KwaZulu-Natal’s provincial government plans to review gaming and betting legislation, including online gaming and liquor licences, as a way to increase revenue and plug its R9bn budget deficit.
Cost-cutting measures in the province are threatening the functioning of some municipalities, departments and public entities, which has forced the provincial treasury to look at other sources of revenue.
“We’re looking at reviewing our gaming and betting legislation, which will increase revenue generation from gaming and betting. We’re also looking at online gaming, which is not generating any revenue at the moment,” finance MEC Francois Rodgers said.
“The other thing we’re looking at is liquor licences. I think the system of liquor licences, where one-size-fits-all is wrong. I think wholesale liquor stores versus CPOs [community-based] bottle stores shouldn’t be paying the same rates. It should be based on volume. I think those are some quick wins that we can do.
“The other thing that we really struggle with is the department of transport and fines. Fines are just a mess,” Rodgers said.
Rodgers, who is also the DA’s leader in the province, was appointed to the portfolio in June after the formation of a coalition government between the IFP, DA, ANC and the National Freedom Party. The ANC lost its provincial majority in the May elections.
After the adoption of the 2024/25 provincial budget, which reflected the province’s dire financial state, Rodgers has instituted cost-cutting measures in the provincial treasury. These include closing a treasury office based in Durban and cutting down on living and travel expenses.
“I asked treasury to do an exercise to look at the entire province, and I get figures of that same four-month period, we’ve spent almost R17m on [hiring] of 11 ministerial vehicles, which is obscene. We could have bought vehicles for that price. That is the type of thing that I will be putting an end to,” he said.
The MEC also emphasised the need for fiscal discipline and ethical governance and discussed potential early retirement packages to manage costs.
Rodgers said he would be engaging with the National Treasury and other provincial finance MECs during next week’s extended cabinet meeting to address the issue of public sector wage negotiations and the impact on provincial budgets.
“One of the suggestions that could be considered is early retirement packages, whereby you’re getting people out of the system ... I think we’re going to have to look at the entire organogram of the province and nationally,” he said.
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