/ 26 July 2004

Manuel: No budget crisis in Eastern Cape

There is no need for alarm at an expected budget deficit in the education and social development departments of the Eastern Cape, Minister of Finance Trevor Manuel said on Monday.

”Premier [Nosimo] Balindlela and Minister Manuel said there is no need for alarm as the scenario was being attended to,” Finance Ministry spokesperson Manelisi Wolela said in a statement.

Manuel said that matters that cannot be dealt with at the meeting will be pursued by his ministry and the provincial minister of Finance, Enoch Godongwana.

Balindlela and Manuel met in Bisho on Monday to discuss the province’s apparent financial mess.

Manuel said ”the province had been through difficult times during the 1997/98 financial year, and that it was nowhere near that scenario”.

The social development department is reportedly expecting an over-expenditure of R1,2-billion for the current financial year.

The education department reportedly has a deficit of about R1-billion from the past two years.

”Minister Manuel said the meeting was used to share information on current service delivery trends and challenges to ensure the provincial government is in a better position to deliver services in line with its overwhelming mandate and trust of the people.”

The national government has a duty to ensure that delivery is improved, said Wolela. — Sapa