Page 34 - Provincial Treasury Estimates.pdf

Overview of the Provincial Revenue and Expenditure (OPRE) Financial Year 2023/24
2. Medium-Term Budget Strategy and Expenditure Plans

Introduction

The 2023/24 MTEF budget is prepared against the backdrop of a constrained fiscal outlook due to an
uncertain but gradual economic recovery, recurrent disasters, insufficient water supply, and electricity

supply disruptions. Furthermore, the structural challenges which include the absence of a significant
manufacturing base continue to constrain the underlying growth potential of the South African economy.

Responding adequately to such challenges requires government to continually rebalance its budgets and
expenditure priorities and programmes so as to adequately cater for constitutionally mandated services
such as education, health, and social development whilst setting aside sufficient resources for economic

recovery, reconstruction and relief efforts.

Budget Policy Framework

The Provincial Development Plan (PDP 2030), the Provincial Medium Term Strategic Framework (P-MTSF

2019 -2024), Executive Council Lekgotla resolutions provide the policy framework that guides resource
prioritisation decisions across provincial departments for the short-to medium term.

The recent 2023 SOPA and mid-term performance reviews highlighted the noticeable gains in service
delivery and the service gaps that still need to be closed as the current term of government concludes.
Highlights of the positive developments for this current term of government include:

ƒ Economic Transformation and Jobs Creation
o Increased provincial investment inflows in relation to IPPs, road Infrastructure (SANRAL), the

expansion of automotive sector, agro processing, citrus value chain development, and the
revitalisation of film industry in the province.
o Financial and non-financial support for tourism and SMMEs to recover with limited scaring from

the effects of Covid 19 lockdowns;
o The revitalisation of Industrial Parks and government support to provincial Special Economic
Zones though DTiC and EC DEDEAT funding.

ƒ Social Transformation – Education and Health
o ECD initiatives – Increasing numbers of children exposed to ECD programmes and more ECD

centres being registered. However, despite the successful speedily transfer of the ECD
programmes from DSD to DoE, challenges remain including variable service quality levels,

shortage of qualified ECD practitioners, insufficient funding for ECD infrastructure;

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