Finance Minister Pravin Gordhan is concerned that outputs and outcomes are lagging the massive investments the government is making.

Gordhan said while tabling the Provincial Budgets and Expenditure Review in the National Council of Provinces on Wednesday that "leakages in the system" had become a part of life.

"I remain concerned that the outputs and outcomes are lagging the massive investments we are making," Gordhan said.

"Can it be right that a provincial department spends R250-million of hard-earned taxpayers' money on a project that never sees the light of day or R40-million on a school that should cost R15-million?

"Why is it that as government we pay R26 for a loaf of bread in the national school nutrition programme when we all know that a loaf of bread costs about R7 when you buy it from any store?

"I believe it is imperative that we collectively must take action to put a stop to this."

Gordhan said provincial budgets increased by R100-billion between 2005/06 and 2008/09.

By 2011/12, provincial spending would be R339-billion, more than double the 2005/06 levels.

"The growth in the budget should allow us space to strengthen our education system, ensure effective delivery on health services and expand social services to our people."