With less money to go around, Gauteng’s provincial government faces a balancing act in ensuring the right projects to bring about improved services are implemented.

This was one of the messages relayed by Gauteng Finance and Economic Development MEC Lebogang Maile, as he delivered the 2024/25 budget vote of the Gauteng Provincial Treasury (GPT) and the Department of Economic Development on Thursday.

The various departments within the Gauteng provincial government (GPG) are in the process of presenting their budget votes in the provincial legislature.

However, GPG’s 2024 medium term expenditure framework was being tabled in an environment characterised by deep fiscal constraints and a weak economic outlook, reflecting the cumulative effect of power cuts, the poor performance of the logistics sector, high inflation, rising borrowing costs and a weaker global environment, he explained.

Owing to this, baseline reductions are absorbed across all provincial departments over the medium term, in line with the overall fiscal strategy which aims to promote the sustainability of departmental budgets.

“We face a difficult task of managing public finances in a prudent manner while also supporting departments not only to expand the delivery of services to people but also to facilitate the growth of the provincial economy and create much needed employment opportunities for our people,” he continued.

The GPT aims to double down on efforts to improve public financial management in the Gauteng City Region, and further cut waste, eliminate corruption and strengthen public accountability.

“We must vigorously implement measures to fight fraud and corruption and address practices that lead to the province incurring irregular, fruitless and wasteful expenditure.”

This will enable funds to be stretched further and ensure that the R165.8-billion Gauteng provincial budget this financial year prioritises the sustained provision of critical services to ensure growth and development to the public while simultaneously improving the sustainability of public finances.

Overall, the 2024 provincial budget places priority on maintaining key budget principles to effectively maximise the use of resources, including the repositioning of existing plans and budgets to respond to GPG’s policy priorities; the realisation of efficiencies in the provincial procurement processes; a focus on “ready-to-deliver” infrastructure projects that contribute to the elevated priorities; and extending the fiscal consolidation, sustainability and efficiency measures to provincial public entities, besides others.

The province aims to accelerate economic recovery and reconstruction; strengthen the fight against crime, corruption, vandalism and lawlessness; improve the living conditions in townships, informal settlements, and hostels; prioritise the health and wellness of people; and strengthen the capacity of the State to deliver effectively and efficiently.

These policy directives are aligned with the Growing Gauteng Together 2030 plan.

Meanwhile, key initiatives by the GPT include enhancing sound finances and intensifying the work currently underway with departments and municipalities to enhance own revenue collection in the province.

“We will contain the wage bill of the GPG to no more than 60% of the allocated budget. This will enable us to effectively use resources, obtain value for money and ensure that the compensation of employees budget does not crowd out resources necessary for the provision of service delivery,” Maile commented.

Another focus is the increase in compliance with legislative prescripts and support departments and entities to promote improved compliance with accounting and reporting frameworks, including Generally Recognised Accounting Practice and Modified Cash Standards, through the provision of training workshops, besides other initiatives.

The department also aims to improve local government finances, and has developed a framework for monitoring the implementation of budget funding plans, with the aim of reducing the number of municipalities that adopt unfunded budgets and ensure full compliance with legislative frameworks.