KwaZulu-Natal Finance MEC, Francois Rodgers, has announced a number of strategic initiatives aimed at boosting the province's economic growth, creating jobs, and stabilising the cost of living.
Rodgers highlighted some of the initiatives, when he was tabling the province’s R158.478 billion budget for the 2025/2026 financial year, on Tuesday.
In his address, Rodgers highlighted the positive signs of economic recovery, pointing to key indicators, including an increase in the province’s equitable share and additional allocations in conditional grants.
He also noted the progress being made through the Provincial Financial Recovery Plan.
“What is required now is discipline with a sharp focus on the end objective, growth in our economy, job creation, and stabilising and reducing the cost of living,” Rodgers said.
Initiatives to strengthen financial discipline
The MEC said the provincial Treasury is committed to perform financial oversight and monitor provincial expenditure, with a view to prevent non-essential government activities.
He added that efforts are underway to identify new streams of revenue for the provincial fiscus.
Another key initiative is the adoption of a cost-containment instruction by the Executive Council, which aims to sustain KZN’s ability to meet its needs, “while protecting its future.”
“Cutting the nice to haves to protect the must haves. One such example is [council] agreement to do away with rental vehicles, with procurement for vehicles, in line with National Treasury guidelines.
“When the GPU (Government of Provincial Unity) took office, the province was projecting to over-spend in the region of R10 billion, [but] with strict control measures and compliance, we have now reduced this to R4.9 billion,” Rodgers highlighted.
E-procurement tool
To further improve financial efficiency, Rodgers announced that Treasury is awaiting approval for the acquisition and implementation of an e-procurement tool, a system designed to eliminate overcharging of goods and services during the Supply Chain Management (SCM) and tender processes.
“This system will yield enormous savings for the province and reduce irregularities in the procurement process,” Rodgers said.
The MEC said the provincial government is making great strides in achieving a balanced budget, noting that “it’s a painful process, but a process that needs to be sustained and supported.”
Rodgers further announced that starting in April 2025, the provincial government will introduce departmental financial dashboards, which will reflect departments financial metrics, such as creditors, debtors, cash balances, and projected expenditure.
He said these dashboards will assist members of the Executive Council and oversight committees with a clearer picture of the province's financial health.
Additionally, the provincial Treasury is exploring the establishment of an information centre, which will focus on "Operation Pay on Time" and assist with tender processes and supplying information on Public Private Partnerships (PPPs).
“Going forward, I will continue, in my capacity as MEC, to regularly engage the Premier and the provincial executive on good financial practices. We will be consistent in our advocacy for efficient expenditure and the prioritisation of programmes aimed at alleviating poverty, inequality, unemployment, effective service delivery and building a sustainable economy,” the MEC said.
Provincial budget highlights
A large portion of the 2025/2026 provincial budged (79.9%), has been allocated to the three key social services departments, including Education, Health, and Social Development.
The Education Department received the largest share of the budget, with R66 690 206 allocated, followed by Health with R56 211 801.
Other allocations include:
• Transport allocated R13 827 066.
• Office of the Premier R817 875.
• Provincial Legislature R850 796.
• Agriculture and Rural Development R2 757 443.
• Economic Development, Tourism and Environmental Affairs R3 606 998.
• Provincial Treasury R710 190.
• Human Settlements R3 549 877.
• Community Safety and Liaison R275 716.
• Sport, Arts and Culture R1 598 141.
• Co-operative Governance and Traditional Affairs R1 931 153.
• Social Development R3 613 297.
• Public Works and Infrastructure R2 037 490. – SAnews.gov.za
