Page 81 - Demo

Overview of the Provincial Revenue and Expenditure (OPRE %u2013 2025/26)will be merged in a phased manner over the 2025 MTEF. The merging of the EIG and the SIBG is intended to improve the coordination of infrastructure delivery plans and programmes to ensure alignment in infrastructure projects. In the 2025/26 financial year, allocations for the SIBG will remain within the conditional grant to address outstanding projects and accruals from the 2024/25 financial year and in 2026/27 and 2027/28 funds will be shifted to the EIG. The national school nutrition programme grant increases from R1.737 billion in the 2024/25 revised estimates to R1.828 billion in 2025/26 to improve the nutrition of poor school children particularly quintiles 1 to 3, enhance their capacity to learn and increase their attendance at school. The early childhood development grant increases from R268.988 million in the 2024/25 revised estimates to R330.004 million in 2025/26 to support government%u2019s prioritisation of early childhood and improve poor children%u2019s access to early childhood programmes while ensuring that early childhood development centres have adequate infrastructure. The national tertiary services grant increases from R1.255 billion in the 2024/25 revised estimates to R1.351 billion in 2025/26 to fund the oncology project and enables the department to plan, modernise and transform tertiary hospital service delivery in line with national policy objectives. The provincial roads maintenance grant increases from R2.089 billion in the 2024/25 revised estimates to R2.184 billion in 2025/26 to provide support to the cost of maintaining provincial roads. The grant supplements the provincial budget to maintain and upgrade existing roads. Funds will be reprioritized over the 2025 MTEF from the Provincial Roads Maintenance Grant to the S%u2019hamba Sonke Programme within the Department of Transport. The funds will be used to augment the existing funds allocated towards providing technical support services for monitoring road maintenance projects implemented by provinces. The Community Library Services Grant will be phased into the provincial equitable share over two years. The cost of employees component will be transferred to the provincial equitable share in the 2026/27 financial year, while the capital component will be determined through further engagements during the 2025/26 financial year. For the 2025 MTEF, the Expanded Public Works Programme (EPWP) Integrated Grant for Provinces has been merged with the Social Sector EPWP Incentive Grant for Provinces, consolidating into a single grant and the new grant will be called the Expanded Public Works Programme Integrated Grant for Provinces. The EPWP Integrated Grant for Provincesincentivises the province to use labour-intensive methods for infrastructure, environmental and other projects. With respect to conditional grants review, there were reforms for the 2025 MTEF from the conditional grants review which were aimed to enhance the effectiveness of conditional grants which led to some changes to conditional grant allocations. 4.4 Total Provincial Own Receipts (own revenue) In terms of provincial own revenue, there is a projected decrease from R2.061 billion in the 2024/25 revised estimate to R1.804 billion in 2025/26 due to once-off revenue collections that are not included in the 2025/26 budget. These once-off revenue collections comprise interest earned on positive bank balances from the exchequer investments or other commercial bank accounts, the sale of capital assets in respect of obsolete equipment or property sale, the disposal of assets, expenditure recoveries for staff debts and surrenders of surpluses by public entities. 60