Stagnant economy in Eastern Cape continues to have dire effects on residents: MEC

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The stagnant economic outlook in the Eastern Cape continues to have dire effects on residents. While the COVID-19 pandemic is also an added strain on the province’s growth trajectory.

Finance MEC Mlungisi Mvoko presented a gloomy picture during his mid-term budget in the legislature in Bhisho.

However, Mvoko indicated the Departments of Education and Health have received budget increases.

The budgets for the Eastern Cape Education and Health Departments have been adjusted to over R37 billion and R27 billion respectively. That is a budget increase of R2.2 billion for education and R1.34 billion for health.

The Education Department now has R84 million for education assistants and general school assistants. Mvoko said R45 million from the Health Department budget would be allocated to health staff and nurses providing assistance in the roll-out of COVID-19 vaccinations. He also expressed concern about the huge amounts the department is spending to settle medical-legal claims.

“In the 2021/22 Adjustment Budget, the total adjustment shows an additional amount of R3.793 billion allocated to the 2021/22 main budget, taking our provincial adjusted appropriation to R86.401 billion. As indicated, this increase is due to additional allocations of R1.991 billion to implement the 2021/22 Wage Agreement of the Public Service Co-ordinating Bargaining Council and R898.091 million for the Presidential Youth Employment initiative. Over R113 million was added to our conditional grants, increasing it from R13.296 billion to the adjusted amount of R13.409 billion.”

The unemployment rate in the province stands at 47% for the 3rd quarter of  2021 compared to 45.8% for the same period last year. Joblessness in Buffalo City and Nelson Mandela Bay stands at 40%. The opposition parties have criticised the provincial government for failing to come up with a sustainable economic recovery plan as, Mlamli Makhetha of the EFF, and Retief Odendaal of the DA elaborate.

“It’s not clear, there are always situations of underspending and irregular expenditure in this province the two metros are supposed to be economic hubs but they have rising unemployment figures.”

“Unfortunately, MEC Mvoko has made no pronouncements on ways and means to curb the rising cost of employment of government officials, nor on the long-expected rationalisation of provincially owned state entities.”

Mvoko indicated that Sport, Recreation, Arts and Culture as well as CoGTA are the only two departments with clean audits.

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