Page 464 - Provincial Treasury Estimates.pdf

Department: Rural Development and Agrarian Reform

Table 24: Summary of departmental payments and estimates by economic classification: P5 – Research
and Technology Development Services

Main Adjusted
Outcome Revised estimate Medium-term estimates % change
appropriation appropriation
R thousand 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 from 2022/23
Current payments 131 046 122 540 116 692 130 522 129 530 129 530 133 103 135 012 141 135 2.8
Compensation of employees 110 851 107 570 103 494 115 532 110 507 110 507 111 763 113 439 118 568 1.1
Goods and services 20 195 14 970 13 198 14 990 19 023 19 023 21 340 21 573 22 567 12.2
Interest and rent on land – – – – – – – – –
Transfers and subsidies to: 2 492 – – 300 300 300 – – – (100.0)
Provinces and municipalities – – – – – – – – –
Departmental agencies and accounts – – – 300 300 300 – – – (100.0)
Higher education institutions – – – – – – – – –
Foreign governments and internation – – – – – – – – –
Public corporations and private ente – – – – – – – – –
Non-profit institutions – – – – – – – – –
Households 2 492 – – – – – – – –
Payments for capital assets 3 992 4 060 1 104 1 206 4 426 4 426 5 832 3 789 3 963 31.8
Buildings and other fixed structures – – – – 200 200 1 500 – – 650.0
Machinery and equipment 3 877 3 918 963 1 042 3 942 3 942 3 623 3 047 3 188 (8.1)
Heritage Assets – – – – – – – – –
Specialised military assets – – – – – – – – –
Biological assets 115 142 141 164 284 284 709 742 775 149.6
Land and sub-soil assets – – – – – – – – –
Software and other intangible assets – – – – – – – – –
Payments for financial assets – – – – – – – – –
Total economic classification 137 530 126 600 117 796 132 028 134 256 134 256 138 935 138 801 145 098 3.5

Tables 23 and 24 above show the summary of departmental payments and estimates per sub-programme and
economic classification from 2019/20 to 2025/26 . Expenditure decreased from R137.530 million in 2019/20 to
a revised estimate of R134.256 million in 2022/23 mainly due to government fiscal consolidation, as well as the
function shift for Disaster Management unit to Sustainable Resource Management, Disaster risk sub-
programme. In 2023/24, the budget increases by 3.5 per cent to R138.935 million, and this is ascribed to funding
for the aquaculture development programme, and this explains the decrease in 2023/24. The MTEF allocations
caters for repairs of machinery, such as tractor, TLBs and Graders, procurement of seeds, fertilizers and animal
feed for animals that are used for research projects to improve agricultural production.

Compensation of employees decreased from R110.851 million in 2019/20 to a revised estimate of
R110.507 million in 2022/23, and this can be ascribed to movement of function and officials for the Disaster
Management to Disaster Risk Reduction unit. This is also due to delayed recruitment process for the filling of
posts. In 2023/24, the budget increases to R111.763 million by 1.1 per cent mainly cover pay progression, and
this is reduced to some extent by anticipated attritions in 2023/24.

Goods and services decreased from R20.195 million in 2019/20 to a revised estimate of R19.023 million in
2022/23, due to government fiscal consolidation. However, during the 2022/23 Adjustments Estimate savings
were moved from compensation of employees to address spending pressures brought about by caused higher
than anticipated travelling costs for scientists and research technicians, who are working on research trails and
projects in the whole province travel costs, increase costs of farming supplies production and fuel caused by
Russia and Ukraine war, and this exacerbated by persistent loading-shedding in the country. The budget
increases by 12.2 per cent to R21.340 million. The allocations for 2023/24 MTEF caters for the implementation
of the aquaculture development project, as well as operating costs in respect of research projects to improve
agricultural production.

Transfers and subsidies reflects an allocation of R300 thousand in the 2022/23 financial year, allocation is
provision made for payment of casual labourers implementing fencing projects. There is no allocation in the
2023/24 MTEF.

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