Maile rejects claims that Gauteng is on the brink of bankruptcy.

By Lehlohonolo Lehana.

Gauteng finance and economic development MEC Lebogang Maile has rejected claims that the province is in a financial crisis.

Maile addressed the media on Tuesday in Johannesburg, outlining the province’s financial status.

The briefing also responded to the critics over Gauteng’s finances, which have been under scrutiny since the beginning of the seventh administration.

Maile reiterated that while operating under a strained fiscus environment, the province was not facing imminent bankruptcy.

The province is currently sitting with a budget of R169 billion.

Departments and entities must adopt a disciplined approach to spending, ensuring every rand translates into meaningful progress,” Maile said.

He said efforts to improve spending were under way and included standardising pricing for frequently procured items and eliminating wastage, among other plans.

In November, the overall expenditure stood at R115.238bn (68%) of the adjusted budget of R169.213bn, Maile said.

As of now, he said, R53.9bn was available to be spent until the end of March.

“This expenditure is mainly driven by education and health departments, which account for 80% of the total expenditure, “he said.

Maile said the Gauteng department of health expenditure was R46.1bn, or 69.8%, against the adjusted appropriation of R66.017bn.

This is attributed to the main programmes: central hospital services, district health services and provincial hospital services. The department received an additional R600m during the recent adjusted budget to partially offset pressures in the compensation of employees.”

The department of education expenditure was R45.9bn against the adjusted budget of R66.1bn, Maile said, explaining that the high spending came from the public special schools and early childhood development programmes.

Turning to e-tolls, which were disconnected in April last year, Maile said the debt of R20.1bn, inclusive of interest, was a substantial bite into the already stretched and limited resources, but was confident they would settle it.

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