Gauteng govt sets out plan to raise R8bn in additional revenue
The Gauteng provincial government has announced plans to raise an additional R8 billion through a new revenue enhancement strategy.
Gauteng has found itself walking a budgetary tightrope over the past year due to the impact of the Covid-19 pandemic – and its hoped the extra cash will allow it to improve service delivery in the country’s most populous province.
Speaking at the University of Pretoria on Tuesday, Finance and eGovernment MEC Nomantu-Ralehoko said the province has already managed to raise nearly R7 billion.
“We always give them a target. For example now we said R8 billion, but we are still sitting at R6.7 billion that we have managed to raise because of Covid-19. We are still going to stretch it further once we start implementing the strategy.”
She said government will launch some new initiatives as part of the strategy, as well as streamline some of its current revenue sources.
This will include the rollout of vehicle impound facilities with the departments of Community Safety and Roads and Transport.
“Enforcing compliance with the Road Traffic Act is a responsibility of Community Safety. Fines from enforcing this act can result in additional revenue.
“The determination of the fines/ tariffs for such infringements as well as the establishment of pound facilities is the responsibility of Roads and Transport. The revenue estimates that can result from these two initiatives still require further investigations.”
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It will also look to generate cash though licensing fees for private health establishments, roadside advertising, and billboards at government buildings.
But Alexander Forbes economist Isiah Mhlanga warned that residents will want to see value for money before digging deeper into their pockets.
“For us to see the willingness to pay for services which the province provides, we have to see value for money which is going to be quite crucial as far as the province is concerned.”
The UP’s Gerda van Dijk said government will need more creativity from public sector workers if the strategy is to be successful.
“For me when I read this strategy itself, although some of the pillars are creative and innovative in how we’d like to source revenue, what is most important is that the system that underpins this particular strategy needs to be functioning in an infinite manner and that is something I did not see.
“At the basis of it also is that you have a state agency, a provincial government, that has to be an enabling employer that offers their employees the opportunity for that collaborative creativity innovation connection to take place.”
