GP looks to new sources of making money

Gauteng Finance MEC Jacob Mamabolo holding the R2,4 Billion Medium Term Budget Policy Statement briefcase

The Gauteng government is looking at new sources to boost its revenue.

“An estimated R7.2 billion will be collected from the existing revenue sources as part of its efforts to finance the government’s priorities in the midst of recovering from the COVID-19 pandemic and an unstable economy, said the Finance MEC Jacob Mamabolo when he delivered his maiden budget address where outlining the Medium-Term Budget Policy Statement (MTBPS) and Adjustment Budget recently.

This collection will be driven by their Revenue Enhancement Strategy, endorsed by the Executive Council earlier this year. The strategy is supported by two pillars and features 16 money-generating projects.

Pillar one entails maximizing current revenue sources that Gauteng government has. They include the collection of: motor vehicle licence fees, casino fees, patient fees and interest on short-term investments of surplus funds. 
Under this pillar, the new revenue initiatives include the establishment of new vehicle impound lots, automation of casino license operations, new bookmakers and bingo licenses, online renewal of motor vehicle licenses, the licensing fees of private health facilities, road-side advertising and billboards on government-owned facilities and leasing of vacant land parcels, besides others.

Pillar two focuses on new sources of revenue that need to be explored, with a focus on closing loopholes and making use of technology to enhance revenue collection. The Gauteng Broadband Network (GBN) is expected to be a cash-cow for the province, upon its commercialization. As the leading province in the e-waste management initiative by Government, Gauteng is also considering the potential in projects in this sector.

Taking into account the challenging economic environment, MEC Mamabolo said the Provincial Departments have been forced to explore innovative, creative methods of raising revenue, including leveraging on private sector investments.

“Part of the efforts towards increasing own revenue collection will focus on efficiencies through the elimination of loopholes in the collection mechanisms, as well as exploring new revenue sources for the Gauteng Provincial Government,” he said when tabling the MTBPS or better known as the ‘Mini-Budget’.

By growing its own revenue, Gauteng assists government’s objectives in ensuring that more funding is allocated for key priorities while facilitating economic growth to create jobs, public education, health, and social welfare. 

Inforgraphic summary of MEC Jacob Mamabolo’s Medium Term Budget Policy Statement (MTBPS).

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