Gauteng Profits R276 million from Underperformance

March 10, 2015

In the recently tabled Gauteng Provincial Government (GPG) budget it was revealed that the province had “earned” an additional R276m of revenue that it did not anticipate.

This arises from interest earned on credit in the province’s accounts.

The province originally budgeted for R86.55m from this source, but at the end of the year they discovered that the interest that had accrued was actually R362.36m.

It must be noted that while additional income is welcome, the fact is that billions of rands have lain unspent in the province’s coffers.

This money should have been spent on capital infrastructure projects.

Perversely, the province has been rewarded for under-performing by failing to implement much-needed projects.

These projects could have provided better service-delivery to hard-pressed Gauteng citizens who battle with dilapidated hospitals, poor roads and under-maintained schools.

Not only do infrastructure projects contribute toward service delivery, they also form a vital part of job creation in the economy.

This additional revenue is not a cause for celebration.

It is an indicator of a government that disempowers its people through not providing adequate service delivery and not recognising the plight of those who are jobless and poor.

 

Media enquiries:

Mike Moriarty MPL

DA Gauteng Shadow MEC for Finance

082 492 4410

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