MEC Sikhumbuzo Kholwane announces Mpumalanga fiscal control measure

Province improves fiscal controls to protect service delivery budgets

Mpumalanga Treasury will introduce expenditure blocking as part of the measures to protect service delivery budget, said MEC Sikhumbuzo Kholwane.

MEC Kholwane announced this fiscal control measure at the Provincial Legislature on Friday, 25 November 2016.

He said this additional is an extraordinary intervention to respond to the current fiscal challenges.

"It is important to note that for the purpose of this Adjustments Appropriation we did not receive additional funding from national government, except for conditional grants related expenditure", said MEC Kholwane.

The Province will be impacted by the ceiling on expenditure in the next two year as budget cuts on non-core activities intensify and funds are diverted to address the pressing needs of the communities.

"Over the medium term we will reprioritize funds from the equitable share and own Provincial Revenue, in order to finance our service delivery priorities, said MEC Kholwane.

Amongst the array of measures being introduced to improve efficiencies includes exploring the possibility of shared services for the public entities, establishing of single economic regulator and centralized implementation of transversal contracts.

"The Department of Economic Development and Tourism has concluded the study on the possible merger between Mpumalanga Gambling Board and Mpumalanga Liquor Authority, and the process for the establishment of an Economic Regulator will commence in December 2016.

"We have further identified cross cutting commodities where we want to improve efficiency, and derive benefit from economies of scale, while facilitating and promoting the creation of employment and job opportunities," concluded MEC Kholwane.

The Provincial Government committed to implement the aspects of a Joint Action Plan to address the expenditure management and service delivery improvements in March 2016.

Source: Government of South Africa.

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