Friday, 11 March 2022

Xariep: On Thursday; 10 March 2022, the Free State Province’s Finance MEC, Honourable Gadija Brown, delivered the Free State Provincial Budget 2022/23 at the Gariep Dam; Xhariep District.

Delivering a cluster focused budget, MEC Brown identified the following as Key priority areas in the budget:

  • Economy Transformation;
  • Social Cohesion and Safe Communities;
  • Social Wage;
  • Education;
  • Skills revolution and Health;
  • Spatial development; Human Settlements and Local government; and
  • A better Africa and the World.

“A more deliberate investment must be made into key economic growth and development drivers in the Economic cluster, such as; Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA) as well as Agriculture. These are key drivers.” said MEC Gadija Brown when delivering the Provincial Budget Speech of 2022/23.

In line with the Free State Provincial growth and development strategy, the following programmes will receive attention:

  • Supporting infrastructure projects to be delivered on time and
    budget;
  • Procuring from local businesses; and
  • Support SMMEs and Co-operatives, owned by Africans in particular,
    women, youth and disabled people.

Infrastructure job creation and economy

Infrastructure

The Total Infrastructure projects for the province for the 2022/23 financial
year is R4 564 billion, the percentage share for metro and districts are as follows:

  • 31% – Mangaung Metro
  • 20% – Fezile Dabi District
  • 19% – Thabo Mofutsanyana
  • 16% – Lejweleputswa
  • 7% – Xhariep.

Infrastructure is a central lever for investment and key for creating job. The national guideline used as conservative base, indicates that for every R1 million spent, seven full equivalent jobs will be created. Treasury will monitor this outcome. The province’s committed to a fair and equal distribution of resources across districts.

Job creation

A total amount of R210 million is allocated for Capital Water projects, R203 million on Sanitation projects, R171 million on Roads and Storm Water projects, R31 million on Sport Facilities and the balance of the allocation on projects such as cemeteries, fencing and capacitation of Municipal Project Management Units.

Capital water projects is by far the leading line item which reiterates our commitment to improve on our target. Bloem water will be launching a mega project of R500 million from Welbedacht dam to Bloemfontein and also upgrading the Rustfontein water works.

Here is how the budget is allocated between clusters and departments.

Social cluster

R31 850 billion to be spent on social services: education, health, social development, sport, arts,culture and recreation in year 2022/23.

Economic Cluster

R7 403 billion on economic development in 2022/23 financial year.

Governance Cluster

R1 728 billion is allocated for promotion and instilling good governance in the 2022/23.

Provincial Departments allocations

  • Education R17 23 Billion;
  • Police Roads and Transport R2 794 billion;
  • Health R12 711 Billion;
  • Public Works And Infrastructure R1 814 billion;
  • Human Settlements R1 332 billion;
  • DESTEA R631 738 Million;
  • Agricultural And Rural Development R830 699 million;
  • Sport, Arts, Culture And Recreation R665 733 million;
  • GOGTA R427 247 million;
  • Office of the Premier R688 782;
  • Treasury R317 266 million;
  • Legislature R294 653 million; and
  • Social Development R1 179 billion