Page 57 - Provincial Treasury Estimates.pdf

Estimates of Provincial Revenue and Expenditure (EPRE) -2023/24 Financial Year
3. RECEIPTS AND PROVINCIAL REVENUE

Overall Position

The provincial fiscal framework for the 2023 Medium Term Expenditure Framework (MTEF) is shown in Table 3.1
below and it reflects the total fiscal envelope of R89.618 billion in the 2023/24 financial year. The fiscal framework
consists of transfers from national for provincial equitable share that amounts to R73.291 billion, conditional grants of
R14.636 billion and provincial own receipts amounts to R1.689 billion.

T Table 3.1: Provincial Receipts
Main Adjusted Revised Medium Term Estimates % Change
R thousand Audited Outcome Appropriation Appropriation Estimates from 2022/23
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
Transfers from national
Equitable share 68 824 353 69 195 253 70 949 697 72 230 960 73 592 515 73 592 515 73 291 569 76 021 540 79 620 090 -0.4
Conditional grants 12 733 035 11 843 416 13 204 246 13 850 406 14 492 521 14 491 674 14 636 741 14 171 533 14 869 306 1.0
Transfers from national 81 557 388 81 038 669 84 153 943 86 081 366 88 085 036 88 084 189 87 928 310 90 193 073 94 489 396 -0.2
Provincial own receipts
Tax receipts 871 370 772 812 805 280 953 205 953 205 927 527 996 099 1 011 069 1 037 729 7.4
Casino taxes 187 125 83 616 150 155 208 977 208 977 183 299 218 319 217 319 227 316 19.1
Horse racing taxes 11 402 13 112 9 101 9 381 9 381 9 381 9 802 9 802 10 253 4.5
Liquor licences 19 040 16 251 22 942 18 600 18 600 18 600 19 500 20 500 21 443 4.8
Motor vehicle licences 653 803 659 833 623 082 716 247 716 247 716 247 748 478 763 448 778 717 4.5
Sales of goods and services other than capital assets 366 224 242 589 176 138 442 901 442 901 447 255 489 121 521 231 543 672 9.4
Transfers received - - - - - - - - - 0.0
Fines, penalties and forfeits 12 637 4 832 5 628 16 065 16 065 18 087 16 788 17 541 18 348 -7.2
Interest, dividends and rent on land 949 637 516 547 359 613 127 765 127 765 287 590 133 573 138 866 145 253 -53.6
Sales of capital assets 18 003 1 927 16 309 2 379 2 379 12 856 2 486 3 249 3 399 -80.7
Transactions in financial assets and liabilities 65 817 37 533 41 713 49 610 49 610 44 519 51 661 53 977 56 460 16.0
Total provincial own receipts 2 283 688 1 576 240 1 404 681 1 591 925 1 591 925 1 737 835 1 689 728 1 745 933 1 804 861 -2.8
Total Provincial Receipts 83 841 076 82 614 909 85 558 624 87 673 291 89 676 961 89 822 024 89 618 038 91 939 006 96 294 257 0.0
Source: Provincial Treasury Database, 2023 MTEF

Provincial Equitable Share

The provincial equitable share (PES) is aimed at ensuring the fair distribution of revenue allocations from nationally
raised revenue through a formula to reflect the demand for services and address socio-economic or fiscal disparities
across provinces. The province receives provincial equitable share from national government to provide basic services
and to implement its assigned mandates or functions in accordance with Sections 214 and 227 of the Constitution.
The PES is the major source of provincial receipts and it is distributed by the use of six components namely education,

health, basic share, institutional, poverty and economic activity.

Changes in the equitable shares of provinces are guided by data updates to the PES formula which includes population
data changes and updates to the equitable share components. In the 2023 MTEF, no changes were made to any of
the components of the PES formula resulting from the review of the provincial equitable share formula. However, with
regard to the PES components in the 2023 MTEF, the education component was updated with the school-age

population (5 to 17 years) from the mid-year population estimates (MYPE) published by Statistics South Africa, and
the school enrolment data obtained from the Learner Unit Record Information and Tracking System (LURITS) data
from the Department of Basic Education.

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