Fiscal time bomb ‘not a reality’

2015-11-16 13:52

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Pietermaritzburg - The DA’s claim that the province is sitting on a “financial time bomb” has been rubbished by the KZN Treasury.

In a statement yesterday, the DA MPL Francois Rodgers said the Provincial Treasury’s 2015/16 mid-year budget performance, discussed at the KZN Legislature on Friday, revealed the province was facing a “mammoth anticipated overspend of R883 million on its budget”.

But Treasury spokesperson Ntokozo Maphisa said there is “no financial time bomb” and that rather the provincial overspend Rodgers is referring to is a “mid-year projection, not a reality”, which can be “contained”.

Rodgers said “this precarious situation could have dire consequences on essential service delivery” as departments scramble to cut costs to reduce their “massive predicted over-expenditure”.

“Any cuts on departmental base line budgets will have a detrimental effect on service delivery.

“The leading culprit behind this fiscal time bomb is KZN’s Health Department, which is predicted to overspend by R802 million,” said Rodgers.

He said this is followed by the departments of Social Development, Co-operative Governance and Public Works.

He said not only does this represent complete “apathy and massive inefficiency”, but that it “also highlights the massive disparity” that exists between Treasury and certain departments.

“KZN now stands on the edge of a fiscal cliff and it is going to demand exceptional and strong leadership to bring the province back from the brink of disaster,” said Rodgers.

Maphisa, while admitting that the Health Department was “in the same situation last year”, said they will “impose a cost containment plan” approved and closely monitored by Treasury.

“There is absolutely no disparity between Treasury and departments. Spending is monitored … monthly. We do not sit idly by when departments overspend.”

He said his department “has dedicated budget analysts for each department”.

Read more on:    pietermaritzburg  |  finance  |  da

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

PARTNER CONTENT
WATCH: How education can change a life

A university education gives students the chance to create a better future for themselves, their families and to opportunity achieve their dreams.

/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.