Provincial Treasury Budget Speech 2014
Mr Speaker,
Premier Zille,
Cabinet colleagues and Members of the Provincial Legislature,
Director-General and Heads of Departments,
Our partners in promoting good governance, in departments, in municipalities and in the AG’s office,
Residents of the Western Cape.
I am pleased to present the Western Cape Treasury’s budget for 2014/15.
During the five years of this term, "Team Treasury", working closely with Heads of Departments (HODs), Chief Financial Officers (CFOs), Mayors and Municipal Managers (MMs), has pioneered a turnaround in governance in this province.
In the year before we came to power, Mr Speaker, not one of the Western Cape departments achieved a clean audit. Last year, five departments achieved clean audits, and all the rest obtained unqualified audits – a remarkable feat.
Likewise, in 2008/2009, the final year of ANC governance in this province, not one municipality received a clean audit. This year, in partnership with local governments across the board, we managed to secure 11 clean audits.
We also achieved the best governance and financial management results of any province or national department, as highlighted by the Monitoring and Performance Assessment Tool conducted by the Presidency, and we were ranked the "best-run province" in the 2013 Public Sector Reporting Awards hosted by the South African Institute of Government Auditors.
There is no doubt that working together, our teams are yielding results.
These achievements also show that where the DA governs, public spending is being pulled right. Where we govern, we stand against dubious deals put in place to line the pockets of the money-hungry politicians looking to enrich themselves and their friends. We stand for clean and accountable financial management that roots out corruption and improves service delivery.
During the current term of government, the Provincial Treasury has devised several new tools through which we have improved the support we offer to our public sector peers.
To assist municipalities and departments to devise annual performance plans that best address the needs of Western Cape residents, we have supplemented the Provincial Economic Review and Outlook (PERO) with a Municipal Economic Review and Outlook (MERO). Put together, these documents provide a comprehensive and regularly updated assessment of the socio-economic challenges and opportunities inherent in our communities face.
Through the Corporate Governance Review and Outlook (CGRO) and Municipal Governance Review and Outlook (MGRO) processes, we now provide bespoke support to our key partners to assist them to strengthen areas of concern raised by the Auditor-General.
More recently, we have worked with local municipalities and departments to put in place a matrix of policies which will help us to simultaneously accelerate economic growth, job creation and improved socio-economic outcomes. In the year ahead, the Provincial Treasury will utilise the Metacog to direct the resources of the government in a manner which manages any risks that emerge, maintains stability and provides the foundation for inclusive economic growth.
As defined in the Metacog, and in the Medium Term Budget Policy Statement (MTBPS), the Western Cape Government has outlined several key transversal priority projects. These include the green economy, skills development, broadband connectivity, regional socio-economic development and ICT enhancements within the government.
In respect of the latter, the following nine strategic initiatives have been identified which will assist in streamlining our governance, improving our capacity to deliver services and closing loopholes for corruption:
- An Integrated Budget Management Solution
- An Integrated Provincial Performance Management System
- An Integrated Financial Management Solution
- An Enterprise Content Management System
- An improved Internal Control system
- A Business Intelligence programme
- A Governance Review and Outlook system
- A Strategic Sourcing system; And finally,
- A refresh of the out-dated ICT equipment and software of the government
To best manage the entire suite of transversal projects, a sub-programme has been created under the Provincial Treasury’s vote which houses its allocations. These funds will be shifted to departments in the Adjusted Estimates, subject to the approval of clear implementation plans. In total, this sub-programme accounts for two-thirds of this department’s budget.
The department receives a total allocation of R648 298 million, including the amount of R429 385 million for the transversal projects mentioned above.
The budget has been divided as follows:
To give strategic direction and to provide quality financial and other support services to the Minister and Head of Department, Programme 1: Administration, receives R44.886 million.
Programme 2: Sustainable Resource Management, receives an amount of R90.933 million, excluding the special projects funding, to ensure the effective and efficient management of provincial and municipal financial resources.
An amount of R53.923 million has been set aside for Programme 3: Asset Management, to provide policy direction and to facilitate the effective management of provincial and municipal financial systems, supply chain management systems and moveable asset management systems. Within this programme, an additional R5 million has been set aside to drive a strategic sourcing project which will help the Western Cape Government achieve better economy of scale on its global goods and services budget.
And finally,
Programme 4: Financial Governance, receives R29.171 million to promote accountability through substantive consideration of financial activities in both spheres of government and to ensure compliance with financial norms and standards.
Of the Provincial Treasury’s entire allocation of R648.298 million, R146.221 million will be spent on the compensation of its 324 employees. The functions of this department are highly specialised and are directly dependent on the quality of human services it delivers.
An amount of R435.385 million will be provided to other departments and municipalities as subsidies to assist them in achieving greater governance.
In conclusion, Mr Speaker, I would like to issue my sincere thanks to all the officials of the Provincial Treasury, HODs and CFOs in the departments that have worked with us, and to the Mayors and MMs in our municipalities, all of whom have helped us to make the Western Cape the best run province in the country. Together, we have laid a solid foundation for good, clean governance. As we move into the next five years, this department will play a leading role in taking us even further toward our goal of becoming the best run regional government in the world.
I hereby table the estimated budget of the Provincial Treasury and its Annual Performance Plan for debate by this house.
Mr Speaker, I thank you.
Media Enquiries:
Bronwynne Jooste
Spokesperson for Minister Alan Winde
Ministry of Finance, Economic Development and Tourism
Tel: 021 483 3550
Cell: 082 454 4365
E-mail: bronwynne.jooste@westerncape.gov.za