Sat Oct 22 01:46:16 CAT 2016

Restructuring the budget

By unknown | Dec 06, 2007 | COMMENTS [ 0 ]

Frank Maponya

Frank Maponya

The Limpopo government has introduced an Adjustment Appropriation Bill that seeks to appropriate adjusted amounts of money from the Provincial Revenue Fund for the requirements of the province.

This is in respect of the financial year ending March 31 2008.

The bill seeks to reduce some departments' budgets while increasing that of others.

The introduction of the bill was a sequel to the meeting between the provincial portfolio committee on provincial treasury and the department of provincial treasury on November 28.

The committee has tasked the department with exercising its oversight role over departments and not waiting until the problem of overdrafts and accounts were out of control, especially as stringent and punitive measures such as budget cuts might impact negatively on service delivery if not implemented prudently.

In total, an amount of R706million has been cut from all departments to service the overdraft accumulated by the province.

The Limpopo government had announced earlier that there would be no year-end functions in all of its departments this year because of the overdrafts.

It ruled that in order to reduce the overdrafts, there had to be an adjustment appropriation bill.

The government had discovered an overspending of R562million since 1997.

MEC for provincial treasury Saad Cachalia said R24million of the underspending on the equitable share would be used to fund the overdraft.

The committee has also recommended that all departments submit quarterly reports to their respective portfolio committees for consideration and debate by the legislature.

It also instructed the provincial treasury not to allow any rollovers by departments from 2008-09.

Also, the R45million on the Disaster and Drought Relief fund that was not spent should be redirected to areas where the money was needed most.

The figures stand as thus: office of the premier's budget would be decreased by R46million, provincial legislature's to decrease by R2million, education to decrease by R21million, agriculture to increase by R6million, provincial treasury to decrease by R19million, health to decrease by R109million and economic development to decrease by R102million.

Roads and transport's budget to decrease by R28million, public works to decrease by R23million, safety and security to decrease by R1million, local government and housing to increase by R9million, social development to decrease by R11million and sports, arts and culture to increase by R205million.


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