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Estimates of the Provincial Revenue and Expenditure (EPRE) - 2025/26 Financial Year The department will continue to provide financial management and governance support to provincial departments and municipalities, including the implementation of mSCoA in municipalities. PT will also monitor financial distress triggers in municipalities and facilitate the development of Financial Recovery Plans (FRPs) for municipalities such as Amathole District, Makana, OR Tambo District, and Enoch Mgijima. These plans focus on improving financial management, governance, human resources, and service delivery, in alignment with the District Development Model and Municipal Integrated Development Plans. The department will continue its commitment to improving audit outcomes through the Provincial Audit Intervention Plan (PAIP), which has already yielded positive results. Additionally, the Financial Management Accountability Framework will remain in place as a key tool in promoting financial discipline, with any violations reported to the relevant Executive Authorities. Through strong engagement and targeted support, the Provincial Treasury aims to continue to strengthen the financial governance framework within municipalities, ultimately improving their capacity to achieve better audit results and enhance service delivery to local communities. 4 REPRIORITIZATION Given the funding constraints, the department conducted an in-depth reprioritization process to protect critical service delivery areas. Stricter control has been implemented on non-essential areas and will continue throughout the 2025 MTEF, ensuring financial sustainability and stability. Funds totalling to R66.851 million in 2025/26 and R64.514 million in 2026/27 were reprioritised to fund mandated priorities and contractual obligations. This was primarily achieved by reducing communication costs, legal costs, and operating leases. The above also includes the reclassification of funding for the revised organizational structure, which was temporarily ring-fenced under Goods and Services pending the finalisation of the structure. The CoE adjustments were incorporated into the budget database in line with the person-to-post matching exercise. The budget committee will maintain oversight of spending to ensure it aligns with projections and to manage budget pressures through reprioritization. This monitoring process will continue throughout the 2025 Medium-Term Expenditure Framework (MTEF). 5 PROCUREMENT The key drivers of the procurement plan over the 2025 MTEF include, amongst others, the following projects: %uf0b7 ICT server infrastructure (switches and access points) for districts with a budget of R5 million and procurement of 150 laptops with an amount of R3.750 million; %uf0b7 Provision of security services for Sarah Baartman district offices for 36 months with a budget of R3.280 million; %uf0b7 Leasing of fax and photocopier machines with a budget of R3 million; %uf0b7 Appointment of a panel of service providers to provide Internal Audit Continuous Professional Development (CPD) training for various provincial departments on behalf of PT for 5 years and a budget of R2.560 million; %uf0b7 Conducting forensic investigations and interventions for 36 months with a budget of R2 million; and %uf0b7 Provision of commercial banking services to the provincial government for 5 years with a budget of R1 million. The department will continue to improve and strengthen its procurement and contract management processes through ongoing training of Supply Chain Management (SCM) officials on new reforms. Additionally, efforts will be made to enhance the participation of all targeted groups in various 781