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Estimates of the Provincial Revenue and Expenditure (EPRE) %u2013 2025/26 Financial Year7 PAYMENT SUMMARY 7.1 Key assumptions The following assumptions were taken into consideration when the budget was formulated: %uf0b7 The department has made provision for pay progression at 1.5 per cent. %uf0b7 The revised projections for Consumer Price Index (CPI) inflation utilised for the determination of baselines over the 2025 MTEF are 4.5 per cent in 2025/26, 4.5 per cent in 2025/26 and 4.5 per cent in 2027/28. %uf0b7 The 2025 MTEF baseline adjustment were effected as follows: o An additional amount of R19.482 million in 2025/26, R21.390 million in 2025/26 and R22.442 million in 2026/27 to respond to the Compensation of Employees pressures emanating from the 2025 wage agreement. o An additional amount of R8.369 million in 2026/27 for tools of trade for Social Service Practitioners. o Baseline reductions have been implemented on the 2025 MTEF allocation amounting to R12.039 million in 2025/26, R10.219 million in 2026/27 and R10.704 million in 2027/28 for the provincial broadband project. o The department has reprioritised its budget to ensure that warm bodies are fully funded for the 2025/26 financial year and infrastructure projects are catered for to avoid delays in rehabilitation of service delivery office buildings. 7.2 Programme summary Table 4: Summary of payments and estimates by programme Outcome Main appropriationAdjusted appropriation Revised estimate Medium-term estimates % change from 2024/25R thousand 2021/22 2022/23 2023/24 2025/26 2026/27 2027/281. Administration 546 335 474 333 536 090 560 764 561 424 561 424 604 655 634 926 654 764 7.72. Social Welfare Services 819 036 886 757 873 765 918 078 917 718 917 718 934 986 965 809 1 001 807 1.93. Children and Families 631 879 652 648 658 298 686 196 686 196 686 196 724 705 751 680 785 521 5.64. Restorative Services 454 222 468 902 483 039 502 783 502 783 502 783 534 815 555 057 562 931 6.45. Development and Research 283 178 294 932 299 196 304 351 304 051 304 051 316 487 320 635 335 073 4.1Total payments and estimates 2 734 650 2 777 572 2 850 388 2 972 172 2 972 172 2 972 172 3 115 648 3 228 107 3 340 096 4.82024/25Table 4 reflects a summary of payments and budgeted estimates per programme. The department expenditure increased from R2.777 billion in the 2021/22 financial year to a revised estimate of R2.972 billion in 2024/25. In 2025/26, the budget increases by 4.8 per cent from R2.972 billion revised estimate to R3.115 billion due to additional allocation for the 2025/26 wage agreement. 253