Download
1 / 28
310 likes | 334 Views
Gauteng Provincial Treasury. Gauteng Provincial Government Finances. Table of Contents. Provincial Growth and Development Strategy Gauteng’s Demographics Gauteng’s Macroeconomic Indicators Fiscal Sustainability 2014/15 Provincial Expenditure GPG cash position Own revenue collected
E N D
Gauteng Provincial Treasury Gauteng Provincial Government Finances
Table of Contents • Provincial Growth and Development Strategy • Gauteng’s Demographics • Gauteng’s Macroeconomic Indicators • Fiscal Sustainability • 2014/15 Provincial Expenditure • GPG cash position • Own revenue collected • Summary of GPG financial performance • Overall GPG financial performance • Provincial Wage Bill issues • Provincial performance on conditional grants • Infrastructure Spending • Conclusion
1. Provincial Growth and Development Strategy • Gauteng has determined its new priorities within the context of transformation, modernisation and re-industrialisation which resulted in the Ten Pillar Programme. • Pillar 1: Radical economic transformation • Pillar 2: Decisive spatial transformation • Pillar 3: Accelerated social transformation • Pillar 4: Transformation of the state and governance • Pillar 5: Modernisation of the public service • Pillar 6: Modernisation of the economy • Pillar 7: Modernisation of human settlements and urban development • Pillar 8: Modernisation of public transport infrastructure • Pillar 9: Re-industrialisation of Gauteng province • Pillar 10: Taking the lead in Africa’s new industrial revolution
TEN PILLAR PROGRAMME • Pillar 1: Radical economic transformation • Township Economy Revitalisation. • Support for the SMMEs and Cooperative. • Township Economy Strategy approved by EXCO in January 2015. • Township SMMEs and Cooperatives support • Expansion and transformation of key economic sectors • Public employment programmes • Youth economic participation • Pillar 2: Decisive Spatial Transformation • Strategic oversight and support to identified catalytic projects • GCR-Wide human settlement planning in line with GSDF • Planned and integrated urban development • Improved integration of environmental aspects into land-use planning • Planned and integrated urban development
TEN PILLAR PROGRAMME • Pillar 3: Accelerated Social Transformation • School Infrastructure • ICT in Education • Social cohesion • Strengthening Health Systems and NHI Rollout • Social Determinants of Health • Prevention and Reduction of the Burden of Disease • Reforming the welfare sector • Combating substance abuse & gender-based violence • Pillar 4: Transformation of the State and Gov. • Improving the capacity of the state • Reduction and Eradication of Fraud and Corruption • Pillar 5: Modernisation of the Public Service • Implementing e-Governance and harness ICT
TEN PILLAR PROGRAMME • Pillar 6: Modernisation of economy • Smart Economy • Green Economy • Pillar 7: Modernization of Human Settlement • Human Settlements Turnaround Plan • Universal access to basic services • Integrated Urban and Spatial Development • Pillar 8: Modernisation of public transport • Strategic Transport Infrastructure • Pillar 9: Reindustrialisation of Gauteng • Agro-processing • Partnership with state-owned enterprises • Pillar 10: Taking the lead in Africa’s new industrial revolution • Strengthen intra-African trade and investment • Partnerships with BRICS countries
2. Socio Economic Indicators of Gauteng Gauteng’s population grew by 3.6% per annum from 10.5m in 2009 to 12.9m in 2014 – an increase of 2.4m (22.6% increase) Number of households increased from 3.8m in 2009 to 4.2m in 2014 Average household size is 3.1 people Females number 6.4m while males are 6.5m About half of the population is under the age of 30 years 67.5% have secondary education, 20.8% have tertiary education, 9.6% have primary education and 2% have no schooling
3. GAUTENG ECONOMIC OUTLOOK • The Gauteng province contributes more than a third of SA GDP, accounting for 36% of SA GDP in 2012 • The forecast predicts a gradual increase of the share to 36.1% of GDP by 2017. • The large share of the economy held by Gauteng is due in large part to the finance and business services sub-sector and administrative arm of government
3. GAUTENG ECONOMIC OUTLOOK 2013 Gross Domestic Product – Region (GDP-R)
3. GAUTENG ECONOMIC OUTLOOK The largest sector contributing to GDP-R is the finance, insurance, real estate and business services sector This sector is a good indication of the flow of foreign direct investment. However each unit of GDP-R added by this sector makes a lower contribution to employment than the other sectors Given the knowledge-intensive nature of this sector, it also has limited scope for absorbing less skilled staff Therefore, more investment should be directed to other sectors like manufacturing, wholesale and retail trade and transport
4. Fiscal Sustainability • Provincial government is highly dependent on National transfers in the form of PES and Conditional grants • National transfers makes up to 95% of the provincial resources. • Provincial Fiscal sustainability is correlated to what happens to the National fiscal framework. • In an environment of limited revenues being collected at a national level this will also affect transfers to the provinces. • Currently provinces have to do with less resources as a results of fiscal cuts • Gauteng has managed to have a soft landing on this as a results of prudent financial management • The biggest risks lies on how the provinces will be funded on the wage settlement which have been agreed upon recently.
5. Gauteng Provincial Government Expenditure – 2014/15 • 2014/15 Provincial Expenditure • GPG cash position • Revenue Collection • Summary of GPG financial performance • Overall GPG financial performance • Provincial Wage Bill issues • Provincial performance on conditional grants • Infrastructure Spending • Conclusion
Provincial Cash Flow Position • Total provincial receipts amounted to R90.5 billion, of which: • 68.7 billion was equitable shares • R16.9 billion conditional grants, and • R4.9 billion own revenue collection. • Total provincial outflow was R89 billion, of which: • R87billion was GPG departmental requisitions, and • R1. 8 billion was direct charges.
REVENUE COLLECTION Total collection for 2014/15 FY is R5 billion The R4.3 billion target was exceeded by R700 million, or 16 percent GPT contributed R402 million more than its appropriation, due to interest income
OVERALL GPG FINANCIAL PERFORMANCE • The overall GPG preliminary expenditure is R85.7 billion . • GPG recorded overall under expenditure of R1.5 billion. • Health; Education; Housing and; Roads and Transport contributed to the under spending.
PROVINCIAL WAGE BILL ISSUES CONT……. GPG as whole appears to have remained with the 2014/15 FY CoE budget. Under spending recorded for DID, DED and DRT. Although GDE and GDoH remained within their overall CoE budgets, they are still facing pressures
PROVINCIAL PERFORMANCE ON CONDITIONAL GRANTS • GPG overall expenditure on conditional grants is R16.9 billion or 99 percent of the adjusted budget. • A total of R167 million remained unspent at the end of financial year. • Education (OSD); Health (Compr. HIV/Aids); Housing (HSDG), and Transport (PTOG) contributed to the recorded underspending.
INFRASTRUCTURE CONT…… Infrastructure expenditure is R9.8 billion or 99 percent of the budget. R117.8 million remained unspent. Human Settlements and Education contributed to the underspending.
