Debate On The Unauthorised Expenditure Authorisation Bill 2011
By Roman Liptak MPL
Shadow KZN MEC For Finance

 Kwazulu-Natal Legislature Pietermaritzburg: Thursday, 8 September 2011



A few comments on the individual items of unauthorised expenditure under consideration in this Bill:


We are unlikely to see interest on the provincial overdraft in the financial statements of Provincial Treasury for the past financial year since all departments except Transport underspent their budgets during that period and some of them, like Health, have done so heavily. This is once again proof that the Cabinet-approved cost-cutting measures are working and we appreciate that they have been made permanent.


We note with concern the unauthorised expenditure in the Departments of Health and Education because the amounts in question are significant. We accept that both departments are key service delivery agencies with complex mandates and as such they are likely to overspend their budgets but, at the same time, we urge both MECs in charge to place more emphasis on credible budgeting and responsible spending. The same appeal is made to the MEC for Human Settlements regarding her departmentís unauthorised expenditure due to inadequate budgeting. As far as Health and Education are concerned, we appreciate that the portion of the unauthorised expenditure which covers the original savings which had not been realised are to be honoured as first charge against the upcoming budgets of these two departments.


It is not surprising that we are once again dealing with unauthorised expenditure by the Department of Social Development. The first item for this department has to do with disaster relief. The finance committee has appealed for better co-ordination of disaster management between the Office of the Premier, COGTA, Social Development and municipalities, and we hope to see it happen. The second item covers the increased cost of operational expenditure which again points to poor budgeting. But in the final analysis, Social Development deserves credit for not overspending its past two budgets.


Having said that, the IFP will vote to authorise the unauthorised expenditure in this Bill. 


Contact: Roman Liptak, 078 302 0929