Gauteng health MEC Gwen Ramokgopa has said the battle to deal with accruals in the department would be turned around as National Treasury had set aside funds to deal with the problem.
Ramokgopa told reporters in the Gauteng legislature that Treasury had given the department R1.5-billion to deal with the accruals.
In the past years‚ accruals of the department increased by R2-billion each year. This year‚ the accruals stand at R6.5-billion from R6.9-billion in the preceding year‚ the first decline of accruals in a long time.
For the first time in the democratic era‚ the Gauteng health department received a budget higher than education. The department received a 9.8% increase in budget to R46.4-billion. The increase was aimed at helping the department turn around its financial fortunes.
Ramokgopa said for 39 big companies‚ the department has made an agreement to pay over the medium term expenditure framework.
With funding set aside for paying money owed to service providers‚ different units in the department will for the first time start the financial year with funds to pay for operational costs and not having to spend money on old debt.
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