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Estimates of the Provincial Revenue and Expenditure (EPRE) %u2013 2025/26 Financial YearFOREWORD The government continues to maintain its fiscal stance to stabilize public finances and reduce public debt costs. Despite this fiscal stance, no budget reductions have been proposed over the medium term. Considering the constrained public finances, the province is mindful of the need to find alternative funding sources to boost economic activity and create jobs. We are therefore making calculated decisions with the resources we have, influenced by the need to strengthen planning through coordination at the cluster level. This has allowed us to align policies within and across clusters. Whilst it was the first time this approach was implemented; we are already seeing opportunities for trade-offs between programmes where synergies are clear. The ultimate goal is to derive efficacy in our fiscal resource allocations. We are aware that current delivery and funding models that are department specific will not work. Therefore, this change is anchored at an executive level and Treasury will continue to advise and support departments in sourcing alternative funding sources which in part is anchored on the reforms on Public Private Partnerships and conditional grants review process announced by the National Minister of Finance. Noting that the province has not been as successful in its previous bids to source additional funding for large capital projects from the Budget Facility for Infrastructure (BFI). This has been due to our limited capacity as a province to prepare, and package bankable capital project proposals. To solve this, Infrastructure South Africa (ISA) has undertaken to support all spheres of government with project preparation and packaging to develop a credible and comprehensive infrastructure project pipeline for the country. ISA will procure and share expertise with provincial departments, entities and local government institutions in undertaking project pre-feasibility and feasibility studies. Furthermore, once the infrastructure plans are completed and deemed bankable, the ISA has committed to assist project sponsors to access all available funding sources such as blended finance, pure fiscus (BFI) as well as capital markets through the Infrastructure Fund. We are continuing our plans to improve the provincial road network and value the significant investment by SANRAL in our province. We are also happy with the progress of the project Ukuvuselela implemented by Transnet which has secured funding through ISA, Infrastructure Fund, DBSA and IDC. To demonstrate further our commitment to bringing about inclusive economic growth, alleviate poverty and developing state capacity, we will progressively align the provincial fiscal resources to be responsive to the nine integration programmes of the provincial government. For inclusive growth, the province will in 2025/26 focus on among other things assisting provincial MSMEs gain market access in some of the key markets within and outside of government. Our new flagship project in this regard is the auto sector After Market programme. This programme is set to provide local MSMEs with training and equipment to meet market standards and requirements and be competitive. We are also supporting our MSME's access credit through government procurementcession agreements and bridging finance. Access to credit will further be boosted through the Provincial Economic Development Fund, a revolving development fund, that targetsentrepreneurs with viable businesses that can generate returns. In addition, the Treasury continues to roll out and monitor the local Economic Development Procurement Framework which has ensured that local businesses benefit from government procurement. This framework is also an important tool to track locally produced goods consumed by the province. The next stepwould vi