Today, Hon. Neliswa Nkonyeni, the MEC for Finance, presented her budget speech for the 2024/25 financial year in KwaZulu-Natal. While we acknowledge the budget’s increase by over R4.447 billion compared to the previous year, the substantial cuts to other government departments will significantly impact the people of KZN.
We welcome the budget increases allocated to the Department of Education, which received the largest share of the provincial budget despite facing considerable cuts. The department’s allocation rose to R62.988 billion, marking an increase of over R2 billion.
The MEC emphasized that a significant portion of R2.2 billion will be directed towards the National School Nutrition Programme (NSNP) grant. This move is crucial, especially considering many schools have been deprived of this grant, and the added portion of this amount will ensure learners have access to meals at school.
The Department of Education will have to monitor closely the implementation of the Nutrition Programme as do not wish to see a repeat of last year’s collapse of the programme
Additionally, we welcome the rise in the Education Infrastructure grant, which will greatly contribute to the repair and maintenance of school buildings that have been neglected.
The Department of Health received the largest share, amounting to R53.796 billion, marking an increase of over R3 billion compared to the previous financial year. With these increments, we anticipate the department will prioritize the construction of healthcare facilities, procurement of necessary medical equipment, and recruitment of healthcare professionals to address the unemployment and skilled workforce shortage in the healthcare sector, despite the MEC failing to mention the above, most specifically the hiring of doctors.
As ActionSA, we emphasize that investing in healthcare is not just a matter of social justice but also crucial for the long-term prosperity and sustainability of our society.
And with this, we will begin the process of monitoring whether these funds will be allocated towards strengthening the above sectors.
We are deeply concerned by the significant budget cuts to the Human Settlements Department, amounting to over R800 million. This reduction has notably impacted the Development Grant by over R260 million and the Informal Settlement Upgrading Partnership Grant by over R226 million, hindering processes of providing subsidized housing, which has already been a challenging task in KZN in recent years.
Departments affected by budget cuts also include Cooperative Governance & Traditional Affairs (CoGTA), as well as the Department of Community Safety and Liaison.
The reduced funding for CoGTA is especially worrisome, particularly considering the safety concerns of Amakhosi, Izinduna, and other traditional leaders in our Province who have faced attacks in recent years.
Last year in October, the most recent tragic and brutal killing of Inkosi was Inkosi Sphamandla Khumalo and his wife occurred.
And with this, we eagerly await the MEC for CoGTA’s plans to address this issue during her budget speech.
Notably, these budget cuts will impede the departments’ ability to fill vacant positions, exacerbating the province’s unemployment rate of 33%.
Additional cost-cutting measures will likely slow down service delivery or prolong project timelines.
Furthermore, the reduction in funding for the Ilima/ Letsema Project grant under the Department of Agriculture and Rural Development by R24.7 million, the reduction of the EPWP Integrated Grant by R42 million, and the reduction for the Social Sector EPWP Incentive Grant by R29 million for this financial year as a result of the National Treasury reallocating these funds towards the Presidential Employment Stimulus, may be viewed as a positive step towards focusing on job creation and retention.
However, we are deeply concerned that residents in rural communities, who rely on government assistance, have once again been deprived of a beneficial project, and those dependent on employment from the EPWP programme will be significantly impacted.
Unfortunately, the MEC did not specify a budget to tackle water challenges in KZN, leading us to doubt the government’s commitment to addressing the issue that has sparked growing frustration across all districts of our province. It seems the government is tone deaf in this regard.
Equally concerning, the MEC also failed to specify a budget allocated for revitalising our province to regain tourists’ trust in KZN and kick-start the awaited task of rebuilding our province and our Metropolitan City, eThekwini. We believe restoring tourists’ confidence should be a top priority.
Additionally, the MEC did not outline steps that will be take towards revitalising economic opportunities, and how the government will work towards securing investment confidence in KZN through:
- Support for Small and Medium Enterprises (SMEs):Provide assistance and incentives for SMEs to thrive, including access to finance, mentorship programs
- Tourism Promotion: Invest in marketing to attract more tourists to KZN, highlighting its natural beauty, cultural heritage, and diverse attractions.
- Skills Development: Enhance education and training programs to better equip the workforce with the skills needed.
- Investment promotion: Encourage both local and foreign investment in various sectors of the economy, such as tourism, agriculture, manufacturing, and technology.
We intend to closely monitor the budget speeches of the respective MECs to assess whether they will allocate budgets effectively within their departments for the improvement of the province.
KZN Budget: KZN Still Has a Considerable Journey Ahead
Today, Hon. Neliswa Nkonyeni, the MEC for Finance, presented her budget speech for the 2024/25 financial year in KwaZulu-Natal. While we acknowledge the budget’s increase by over R4.447 billion compared to the previous year, the substantial cuts to other government departments will significantly impact the people of KZN.
We welcome the budget increases allocated to the Department of Education, which received the largest share of the provincial budget despite facing considerable cuts. The department’s allocation rose to R62.988 billion, marking an increase of over R2 billion.
The MEC emphasized that a significant portion of R2.2 billion will be directed towards the National School Nutrition Programme (NSNP) grant. This move is crucial, especially considering many schools have been deprived of this grant, and the added portion of this amount will ensure learners have access to meals at school.
The Department of Education will have to monitor closely the implementation of the Nutrition Programme as do not wish to see a repeat of last year’s collapse of the programme
Additionally, we welcome the rise in the Education Infrastructure grant, which will greatly contribute to the repair and maintenance of school buildings that have been neglected.
The Department of Health received the largest share, amounting to R53.796 billion, marking an increase of over R3 billion compared to the previous financial year. With these increments, we anticipate the department will prioritize the construction of healthcare facilities, procurement of necessary medical equipment, and recruitment of healthcare professionals to address the unemployment and skilled workforce shortage in the healthcare sector, despite the MEC failing to mention the above, most specifically the hiring of doctors.
As ActionSA, we emphasize that investing in healthcare is not just a matter of social justice but also crucial for the long-term prosperity and sustainability of our society.
And with this, we will begin the process of monitoring whether these funds will be allocated towards strengthening the above sectors.
We are deeply concerned by the significant budget cuts to the Human Settlements Department, amounting to over R800 million. This reduction has notably impacted the Development Grant by over R260 million and the Informal Settlement Upgrading Partnership Grant by over R226 million, hindering processes of providing subsidized housing, which has already been a challenging task in KZN in recent years.
Departments affected by budget cuts also include Cooperative Governance & Traditional Affairs (CoGTA), as well as the Department of Community Safety and Liaison.
The reduced funding for CoGTA is especially worrisome, particularly considering the safety concerns of Amakhosi, Izinduna, and other traditional leaders in our Province who have faced attacks in recent years.
Last year in October, the most recent tragic and brutal killing of Inkosi was Inkosi Sphamandla Khumalo and his wife occurred.
And with this, we eagerly await the MEC for CoGTA’s plans to address this issue during her budget speech.
Notably, these budget cuts will impede the departments’ ability to fill vacant positions, exacerbating the province’s unemployment rate of 33%.
Additional cost-cutting measures will likely slow down service delivery or prolong project timelines.
Furthermore, the reduction in funding for the Ilima/ Letsema Project grant under the Department of Agriculture and Rural Development by R24.7 million, the reduction of the EPWP Integrated Grant by R42 million, and the reduction for the Social Sector EPWP Incentive Grant by R29 million for this financial year as a result of the National Treasury reallocating these funds towards the Presidential Employment Stimulus, may be viewed as a positive step towards focusing on job creation and retention.
However, we are deeply concerned that residents in rural communities, who rely on government assistance, have once again been deprived of a beneficial project, and those dependent on employment from the EPWP programme will be significantly impacted.
Unfortunately, the MEC did not specify a budget to tackle water challenges in KZN, leading us to doubt the government’s commitment to addressing the issue that has sparked growing frustration across all districts of our province. It seems the government is tone deaf in this regard.
Equally concerning, the MEC also failed to specify a budget allocated for revitalising our province to regain tourists’ trust in KZN and kick-start the awaited task of rebuilding our province and our Metropolitan City, eThekwini. We believe restoring tourists’ confidence should be a top priority.
Additionally, the MEC did not outline steps that will be take towards revitalising economic opportunities, and how the government will work towards securing investment confidence in KZN through:
We intend to closely monitor the budget speeches of the respective MECs to assess whether they will allocate budgets effectively within their departments for the improvement of the province.