n Journal of Public Administration - Budget underspending in Limpopo province : is corruption to blame?




This paper examines factors that influence underspending to determine their relationship with corruption in Limpopo provincial departments. Theoretically, corruption has a direct bearing on underspending in respect of loss of revenue from tax and customs levies, licensing fees, traffic fine bribery, excessively high expenditure occasioned by corrupt loading, fronting on state contracts, and lack of competition between bidders. Public expenditure consists of planning, budgeting, implementation, monitoring and evaluation, and reporting. It also entails achievement of goals through planning and decision making, resource allocation and management, information management and performance management. In recent years, government departments have underspent their allocated financial resources as they did not use at least 98% thereof. Under-spending has unavoidably affected the ability to achieve objectives prescribed through the (Act 1 of 1999, as amended by Act 29 of 1999). The paper concludes that corruption within government departments has a negative impact on revenue collection, with deleterious effects across other spheres of public administration. It recommends that the oversight role of various bodies be re-enforced and that employees in the budget section need to be retrained in terms of ethical conduct and avoidance of corruption.


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