Gauteng depts urged to spend wisely

Thursday, January 28, 2010

Johannesburg - Gauteng Premier Nomvula Mokonyane has urged departments to spend within their budget and stop continuing with projects that have no budgets.

Briefing reporters on the outcomes of the Executive Council (Exco) meeting on Wednesday, Mokonyane said although there has been a significant improvement in the financial management of the provincial departments, certain departments were still experiencing cash-flow pressures.

"Exco has decided that the measures introduced in November last year to improve the financial situation should continue. Departments are urged to spend within their budget and desist from continuing with any projects for which no budget allocations have been made," she said.

She said such departments were experiencing cash-flow pressures due to accruals from the previous financial year and under collection of revenue.

These include the Departments of Health and Social Development, Local Government and Housing, Infrastructure Development and Roads and Transport.

The premier said Exco has further decided that the departments should surrender any potential savings from items such as administrative costs.