Treasury announces R135bn budget

By Libuseng Nyaka

BLOEMFONTEIN – Treasury MEC Gadija Brown says due to this year’s budget being the final budget for this term, she will be presenting a framework to ensure that departments are able to spend in line with Section 29 of the PFMA till the new government after elections.

Brown said in the 2024 MTEF period the province’s projects are to spend more than R135.482 billion.
“This is how our budget is disaggregated over the three financial years: R43.871 billion to be spent in 2024/25, R44.960 billion in 2025/26; and R46.651 billion in 2026/27.
“Speaker, allow me to outline the composition of the 2024/25 fiscus purse. The provincial equitable share allocation for 2024/25 financial year amounts to R33.090 billion and reflects an increase of 1.9 percent when compared to the 2023/24 financial year.”

She said the grants’ allocation for the same financial year totals R9.548 billion, an increase of 3.2 percent compared to 2023/24 allocation.
On revenue collection, Brown said for 2024/25 it amounts to R1.232 billion, which reflects a decline of 4.1 percent because of the upward adjustment implemented during the 2023/24 adjustment budget.

She alluded to the additional funding provided by National Treasury for carry-through effect of salary increases. The bigger portion of these funds are allocated through the provincial equitable share and are allocated as thus:
R3.256 billion allocated to the Department of Education over the 2024 MTEF period to address the carry-through effect of the 2023/24 salary agreements.

FS treasury MEC Gadija Brown.

That equals R1.040 billion in 2024/25, R1.083 billion in 2025/26 and R1.134 billion in 2026/27. R1.893 billion allocated to the Department of Health over the MTEF period. A total amount of R604.664 million in 2024/25, R629.760 million and R658.968 million allocated respectively in the outer financial years.

She said on the conditions of grants, in the MTEF period ahead the province is allocated more than R27.936 billion through conditional grants. These allocations are meant to address two key issues: to implement national priorities and to augment provinces in the implementation of their own sector priorities.

“In 2024/25 the province is allocated R9.547 billion; whilst for 2025/26 and 2026/27 the province is allocated R9.158 billion and R9.229 billion, respectively. Hon. Speaker, allow me to indicate the 2024/25 financial year conditional grants’ allocations per departments.