The Gauteng provincial government (GPG) has tabled a strategy aimed at boosting the collection of current revenue sources and enhancing the potential of new sources, without impacting negatively on service delivery and taking into consideration the impact of the Covid-19 lockdown regulations over the past two years.

The ‘GPG Own Revenue Enhancement Strategy’ aims to unlock the funds needed for the seven provincial priorities, including health, education and facilitating economic growth and job creation in a challenging economic and fiscal environment, outlined in the ‘Growing Gauteng Together’ roadmap.

Gauteng Finance and e-Government MEC Nomantu Nkomo-Ralehoko says that the revenue strategy is anchored on two pillars, namely the optimisation of the current revenue streams and exploring new sources of revenue to augment Gauteng’s revenue base.

The strategy is also targeting modernisation initiatives to increase efficiency, cost effectiveness and client satisfaction, as well as eliminate loopholes in the collection mechanisms.

It comprises 16 identified revenue-generating projects, with Pillar 1 maximising current revenue sources such as motor vehicle licence fees, casino and horse racing fees, while Pillar 2, in addition to new sources of revenue, will focus on closing loopholes and modernisation to ensure maximum revenue collection.

New revenue initiatives were identified based on an assessment of the potential to increase revenue through these sources without impacting negatively on service delivery and include the establishment of new vehicle impound lots, the licensing fees of private health facilities, road-side advertising and billboards on government-owned facilities, besides others.

“Information and communication technology-enabled public service delivery offers an opportunity to improve efficiency and access to public services and develops the transparency and accountability of governments,” she says, noting that, through the use of technology, the provincial government will introduce the automation of gambling operations; cashless solutions at nature reserves; the online renewal of motor vehicle licences; automated visitor parking solutions at health facilities; liquor licence automation; and an incentive promotion of motor vehicle licence holders.

Other potential new revenue projects identified in the revenue strategy include the Gauteng Broadband Network commercialisation, whereby revenue could be generated through third-party offtake for spare capacity generated through Gauteng broadband infrastructure, and e-waste, with revenue expected from repurposing, recycling and licensing of old or scrap electronic material to extract value.

Through the Own Revenue Enhancement Strategy, the overall aim is to increase the revenue generated from the province over the next three years by R3.7-billion over and above the 2022 Medium-Term Expenditure Framework revenue baseline estimate.

Unpacking the strategy, Nkomo-Ralehoko says that, in the area of gambling activities, a system is currently being developed to automate casino licence operations with a view to reducing fraud and illegal gambling and streamlining business processes.

The Gauteng Gambling Board has also started procurement processes to issue 40 additional licences for bookmakers and nine for Bingo, which can result in additional revenue of R90-million once this initiative has transitioned into the operational phase.

Liquor licences have also undergone some changes, with the Gauteng Liquor Board undertaking the regularisation of shebeens, and a commitment to have over 15 000 shebeens that are currently not paying, owing to a previous moratorium, to start paying their licence fees in accordance with newly drafted regulations.

In terms of motor licence revenue, the Department of Roads and Transport intends to directly collect motor vehicle llicence fees at newly developed Driver Licence Testing Centres (DLTCs).

The introduction of cashless solutions to eradicate fraud at current DLTCs are also being pursued.

The Road Traffic Management Corporation has also developed certain online functionalities on the National Traffic Information System, including the issuance and delivery of motor vehicle licence discs, the registration of motor vehicles by the title holders, notification of changes in ownership by the current title holders, booking for learners or driving licence tests and booking for the renewal and delivery of credit card format driving licences.

Meanwhile, another focus is the automation of parking facilities at hospitals, with Charlotte Maxeke identified as a pilot site for the implementation of improvements in the parking management system, which is currently manual and exposes the revenue collection initiatives to risks.

As an interim measure, smart tills were introduced for cash collection, which has since increased from R2 000 to R6 000 a day.

The system is still being piloted and the decision to roll it out to other hospitals has not yet been made.

Further, the Department of Agriculture and Rural Development is reviewing cashless solutions at nature reserves and the commercialisation of Suikerbosrand Nature Reserve.

The department is planning to acquire an integrated, cost-effective revenue management system, based on the latest technology, which will enable nature reserves, such as Suikerbosrand, Abe Bailey, Leeufontein, Roodeplaat and Alice Glockener, to automate access through a point-of-sale solution to ensure efficient permit issuance and revenue management.

Suikerbosrand Nature Reserve, which generates R1.5-million a year in its current state, can increase its revenue collection to about R23-million in 2023/24 through the renovation, rehabilitation, refurbishment and proper maintenance of infrastructure, such as visitor facilities, bulk infrastructure and staff housing in the reserve.

One of the initiatives proposed for new revenue generation is the roll-out of four new vehicle impound facilities in the 2020/21 financial year, with more deployed in the 2021/22 financial year.

Currently, there are three operational facilities in Benoni, Derdepoort and Vereeniging. Koedoespoort will follow soon after completion of improvements on the facility.

In addition, the strategy outlines scope for revenue generation through road-side advertising, while there is an opportunity for revenue generation through billboards at government buildings.

Currently, there are 4 201 buildings in the province where ownership is vested with the province.

“As a province, we recognise that enhanced own revenue collection lies less in introducing new taxes within our mandate, in accordance with the prescribed processes, but rather improving the efficiency of collection from the traditional sources,” says Nkomo-Ralehoko.

During the 2019/20 financial year, Gauteng revenue reached R7.15-billion, while R6.55-billion was collected for the 2020/21 financial year and, for the 2021/22 financial year, R6.98-billion is projected to be collected.

“We strongly believe growing own revenue for Gauteng will assist us to protect funding for key priorities in our province, including facilitating economic growth to create jobs, public education, health and social welfare, even in these difficult times, for our people.”