Page 78 - Estimates of Public Entities Revenue & Expenditure 2023

PROVINCE OF THE EASTERN CAPE ESTIMATES OF PUBLIC ENTITIES REVENUE AND EXPENDITURE 2023/24

from economic stimulus funds. The transfers also include Dtic funding of capital projects, which
increased to cater for the increased activity in the zone. Included in the 2022/23 adjusted budget is

the rollover of funds for Dtic projects, the DEDEAT additional allocation of R37 million for the
manufacturing incubator project is included in 2023/24. Over the MTEF, departmental transfers

increased by 12.3 per cent to R164.706 million, followed by a decrease of R106.056 million and
R107.546 million.

Sale of goods and services increased from R172.514 million in 2019/20 to R282.588 million in
2021/22 due to an increase in investor population in the zone.

The entity is projecting revenue of R312.084 million for the 2022/23, gradually increasing over the
2022/23 MTEF from R356.062 million in 2023/24 to R403.394 million in 2025/26. This growth is due

to increased level of activity within the zone and the settlement of new investors, mainly in the ICT
sector.

Compensation of Employees has increased from R80.423 million in 2019/20 to R81.818 million in
2021/22 financial year due to cost-of-living adjustments that were affected during these periods. In

202/23, Compensation of employees is estimated to be R89.854 million as there was salary increase
across the board in line with the cost-of-living adjustment. This cost does not include a bonus that is
paid if the organisation meets its targets. The bonuses will be funded from savings that would have

been realised. The personnel costs will escalate over the 2023 MTEF period, but that will be guided
by Treasury and the cost-of-living adjustments guidelines. The costs also include vacant positions

that were not filled up in the current year and prior years. The organisation has developed a new
organogram that fits into the new strategy that started in 2020/21 financial year. Some of the positions
were not yet filled due to financial constraints.

Goods and Services has increased from R210.744 million in 2019/20 to a revised estimate

R317.618 million in 2022/23. The steady increase in expenditure is due to inflationary factors
influencing the business as well as the increased spending on projects-manufacturing incubator and
maintenance of the zonal infrastructure. Over 2023 MTEF, these costs will grow from R340.245

million in 2023/24 to R389.547 million in 2025/26 due to increased project costs, maintenance
activities and utilities expenses from the municipality anticipated over the MTEF period.

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