Page 148 - Provincial Treasury Estimates.pdf

Department: 3URYLQFLDO /HJLVODWXUH

Table 9: Summary of payments and estimates by economic classification: Programme 1 - Administration
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 209 715 203 906 200 954 211 765 224 180 230 371 219 834 248 564 231 294 (4.6)
Compensation of employees 154 364 159 106 166 438 157 073 167 866 174 057 161 789 186 687 179 191 (7.0)
Goods and services 55 351 44 800 34 516 54 692 56 314 56 314 58 045 61 877 52 103 3.1
Interest and rent on land – – – – – – – – –
Transfers and subsidies to: 1 324 2 063 1 468 – – 1 826 – – – (100.0)
Provinces and municipalities 170 280 – – – – – – –
Departmental agencies and accounts – – – – – – – – –
Higher education institutions – – – – – – – – –
Foreign governments and international organisations – – – – – – – – –
Public corporations and private enterprises – – – – – – – – –
Non-profit institutions – – – – – – – – –
Households 1 154 1 783 1 468 – – 1 826 – – – (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 23 11 – – – – – – –
Total economic classification 219 197 207 523 213 091 228 922 255 511 260 828 228 999 258 140 241 295 (12.2)

Tables 8 and 9 above summarise payments and estimates for Programme 1: Administration from the
2019/20 to 2025/26 financial years. Expenditure for the programme increased from R219.197 million in

2019/20 to the revised estimate of R260.828 million in 2022/23 due to provision for Improvement of
Condition of Services (ICS), funding of the infrastructure upgrade and ERP system. In the 2023/24 financial
year, departmental estimates decrease by 12.2 per cent due to the decrease of budget allocation for

implementation of ERP.

Expenditure on Compensation of employees increased from R154.364 million in 2019/20 to a revised
estimate of R174.057 million in 2022/23 due to the provision for Improvement on Cost Living Services

(ICS). In 2023/24 the budget will decrease by 7.0 per cent to R161.789 million.

Expenditure on Goods and services increased from R55.351 million in 2019/20 to a revised estimate of
R56.314 million in 2022/23 due to provision for operational costs, maintenance and licencing of ERP
system. In 2023/24 financial year, the budget is projected to increase by 3.1 per cent due to amounts

allocated for the ERP system in 2022/23 financial year.

Expenditure on Transfer and subsidies increased from R1.324 million in 2019/20 to a revised estimate of
R1.826 million in 2022/23 due to provision for payment of leave gratuities and exit benefits.

Payments for capital assets increased from R8.135 million in 2019/20 to the revised estimate of

R28.631 million in 2022/23 due to provision for full implementation of Enterprise Resource Planning
system and ICT infrastructure upgrade. In the 2023/24, budget for the capital assets will decrease by
68.0 per cent due to progress made towards finalisation of implementation of ERP system.

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