Page 566 - Demo

Estimates of the Provincial Revenue and Expenditure (EPRE) %u2013 2025/26 Financial Year6.3 Official development assistance (donor funding) None. 7 PAYMENT SUMMARY 7.1 Key assumptions The department applied the following broad assumptions when compiling the budget: %uf0b7 All inflation related increases are based on CPI projections as provided in the National Treasury guidelines. %uf0b7 Department will over the 2025 MTEF continue to ensure that allocation of budgets to SCOA line items continue to reflect the application of the cost containment measures as issued by the National Treasury as per Instructions 2, 3 and 4 of 2017/18 and Provincial Treasury Instruction Note 4 of 2017/18, where spending on non-essential items must be kept at bare minimum or decreasing. %uf0b7 Regarding Compensation of Employees budget the department has made provision for the filling of all PTCM approved posts within the existing baseline. %uf0b7 The department will continue to implement the AET strategy through Goods and Services in line with National Treasury Circular 21. 7.2 Programme summary Table 4: Summary of payments and budget estimates per 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 460 154 431 581 475 058 487 592 503 084 503 084 522 821 557 217 550 041 3.92. Sustainable Resource Use and Management 131 532 131 555 132 878 141 545 136 169 136 169 144 489 144 619 159 615 6.13. Agricultural Producer Support and Development 821 864 822 566 804 884 850 065 844 665 844 665 891 436 918 554 950 997 5.54. Veterianary Services 337 845 295 506 343 989 361 497 359 169 359 169 374 310 389 939 402 968 4.25. Research and Technology Development Services 131 706 117 796 138 586 148 251 145 348 145 348 158 075 158 933 162 709 8.86. Agricultural Economics Services 34 519 31 868 38 739 40 419 41 419 41 419 43 353 42 109 46 097 4.77. Agricultural Education and Training 180 815 185 145 188 834 205 495 203 500 203 500 217 194 223 047 233 918 6.78. Rural Development 206 678 228 903 212 116 216 910 218 420 218 420 226 131 235 233 246 277 3.5Total payments and estimates 2 244 920 2 305 113 2 335 084 2 451 774 2 451 774 2 451 774 2 577 809 2 669 651 2 752 622 5.12024/25 Table 4 above shows the summary of payments and budget estimates per programme from 2021/22 to 2027/28. Total expenditure grows from R2.244 billion in 2021/22 to a revised estimate of R2.451 billion in 2024/25. This growth was primarily driven by additional allocations for wage agreements, the transfer of funds from DEDEAT for the Grain Industry Development Value Chain implemented by ECRDA, and increased funding for livestock genetic improvement, spring water protection, and import substitution for agricultural commodities. In 2025/26, the budget increases by 5.1 per cent to R2.577 billion, mainly due to additional allocations for the operationalisation of 13 custom feeding units, the implementation of the Livestock Identification and Traceability System (LITS) through ear tags and tattooing, and the reallocation of the Ilima/Letsema grant budget, which was reduced in 2024/25. Over the two outer years of the MTEF, the baseline continues to grow moderately. 545