Government will spend about R14-billion more than planned this year, Treasury said on Tuesday.
In the Medium-Term Budget Policy Statement (MTBPS), tabled at Parliament, it says spending will increase from a budgeted R738,6-billion to R752,5-billion.
”Taking into account projected underspending, savings declared by departments and the adjusted state debt cost estimate, the revised estimate of total expenditure in 2009/10 is R752,5-billion.
”In February [this year], at the tabling of the [2009/10] Budget, provision was made for expenditure of R738,6-billion.”
The MTBPS says an extra R12-billion had to be spent on covering ”higher general salary adjustments” than provided for in the main budget.
Another R1,5-billion was spent on ”rollovers, arising from commitments related to unspent balances in 2008/09”.
About R1-billion was spent on the recapitalisation of the Land Bank.
Finance Minister Pravin Gordhan said in June that he had approved R3,5-billion for the recapitalisation of the bank, which has been investigated for a number of irregularities including the alleged transfer of millions from the bank to black economic empowerment companies.
An unexpected R589-million also had to be spent on funding new ministries and departments for President Jacob Zuma’s enlarged Cabinet.
”The president’s appointment of ministers and deputy ministers after the general elections has necessitated a reorganisation of national departments, including renaming departments and establishing new departments,” the MTBPS states.
According to the document, R562-million was spent on ”unforeseeable and unavoidable expenditure” associated with natural disasters and outbreaks of disease.
Another R353-million was used to address the shortfall in the devolution of property rate funds grant to provinces ”owing to higher electricity charges”, while R509-million was spent compensating municipalities for the increased cost of providing free basic electricity to poor households.
The increased uptake in antiretroviral treatment had increased spending by R900-million.
A further R200-million was spent on addressing ”the immediate liquidity requirements” of the SABC.
Taxpayers had to fork out R192-million for Airbus’s claim against Denel Saab Aerostructures (DSA). DSA failed to meet performance targets as part of the 2004 acquisition of eight A400M aircraft.
The document says R144-million was spent on compensating contractual cost increases for the Gautrain as a result of inflation and foreign-exchange losses on conditional grant. — Sapa