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Department: Social Development7.3 Summary of economic classification Table 5: Summary of payments and estimates by economic classification Outcome Main appropriationAdjusted appropriation Revised estimate Medium-term estimates % change from 2024/25R thousand 2021/22 2022/23 2023/24 2025/26 2026/27 2027/28Current payments 2 290 291 2 372 937 2 379 890 2 490 423 2 488 109 2 488 109 2 613 160 2 702 175 2 806 721 5.0Compensation of employees 1 871 328 1 947 126 1 940 020 2 025 175 2 026 104 2 026 104 2 167 564 2 252 204 2 336 505 7.0Goods and services 418 963 425 811 439 870 465 248 462 005 462 005 445 596 449 971 470 216 (3.6)Interest and rent on land %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 Transfers and subsidies to: 359 940 336 646 384 825 405 871 405 578 405 578 401 788 413 842 424 989 (0.9)Provinces and municipalities %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 Departmental agencies and accounts %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 Higher education institutions %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Foreign governments and international organisations %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Public corporations and private enterprises %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Non-profit institutions 307 510 331 932 355 020 377 012 376 162 376 162 386 370 397 962 408 394 2.7Households 29 136 28 008 29 805 28 859 29 416 29 416 15 418 15 880 16 595 (47.6)Payments for capital assets 67 989 79 895 83 931 75 878 78 485 78 485 100 700 112 090 108 386 28.3Buildings and other fixed structures 20 832 26 592 19 884 16 309 15 659 15 659 38 564 39 721 41 508 146.3Machinery and equipment 46 754 53 303 64 047 59 569 62 826 62 826 62 136 72 369 66 878 (1.1)Heritage Assets %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Specialised military assets %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Biological assets %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Land and sub-soil assets %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Software and other intangible assets 403 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Payments for financial assets %u2013 4 524 1 742 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Total economic classification 2 777 572 2 734 650 2 850 388 2 972 172 2 972 172 2 972 172 3 115 648 3 228 107 3 340 096 4.82024/25Table 5 reflects a summary of payments and budgeted estimates per economic classification. 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 to R3.115 billion due to additional allocation for the 2025/26 wage agreement. Expenditure on compensation of employees increased from R1.947 billion in 2021/22 to a revised estimate of R2.026 billion in 2024/25. In 2025/26, the budget increases by 7.0 per cent from R2.026 billion to R2.167 billion to fully fund the warm bodies and cater for the 2025 wage agreement. Expenditure on goods and services increased from R425.811 million in 2021/22 to a revised estimate of R462.005 million in 2024/25. In 2025/26, the budget decreases by 3.6 per cent from R462.005 million to R445.596 million due to funds that have been reprioritised for refurbishment of Service Delivery Offices. Expenditure on transfers and subsidies increased from R336.646 million in 2021/22 to a revised estimate of R405.578 million in the 2024/25 financial year. In 2025/26, the budget decreases by 0.9 per cent from R405.578 million to R401.788 million due to insourcing of Kwa-Nobuhle One Stop Centre. Expenditure on payments for capital assets increased from R67.989 million in the 2021/22 to a revised estimate of R78.485 million in 2024/25. In 2025/26, the budget increases by 28.3 per cent from R78.485 million to R100.700 million due to funds that have been reprioritised from goods and services to refurbishment of Service Delivery Offices. 254