By: Zandile Majavu
Despite fiscal constraints and a weak economic outlook, Gauteng Finance MEC Jacob Mamabolo has allocated R1.7 billion to the Gauteng Economic Development Department over the 2024/25 financial year to boost the township economy and job creation efforts.
Mamabolo tabled the provincial budget this week. It amounts to R165.8 billion for the new financial year with an overriding focus on fighting crime and supporting the township economy.
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Echoing Premier Panyaza Lesufi, Mamabolo said: “The township economy is our new gold to drive economic development and job creation in the province.”
In addition to the R1.7 billion allocated to the Economic Development Department, R5.3 billion was set aside for the 2024 Medium Term Expenditure Framework (MTEF) to specifically address, amongst others, job creation initiatives and revitalising the landscape of the township economy.
This includes the revival of industrial parks and transforming Gauteng into a single, multi-tiered mega special economic zone to attract investment and tourism, including through the #Visit Gauteng – Zwakala brand communications campaign, that is meant to bolster business activity for the net benefit of residents.
To curb the persistent load-shedding, the Gauteng Co-operative Governance and Traditional Affairs Department budget is R1 billion in 2024/25 and R2.3 billion over the MTEF period.
According to Mamabolo, the funds were meant to enhance an existing raft of initiatives announced in the State of Provinces Address, including those focused on the energy crisis response plan in collaboration with the national energy committee, local government, and energy experts.
“Madam Speaker, the 2024 MTEF Budget that we are presenting today was compiled under more challenging circumstances than ever before. This is due to deep fiscal constraints and a weak economic outlook,” Mamabolo said.
He explained that the current budget aimed to balance the fiscal constraints that continued to be a drag on resource allocation and protect the social wage, while at the same time striving towards the ‘Gauteng of our dreams’.
On the issue of non-payment of suppliers by provincial departments, Mamabolo stressed that timeous payment was not only a requirement in terms of the Public Finance Management Act, but it also assisted businesses in improving cash flow which was important for their sustainability and expansion.
“In 2019, the Exco Lekgotla took a resolution that the Electronic Invoice Submission (EIS) system must be utilised as a platform to submit invoices to provincial departments. Since issuing this directive, we can report that as of the end of January, the province had received more than one million invoices through the system,” Mamabolo said.
He also said that for the first time in January this year, all service providers submitted their invoices via the EIS platform allowing them to track the status of their invoices leading to the payment stage.
“We are delighted to announce that this led to most departments and several entities achieving 100 percent payment of invoices within 30 days,” the MECs said.
