 million from Programme 2, with the largest portion of the shifts, amounting to R14,32 million going to Programme 4 for the Western Cape Financial Management Support Grant.

The purpose of the grant is to provide financial assistance to municipalities to improve the overall financial governance within municipalities inclusive of optimising administration of revenue, improving credibility and responsiveness of municipal audit outcomes and addressing institutional challenges.

We remain committed to filling all critical vacancies, but compensation of employees was adjusted by R6,920 million, due to the late filling of posts, attrition, internal appointments and the lower intake of trainees who form part of the financial management capacity building programme due to deferments.

Earmarked allocations amounting to R14,6 million were surrendered to the Provincial Revenue Fund.

Of this total, R4,6 million have been surrendered to the Provincial Revenue Fund in relation to the Infrastructure Development support funding, awaiting the Department of Public Service and Administration approval for the structure.

R10 million of the earmarked allocation has been surrendered to the Provincial Revenue Fund in respect to the Financial Good Governance Grant, with finalisation of the framework in respect of the grant taking longer than expected.

An additional amount of R571 000 was financed from the Provincial Revenue Fund to the Western Cape Gambling and Racing Board to refund for overpaid taxes to the Province by Hollywood Sportbook.

In conclusion, I would also like to thank the Provincial Treasury’s Acting Head Official, Julinda Gantana, and “team finance’ for their continued dedication, professionalism and tireless commitment to the people of the Western Cape.

I would also like to extend a special welcome the new Head Official of Provincial Treasury, David Savage, who brings extensive experience at National Treasury and International Financial Institutions to government in the Western Cape.

Francine Higham
Spokesperson for the Ministry of Finance and Economic Opportunities
(Responsible for Provincial Treasury and Departments of Economic Development and Tourism)
Tel: 021 483 4327
Cell: 071 087 5150
Email: francine.higham@westerncape.gov.za