ActionSA notes the Adjustment Budget tabled yesterday by the MEC for Finance and welcomes measures aimed at strengthening financial management, including investments in ICT modernisation, the support provided to township suppliers, and efforts to improve procurement processes.
These initiatives align with ActionSA’s long-standing call for transparent and efficient provincial financial governance.
However, as a constructive opposition committed to good governance, ActionSA must highlight areas where the Adjustment Budget does not adequately address Gauteng’s worsening fiscal pressures.
The MEC did not disclose the full extent of departmental accruals, most notably in the Department of Health. These liabilities remain the province’s single largest fiscal risk. Without a clear accounting of how much Gauteng owes and how these obligations will be sustainably settled, it is impossible to determine whether this budget strengthens the health system or merely clears unpaid bills from previous periods.
During Q2 oversight, the Portfolio Committee identified a 531% overspend on Capital and a 125% overspend on Transfers and Subsidies. Yet the MEC’s speech did not address these anomalies or present a corrective plan. Transparency and timely intervention are essential to restoring public confidence in the province’s financial management.
ActionSA notes the introduction of the new Provincial Revenue Enhancement Strategy, which is urgently needed given the weak revenue performance in Q1 and Q2. However, the strategy has not
yet been implemented, and its success will depend on execution, transparency and measurable improvements. As constructive opposition, ActionSA supports initiatives that strengthen provincial revenue but will hold Treasury accountable for demonstrating real progress in the quarters ahead.
While the R1.1 billion allocation to the Department of Health is welcomed, it risks being a short-term intervention unless paired with meaningful reforms to prevent new accruals, improve procurement discipline and reduce medico-legal exposure, issues ActionSA has consistently raised.
To improve fiscal transparency and accountability, ActionSA calls on the MEC to table:
- A full accruals disclosure by department, with specific detail on Health;
- A detailed explanation for the overspending flagged in Q2;
- A provincial plan to stabilise and improve revenue performance; and
- A sustainable financial recovery plan for the Department of Health.
As constructive opposition, ActionSA will continue to hold government accountable while offering practical solutions that strengthen the province’s financial health and improve service delivery.
Gauteng deserves budgets that are honest, transparent and focused on long-term stability and ActionSA is committed to championing these principles.
ActionSA Welcomes Positive Steps in Gauteng Adjustment Budget, But Warns That Serious Fiscal Risks Remain Unaddressed
ActionSA notes the Adjustment Budget tabled yesterday by the MEC for Finance and welcomes measures aimed at strengthening financial management, including investments in ICT modernisation, the support provided to township suppliers, and efforts to improve procurement processes.
These initiatives align with ActionSA’s long-standing call for transparent and efficient provincial financial governance.
However, as a constructive opposition committed to good governance, ActionSA must highlight areas where the Adjustment Budget does not adequately address Gauteng’s worsening fiscal pressures.
The MEC did not disclose the full extent of departmental accruals, most notably in the Department of Health. These liabilities remain the province’s single largest fiscal risk. Without a clear accounting of how much Gauteng owes and how these obligations will be sustainably settled, it is impossible to determine whether this budget strengthens the health system or merely clears unpaid bills from previous periods.
During Q2 oversight, the Portfolio Committee identified a 531% overspend on Capital and a 125% overspend on Transfers and Subsidies. Yet the MEC’s speech did not address these anomalies or present a corrective plan. Transparency and timely intervention are essential to restoring public confidence in the province’s financial management.
ActionSA notes the introduction of the new Provincial Revenue Enhancement Strategy, which is urgently needed given the weak revenue performance in Q1 and Q2. However, the strategy has not
yet been implemented, and its success will depend on execution, transparency and measurable improvements. As constructive opposition, ActionSA supports initiatives that strengthen provincial revenue but will hold Treasury accountable for demonstrating real progress in the quarters ahead.
While the R1.1 billion allocation to the Department of Health is welcomed, it risks being a short-term intervention unless paired with meaningful reforms to prevent new accruals, improve procurement discipline and reduce medico-legal exposure, issues ActionSA has consistently raised.
To improve fiscal transparency and accountability, ActionSA calls on the MEC to table:
As constructive opposition, ActionSA will continue to hold government accountable while offering practical solutions that strengthen the province’s financial health and improve service delivery.
Gauteng deserves budgets that are honest, transparent and focused on long-term stability and ActionSA is committed to championing these principles.