Hon MEC, the MF notes the net cash positive for 2020/21

1. The MF’s concerns remain “where to from now?” in terms of projects in each department that will address post Covid -19 phase 1 effects.
2. The MF notes transversal issues amongst departs being under-spending on COE, EPWP and Conditional grants.
3. The safety net of the Contingency Fund in Provincial Treasury is at an all time low and the real fear is fiscal dumping in identified savings which should actually be classified underspending. Such underspending should be returned to the Contingency Fund if we are not able to commit these funds and use the these by March 2021.
4. There is an urgent need in departments to adjust the first half or mid-year’s expenditure i.e. under-expenditure versus under-projection due to the impact of lockdown measures.
5. This needs to be done or the second half of spending pressures could look immense but may not be, as in the over- projection of R2 billion.
6. Burning issues are slow spending of conditional grants which could be lost to Natural Treasury if a risk analysis is not undertaken. In view of a looming second lockdown, efficient food parcel or voucher distribution by DSD to vulnerable communities is imperative.
7. Finally, it’s time to unlock all radical economic transformation programmes such as RACET and Ezemvelo commercialisation given the doom and gloom in our communities. Hon Members, now is the time to be innovative and embark on greening projects and climate change response measures. We need more accountability from officials in charge of projects.
8. Thank you.

Hon. S. Thakur-Rajbansi