The Free State budget that was tabled today is indicative of a province that does not know how to manage its finances.
The provincial government's exorbitant wage bill comprises approximately 62% of the total budget. More than R25 billion is budgeted for salaries alone.
The underspending of conditional allocations by provincial departments as a result of poor planning, a lack of proper leadership and misguided priorities contributed to the fact that the province forfeited R65 million in the 2022/23 financial year.
The underspending by the Departments of Police, Roads and Transport (R45,19 million) and Human settlements (R20 million) means that these funds will now be channelled to other provinces.
Before delivering her Budget Speech, the MEC for Finance, Gadija Brown, indicated to a public accounts committee that the reason for the loss is a lack of capacity.
This lack of capacity relates to inadequate human resources and expertise, especially in the Department of Police, Roads and Transport.
Thus, she admitted that the real problem is not a lack of funds, but a lack of expertise.
The province was further penalised for this Department’s poor performance and will receive approximately R107 million less for road maintenance in the 2022/23 financial year.
Although the ANC government says that it is prioritising economic development in the Free State, it fails to spend the allocated funds on maintaining and upgrading critical road infrastructure.
And road infrastructure is vital for economic growth. The terrible condition of Free State’s roads serves as tangible proof that the ANC's Affirmative Action and Black Economic Empowerment policy has resulted in a lack of expertise.
The province will not develop as long as the ANC's obsession with Black Economic Empowerment is used as a smokescreen for the ANC-elite's self-enrichment.
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