2018 Budget Speech PDF Print E-mail

"Provincial Fiscal Framework

Honourable Speaker, the province is funded through own revenue, equitable share allocations and conditional grants. Total receipts for the 2018/19 budget year is projected at R17.2 billion, which is 5 per cent increase compared to 2017/18. Over the MTEF the provincial receipts total to R54.3 billion of which R40.2 billion present equitable share, R12.9 billion Conditional Grants and R1.1 billion in own revenue. Revisions to the equitable share formula are informed by data from census 2011 age cohorts, 2017 mid-year population estimates, preliminary 2017 learner enrolment numbers from Learner Unit Record Information and Tracking System (LURITS), 2015 Regional GDP; District Health Information service for patient load data (2015/16-2016/17) risk adjusted index, insured population and the 2010/11 income and expenditure survey.

The provincial equitable share formula is updated annually and consequently adjustments to provincial baseline due to the new data updates has resulted in an additional amount of R289 million over the 2018 MTEF. However, during the same period Cabinet approved reductions on the provincial equitable share amounting to R124.9 million. An amount of R20.9 million in respect of violence against women and R11.7 million related to Nawango Court Case is made available in the outer two financial year. Furthermore, an amount of R256.6 million to provide for the historical carry through costs related to improvement of conditions of service (ICS) is made available in 2020/21 financial year.

Over the 2018 MTEF, an amount of R254.7 million in respect of ICS has been allocated to all provincial departments. Departments are required to note that these funds are not for additional appointments but to sustain current warm bodies in the system.

Conditional Grants are projected to decrease by an average growth of -2.9 per cent over the MTEF from R4.5 billion in 2018/19 to R4.3 billion in the 2020/21 financial year.

The decrease in conditional grants has been affected by government’s fiscal consolidation efforts and reprioritisation between grants especially underperforming grants.

Honourable Speaker, in the 2018 MTEF a new grant has been added namely Title Deed Restoration Grant. This grant is meant for the eradication of the backlog in title deed registration that has been slower than expected. "

To read more about the 2018 Budget Speech click here