Page 83 - Demo

Overview of the Provincial Revenue and Expenditure (OPRE %u2013 2025/26)interns to collect tenant revenue and entails the verification of debts, debt collection and updating the accounts of defaulters. The department also collects revenue from parking spaces that are utilised by staff at government premises, the lease of cellular phone towers and cellular masts, as well as billboards and digital advertising. The Department of Economic Development, Environmental Affairs and Tourism collects the bulk of own revenue from gambling through casino and horse racing taxes at the Eastern Cape Gambling Board (ECGB) as well as from liquor license fees from liquor operators at the Eastern Cape Liquor Board (ECLB) as collection agents. The own revenue collections are projected to increase from R231.124 million in the 2024/25 revised estimate to R264.060 million in the 2025/26 financial year, which is mainly because of the anticipated collections from casino taxes in respect of casino operators, route and site operators, bingo halls and bookmakers and the strict implementation of liquor laws that enforce the renewal of liquor license fees. The significant own revenue collection at the Provincial Treasury is due to interest earned on positive cash balances from exchequer investments and commercial bank accounts due to the availability of substantial cash available in these bank accounts. Interest earned is generated from all monies banked including own revenue, unallocated funds, surpluses returned by entities, and interest charges retained. Other departments collect minimal own revenue which consists of commission earned on insurance premiums and garnishee orders when compared with the above-mentioned major revenue generating departments. Own revenue enhancement The province continues to support departments with revenue collection, and this involves the establishment of an inter-governmental workgroup with a focused approach to assess the need that will streamline departmental revenue collection structures and strengthen revenue collection. This support involves the review of organograms in key revenue departments, the implementation of electronic systems and the roll-out broadband connectivity to institutions which remain a challenge in departments to collect revenue more efficiently. The revenue implementation takes the form of a programme and project management approach and involves the revision of revenue plans in the short term, over the medium term and in the long-term in line with the Provincial and National Development Plan. Taking into consideration the added support provided at a provincial level, the achievement of revenue targets is crucial and is monitored as part of the provincial Program of Action and any delays with the implementation of the revenue study may result in off-setting of the departments%u2019 budgets with the under collection of revenue. With regard to government-owned properties, the Department of Public Works and Infrastructure has been identifying the properties that will be renovated to be more appealing to the market and as a result will generate rental income from the lease to tenants. The properties that were previously showcased for lease at a property investment conference in 2022 are being leased out to property developers for revenue collection. Tariffs are reviewed to improve revenue collection, such as the tariffs from the lease of telecommunication sites which were reviewed during the past financial year and are inclusive of penalty fees to ensure that duly approved agents install telecommunication infrastructure on sites. 62