The Eastern Cape spent 98.5% of its adjusted budget for the 2011/12 financial year, but overspent on its current budget and under spent on the capital budget.
Figures released by National Treasury today show that the province overspent its current budget by R439.4 million.
Education (R396.5 million) and Health (R170.4 million) were the departments that overspent the most. This was offset by those departments that did not spend their full allocations.
Social Development, Transport and Sport, Recreation, Arts and Culture also overspent their current budgets.
As far as the capital budgets are concerned Roads and Public Works was the only department to overspend – approximately R8 million, or 1.2%.
Education (63.9%) was the major department that under spent its capital budget by a considerable margin, but Provincial Treasury (33.6%) and Sport, Recreation, Arts and Culture (46.9%) also failed to spend their allocations by a considerable margin.
Finance and Provincial Planning MEC Phumulo Masualle announced in his Budget Speech in March that the existing infrastructure delivery model had been examined and â€œnew capacity and systemsâ€? were being put in place â€œto streamline operationsâ€?.
He said that the key element in this was the establishment of a Centralised Project Management Unit in the Department of Roads and Public Works.
The MEC said it was a matter of concern that some departments, such as Education and Health, continued to overspend particularly on compensation of employees.
â€œThis, if allowed to run its course, will ultimately crowd out expenditure on service delivery, particularly infrastructure.â€?
Masualle added that while there had been â€œunprecedented growth in the wage bill, this has not necessarily been complemented by higher levels of productivityâ€?.
He added that austerity measures had been introduced in the Budget to curb over-expenditure on compensation of employees.
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