Maile says ‘underspent’ R1.8bn isn’t lost to Gauteng
Gauteng Finance MEC Lebogang Maile has defended the underspending of R1.8 billion of its budget in the 2024/2025 financial year.
Maile briefed the media on Monday, saying that only R85 million is at risk of being forfeited to National Treasury.
The provincial government has been criticised for not spending its full budget allocation despite the well-documented service delivery problems in various parts of the country’s economic hub.
Last week, Gauteng Premier Panyaza Lesufi criticised his administration's failure to spend all the money in its budget.
"It is important to state that whatever [unspent] funds cannot be motivated will revert to the Provincial Revenue Fund,” Maile explained.
"These funds remain available for reallocation to programmes and projects and are in no way lost by the Gauteng provincial government.
"Service delivery is a top priority for the Gauteng provincial government. We remain committed to ensuring that underspent funds are re-allocated to crucial programmes and projects."
Maile said that of the R1.8 billion unspent, R1.4 billion came from the provincial equitable share.
The rest came from conditional grants.
“The Gauteng provincial government recorded a total outcome, or underspending, of R1.799 billion, with R1.041 billion, or 58 per cent, from the Departments of Health and Education, and the balance of R769 million or 42 per cent, cumulatively attributed to the rest of the departments,” the MEC said.
“Of the R1.799 billion year-end financial outcome or underspending, a total of R381.510 million was under conditional grants, and the balance of R1.418 billion was from provincial equitable share funds.”
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