Page 733 - Provincial Treasury Estimates.pdf

Estimates of the Provincial Revenue and Expenditure (EPRE) – 2023/24 Financial Year

7. 7. Payment summary

7.1 Key assumptions

The following assumptions were taken into consideration when the budget was formulated:
x Cost of Living Adjustment for the envisaged salary bargaining council between the state and
employees;
x Consumer Price Index (CPI) as contained in the Provincial Treasury’s budget guidelines;

x Commitment to the implementation of the cost containment measures; and

x Adequate provision for compensation of employees and contractual obligations.

7.2 Programme summary

Table 4: Summary of payments and estimates by programme
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
1. Administration 55 280 57 254 53 208 54 376 55 792 55 792 60 309 53 412 55 804 8.1
2. Provincial Secretariat For Police Services 47 031 49 520 51 012 50 862 53 501 53 501 54 870 65 069 68 028 2.6
Total payments and estimates 102 311 106 774 104 220 105 238 109 293 109 293 115 179 118 481 123 832 5.4

7.3 Summary of economic classification

Table 5: Summary of payments and estimates by economic classification
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 100 104 100 632 99 128 102 437 104 471 104 310 112 321 116 095 121 384 7.7
Compensation of employees 75 874 76 666 76 349 78 690 79 402 79 262 85 786 86 937 87 643 8.2
Goods and services 24 230 23 966 22 779 23 747 25 069 25 048 26 535 29 158 33 741 5.9
Interest and rent on land – – – – – – – – –
Transfers and subsidies to: 444 333 279 – 207 293 – – – (100.0)
Provinces and municipalities – – – – – – – – –
Departmental agencies and accounts – – – – – – – – –
Higher education institutions – – – – – – – – –
Foreign governments and international organisations – – – – – – – – –
Public corporations and private enterprises – – – – – – – – –
Non-profit institutions – – – – – – – – –
Households 444 333 279 – 207 293 – – – (100.0)
Payments for capital assets 1 763 5 758 4 813 2 801 4 615 4 690 2 858 2 386 2 448 (39.1)
Buildings and other fixed structures 38 – – – – – – – –
Machinery and equipment 1 725 5 758 4 813 2 801 4 615 4 690 2 858 2 386 2 448 (39.1)
Heritage Assets – – – – – – – – –
Specialised military assets – – – – – – – – –
Biological assets – – – – – – – – –
Land and sub-soil assets – – – – – – – – –
Software and other intangible assets – – – – – – – – –
Payments for financial assets – 51 – – – – – – –
Total economic classification 102 311 106 774 104 220 105 238 109 293 109 293 115 179 118 481 123 832 5.4

Table 4 and 5 above provide a summary of payments and estimates by programme and economic

classification from 2019/20 to 2025/26 financial years. The department’s expenditure has increased from
R102.311 million in 2019/20 to a revised estimate of R109.293 million in 2022/23 as result of change in
the Provincial Equitable Share (PES) formula. In 2023/24 financial year, budget increase by 5.4 per cent

due to the provision made for the crime prevention mobilisation in the hotspot areas in the province as well
as the envisaged cost of living adjustment.

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