The Free State government will forfeit R32 million to the National Treasury in the current financial year due to a lack of financial discipline – which is unforgivable in a province that is already under severe strain.
This information came to light during a meeting with the Free State Legislature’s Finance Committee where the current financial year’s adjustment budget was reviewed.
In terms of the Public Finance Management Act (PFMA), provincial departments forfeit any funds not spent in a financial year.
The biggest culprit is the Department of Education (R18,8 million), followed by Agriculture and Health, which will forfeit more than R7,3 million and R4,2 million respectively.
With a wage bill totalling R29 billion, comprising nearly 64% of the total provincial budget of R45,8 billion, capital projects – especially those meant to build new infrastructure – do not stand half a chance.
To date, only 41% of the infrastructure budget has been spent.
According to the Free State Treasury, the current financial year’s budget deficit of R2,06 billion will more than double to R5,20 billion in the next financial year.
The problem is not a lack of money, but a lack of proper governance.
As long as the ANC remains in control of the Free State purse, pressure on the provincial budget will keep mounting, and money earmarked for schools, roads and service delivery will be forfeited and, ultimately, spent in other provinces.
