Underspending of more than R4bn expected in current year

Cape Town – The medium term budget framework estimates underspending of R4.3bn by national government departments in the current financial year (2016/17).

Departments have already declared underspending of R1.3bn and a further R3bn is projected. In the previous year (2015/16) state expenditure was R6.5bn lower than the adjusted budget  estimate.

Other highlights of the adjusted estimates for 2016/17 are:

- R290.7m for a packaged mobile desalination plant to be used in coastal areas and R50.6m for water tankering and storage for drought-stricken areas;

- R950m for the Department of International Relations and Cooperation to compensate for the difference in forecast foreign-currency exchange rates and actual rates at time of payment;

- R212m to procure fodder for animal feed for drought-stricken areas;

- R71.3m for the Electoral Commission for salaries and equipment warehousing costs incurred due to the shifting of the date of the 2016 local government elections from May to August 2016;

- R1.1bn in self-financing expenditure by various departments.

To fund the provision of emergency water supplies to drought-affected communities, R50.6m is added to the indirect water services infrastructure grant that will be paid to municipalities.

* Visit our Budget Special for all the budget news and in-depth analysis.