Revenue driven by three sources

2018-03-14 06:01
Mac Jack, the Northern Cape MEC for Finance, Economic Development and Tou­rism, unpacking his budget speech at the Mittah Seperepere Convention Centre on 23 February.Photo: Boipelo Mere

Mac Jack, the Northern Cape MEC for Finance, Economic Development and Tou­rism, unpacking his budget speech at the Mittah Seperepere Convention Centre on 23 February.Photo: Boipelo Mere

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The Northern Cape’s revenue budget is mainly driven by three major revenue sources.

These three sources are motor vehicle licences, patient fees and casino taxes, liquor licen­ses and horse racing, which is set to increase from R33 million in the 2018-’19 financial year to R36 million.

However, the biggest part of the province’s budget – 98% – still comes from national government while 2% accounts from the pro­vince’s own revenue.

This was pointed out by Mac Jack, the MEC of Finance, Economic Development and Tourism, during his budget speech on Friday, 23 February.

Jack elaborated on how the province is funded through own revenue, equitable share allocations and conditional grants.

The 2018 Medium Term Expenditure Framework (MTEF) budget provides for a total expenditure of R17,1 billion in 2018-’19, rising to R17,8 billion and R18,9 billion in the 2019-’20 and 2020-’21 financial years respectively.

Over and above the MTEF, the provincial receipts total to R54,3 billion of which R40,2 billion presents equitable share, R12,9 billion conditional grants and R1,1 billion in own revenue.

The 2018 budget revealed that the total infrastructure spending for the next three years will be R8,3 billion, of which R2,8 billion will be spent in 2018-’19.

A sum of R1,2 billion is allocated for new and expanded infrastructure, including schools, health facilities and social housing, while R804 million is allocated for rehabilitation and refurbishment.

R446 million is set aside for non-infrastructure assets such as machinery and equipment, while R4,4 billion is for maintenance, repairs and upgra­ding.

“This clearly demonstrates go­vernment’s commitment to not only concentrate on building new infrastructure, but to also maintain the existing ones,” said Jack.

According to the MEC an amount of R254,7 million, in respect of the Incident Command System (ICS), has been allocated to all provincial departments who are in return expected not to use these funds for additional appointments but to sustain current warm bodies (exis­ting staff) in the system.

Conditional grants are projected to decrease by an average growth of -2,9%, from R4,5 billion in 2018-’19 to R4,3 billion in 2020-’21.

A newly established grant, the Title Deed Restoration Grant, is budgeted at R360 million in the 2018-’19 financial year, which is projected to increase to R402 million in the last year of MTEF with an average growth of 3,9% in 2018.

The first of the Northern Cape’s major revenue sources, motor vehicle licences, is set to increase from R247 million in the 2018-’19 financial year, to R277 million in the next season of the MTEF.

The second largest, patient fees, is set to increase from R55 million in the 2018-’19 financial year to R61 million in the next season of the MTEF.

Lastly, casino taxes, liquor licenses and horse racing revenue is set to increase from R33 million in 2018-’19 financial year to R36 million.

Extended Public Works Programme (EPWP) received an allocation of R57,4 million for 2018-’19.

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