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Estimates of the Provincial Revenue and Expenditure (EPRE) %u2013 2025/26 Financial Yearof provincial transfers to fund the operating expenditure for both of these entities as well as for the BFI project at CSEZ for bulk infrastructure for construction to support economic opportunities and enable expected demand to enable human settlement in Motherwell and Uitenhage. Eastern Cape Development Corporation (ECDC) and Mayibuye Transport Corporation (MTC) are listed as government business enterprises (Schedule 3D) in the PFMA. The total transfers to MTC increased from the revised estimates of R163.567 million in 2024/25 to R170.666 million or 4.3 per cent in 2025/26. The total transfers to ECDC increased by 22.8 per cent from the revised estimate of R339.377 million in 2024/25 to R416.715 million in 2025/26 due to the recapitalisation and property modernisation as well as the automative aftermarket support for MSME and the Nacaam Show 2025 to be hosted through the AIDC. Transfers to Local Government In order to strengthen the capacity to provide basic services and ensure the mandate is discharged as per municipalities constitutionally assigned functions, support initiatives by the province to municipalities will continue over the 2025 MTEF. There are 3 categories of municipalities in the province in terms of the Constitution where Category A municipalities are 2, namely, Buffalo City and Nelson Mandela Bay Metropolitan municipalities. In terms of Category B there are 31 local municipalities and for Category C there are 6 district municipalities. Table 5.6: Summary of Provincial Transfers to Local Government by Category OutcomeMain appropriationAdjusted appropriationRevised estimate Medium-term estimatesR thousand 2021/22 2022/23 2023/24 2025/26 2026/27 2027/28Category A 316 762 324 615 214 522 287 005 287 107 273 506 274 067 328 123 394 909 0.2Category B 558 263 646 239 666 931 579 991 590 131 597 205 630 466 652 153 683 849 5.6Category C 3 999 1 182 6 265 4 683 4 683 5 302 5 000 5 310 5 750 (5.7)Unallocated 1 000 1 000 1 000 1 000 1 000 1 000 14 966 1 000 14 966 0.0Total provincial transfers 880 024 973 036 888 718 872 679 882 921 877 013 1 000 552 910 533 1 099 474 3.82024/25% change from 2024/25Source: Provincial Treasury Database 2025/26 Table 5.6 above shows the transfers to local government per category decreasing from R880.024 million in 2021/22 to R877.013 million in the 2024/25 revised estimate. In 2025/26, the total transfers budget reflects an increase of 3.8 per cent to R910.553 million. In 2025/26, the substantial portion of the budget is allocated to Public Works and Infrastructure at R614.939 million for the payment of property rates and taxes for provincially owned properties that are in the municipalities jurisdiction followed by Office of the Premier at R148.570 million for the funding of the Small-Town Revitalisation Programme that are undertaken in identified municipalities. The unallocated amounts over the 2025 MTEF are due to Economic Development, Environmental Affairs and Tourism not having finalised its allocations for the greenest municipality, as this depends on assessments for the award made during a particular financial year, as well as identify the municipalities who must benefit from the EPWP environmental projects. 87