It is evident from the Northern Cape Budget for 2021/22 that was tabled yesterday that the province is facing enormous challenges. Hard work, thorough planning and sound financial management are needed to successfully overcome the challenges posed by the 2021/22 financial year.
The MEC for Finance, Mr Abraham Vosloo, announced that the total expenditure, amounting to R14,6 billion, is 2% less than last year. On the whole, however, the economy contracted with 7,2%. The only ray of hope is that it was less than the projected 7,8%.
The budgets of the following provincial departments were cut back: Education with 2,1%, Economic Development and Tourism with 8,9% and Agriculture with 12,8%.
Each of these cutbacks will make the Northern Cape's road to economic recovery, after the devastating impact of the Covid-19 pandemic, even more difficult.
Further cutbacks were made possible by abolishing the provincial Political Party Funding Act in light of the new national legislation with the same objective.
One department whose budget was increased is Health. After Education with approximately R6,4 billion, Health is the second biggest spender in the province with R4 billion.
The increase should go some way to relieve the pressure on medical services in the province, but whether it is enough to overcome all the challenges is doubtful.
In order to maintain steady economic growth over the medium and long term, funds must also be spent on municipal infrastructure. The provincial Department of Local Government will have to play a key role to ensure successful coordinating and proper management.
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