KwaZulu-Natal: Finance MEC, Francois Rodgers, has announced a number of strategic initiatives aimed at boosting the province’s economic growth, creating jobs, and stabilising the cost of living. Rodgers highlighted some of the initiatives when he was tabling the province’s R158.478 billion budget for the 2025/2026 financial year.
According to South African Government News Agency, Rodgers addressed the positive signs of economic recovery, pointing to key indicators, including an increase in the province’s equitable share and additional allocations in conditional grants. He also noted the progress being made through the Provincial Financial Recovery Plan. ‘What is required now is discipline with a sharp focus on the end objective, growth in our economy, job creation, and stabilising and reducing the cost of living,’ Rodgers said.
The MEC stated that the provincial Treasury is committed to performing financial oversight and monitoring provincial expenditure to prevent non-essential government activities. He added that efforts are underway to identify new streams of revenue for the provincial fiscus. Another key initiative is the adoption of a cost-containment instruction by the Executive Council, which aims to sustain KZN’s ability to meet its needs, ‘while protecting its future.’
Rodgers elaborated on cutting non-essential expenditures, such as rental vehicles, in line with National Treasury guidelines. He highlighted that the province, initially projected to over-spend by R10 billion, had reduced this to R4.9 billion with strict control measures and compliance.
To further improve financial efficiency, Rodgers announced that Treasury is awaiting approval for the acquisition and implementation of an e-procurement tool. This system is designed to eliminate overcharging of goods and services during the Supply Chain Management and tender processes, yielding significant savings for the province and reducing irregularities.
The MEC emphasized the provincial government’s strides in achieving a balanced budget, acknowledging that the process is challenging but necessary. Starting in April 2025, the government will introduce departmental financial dashboards to reflect departments’ financial metrics, assisting oversight committees with a clearer picture of the province’s financial health.
Additionally, the provincial Treasury is exploring the establishment of an information centre focusing on “Operation Pay on Time” and assisting with Public Private Partnerships tender processes.
Rodgers concluded that he will continue engaging with the Premier and the provincial executive on good financial practices, advocating for efficient expenditure and prioritisation of poverty alleviation, inequality reduction, unemployment, effective service delivery, and building a sustainable economy.
A large portion of the 2025/2026 provincial budget, 79.9%, has been allocated to key social services departments, including Education, Health, and Social Development. The Education Department received the largest share, with R66 690 206 allocated, followed by Health with R56 211 801. Other allocations were detailed, including Transport, Office of the Premier, Agriculture and Rural Development, and others, reflecting the province’s focus on comprehensive development.