The nine provinces spent on average 98% or R214,8-billion of their adjusted budgets of R219,2-billion in 2005/06, the National Treasury said on Tuesday.
This was a significant spending increase year-on-year of 13,5% or R25,5-billion over the audited R189,2-billion spent in 2004/05.
The Treasury said in a media statement the first estimates of spending varied between the lowest share of 94,4% in the Free State and 95,8% in the North West to the highest at 99,8% in KwaZulu-Natal and 98,6% in the Western Cape.
The year-end under-expenditure of R4,4-billion, or 2% of adjusted provincial budgets in aggregate by provinces for the 2005/06 financial year, was largely due to under-expenditure in capital and conditional grants, in particular the social assistance transfers conditional grant.
Education spending totalled R72-billion or 99,6% of the R72,3-billion total adjusted budget for education, and remained the largest item on provincial budgets. The spending pattern reflected a R7,5-billion or 11,7% increase on audited spending in 2004/05.
Health spending totalled R46,9-billion or 99,5% of the R47,2-billion total adjusted budget for health, and was the third-largest item, after education and social development, on provincial budgets. The spending pattern reflected a 16,6% or R6,7-billion increase compared with audited spending in 2004/05.
The preliminary outcome for provincial social development departments indicated that provinces had underspent by almost R2-billion on their adjusted budgets. This appeared to be the result of key initiatives introduced to address weaknesses in the grant-administration system, with a specific focus on the disability grant, to stabilise the social development budgets.
Spending was recorded at 96,7% or R58-billion of the R60-billion adjusted budgets. This was an increase of 13,8% or R7-billion above the audited R51-billion spent last year.
All provinces recorded underspending, with the Free State and Gauteng reflecting the largest at R464,2-million and R424,1-million respectively.
In aggregate, provinces spent 94% or R13,1-billion of their almost R14-billion adjusted capital budget between the various sectors.
This was an improvement of 26,8% over the previous financial year, exceeding the audited R10,4-billion spent in 2004/05 by R2,8-billion.
Total personnel spending on average was 99% or R95,7-billion of the R96,7-billion adjusted personnel budget.
Both provincial education and health departments, in aggregate, underspent on their personnel budgets in 2005/06, with the exception of Limpopo, which overspent by R532,5-million in education personnel.
These figures might be revised as national and provincial departments finalise and reconcile their financial statements by May 31 for submission to the auditor general, the Treasury said. — Sapa