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The Gauteng Provincial Government is set to spend R100 million more on mental health patients from its R108-billion budget in the upcoming financial year.
The allocation for mental health patients is now R800 million, up from last financial year’s R700 million.
Finance MEC Barbara Creecy made the budget announcement in the wake of the Esidimeni tragedy, which saw nearly 100 psychiatric patients dying after being moved to various non-government organisations from Life Esidimeni in a cost-cutting exercise.
Health MEC Qedani Mahlangu, who made the decision, resigned. She’s subsequently been charged with culpable homicide and contravening the National Health Act and Mental Health Care Act
In his State of the Province speech last month, Gauteng Premier David Makhura promised to ensure better attention to the needs of the mentally ill in the province.
Creecy said the allocation made towards mental healthcare was part of government’s commitment to protecting the vulnerable and ensuring the implementation of the health ombud’s recommendations.
Creecy also said the province was the biggest contributor to the country’s economy, at 35%, and continued to grow at above the national average.
She said 95% of the budget came directly from national government while mostly of the province’s own revenue was still generated from motor vehicle licences, gambling taxes, patient fees and interest earned on investments.
The province hoped to generate at least R17.4 billion over the medium term and, over the past two and half years, managed to raise R15.6 billion.
Creecy pointed out that the debt management committee within her department had ensured that R2 billion in debt owed to municipalities for rates and taxes was paid and an amount of R2.4 billion was set aside to pay the outstanding debts.
“We have saved R414 million by cutting back on catering, accommodation, corporate branding and redirecting these resources to core business of government. Last year we saved R386 million in fruitless and wasteful expenditure by reducing interest paid on overdue accounts,” she added.
The open tender system, which the province introduced in 2014 to promote transparency, has processed 38 projects worth R9.3 billion so far and Creecy said another 34 projects worth R2.7 billion were currently being processed.
“Over the next two financial years, we plan to issue open tenders for another 280 projects to the value of R6 billion. By 2018-2019, 100% of procurement spend will be processed through the open tender.”
The two major regulatory changes to the preferential procurement policy that will come into effect next month will see all R30 million and above tender being forced to subcontract at least 30% of their work while there will also be a BBBEE level-based pre-qualification criteria that will also kick in.
The 20-year-long planned expansion of the Gautrain, Creecy said, would unlock more revenue streams for the province and model of the public-private partnership of its funding was still being decided with Gautrain Management Agency and national treasury.
The provincial would also aside a total of R8.8 billion on various infrastructure corridor projects while the Department of e-Goverment would receive R459 million specifically for the broadband network project.
“Treasury’s own research shows that our infrastructure spend significantly contributed to the empowerment of disadvantaged individuals and black firms.”
The departmental allocation saw the health department getting R40.2 billion, up from R37.6 billion, social development R4.2 billion, department of economic development R1.4 billion and education R40.8 billion.
The department of sport, arts, culture and recreation would get an additional R134 million while an amount of R15.7 million was set aside for the commemoration of struggle heroes including former ANC president Oliver Tambo.
“We have set aside R15.7 million for the commemoration of heroes and heroines of the liberation struggles, which will include the centenary celebration of the late Oliver Reginald Tambo.”
