Mpumalanga financial position is stable: MEC Kholwane
Thursday, 14 August 2014
The finances of the provincial government are relatively stable despite the economic environment and spending pressures in health and education sectors, said MEC for Finance, Economic Development and Tourism, Mr Sikhumbuzo Kholwane
Addressing the legislature following the passing of the Provincial Appropriation Bill for 2014/15 at the Mpumalanga Legislature on Tuesday, 12 August 2014, MEC Kholwane said the measures that were put in place has secured the financial health of the province.
“In the wake of 2008 financial crisis, various measures were introduced to ensure that fiscal risks in the Province are contained.
“The previous overspending challenges have been eliminated. As a result, the finances of Provincial Government are relatively stable despite the spending pressures in health and education and lack of ability to spend in the remaining departments,” said MEC Kholwane.
MEC urged the provincial departments to ensure greater efficiency on spending, adding that “more and better outputs must be are achieved with lesser available resources”.
He said the Department of Finance is also strengthening the controls around financial management, including enforcement of stricter monitoring of expenditure in the Provincial Government.
While the Provincial Government has managed to maintain sound financial positions, the Department of Finance will continue to enforce strengthened monitoring on public expenditure.
“The current economic climate is reluctant to recover fully, and with the limited resources at the disposal of the administration, it has become increasingly important to monitor provincial bank balances and to forge a stronger link between the In-Year Monitoring system and cash management,” said MEC Kholwane.
He said the Provincial Treasury will continue to improve cash management and cash flow procedures, including strengthening of an early-warning monthly financial reporting system against the budget.
The system will assist the provincial departments to be more pro-active and manage their budgets during the financial year. It will also enable the departments to identify and solve problems as they occur.