/ 2 November 2006

Treasury: Provinces improve spending patterns

The nine provinces have vastly improved their spending patterns in the first six months of 2006/07, the National Treasury said on Thursday.

They spent on average 45,2% or R82,7-billion of their combined budgets of R183-billion.

”This represents a spending increase year-on-year of 11,4% or R8,4-billion higher than for the same period last year when provinces had spent R74,3-billion,” the Treasury said in a statement.

Education spending totalled R36,8-billion or 46,6% of the R79,1-billion total budget for education, and remained the largest item on provincial budgets (43,2%).

The spending pattern reflected a R2,3-billion or 6,8% increase over the same period last year.

Health spending totalled R25-billion or 48,3% of the R51,7-billion total budget for health, the second largest item after education on provincial budgets (28,2%).

This was a 15,4% or R3,3-billion increase compared with the same period in 2005/06.

Provincial social-welfare services departments spent 41,2% or R2,2-billion of their budgets of R5,3-billion.

In aggregate, provinces spent 38,2% or R5,6-billion of their R14,7-billion combined capital budgets between the various sectors, a significant improvement of 21,8% or R1-billion more than the R4,6-billion spent over the same period last year.

At R1,1 billion (of the R3,6-billion budget) or 31,7% after six months of the financial year, provincial education departments’ spending on capital was relatively low.

Provincial health departments, year-on-year, significantly improved on spending on capital by spending 44,3% or R1,9-billion against their R4,3-billion health capital budgets — 55,3% or R681,5-million more than the same period for 2005/06.

The highest share of provincial capital budgets was for public works, roads and transport departments at 35%. The sector spent 38,6% or R2-billion against its combined capital budgets of R5,1-billion.

Provincial own revenue collected so far was at 55,4% or R3,6-billion of the total own-revenue budget of R6,6-billion.

National government transferred R78,4-billion of the equitable share, and R10,8-billion in conditional grants to provinces, during the six months of the 2006/07 financial year, the statement said. — Sapa