LIMPOPO finance MEC David Masondo yesterday presented a R46.9bn budget that was mainly prepared by national officials who are part of the intervention team to rescue the province from the verge of bankruptcy.

The national intervention team, led by Monde Tom, arrived in the province in December last year after the province ran into a deficit of R2.7bn, accrued through abuse of the supply chain management system.

Five provincial departments - education, health, public works, the treasury, and roads and transport - are currently under national administration.

National treasury deputy director-general Kenneth Brown took it upon himself to explain to the media how the province's budget will be managed in the 2012/13 financial year.

However, he said the financial position of the province was showing signs of improving and has not been using the overdraft facility since January 6. There were still some challenges such as unauthorised expenditure that needed to be dealt with, Brown said.

He explained that 97% of funding for all nine provinces came from the national treasury, which they receive almost every month.

"At the end of the financial year, the province should not have a deficit," Brown said.

In his speech in the legislature in Lebowakgomo, Masondo for the first time acknowledged the financial crisis in the province and the need for a national intervention to stabilise the situation.

"The national intervention team, working closely with the relevant departments, has helped stabilise the provincial finances," Masondo said. "A credible plan has been put in place to address the problems of accruals and the accumulated unauthorised expenditure. The provincial revenue fund has been stabilised. Today, the province has a positive cash balance."

He said measures were being put in place to ensure sound financial management practices, including the rooting out of corruption, rebuilding the treasury and adherence to supply chain management regulations.