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EC economy predicted to lag behind national average


Eastern Cape Finance MEC, Sakhumzi Somyo, said the Eastern Cape economy was forecast to lag behind the national average.

Delivering his 2016/2017 Budget policey statement in the Bhisho Legislature on Friday, he said to address this will require an integrated sectoral approach to secure growth.

MEC Somyo said these tough economic times call for innovative thinking and high levels of discipline.
He said all non-core expenditure items will be strictly managed and curtailed. These relate to travel and subsistence, venues and facilities, entertainment, catering and overseas travel and accommodation.

Addressing the province's economic growth plans, MEC Somyo said money has been set aside for the Coega and East London Industrial Development Zones, as they begin the migration from IDZ's to Special Economic Zones.

MEC Somyo also outlined measures to reign-in the provincial wage bill which swallows up 65 percent of the provincial budget.
He said they would freeze appointments of provincial and executive support staff.

In an bid to curb billions spent on extended sick leave by civil servants, Somyo said that the Bhisho Administration will conduct quarterly analysis of personnel numbers and co-expenditure within several departments including Education and Health.

He said they would also withdraw funding for posts that have been vacant for extended periods, with all government posts now requiring approval from a central structure.

But, the main priority for the Eastern Cape Government is on Education, says MEC Somyo.

"Education remains an apex priority for this government so our fiscus should provide for such instances.  We are proud that we are facing the people of the Eastern Cape during these hard times but we are doing our level best to ensure that we provide, with available resources, what we could at this difficult moment," he said.

MEC Somyo tabled a total budget of R69.5bn.

Click on link below to read full Budget Speech.