Majority of R150.5 billion budget to be allocated to social sector: KZN Finance

The Health Facility Revitalisation Grant was boosted by R31.1 million, reflecting a positive performance in planning documentation, with the total budget reaching R1.5 billion.

KwaZulu-Natal Finance MEC, Francois Rodgers, presented the provincial budget for the 2024/25 financial year, revealing that the majority of the R150.5 billion budget will be allocated to the social sector, including Education, Health, and Social Development.

In his address at the provincial legislature in Pietermaritzburg, Rodgers outlined that 80% of the provincial budget is dedicated to these key areas, reflecting a significant investment in improving social services. Specifically, Education will receive between R4.1 billion and R4.4 billion annually over the Medium-Term Expenditure Framework (MTEF), Health will be allocated between R2.6 billion and R2.8 billion, and Social Development will get between R134 million and R144 million per annum.

The conditional grant allocation sees an increase of R501.3 million for the 2024/25 year but will face reductions in subsequent years. Notably, the budget for the Ilima/Letsema Projects under the Department of Agriculture and Rural Development is reduced by R24.7 million due to National Treasury reallocations towards the Presidential Employment Stimulus.

The Expanded Public Works Programme (EPWP) conditional grants are also affected, with reductions of R42 million and R29 million in the Integrated Grant and Social Sector Incentive Grant, respectively, due to similar reallocation reasons.

Rodgers highlighted a significant increase in the Education Infrastructure Grant, up by R58.1 million for 2024/25, owing to high performance in planning and expenditure capabilities. The National School Nutrition Programme also received an increase of R19 million, bringing its budget to R2.2 billion, ensuring continued provision of nutritious meals.

The Health Facility Revitalisation Grant was boosted by R31.1 million, reflecting a positive performance in planning documentation, with the total budget reaching R1.5 billion.

A notable increase of R691.8 million in the Provincial Roads Maintenance Grant demonstrates the government's commitment to improving road infrastructure and repairing flood-damaged roads, bringing the grant’s total to R3.2 billion.

Conversely, the Human Settlements Development Grant saw a significant decrease of R268.7 million, with funds redirected to support the social sector and cover the 2023 wage agreement costs. The Informal Settlements Upgrading Partnership grant also faced a large cut of R228.6 million, reducing its budget to R597.1 million.

Other budget allocations include R7.7 million for the Provincial Treasury to enhance the Biometrics Access Control System and R4.1 million for Sport, Arts, and Culture for constructing a monument to honor the arrival of Indian indentured laborers. Additionally, R3 million from the Transport Vote will be redirected to Economic Development, Tourism, and Environmental Affairs for an airport emergency fire and rescue vehicle at Margate Airport.

The budget reflects a strategic focus on social sector development, infrastructure improvement, and enhanced public service delivery, despite necessary reductions and reallocations.