KZN gets biggest budget transfer

By Drum Digital
27 February 2013

KwaZulu-Natal receives the largest budget of all the provinces in terms of equitable share and conditional grants, according to the 2013 budget tabled on Wednesday.

The province would receive R88 billion for 2013/14, followed by Gauteng with R76.9bn and the Eastern Cape with R59.6bn.

Limpopo receives R48.5bn, the Western Cape R41.7bn, Mpumalanga R33bn and the North-West R27.7bn.

The provinces with the lowest budget are Free State with R26bn and the Northern Cape with R12.3bn.

A sum of R188 million had yet to be allocated.

In total, provincial government was allocated 43.5 percent of available revenue this financial year (2013/14), mainly for education, health and social welfare.

Local government has been allocated 8.9 percent of available funds (or R84.7bn).

According to the 2013 Budget Review, a new formula for the local government equitable share was introduced and would provide more households with a subsidy for basic services.

"The threshold for receiving basic services rises from R800 per month (in 2001 prices) to R2300 per month (in 2011 prices)," the review document stated.

"The formula also provides funds for the institutional costs of municipalities and for community services, such as parks and recreation and fire fighting."

In his speech in the National Assembly, Finance Minister Pravin Gordhan said the equitable division of revenue between provinces and municipalities took into account the 2011 census, which showed "substantial" shifts in the distribution and age of the population since 2001.

A map of the country in the Budget Review shows a sharp spike in population growth in urbanised provinces.

Gauteng had the biggest population growth spurt between 2001 and 2011, at 31 percent. The Western Cape saw a 29 percent increase in population growth in the same period.

-Sapa

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