Page 112 - Provincial Treasury Estimates.pdf

Department: Office of the Premier
Table 7: Summary of payments and payments per programme

Main Adjusted
Outcome Revised estimate Medium-term estimates % change
appropriation appropriation from 2022/23
R thousand 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
Current payments 608 847 685 608 631 069 787 627 772 430 798 724 850 060 805 243 853 586 6.4
Compensation of employees 270 742 261 912 267 438 318 897 281 783 281 783 340 064 344 825 361 210 20.7
Goods and services 338 105 423 696 363 631 468 730 490 647 516 941 509 996 460 418 492 376 (1.3)
Interest and rent on land – – – – – – – – –
Transfers and subsidies to: 250 216 297 295 309 439 304 549 321 631 321 631 350 618 255 901 266 282 9.0
Provinces and municipalities 172 266 173 696 167 289 207 187 210 187 210 187 245 000 145 101 151 602 16.6
Departmental agencies and accounts 50 045 67 680 70 113 72 329 74 929 74 929 79 520 83 059 86 780 6.1
Higher education institutions – – – – – – – – –
Foreign governments and international organisations – – – – – – – – –
Public corporations and private enterprises – – – – – – – – –
Non-profit institutions – 1 500 – – – – – – –
Households 27 905 54 419 72 037 25 033 36 515 36 515 26 098 27 741 27 900 (28.5)
Payments for capital assets 5 820 6 565 5 386 9 099 15 351 15 351 7 699 8 045 6 198 (49.8)
Buildings and other fixed structures 81 – – – – – – – –
Machinery and equipment 5 157 5 346 5 386 6 904 15 156 15 156 5 407 5 650 5 903 (64.3)
Heritage Assets – – – – – – – – –
Specialised military assets – – – – – – – – –
Biological assets – – – – – – – – –
Land and sub-soil assets – – – – – – – – –

Software and other intangible assets 582 1 219 – 2 195 195 195 2 292 2 395 295 1075.4
Payments for financial assets – – – – – – – – –
Total economic classification 864 883 989 468 945 894 1 101 275 1 109 412 1 135 706 1 208 377 1 069 189 1 126 066 6.4
Table 6 and 7 above provide a summary of payments and estimates by programme and economic

classification from 2019/20 to 2025/26. The expenditure increased from R864.883 million in 2019/20 to a
revised estimate of R1.135 billion in 2022/23 and this was mainly due to additional funding received for
intervention projects which included Small Town Revitalisation programme and Broadband Small Town

Revitalisation. In 2023/24, the budget increases by 6.4 per cent to R1.208 billion mainly due to additional
funding received as a result of new data updates in the Provincial Equitable Share formula; funding

received for the wage agreement as well as Isiqalo Youth fund to provide financial and non-financial
support to youth owned enterprises. Additionally to note is that the department has incorporated the
funding for the Microsoft licences in its baseline including historic information.

Compensation of Employees increased moderately over the years from R270.742 million in 2019/20 to a

revised estimate of R281.783 million in 2022/23 mainly to provision made for Improvement in Conditions
of Service adjustment. In 2023/24 the budget increases by 20.7 per cent to R340.064 million is mainly
caused by the low revised estimates which emanated from delays in the filling of vacant posts awaiting for

the finalisation of the organogram structure. The department will continue to implement the approved
organisational structure over the 2023 MTEF.

Goods and Services increased from R338.105 million in 2019/20 to a revised estimate of R516.941 million

in 2022/23 due to additional funding received for projects such as Broadband, Isiqalo Youth funding as
well as increased allocation on Microsoft licences. In 2023/24 the budget decreased by 1.3 per cent to

R509.996 million mainly due to decreased provision for Microsoft licences.

Transfers and Subsidies increased from R250.216 million in 2019/20 to a revised estimate of
R321.631 million in 2022/23 due to enhancement of the Small Town revitalisation programme as well as
increased allocation for Eastern Cape Socio Economic Council (ECSECC) for the establishment of

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