Page 734 - Demo

Estimates of the Provincial Revenue and Expenditure (EPRE) - 2025/26 Financial Year account for approximately 78.6 per cent of the department%u2019s budget. Overall, the budget is decreasing by 1.2 per cent, from a revised estimate of R2.397 billion in 2024/25 to R2.369 billion in 2025/26. 7.3 Summary of economic classification Table 5: Summary of provincial 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 428 594 379 882 437 102 477 856 482 520 482 435 475 334 473 579 494 904 (1.5)Compensation of employees 360 052 343 255 372 476 399 593 397 668 397 432 411 353 410 524 429 010 3.5Goods and services 36 627 68 542 64 626 78 263 84 852 85 003 63 981 63 055 65 894 (24.7)Interest and rent on land %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Transfers and subsidies to: 2 158 255 2 048 026 1 917 803 1 880 448 1 885 805 1 886 041 1 881 708 1 701 612 1 778 559 (0.2)Provinces and municipalities %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Departmental agencies and accounts %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Higher 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 5 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Non-profit institutions %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Households 2 158 255 2 048 021 1 917 803 1 880 448 1 885 805 1 886 041 1 881 708 1 701 612 1 778 559 (0.2)Payments for capital assets 6 899 14 874 8 958 25 596 29 532 29 381 12 800 9 402 9 825 (56.4)Buildings and other fixed structures %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Machinery and equipment 6 899 14 874 8 958 25 596 29 532 29 381 12 800 9 402 9 825 (56.4)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 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Payments for financial assets %u2013 91 93 %u2013 %u2013 %u2013 %u2013 %u2013 %u2013Total economic classification 2 545 035 2 491 584 2 363 956 2 383 899 2 397 857 2 397 857 2 369 842 2 184 593 2 283 288 (1.2)2024/25 Table 5 above provides a summary of payments and estimates per economic classification over the 2025 MTEF. Compensation of Employees increases by 3.5 per cent from a revised estimate of R397.432 million in 2024/25 to R411.353 million in 2025/26 due to additional funding allocated for the 2025 wage agreement. Goods and services expenditure is decreasing by 24.7 per cent, from a revised estimate of R85.003 million in 2024/25 to R63.981 million in 2025/26. The budget is primarily driven by contractual obligations, an EPWP grant aimed at strengthening existing empowerment initiatives for youth, women, and people with disabilities, as well as expenses relating to monitoring of ongoing departmental projects and funding the provincial priorities. Transfers and subsidies have a negative growth of 0.2 per cent, from a revised estimate of R1.886 billion in 2024/25 to R1.881 billion in the 2025/26 financial year. This item is the main cost driver in the department%u2019s budget as they consist of budget for conditional grants. The budget for transfers and subsidies is largely driven by the department%u2019s core business, which includes:%uf0b7 Provision of housing opportunities and assistance, prioritising the Destitute, Vulnerable Groups, Military Veterans and GBVF victims. %uf0b7 Empowerment Opportunities, Skills Development and Job Creation for Micro Small and Medium Enterprise (MSME) including designated groups. %uf0b7 Progressive adoption of Innovative and Sustainable Building Technologies (ISBT). %uf0b7 Enhance partnerships and collaborations with Strategic partners in Mobilising Human Settlements Investments in the transformation of the sector. %uf0b7 Transformation of Local Buildings Material Manufacturers and Suppliers. %uf0b7 Unlocking of land assembly and bulk infrastructure in collaboration with relevant partners. %uf0b7 Upgrading of informal settlements and provision of social and economic amenities. %uf0b7 Municipal Support and Accreditation Programme. 713