Page 63 - Provincial Treasury Estimates.pdf

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

The Department of Health collects the bulk of own revenue from patient fees for cost recoveries of health
services provided to the public. Own revenue is projected to increase from the 2022/23 revised estimate

of R297.412 million to R310.796 million in 2023/24 due to the patient fees annual tariffs adjustment using
the Uniform Patient Fees Schedule (UPFS) that are implemented across all provinces for tariffs of public

health services rendered according to affordability. The patient fees adjustment is a competence of the
national Department of Health in consultation with provincial departments of Health. The majority of patient
fees are collected from the Road Accident Fund (RAF) for patients involved in road accidents, and treated

at government hospitals, while the Department of Justice also make payments to the department for
psychiatric observation services of patients. Other collections include the South African Police Services,

the Department of Correctional Services and private medical aid patients.

The Department of Public Works and Infrastructure collects own revenue in the main from rental income

from the leases of government-owned properties. Total own revenue increases from the 2022/23 revised
estimate of R54.383 million to R79.157 million in 2023/24 due to rental contracts that are projected to be
implemented at market related rates and the collection of property rentals through debt collectors for the

recovery of all outstanding revenue. In addition, the department continuously engages with tenants to pay
the outstanding debts. Furthermore, parking fees are collected from provincial departments at head offices
or districts and cellular phone towers or masts are also contributing to the revenue collection. The revenue

increase significantly due to new lease agreements that have been contracted for properties bid projects,
the telecommunication sites and digital advertising billboards. Furthermore, the existing property leases

and parking fees are collected in line with applicable tariffs.

Provincial Treasury contributes significantly to own revenue in respect of interest earned on positive cash

balances in exchequer investments and commercial bank accounts owing to the availability of substantial
cash in these bank accounts. Interest earned is generated from all monies banked including own revenue,
unallocated funds, surpluses returned by entities, and interest charges retained.

Other departments collect minimal own revenue which consist mainly of commission earned on insurance
premiums and garnishee orders when compared with the above major revenue generating departments.

Own revenue enhancement

Revenue enhancement strategies continue which originally started with the implementation of the
recommendations of the revenue research study that was conducted in respect of the new sources of
revenue as well as efficiencies of the existing revenue sources. Key revenue generating departments are

implementing the revenue study as per their revenue plans and these are the Departments of Public Works
and Infrastructure, Transport, Health and Economic Development, Environmental Affairs and Tourism

(DEDEAT).

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