Page 409 - Provincial Treasury Estimates.pdf

Estimates of the Provincial Revenue and Expenditure (EPRE) – Financial Year 2023/24

Tables 4 and 5 above reflect the departmental expenditure summary per programme and economic

classification from 2019/20 to 2025/26. Expenditure increased from R988.820 million in 2019/20 to a
revised estimate of R1.018 billion in 2022/23 as the department continued to prioritise capacitation of the
department and allocation funds towards its core business of support to municipalities and institutions of

traditional leadership. In 2023/24, total expenditure is expected to increase by 3.2 per cent to R1.050 billion
due to adjustment to the baseline as per the PES formula, the allocation of the wage agreement of the
public officials and provincial allocations mainly directed at supporting Traditional Leadership Institutions

as well as rescheduled allocations for procurement of vehicles, and infrastructure projects in the Traditional
Councils funding element towards incremental realisation of the Tools of Trade as provided in the

traditional leadership handbook.

Compensation of Employees increased from R828.190 million in 2019/20 to a revised estimate of
R879.645 million in 2022/23, with the increase attributable to the on-going recruitment drive in the
department including critical posts for the appointment of senior management officials. In 2023/24, the

budget increases by 2.9 per cent to R905.323 million due to additional allocation for the continuous
implementation of the 3 per cent wage increases implemented in 2022/23 over the 2023 MTEF as part of
the outcome of the wage agreement as well as funding for traditional leadership matters.

Goods and Services decreased from R112.558 million in 2019/20 to a revised estimate of R105.778 million
in 2022/23 due to significant reprioritisation of funds to cater for in-year cost pressures that were not funded
through the adjustment budget process as well as reduction in the department’s baseline during the

2021 MTEF. In the 2023/24, the budget increases by 13.6 per cent to R120.204 million as a result of
additional funding to the baseline received as per the new data on the PES formula, conditional grant

allocation to continue to participate in the EPWP programme, part of funding received for the tools of trade
for traditional leaders / handbook which has been set aside to deal with capacity building initiatives for TLs
as well as internal reprioritisation aimed at responding to implication of changed operating environment

post COVID-19 recovery and critical issues that includes addressing capacity constraints impacting on the
department’s DGITO space and employee wellness.

Transfers and Subsidies decreased from R20.469 million in 2019/20 to a revised estimate of R9.680 million
in 2022/23 due phasing out of transfers to municipalities in terms of support. In 2023/24, the budget

decreases by 27.8 per cent to R6.993 million and this decrease is aligned to the once off provision for Ex-
gratia payments in 2022/23 as well as the intention by the department to continue paying statutory

payments and gratuity to Traditional Leaders, payment of leave gratuity and early retirements / retirements
provisions in the 2023/24.

Payments for Capital Assets slightly decreased from R27.596 million in 2019/20 to a revised estimate of

R23.268 million in 2022/23 due to scaling down of construction of traditional councils’ baseline reductions
and provisions made in 2022/23 for purchasing of laptops to improve the aging ones in the department. In
2023/24, the budget decreases by 21 per cent to R18.381 million as the department continue to implement

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