Page 144 - Provincial Treasury Estimates.pdf

Department: 3URYLQFLDO /HJLVODWXUH

7.3 Summary of economic classification

Table 5: Summary of payments and estimates by economic classification
Main Adjusted Revised
Outcome Medium-term estimates % change
appropriation appropriation estimate from 2022/23
R thousand 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
Current payments 441 458 425 795 427 232 438 817 474 289 491 200 478 843 502 090 522 669 (2.5)
Compensation of employees 346 435 362 409 370 507 356 017 380 167 397 078 376 603 403 456 424 089 (5.2)
Goods and services 95 023 63 386 56 725 82 800 94 122 94 122 102 240 98 634 98 580 8.6
Interest and rent on land – – – – – – – – –
Transfers and subsidies to: 135 272 143 507 125 857 115 172 116 299 120 151 119 943 122 852 107 563 (0.2)
Provinces and municipalities 170 280 336 – – 50 – – – (100.0)
Departmental agencies and accounts – – – – – – – – –
Higher education institutions – – – – – – – – –
Foreign governments and international organisations – – – – – – – – –
Public corporations and private enterprises – – – – – – – – –
Non-profit institutions 114 135 127 847 121 182 115 172 116 299 116 299 119 943 122 852 107 563 3.1
Households 20 967 15 380 4 339 – – 3 802 – – – (100.0)
Payments for capital assets 8 135 1 543 10 669 17 157 31 331 28 631 9 165 9 576 10 001 (68.0)
Buildings and other fixed structures – – – – – – – – –
Machinery and equipment 8 135 1 543 10 669 17 157 26 100 21 675 9 165 9 576 10 001 (57.7)
Heritage Assets – – – – – – – – –
Specialised military assets – – – – – – – – –
Biological assets – – – – – – – – –
Land and sub-soil assets – – – – – – – – –
Software and other intangible assets – – – – 5 231 6 956 – – – (100.0)
Payments for financial assets 84 97 – – – – – – –
Total economic classification 584 949 570 942 563 758 571 146 621 919 639 982 607 951 634 518 640 233 (5.0)
LESS:
Departmental receipts not surrendered to Provincial Revenue
Fund 1
(Amount to be financed from revenue collected in terms of 696 686 733 527 527 784 551 576 602 (29.7)
Section 13 (2) of the PFMA)
Adjusted total economic classification 584 253 570 256 563 025 570 619 621 392 639 199 607 400 633 942 639 631 (5.0)

Tables 4 and 5 above show the summary of payments and budget estimates per programme and economic

classification from 2019/20 to 2025/26 financial years. Expenditure increased from R584.949 million in
2019/20 to the revised estimate of R639.982 million in 2022/23 as a result of funding for improvement of

conditions of living and rollover funds for Enterprise Resource Planning (ERP) system from the previous
financial year. In 2023/24 financial year, the budget indicates a decrease of 5 per cent to R607.951 million
due to the additional funding that was allocated during the 2022/23 adjustment estimates amounting to

R34.977 million as well as the roll-over of R15.796 million.

Compensation of employees increased from R346.435 million in 2019/20 to the revised estimate of
R397.078 million in 2022/23 due to implementation of annual salary increment. In 2023/24 financial year,
personnel budget decrease by 5.2 per cent to R376.606 million due to once off provisions.

Goods and services decreased from R95.023 million in 2019/20 to a revised estimate of R94.122 million
in 2022/23 mainly due to the fiscal consolidation. In 2023/24 financial year, the budget will increased by
8.6 per cent due to additional allocation in line with the constitutional mandate, that is oversight

responsibility, committees sittings and voter education.

Transfers and subsidies which include caucus, constituency allowances as well as funds for political
parties represented at the Legislature decreased from R135.272 million in 2019/20 to a revised estimate

of R120.151 million in 2022/23 due to the impact of new data updates in the Provincial Equitable Share
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