KwaZulu-Natal in a state of disaster as revenue is spent on salaries and not service delivery

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The DA says KwaZulu-Natal is in a state of disaster as key departments spend revenue on salaries instead of service delivery.

Fiscally, KwaZulu-Natal is in a state of disaster, with three key departments – Health, Education, and Social Development – now in the precarious position of being unable to meet their annual commitment to compensation of employees.The DA said a quick calculation indicates that 77% of the equitable share allocation and own revenue is spent on salaries and wages.

DA KZN leader and spokesperson on Finance, Francois Rodgers, said the provincial government has become nothing more than an employment agency, with little or no focus on service delivery. The party also quoted Head of Treasury’s budget office Edgar Sishi, who reportedly said an increase in government borrowing and spending hasn’t translated into economic growth, more tax revenue, or a narrower budget gap.“So, fiscal measures have to be taken if we are going to maintain our policy targets of reining in the debt and reining in interest cost,” Sishi said.

On the other hand, provincial administrations accounted for the largest share of bonuses, totalling R2.2 billion over the past five years. In 2021, during the economic recession due to COVID-19, R819 million was released in bonuses by provinces.

 

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