The massive under expenditure on conditional grants and capital which is largely for infrastructural spending flies in the face of government’s attempts to create jobs. It is common cause that infrastructural spending results in job creation. Government is its own worst enemy when it comes to job creation.
On the other hand, the province has overspent on personnel for the first six month by R889 million. Personnel costs are now running at 80% of the overall provincial budget if one takes the conditional grant component out. This dangerous trend means more and more is spent on personnel and less and less on service delivery.