Gauteng spends 55% of 2015 budget on employee pay

'Personnel heavy' education and health departments cited for high salary spend.

Education, health, transport have received the biggest slice of the cake in the Gauteng provincial budget of R95.3-billion.

Gauteng finance MEC Barbara Creecy today presented her 2015/16 budget before the provincial legislature which had a 9.38% increase to R95.39-billion. This is despite a R500-million cut on the equitable share from National Treasury. Equitable share is the main source of revenue for provinces which are responsible for social services which include education, health, social development and economic functions.

Education received the biggest portion of the budget taking 38% of the total budget with a R36-billion. This was  followed by health with R34.17-billion and transport with R6.6-billion.

Human settlements received R5.9-billion, and social development R3.96-billion.

While most departments received increase in budget allocation, there was concern that the Gauteng provincial government will be spending 55% (R52.6-billion) on paying its employees in its 2015/16 budget.

Gauteng's expenditure on salaries is, however, lower than national government which spends 62% of budget on employee remuneration.

But Creecy said the reasons for the high expenditure on salaries was the big allocation on education and health which were “personnel heavy”.

There were also allocations for special projects that were announced by Gauteng Premier David Makhura during the State Of the Province Address. The allocations are as follows:

• Service delivery war room - R2.3 million

• Township economy revitalisation - R140 million

• Schools and classrooms of the future - R1.6 billion

• Smart schools - R20 million

• HIV/AIDS programme - R3.1 billion

• Gauteng Broadband Network - R250 million

• Savannah City - R102 million

• Syferfontein - R274-million

• Tshepo 500 000 - R55 million

• Women's monument - R90 million

A total of R979 million will go to human settlements for provision of housing in Diepsloot, Fleurhof, Lion Park, Malibongwe Drive, Goud Rand, Luhereng and hostel upgrades in Alexandra, Meadowlands , Orlando West Rethabile and Sephiwe.

PLEASE SEE TOMORROW'S NEWSPAPER FOR THE TIMES' POLITICAL DESK'S INSIGHT INTO THE BUDGET