KwaZulu-Natal Finance MEC Francois Rodgers has raised concerns about a potential R9 billion budget deficit if the provincial government continues to overspend. This warning comes after Rodgers tabled a R150 billion budget earlier this year following the installation of a coalition government.
Rodgers, who took office under the new Government of Provincial Unity, revealed he has witnessed significant wasteful expenditure within government departments. Speaking during a media briefing in Johannesburg on Thursday, he cautioned that the province could face severe financial challenges by the end of the year if spending habits do not change.
"We're not in that position yet, but if we continue to spend the way we are, we will see ourselves in a deficit of R9 billion," Rodgers stated. "One of the biggest challenges is the compensation of employees' salaries. It's gone absolutely out of control."
He described the wasteful government spending as "horrific," citing excessive costs related to vehicles, travel, hotel accommodation, and catering. "There’s huge wastage in government. People need to realize, from MECs to senior officials, that it’s not their money. It’s the public’s money," he emphasized.
Rodgers also acknowledged that while the coalition government—comprising the Inkatha Freedom Party (IFP), African National Congress (ANC), National Freedom Party (NFP), and Democratic Alliance (DA)—is off to a good start, there are signs of potential conflicts ahead. Rodgers is one of two DA members serving as MECs in the unity government.
"From a finance perspective, I have the support of the Premier. If we’re going to build a capable and ethical state, then I need to play a fundamental role in stabilizing the fiscus in KwaZulu-Natal," he said. Rodgers added that although policy differences may arise, the coalition parties largely share common goals around unemployment, inequality, poverty, health, education, and crime.
In an effort to curb unnecessary spending, Rodgers recently announced plans to procure vehicles for MECs to avoid high rental costs. The provincial treasury disclosed that R16.8 million was spent on rental vehicles in just four months, which would amount to an estimated R40 million annually. The purchase of new vehicles, with a budget of R12 million, is expected to save the province R27 million over the long term.
Rodgers' warning comes as he continues to push for fiscal responsibility within the coalition government, emphasizing the need to reduce wasteful expenditure and stabilize the provincial economy.