Page 801 - Demo

Department: Provincial Treasury %uf0b7 Inefficiencies continue to persist in provincial departments such as Departments of Health and Education, and these continue to negatively impact service delivery. %uf0b7 While progress has been made in enhancing revenue collection, PT acknowledges the challenges, particularly in rental collections, Road Accident Fund collections, and motor vehicle license fees. %uf0b7 There is a lack of effective consequence management in addressing cases of irregular, fruitless, and wasteful expenditures. %uf0b7 The province has been struggling with Municipal Infrastructure grant spending, which has negatively impacted service delivery. This ongoing issue has contributed to community dissatisfaction, as the inadequate use of funds has persisted over the past financial years. There is a need for enhanced management and oversight of capital grants to improve service delivery and prevent further discontent within communities. 3 OUTLOOK FOR THE COMING FINANCIAL YEAR (2025/26) Provincial Treasury recognizes the need for a comprehensive approach that aligns strategic initiatives with the service delivery model. This approach emphasizes collaboration and integration in project execution to ensure that projects are executed in a unified and cohesive manner, leading to successful project outcomes. The department has thus adopted a Project Management Framework (PMF) that will be used strengthen project governance, execution, and accountability across the institution. In response to the ongoing challenges of a sluggish economy and slow national growth, the department will continue to operate within tight fiscal constraints. To ensure financial sustainability, PT will focus on measures such as managing the wage bill, implementing cost containment strategies, enhancing provincial revenue, and setting clear spending limits. Despite the challenging economic landscape, increasing provincial revenue remains a key priority. The Provincial Revenue Generation Strategy, alongside findings from a recent research study, has identified new revenue streams, delivering positive results. The liquidity of the Provincial Revenue Fund (PRF) remains stable. The department will continue to work closely with the Office of the Premier and the Department of Health to manage medico-legal claims, which pose a significant financial risk to the province. An intervention team has been put in place to address the growing number of claims within the Department of Health. In line with the Preferential Procurement Regulations of 2022, departments are required to set specific goals for preferential procurement, particularly to support designated groups. The provincial government remains committed to advancing support for women, youth, people with disabilities, and military veterans. A key focus will be placed on ensuring that 30 percent of the province%u2019s procurement budget is allocated to youth-owned enterprises. Additionally, PT will continue to enhance procurement efficiency through the implementation of an invoice tracking system. Support for Micro, Small, and Medium Enterprises (MSMEs) will also remain a priority, with ongoing assistance for registration on the Central Supplier Database (CSD) and LOGIS, helping to strengthen their participation in provincial procurement processes. The department will continue to support infrastructure delivery in line with the Provincial Infrastructure Strategy. Efforts will focus on assisting departments in institutionalizing the Infrastructure Delivery Management System (IDMS) and implementing the Framework for Infrastructure Delivery and Procurement Management (FIDPM). In collaboration with the Department of Public Works and Infrastructure, the department will monitor infrastructure budget performance and ensure that projects are aligned with the District Development Model (DDM), promoting integrated planning and delivery across the province. 780