Gordhan tables Provincial Budget, Expenditure Review

Wednesday, September 16, 2009

Cape Town - Finance Minister Pravin Gorhan on Wednesday tabled the Provincial Budget and Expenditure Review for 2009.

The minister said the review of all provinces provided an important opportunity for South Africans to reflect on its provincial system. It further provides an in-depth analysis of spending trends in the provincial government sphere.

"This review also provides us with an opportunity to reflect on the impact that government spending had on the lives of ordinary people," said the minister, who tabled the review to the National Council of Provinces (NCOP).

He said the tabling of the review would allow the NCOP to exercise its oversight responsibility.

Budgets for provinces have increased by R100 billion between 2005/2006 and 2008/09. By 2011/12 provincial spending at R339 billion would have more than doubled the 2005/06 levels.

This, he said, will allow government to strengthen the education system as well as expand social services to people.

"I remain concerned that the outputs and outcomes are lagging the massive investments we are making," said Gordhan.

The review also showed that the share of social services spending declined from 76.5 percent in 2005/06 to 72.3 percent in 2008/09.