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Introduction of Appropriation Bill for 1999/2000
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT

SPEECH BY THE MEC FOR FINANCE DURING THE INTRODUCTION OF THE APPROPRIATION BILL FOR 1999/2000

14 FEBRUARY 2000



Honourable Speaker and
Honourable Members

You will recall that we started 1999/2000 with the objective of consolidating the important financial management gains we made during 
1998/99. We managed to control overexpenditure.We are however still confronted by cost pressures in a number of areas. We, therefore, had 
to make certain adjustments in the light of these unforeseen and unavoidable circumstances.

In the light of the above I intend to:

a) highlight some of these cost pressure
 b) give brief explanation of the adjustments and
c) conclude with a vote by vote analysis

Cost Pressures

Personnel expenditure continues to crowd out other basic needs. The year under review is no exception.Personnel promotion backlogs for 
previous years up to 1998/1999 were only paid in this financial year.We estimated this to be R180m, as we did not have reliable data from 
departments to make proper projections. As at the end of July 1999 more than R470m was paid out in this regard.   The process is not 
complete yet and a further R300m is being set aside for this purpose. We also received R249.9m from National for debt redemption and this 
helped to cushion the effects of promotion backlogs.

The Dept of Education has been operating under a serious strain because of its limited non-personnel budget.Fair amount of funds were made 
available to this department to deal with the following:

a) Learner Support material,
 b) Text books for grades 4, 7 & 12,
 c) Farm subsidies and
 d) Commitments for school building project.

It has been difficult therefore to service the debts.We are pleased that we have been able to liquidate more that R2billion of the 
Provincial debt over these two financial years.

Brief Explanation of the Adjustments

The vote by vote analysis will be dealt with later.We just want to highlight the main issues. In addition to the issues raised under cost 
pressures, the original debt of R710m of the social security account has been finally settled. The last payment of R50m was made in this 
financial year.

In a systematic manner, basic needs, in particular for rural areas, are being tackled.R3.2m is being made available for dipping material 
for the next two months. We must all make sure that all the 1370 dipping tanks in this Province are being used.

Coega is an important project for this Province. We demonstrate the importance we attach to it by providing resources.An amount of R2m has 
been made available to the project for this financial year.

The increase in the number of members of this house was not budgeted for by the Legislature. That issue is being addressed in this 
adjustment. While we respect the autonomy of the Legislature, it is important to note the resource pool for all of us is the same. In this 
regard, the staffing levels and the excessive travel claims continue to be a cost pressure for the Legislature.

Vote by Vote Analysis

See Bill

Conclusion

Mr. Speaker and Honourable Members, we may have to come back to this for a second Adjustment Appropriation once we have completed the 
personnel promotions programme. It is clear that the year under review has been a difficult one. Some of its problems, such as the carry 
through costs of these promotions, will continue to haunt us in the next financial year.

These are not going to deter us in our quest for sound financial management. We are not nave to think that financial management is not an 
event, it is a process. We have started this long journey of gaining control of overexpenditure.

Thank you,

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