Page 74 - Provincial Treasury Estimates.pdf

Overview of the Provincial Revenue and Expenditure (OPRE) Financial Year 2023/24

5. PAYMENTS

Overall position

As part of the budget reforms, the government is ceased with transforming the economy and creating
sustainable jobs, the economic growth rate must exceed 5 per cent of GDP as espoused in the National
Development Plan. Whilst it is important for Government to investing the social sector as in the past, it has
come to a point where trade-offs between economic development and the social responsibility is required
to maintain the sovereignty of the country.

The Treasury sector has introduced zero based budgeting and expenditure reviews as instruments to
achieve efficiency and value for money focusing on personnel and non-personnel items. Therefore, the
little rand that government has to spend must be efficiently and prudently utilised to ensure that there is a
multiplier effect that will benefit the province in achieving the goals of the Provincial Development Plan
(PDP).

Furthermore, the government is focusing on infrastructure delivery with emphasis not only focusing on
social infrastructure, but increasingly also focusing on the economic infrastructure in order to boost the
Gross Capital Formation of the province.

The total outlays for the payments by the province amount to R91.620 billion in 2023/24, R92.408 billion
in 2024/25 and R96.651 billion in 2025/26. Figure 1 below shows split of the 2023/24 between the sectors.

Figure 1: 2023/24 Sectors % Share

3,6%
16,5%

79,9%

Social Sector Economic Sector Governance and Administration Sector

Figure 1 shows that for 2023/24 budget, the Social sector takes up the biggest share at 79.9 per cent
share followed by the Economic sector at 16.5 per cent and the Governance and administration sector at
3.6 per cent. When comparing it to the shares of the sectors in 2022/23, the Social sector was at 80.8 per
cent, the Economic sector was at 15.8 per cent and the Governance and administration sector was at
3.4 per cent. Therefore, in 2023/24 one can see that there is a move to allocate more funding to the
economic sector.

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