Page 61 - Provincial Treasury Estimates.pdf

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

Changes to the Conditional Grants in the 2023 MTEF

Additional funding for conditional grants in the 2023 MTEF includes the Provincial Roads Maintenance
Grant to incentivise comprehensive road maintenance planning and to improve the road network over the

2023 MTEF. An additional amount of R592.202 million was allocated in the 2023/24 financial year for the
backlog in refurbishment of provincial roads, for the building of rural bridges under the Welisizwe Rural
Programme. Funding for the rural bridges for the outer two years of the MTEF will be allocated as provinces

make submissions for their rural bridges projects. This amount includes the carry through costs of repairs
of provincial roads that were damaged by the floods following the April 2022 floods.

The Education Infrastructure Grant increased by R123.594 million in the 2023/24 financial year in for the
carry through costs associated with the repairs and rehabilitation of schools damaged by the floods

resulting from the April 2022 floods that damaged schools. However, the national gazette Number 48095
reduced the conditional grant by an amount of R100 million in 2022/23 which will be effected in the 2022/23
second Adjustments Estimate. To continue with the provision of nutritious meals to learners

R288.469 million has been added to the National School Nutrition Programme Grant over the 2023 MTEF.

Following the shift of the function from Social Development to Basic Education, to ensure the expansion

of early childhood development services, R155.875 million was added over the 2023 MTEF to the Early
Childhood Development Grant. This funding is added to top-up to the subsidy amount, increasing access

to the ECD subsidy, pre-registration support packages, and nutrition support and results-based finance
initiative.

The Provincial Emergency Housing Grant discontinues from 2023/24 as the funds from this grant have
been shifted to national Department of Human Settlements to give the department flexibility to respond

timeously to housing emergencies.

National Treasury is reviewing the conditional grants system to determine if it is structured in a way that

supports efficient service delivery, rollout of infrastructure, building of capacity and provision of operational
support. The findings will be used to reform the grant system for greater impact. In light of this review, no

large-scale changes will be introduced to existing conditional grants in the 2023 Budget.

Total Provincial Own Revenue

Provincial own revenue collections are projected to increase from the 2022/23 revised estimate of
R1.737 billion to R1.689 billion in 2023/24. Own revenue is estimated to increase further to R1.804 billion

in the 2025/26 financial year. The decrease in revenue in 2023/24 is due to once-off revenue collections
that are included in the actual revenue in the 2022/23 revised estimate and are not included in 2023/24

44