KZN Finance MEC Reaffirms Commitment to Strong Financial Governance Amid Budget Cuts

Rodgers highlighted that KwaZulu-Natal's financial situation has been severely impacted by budget cuts from the National Treasury.

KwaZulu-Natal Finance MEC, Francois Rodgers, has reaffirmed the Provincial Treasury's mission to strengthen financial governance, despite significant budget constraints facing the Government of Provincial Unity (GPU).

Speaking at a media briefing in Pietermaritzburg on Tuesday, Rodgers was joined by KwaZulu-Natal Premier Thamsanqa Ntuli and other MECs, as they presented a progress report marking the first 100 days of the seventh administration under the GPU.

Rodgers highlighted that KwaZulu-Natal's financial situation has been severely impacted by budget cuts from the National Treasury. "Over the past four financial years, the National Treasury has reduced our equitable share by R66 billion. Over the next three years, we anticipate an additional R12 billion in cuts. These reductions are primarily driven by economic factors," Rodgers explained.

Despite these challenges, the MEC assured the public that the provincial government has devised a plan to manage the limited financial resources. This plan includes several cost-containment measures aimed at minimizing the impact on essential services. Rodgers emphasized that this strategy would not compromise the needs of the most vulnerable residents, reiterating that the province's goal is to maintain an ethical and capable state.

“Our priority remains ensuring that we are a capable and ethical government that looks after our most vulnerable citizens. The poorest of the poor will not be neglected,” Rodgers said.

Premier Ntuli also provided insights into the financial hurdles inherited by the new administration. According to Ntuli, the provincial GPU faces a significant debt to service providers, totaling R10 billion. This debt will require budget cuts of approximately R150 million annually, starting in the 2025/2026 financial year, to ensure positive cash flow and meet fiscal responsibilities.

Ntuli, however, was quick to emphasize that service delivery would not be compromised. “The KZN Provincial Government has limited financial resources, meaning we won’t be able to achieve everything within the promised timeframes. However, we are committed to improving planning and execution, integrating our efforts to ensure resources are used smartly,” the Premier said.

The GPU’s approach includes a commitment to revenue enhancement strategies. Ntuli explained that every department would be tasked with identifying ways to improve revenue collection and generation. “We must explore ways to raise revenue and ensure efficient collection to increase funds available for priority service delivery programs,” he added.

Rodgers is expected to deliver his own 100-day report in the coming days, providing more detailed insights into the state of the province’s finances and outlining specific strategies and plans for the future. These strategies will address the ongoing financial challenges while ensuring that key priorities—such as job creation, building a sustainable economy, improving service delivery, and reducing poverty and inequality—remain at the forefront of the government’s agenda.

The MEC underscored that these four areas are "non-negotiable" and will continue to guide the province's budgetary and policy decisions going forward. This commitment comes as the provincial government strives to navigate an increasingly difficult fiscal landscape while staying true to its core mission of supporting the people of KwaZulu-Natal.