The 2010/11 pre-audited financial report of the Western Cape Government reveals that the province spent just over 99 percent, or R34.072 billion, of its total budget. The Western Cape Government is improving expenditure on service delivery and infrastructure to enable an environment for growth and jobs.
This year’s report was a marked improvement on the 2008/09 and 2009/10 figures, which saw total expenditure of 97.68 percent (R25.614 billion) and 98.16 percent (R30.106 billion) respectively.
Provincial Treasury Western Cape is continually raising the bar by becoming more efficient, effective and systematic in the support it provides to other departments. Despite an increase in budget of R3.73 billion, our departments managed to reduce unspent funds from R565.671 million in 2009/10 to R339.264 million in 2010/11. These results are largely due to the hard work of the Red Flag Team and the Financial Management Improvement Programme that we have instituted.
In total, the provincial departments spent 97.3 percent (R3.345 billion) of their combined infrastructure budgets in 2010/11, compared with 90.6 percent in 2009/10.
In the last financial year, the Departments of Health, Education and Transport & Public Works spent significantly more on infrastructure projects that deliver services to the people of the Western Cape. We have now completed 81 percent of the Khayelitsha Hospital and the Mitchell’s Plain Hospital is on track despite a recent delay. The Education Department completed 8 new schools last year, with a further 4 located in Delft due for completion by next month (amongst others), and the Transport & Public Works Department completed Hospital Bend, and is on target to complete the Koeberg interchange ahead of schedule by the end of July.
In addition to the above achievements:
1. The provincial government increased own revenue collection to R2.067 billion, up R130.297 million on the previous financial year. This is due to a higher than expected number of motor vehicle registrations, sale of capital assets, higher taxes from gambling as the economic downturn eases, and better collection of patient fees at public hospitals.
2. The provincial government decreased accruals, which are the amounts we owe to our suppliers but which were not paid over in the financial year concerned, by 46.8 percent (from R606.007 million in 2009/10 to R322.165 million in 2010/11). Payments to suppliers exceeding 30 days decreased by 72 percent due to the implementation of better controls within departments. Many of the province’s suppliers are SMMEs and they depend on swift payment in order to continue operating. We recognise this, and are working hard to make sure that we pay our suppliers quicker.
My key priority is to maximise provincial government spending within the constraints of the budget while ensuring that we spend responsibly, transparently and in a manner that promotes service delivery to the people of the Western Cape. I will continue to monitor our budgets closely to further improve the management of the province’s finances.