Page 247 - Provincial Treasury Estimates.pdf

Estimates of the Provincial Revenue and Expenditure (EPRE) – 2023/24 Financial Year
7. 7. Payment summary
ry

7.1 Key assumptions

The following assumptions were taken into consideration when the budget was formulated:

x The department has made provision for pay progression at 1.5 per cent.
x The revised projections for Consumer Price Index (CPI) inflation utilised for the determination of
baselines over the 2023 MTEF are 4.42 per cent in 2023/24, 4.45 per cent in 2024/25 and 4.48 per cent
in 2025/26;
x 2023 MTEF Baseline adjustments were effected as follows:
o An addition of R45.454 million in 2023/24; R45.828 million in 2024/25 and R46.498 million in
2025/26 for the cost of living adjustments;
o Adjustments to baseline relating to data in the PES formula resulted to an additional amount of
R7.976 million, R14.271 million and R13.963 million in 2023/24, 2024/25 and 2025/26
respectively.
o An addition of R5 million in 2023/24; R5.240 million in 2024/25 and R5.492 million in 2025/26 for
the social behavioural change programme;
o An addition of R5 million in 2023/24; R5.240 million in 2024/25 and R5.492 million for the Gender
Based Violence (GBV) awareness; and
o Microsoft licenses function shift from the department to the Office of the Premier amounting to
R26.610 million in 2023/24; R27.807 million in 2024/25 and R29.058 million in 2025/26.

7.2 Programme summary
Table 4: Summary of payments and estimates by 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
1. Administration 503 521 478 710 474 333 529 709 535 225 534 156 534 210 556 777 581 927 0.0
2. Social Welfare Services 779 406 788 906 886 757 851 448 861 716 862 820 875 187 921 239 963 156 1.4
3. Children And Families 622 405 605 974 652 648 632 830 645 568 646 785 651 261 680 535 711 216 0.7
4. Restorative Services 436 634 435 439 468 902 461 709 469 394 469 719 481 044 501 787 524 374 2.4
5. Development and Research 279 702 272 042 294 932 293 716 298 161 298 192 292 002 291 119 304 199 (2.1)
Total payments and estimates 2 621 668 2 581 071 2 777 572 2 769 412 2 810 064 2 811 672 2 833 704 2 951 457 3 084 872 0.8

7.3 Summary of economic classification

Table 5: Summary of payments and estimates by economic classification

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 2 143 861 2 101 522 2 372 937 2 281 626 2 366 484 2 360 556 2 365 586 2 457 847 2 568 538 0.2
Compensation of employees 1 762 555 1 749 417 1 947 126 1 889 346 1 929 998 1 929 998 1 916 645 1 994 263 2 083 632 (0.7)
Goods and services 381 306 352 105 425 811 392 280 436 486 430 558 448 941 463 584 484 906 4.3
Interest and rent on land – – – – – – – – –
Transfers and subsidies to: 381 056 398 414 336 646 406 498 363 215 370 751 387 037 408 921 427 749 4.4
Provinces and municipalities – – – – – – – – –
Departmental agencies and accounts – – – – – – – – –
Higher education institutions – – – – – – – – –
Foreign governments and international organisations – – – – – – – – –
Public corporations and private enterprises – – – – – – – – –
Non-profit institutions 340 950 319 082 307 510 336 312 334 922 334 922 358 178 378 389 395 814 6.9
Households 40 106 79 332 29 136 70 186 28 293 35 829 28 859 30 532 31 935 (19.5)
Payments for capital assets 96 751 81 036 67 989 81 288 80 365 80 365 81 081 84 689 88 585 0.9
Buildings and other fixed structures 41 147 24 311 20 832 22 884 23 614 23 614 22 853 23 870 24 968 (3.2)
Machinery and equipment 55 150 55 856 46 754 58 404 56 751 56 751 58 228 60 819 63 617 2.6
Heritage Assets – – – – – – – – –
Specialised military assets – – – – – – – – –
Biological assets – – – – – – – – –
Land and sub-soil assets – – – – – – – – –
Software and other intangible assets 454 869 403 – – – – – –
Payments for financial assets – 99 – – – – – – –
Total economic classification 2 621 668 2 581 071 2 777 572 2 769 412 2 810 064 2 811 672 2 833 704 2 951 457 3 084 872 0.8

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