Page 513 - Provincial Treasury Estimates.pdf

Estimates of the Provincial Revenue and Expenditure (EPRE) – 2023/24 Financial Year
The department has reviewed the Eastern Cape Development Corporation Act, 1997 (Act no. 2 of 1997).
A White Paper on the Eastern Cape Development Corporation is being developed which will inform the
Eastern Cape Development Corporation Bill to align with the Economic Policy direction of the country and
the province.
Formal and Informal businesses are currently governed by the Business Act, 1991 (Act No. 71 of 1991)
which predates the Constitution of the Republic of South Africa, 1996. The Department is currently working
on the policy development of a White Paper on Businesses in the Eastern Cape, which will culminate in
the publication for comment of the Eastern Cape Businesses Bill. The overall intention of the Bill will be to
repeal the Business Act, 1991 (Act no. 71 of 1991), provide for measures to protect consumers in the
province against unhealthy, harmful, and unsafe goods and business practises. It will also provide for the
designation of Licensing, Permitting and Registration Authorities, Committees and Officers in the province
and their objects, powers, duties and 51 functions, provide for a conducive environment to ensure
graduation and transitioning of small businesses operating in the informal sector into the main stream
economy. Furthermore, it will provide for a developmental agenda that covers transfer of skills, capacity
building and business support to the SMME’s and to provide for business data collection across the board
that will be beneficial to proactive economic planning regime.

1.7 Budget decisions

The current economic climate and associated fiscal constraints placed on the provincial financial resources
has directed the department to reprioritise its budget allocation within the programmes. The department
continues to ensure that the budget decisions are aligned with provincial priorities pertaining to the need
for intensified support and oversight of the Public Entities. There has been tightening of the fiscal envelope
caused by the weak economic environment. The downward economic growth forecast presents further
challenges government’s ability to generate revenue to meet the ever-increasing service delivery targets.
Reprioritisation within programmes and sub-programmes to accommodate the previous budget cuts was
undertaken without severely affecting the service delivery for the 2023 MTEF. Consequently, funds have
been reprioritised from Compensation of employees to achieve the government programme of action.
However, this didn’t compromise the provision for warm bodies. The baseline reprioritisation exercise was
necessary to re-direct funds to enhance the assistance to SMME, set-aside funding for economic stimulus
projects and COVID-19 recovery plan. The departmental service delivery model was largely been
impacted by the COVID-19 pandemic as well as the increasing demand for support to SMMEs. To this
end, the introduction of the Economic Development Fund to be implemented by ECDC, will assist in
addressing these demands.
Budget decisions in the department are largely influenced by various factors that are prioritised in order to
promote economic development, tourism and taking into consideration our environmental affairs. The
department will continue with its untiring efforts of donor mobilisation and work with the private sector in
order to leverage on their resources in projects where there are common goals. Cost containment
measures and value for money spending will continue to be applied by the department over the
2023 MTEF period.

1.8 Aligning departmental budgets to achieve government’s prescribed outcomes

The departmental budget is supported by a Strategic Plan (SP), Annual Performance Plan (APP) that have
been aligned to the Medium-Term Strategic Framework (MSTF) and Provincial Development Plan (PDP),
Vision 2030. The department’s work is influenced by a combination of economic and environmental
imperatives in the Eastern Cape; key alignment instruments of the international, national, provincial and
local levels; and the structural organisation of the DEDEAT Group as well as the available human and
financial resource envelope. The department will continue to make use of policies and strategies that
enhance economic, environmental management and tourism development. These include the Eastern
Cape Biodiversity Strategy and Action Plan (ECBSAP), Climate Change Response Strategy, Provincial
Sustainable Energy Strategy, National Biodiversity Economy Strategy, Integrated Waste Management

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