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KZN Budget: Province on a road to nowhere as ANC proves lack of direction

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KZN Budget: Province on a road to nowhere as ANC proves lack of direction

10th March 2023

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/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

KwaZulu-Natal (KZN) Finance MEC, Peggy Nkonyeni’s maiden Budget presentation earlier today is best described as a road to nowhere as this ANC-run government drifts dangerously, taking our province with it.

Today’s budget can also be summed up as one of the worst in many years, as the MEC failed to provide answers to KZN's many fiscal challenges.

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The announcement that national treasury has bailed out the province – to the tune of R631million in iZinduna back pay - is an outcome that the DA has pushed for over many years and we welcome this financial lifeline.

Regrettably, it comes amid more massive budget cuts over the MTEF with R235million, R548million and R1billion in the outer year. It also comes as KZN’s contingency reserve hits its lowest point ever.

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One of the priorities in the budget appears to be the uncontrolled budget for meet, greet and eats for MECs. This as they launch their 2024 election roadshows.

The issue of Compensation of Employees (CoE) – which consumes 60% of the entire budget – remains another significant concern. This is a whole 10% more than that of the DA-led Western Cape. The DA has long maintained that KZN’s bloated provincial structure must be addressed, including the non-performance of many individuals.

While the DA welcomes additional funding for Education and Health this must be juxtaposed against KZN’s R23.9billion irregular and unauthorised expenditure – where these two departments are repeat offenders.

We also welcome funding allocated to infrastructure; however, the reality is that without a capable and ethical state, the question remains: What will happen to this money? This is particularly relevant when looks at current expenditure on Municipal Grant Funding (MIG) – with half of the budget unspent and returned to national treasury.

Despite KZN’s precarious financial position, there is no evidence that this ANC-run government acknowledges this. The MEC herself stated that there was light at the end of the tunnel. This light belongs to an oncoming train.

KZN’s budget can no longer be a tick box exercise by this ANC-run government. For far too long, money has either been misspent or has simply disappeared.

Our people are running out of patience with an ANC government that has run out of solutions.

 

Issued by Francois Rodgers, MPL - Leader of the DA in the KZN Legislature/DA KZN Spokesperson on Finance

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