Treasury allocates over R43 billion for 2024/25 budget

Treasury allocates over R43 billion for 2024/25 budget

Delivering her final budget speech for the sixth administration at the Free State Legislature in Bloemfontein, the Free State MEC for Finance Hon Gadija Brown said, reflecting on the past five years, the province’s financial health has improved considerably and has built reserves for the province to mitigate for any adverse eventuality in the future.

MEC Brown painting a positive picture on the financial and liquidity health of the Free State provincial government that showed the economy of the province is on an upward trajectory with improved governance, filling and reporting systems in place.

According to the MEC; the Mid-Term Expenditure Framework (MTEF) budget of the Free State Province from 2019 to 2024 amounted to R200.9 billion which averages a budget of R40.18 billion per annum. The Conditional Grants allocated to the province for the 5 years amounted to R43 billion which on average R8.6 billion year on year

“The provincial net cash position improved considerably over the last five years. In March 2019 and March 2020, we closed the financial year on a negative cash position. However, in the past three financial years our cash position as at end of the financial years was positive. I am also happy to announce that in the past three years the province did not utilize the overdraft facilities from the Reserve Bank as well as our commercial provincial bank.

We have further built reserves for the province with intent to mitigate the challenges of Climate Chance, Disasters and emergencies to proactively attend to the socio economic responsibilities for the province,” said MEC Gadija Brown.

The provincial government has been on a drive to attract investment into the province, reboot the provincial economy and create jobs; as such, Gadija Brown delivered a pro-poor and pro-investment budget to enable the province to build a conducive environment for investment and create jobs as well as promote other sectors such as education, arts, sports and culture.

Gadija Brown presented her final budget for three years as follows: R43.871 billion to be spent in 2024/25; R44.960 billion in 2025/26; and R46.651 billion in 2026/27.

The MEC allocated the budget for departments as follows:

Social Cluster: R104.463 billion

Education: R17.895 billion in 2024/25, R18.578 billion in 2025/26 and R19.483 billion in 2026/27. In total the department is estimated to spend R55.957 billion over the 2024 MTEF ahead, this includes an amount of R5.305 billion which is an allocation for conditional grants.

Health: R13.717 billion in 2024/25, R14.079 billion in 2025/26 and R14.665 billion in 2026/27. In total the department is estimated to spend R42.462 billion over the MTEF ahead.

Social Development: R1.305 billion in 2024/25, R1.354 billion in 2025/26 and R1.412 billion in 2026/27. Over the MTEF period the department is projected to spend R4.071 billion.

Sport, Arts, Culture and Recreation: R641.789 million in 2024/25, R654.419 million in 2025/26 and R676.705 million in 2026/27. Over the MTEF the department is projected to spend R1.973 billion.

Economic and Infrastructure Cluster: “I am happy to announce that over the 2024 MTEF the Economic and Infrastructure Cluster will spend more than R25.280 billion on economic and social infrastructure projects, this budget includes provision for operational costs. In 2024/25 financial year the province will invest R5.135 billion—and 59 percent of this budget will be directed towards existing infrastructure assets, namely maintenance, refurbishment, and rehabilitation as well as upgrades and additions,” said Brown.

Public Works and Infrastructure: R2.092 billion in 2024/25, R2.283 billion in 2025/26 and R2.374 billion in 2026/27. Over the MTEF the department is estimated to spend R6.750 billion. The allocation for 2024/25 include R4.204 million for Expanded Public Work Programme.

Community Safety, Roads and Transport: R3.606 billion in 2024/25, R3.291 billion in 2025/26 and R3.214 billion in 2026/27. In total the department is estimated to spend R10.112 billion over the MTEF.

Included in the department’s allocations over the MTEF period are provisions for conditional grants, namely, Provincial Roads Maintenance grant (PRMG) which and Public Transport Operations grant (PTOG). The PRMG grant is allocated R1.970 billion in 2024/25, R1.607 billion and R1.472 billion in 2025/26 and 2026/27 respectively; whilst the PTOG grant is allocated R340.849 million in 2024/25, R356.119 million and R372.434 million in 2025/26 and 2026/27 respectively.

Agriculture and Rural Development: R829.092 million in 2024/25, R879.287 million in 2025/26 and R915.606 million in 2026/27. Over the MTEF the department is estimated to spend R2.624 billion.

Human Settlement: R1.268 billion in 2024/25, R1.276 billion in 2025/26 and R1.190 billion in 2026/27. The allocation mainly emanates from conditional grants and thus over the MTEF period the department is estimated to spend R3.735 billion. The conditional grants, namely, the Human Settlements Development grant and Informal Settlements Upgrading Partnership grant account for 77 percent of the MTEF allocation.

Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA): R2.058 billion over the 2024 MTEF. In 2024/25 the allocation amounts to R666.654 million, whilst the allocations for 2025/26 and 2026/27 total R684.427 million and R707.282 million respectively.

In 2024/25 the Free State Gambling, Liquor and Tourism Authority is allocated R103.755 million to fund operational costs and its regulatory function.

Treasury has  increased the operational allocation for Maluti-A-Phofung Special Economic Zone to R40 million in 2024/25 financial.

Office of the Premier: R632.629 million in 2024/25, R643.525 million in 2025/26 and R656.364 million in 2026/27. Over the MTEF ahead the Office of the Premier is estimated to spend R1.932 billion.

Cooperative Governance and Traditional Affairs (CoGTA): R416.985 million in 2024/25, R430.226 million in 2025/26 and R445.363 million in 2026/27. Over the MTEF the department is estimated to spend R1.292 billion.

Provincial Treasury: R367.937 million in 2024/25; R380.462 million in 2025/26 and R394.270 million in 2026/27. In total Provincial Treasury is estimated to spend R1.143 billion over the 2024 MTEF period.

Free State Legislature: R284.911 million in 2024/25; R295.149 million in 2025/26 and R306.7 million in 2026/27. In total the Legislature is estimated to spend R886.780 million over the MTEF.

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