Page 415 - Provincial Treasury Estimates.pdf

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

to a revised estimate of R268.747 million in 2022/23 mainly due to reprioritisation of funds to this

programme to cater for in-year cost pressure relating to contractual obligations in the main. In 2023/24,
the budget increases further by 2.5 per cent to R275.469 million due to additional funding received and
internal reprioritisation.

Compensation of Employees increased from R172.095 million in 2019/20 to a revised estimate of
R187.759 million in 2022/23 due to the on-going recruitment drive, including senior management officials
and implementation of wage increment. In 2023/24, the budget allocation increases by 3.8 per cent to

R194.987 million as a result of the allocation to absorb the impact of the continued implementation of the
Annual Recruitment Plan (ARP), additional funding received for the carry-through cost of the

implementation of the wage increment.

Goods and Services decreases from R62.893 million in 2019/20 to a revised estimate of R59.061 million

in 2022/23 as a result of the impact of budget cuts as well as the function shift for Microsoft Licence
payment from COGTA to Office of the Premier (OTP) over the 2023 MTEF. In 2023/24, the budget
increases by 4.4 per cent to R61.787 million as the department continues to ensure that key contractual

obligations remain reasonably funded over the MTEF through internal reprioritisation which has also made
funding available to cater for the long standing challenges of ICT functionality in the department and
addressing of the wellness Programme through the resuscitating plans to implement 24-hour counselling

project amongst planned initiatives as well as funding the DDM coordination under District Coordination
and IGR.

Transfer and subsidies increased from R4.725 million in 2019/20 to a revised estimate of R5.004 million
in 2022/23 due to payment of leave gratuity for officials. In 2023/24, the budget increases by 6.2 per cent

to R5.313 million to cater for anticipated retirees (early and normal).

Payments for Capital Assets increased from R15.195 million in 2019/20 to a revised estimate of
R16.923 million in 2022/23 due to internal reprioritisation to fund the procurement of laptops to replace the
aged ones. In 2023/24, the budget decreases by 20.3 per cent to R13.482 million due to internal

reprioritisation as the department continue to implement the purchasing of vehicles through additional
funding received and furniture for Chairpersons of local houses as explained under departmental

expenditure trends analysis above.

8.2. Programme 2: Local Governance

Purpose: To ensure the transformation of developmental local government by strengthening municipal
institutions that will be responsive to the needs of the communities. The Programme has 5
sub-programmes:

398