Latest news with #DivisionofRevenueBill
IOL News
03-06-2025
- Business
- IOL News
Western Cape Finance MEC ensures stability with R89. 3 billion budget despite national challenges
Western Cape Finance MEC Deidré Baartman delivers the 2025 Budget Speech in the Provincial Parliament. Western Cape Finance MEC Deidré Baartman re-tabled the province's R89.3 billion Appropriations Bill after the national government unexpectedly withdrew its budget, including the legally binding Division of Revenue Bill. Addressing the Western Cape Provincial Parliament, Baartman clarified that although the process had to be repeated for legal compliance, 'nothing in substance in the Western Cape Appropriations Bill has changed.' The 2025/26 Western Cape Budget still allocates a total of R269.5 billion over the next three years, with more than 80%, or R215.8 billion, dedicated to social services. This includes R101 billion for education, R100 billion for health, R6.4 billion for housing, and R8.4 billion for social protection.
IOL News
03-06-2025
- Business
- IOL News
Western Cape Finance Minister re-tables R89. 3 billion Appropriations Bill as national budget faces uncertain future
Western Cape Finance MEC Deidré Baartman delivers the 2025 Budget Speech in the Provincial Parliament. Image: Supplied Western Cape Finance Minister Deidré Baartman re-tabled the province's R89.3 billion Appropriations Bill after the national government unexpectedly withdrew its budget, including the legally binding Division of Revenue Bill. Addressing the Western Cape Provincial Parliament, Baartman clarified that although the process had to be repeated for legal compliance, 'nothing in substance in the Western Cape Appropriations Bill has changed.' The 2025/26 Western Cape Budget still allocates a total of R269.5 billion over the next three years, with more than 80%, or R215.8 billion, dedicated to social services. This includes R101 billion for education, R100 billion for health, R6.4 billion for housing, and R8.4 billion for social protection. In terms of strategic spending, the province is staying the course on its four apex priorities: R43.8 billion to 'Growth for Jobs,' R3.9 billion to safety, R194.9 billion to build an 'Educated, Healthy and Caring Society,' and R23.4 billion to innovation, culture, and governance. 'In light of this,' said Baartman, 'the doors of the Western Cape Government have, and will continue to, remain open.' Despite the chaos at a national level, Baartman assured residents that essential services would remain intact, crediting this stability to provincial fiscal discipline. 'Despite the uncertain fiscal environment, the Western Cape Government can assure this house that we have kept strict protocols in place on cash flow management in the province to ensure service delivery continues uninterrupted,' said Baartman. She also acknowledged the tireless work of officials during this turbulent period. '2025 has really seen us exercise our legal and procedural muscles within the uncertain fiscal space nationally, and I would like to thank the Provincial Treasury team as well as the Legal team in the Department of the Premier for their assistance and guidance throughout this process.' Looking ahead, Baartman expressed hope for a smoother national budget process next year. 'For certainty, fiscal stability and trust, it is my sincere hope that the national budget process for 2026 will flow more effortlessly.' IOL News
IOL News
03-06-2025
- Business
- IOL News
Maile tables revised R172. 3bn budget, vowing service delivery and fiscal discipline
Gauteng MEC for finance and economic development re-tables budget for 2025/2026, focusing on service delivery and economic growth Image: Gauteng Legislature The Gauteng Provincial Government Finance MEC Lebogang Maile has re-tabled the province's increased 2025/2026 Budget, emphasising service delivery, fiscal discipline and inclusive growth in the country's economic hub. The revised budget now amounts to R172.3 billion — an R886.6 million increase from the initially proposed R171.5 billion. Maile presented the revised Budget to the Gauteng Provincial Legislature and explained that the additional funds were made possible through the provincial allocation of unspent resources and revenue over-collections from the previous financial year. 'These resources enable us to better respond to the urgent needs of our communities and to reinforce our commitment to service delivery,' he stated. He further said that the re-tabling was a necessary response to the extraordinary delays and disagreements at the national level, where the postponement and subsequent amendments to the national budget caused ripple effects on provincial planning. 'The developments at the national level, including the postponement and withdrawal of the Division of Revenue Bill, compelled us to withdraw our initial provincial Budget and re-table it within the legal framework provided by the Public Finance Management Act,' Maile said. According to Maile, the priorities outlined in the State of the Province Address (SOPA) are comprehensively funded in this 2025 Medium-Term Expenditure Framework (MTEF) Budget within and across all budget votes. Maile said that this deliberate alignment ensures that the government's strategic objectives - such as infrastructure development, social services, safety, and economic growth - are adequately resourced to deliver tangible and measurable impacts for Gauteng residents. He expressed confidence that these investments will translate into real change, improving the lives of the people across the province and reaffirmed the commitment made during the Medium-Term Budget Policy Statement (MTBPS) tabling in November last year. 'Fiscal discipline is non-negotiable. We will continue prioritizing efficiency gains and making strategic trade-offs to fund our government's priorities. Managing our finances responsibly is fundamental to building a resilient Gauteng that can sustain growth and development, even in difficult economic times.' Video Player is loading. 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Advertisement Next Stay Close ✕ Maile stressed that fiscal discipline requires provincial and municipal governments to uphold fiscal positions that are aligned with macroeconomic stability. He argued that this is essential for maintaining investor confidence and economic resilience and for ensuring equitable and sustainable service delivery across all communities. He also highlighted that exploring alternative funding sources is crucial for long-term fiscal sustainability. 'Provincial departments and entities are actively investigating innovative financing mechanisms—such as public-private partnerships, donor funding, and blended finance models—to supplement constrained revenue streams. 'These efforts will enable the government to expand its investment capacity while maintaining prudent financial management,' said Maile. Prioritising Critical Sectors with Targeted Allocations The allocations outlined in the budget are focused on addressing the most urgent and impactful needs: The Gauteng Department of Human Settlements was allocated R332 million to improve sanitation in informal settlements (R232 million) and to secure land and structures against illegal occupations (R100 million), directly tackling the issues of land invasion and service delivery gaps highlighted in SOPA. The Department of Roads and Transport will receive R314.9 million, with R150 million targeted at 54 priority roads across the five economic corridors and R115 million for repairing traffic lights and streetlights, improving mobility and safety. Maile announced that the Departments of Agriculture, Rural Development, and Environment have been allocated R23.8 million and R18 million, respectively, to build capacity and implement environmental initiatives, including the clean and green campaign aimed at improving urban environments and public spaces. Other critical sectors include health, education, safety, sports, arts, ICT, and infrastructure. The budget ranges from R50 million for school upgrades to R1.5 billion for ICT expansion and R3.6 billion for infrastructure development. He said these investments are designed to accelerate service delivery, foster economic growth, and improve the quality of life for all residents. The Budget also prioritised social programs, with R5.4 billion allocated to Social Development to address urban poverty, homelessness, and skills development. The Department of Community Safety will receive R2.3 billion to enhance policing, community safety efforts, and law enforcement visibility, including deploying Gauteng Traffic Wardens to restore law and order. Maile announced that R1 billion is being funded for arts, culture, and sports, which supports community engagement and social cohesion and hosts major national and international events. In digital transformation, Maile said R1.5 billion is allocated to expand ICT connectivity, including Wi-Fi hotspots and CCTV installations in townships, contributing to safer and more connected communities. Maile reaffirmed that maintaining fiscal discipline remains an uncompromising priority. He said the government is committed to managing expenditures efficiently, identifying savings, and making strategic trade-offs to fund priority programs. 'Our approach is to ensure that every rand spent delivers maximum value to our people,' he said. 'This requires us to be disciplined, innovative, and unwavering in our commitment to responsible governance.'
IOL News
29-05-2025
- Business
- IOL News
KwaZulu-Natal 2025 budget re-tabled with no changes despite VAT increase withdrawal: Here's why
KwaZulu-Natal's 2025/26 Provincial Budget was officially re-tabled on Thursday by MEC for Finance Francois Rodgers following a national fiscal disruption caused by the withdrawal of the proposed VAT increase. Despite this unexpected development at the national level, Rodgers confirmed that the province's fiscal framework remains entirely unchanged. In his address to the Provincial Legislature, Rodgers reaffirmed the sequence of events that led to the re-tabling. The budget had initially been tabled on March 25, 2025, within the stipulated two-week window following the national budget announcement on March 12, as per Section 27.2 of the Public Finance Management Act (PFMA). However, with the subsequent withdrawal of the Division of Revenue Bill and the Appropriation Bill on April 24, due to the removal of the VAT increase and a revised fiscal framework, Rodgers was compelled to withdraw the provincial budget and formally communicated this to the Legislature on May 7. Rodgers said, 'Fortunately, as confirmed in a formal allocation letter to the Province by National Treasury, the withdrawal of the proposed VAT increase has had no impact on the Provincial Budget.' He further highlighted that, 'There has been absolutely no change to the fiscal framework in the Province of KwaZulu-Natal because of the withdrawal of VAT. Our budget remains a total of R158.4 billion.'
The Citizen
20-05-2025
- Business
- The Citizen
Calls for bigger slices of Godongwana's budget cake
Struggling entities are asking for bigger slices of the national budget after their funds depleted in the past financial year. Finance Minister Enoch Godongwana's budget 3.0 has many, including constrained provincial administrations and traditional authorities, asking for bigger slices from the yet-to-be divided national cake. With the value-added tax (VAT) issue that delayed the passing of the budget now off the table, Godongwana could be smiling as he delivers his budget speech tomorrow – four months after a hollow address in February. Political parties and rural voices weigh in Now that a consensus has been reached, with the government of national unity (GNU) parties giving budget a thumbs-up, many have come forward to claim their share, or what they think they deserve from the cake. Even the usually reticent traditional leaders have asked Godongwana not to forget them. Some provinces had been struggling to survive beyond the end of the past financial year as their budgets were exhausted. The situation worsened after Godongwana withdrew the Division of Revenue Bill and the Appropriation Bill he introduced in the National Assembly last month, due to the budget impasse within the GNU. All the provincial budgets depend on the national allocations by the minister. ALSO READ: Budget 3.0: will it be third time lucky for Godongwana? KwaZulu-Natal hangs by a thread KwaZulu-Natal, which has been hardest hit by budget depletion, had been waiting for Godongwana's allocations with bated breath after it had almost exhausted its 2024-25 financial year budgets – leaving service providers and early childhood teachers high and dry for at least two months. KZN finance MEC Francois Rogers appealed to Godongwana and National Treasury to ensure that the way forward is clearly mapped out during the coming days. 'We also call on National Treasury to ensure that there are no reductions in KZN's equitable share, or provincial conditional grants,' Rogers said. Political parties and rural voices weigh in The DA has made significant proposals dealing with comprehensive fiscal strategies. Traditional leaders also want a fair share of the budget allocations to develop their communities, whom they claimed were neglected for many years. North West-based Bakgatla ba Kgafela traditional leader, Kgosi Nyalala Pilane, was first to jump to the fore to request Godongwana to prioritise rural development. He urged Godongwana to prioritise spending that delivers real impact and avoid shortcuts that harm low-income households. Union federation Cosatu asked Godongwana not to disappoint workers and the nation. NOW READ: Budget 3.0: Provincial budgets in the firing line?
