There were no major surprises for IT in the province's medium-term budget today, as the Gauteng government emphasised its drive to increase spending on activities directly related to improved service delivery.
While no IT projects have suffered declining budget allocations, none of the bigger IT projects in the province received any additional allocations.
This meant the R100 million allocated for provincial IT infrastructure programmes earlier in the year would not be affected. Along with R164 million set aside for the Intelligent Transport Management System, Gauteng Online will receive R350 million and Blue IQ would still receive R314 million.
Speaking at the tabling of the medium-term budget policy statement today, Gauteng finance MEC Mandla Nkomfe said provincial spending would go up by R55 million to R58 million in the 2009/10 financial year.
Nkomfe noted that while R35 billion will be spent on enhancing infrastructure in the province, revenue continued to decline due to the economic downturn and changing consumer behaviour. He added that decreasing investment activities and accelerated expenditure by the various provincial departments meant revenue would continue to decline.
While revenue declined by R65 million, the province would increase its personnel costs and spend an additional R1.4 billion on staff and skills. An additional R2 billion has been allocated to the province, mainly for its major infrastructure projects.
Resizing resources
Nkomfe noted that all departments were instructed to shift resources from non-core to core projects and reprioritise their budgets. While large-scale projects, such as the Department of Health's smart card project, were cancelled following reallocation projects, other projects will be introduced.
As part of the province's hospital revitalisation plans, additional funding would be allocated to the modernising of health technology and hospital management systems, Nkomfe stated.
In an effort to step up the province's crime-fighting initiatives, Nkomfe noted that R3.1 million would be allocated to the creation of a public liaison hotline. The service would form part of the province's anti-corruption strategy and would be aimed at “promoting an ethical public service in the province”.
Nkomfe said the province would also look to improve governance and implement a province-wide monitoring and evaluation framework. An e-Cabinet system to provide resources and support would be implemented and R731 000 would be spent on this system.
Driving development
Nkomfe noted that funding was reprioritised toward employment creation in various sectors. The province would also draw up a Gauteng employment and growth development strategy to address the recession and build the economy.
While social and economic infrastructure would be the province's main focus, it is still unclear how much major IT infrastructure projects would be allocated. Nkomfe noted the Gauteng Fund Project Office, which is supposed to provide funding for the Gauteng Link project, surrendered R17 million.
The funding was returned following a review of the mandate of the funding office and the cancellation of certain contracts. Nkomfe noted that other projects have also been cancelled following province-wide reviews. Departments are now searching for ways to deliver services in “a cost-effective manner”, he explained.
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