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Estimates of the Provincial Revenue and Expenditure (EPRE) %u2013 2025/26 Financial Year2.4 Financing Deficit The deficit is subsequently funded from the Provincial own reserves amounting to R506.869 million, which results in breakeven. In terms of the outer years of the 2025 MTEF. The province has continued to fund the deficit before financing from provincial own reserves in 2025/26. However, the continuation of such funding is not sustainable as the provincial own reserves are depleting. Also, the need to reduce spending is crucial as revenue transfers from national has not stabilised due to fiscal consolidation measures. The province is therefore continuing with fiscal consolidation measures to reduce expenditure as well as targeting nonefficient spending areas like wasteful spending, unauthorised spending including medico-legal payments, legal fees and interest payments, so that it can be eradicated. Surplus The province is projecting a before financing surplus amounting to R373.892 million in 2026/27 and R546.386 million in 2027/28. It should be noted that these surplus amounts are already committed towards the contingent liabilities that the province is facing mainly for the leave gratuities and medico legal claims when it materialises. Furthermore, more efficient service delivery mechanisms are being pursued that will target value for money. Lastly, the province continues with the enhancement of provincial own revenue including the implementation of the revenue study to further supplement the provincial fiscus. 53