A huge chunk of the Eastern Cape’s budget will go towards the education and health departments, with finance MEC Mlungisi Mvoko calling for prudence in managing public resources.
For the 2025/2026 financial year, the province has been allocated R97.6bn by the National Treasury, consisting of R82.4bn in equitable share and R15.2bn in conditional grants.
The amounts are expected to grow to R100.1bn in 2026/2027 and R104.6bn in the 2027/2028 financial year.
This was disclosed by Mvoko while delivering his budget speech in the provincial legislature in Bhisho on Tuesday.
He said total payments for 2025/2026 amounted to R100bn, leaving the province with a budget deficit of R2.3bn.
The education department would receive R44.6bn of the R100bn budget. This was 1.2 percentage points more than the funding norms and equitable share formula dictated, Mvoko said.
This funding would enable the total declared educator headcount of 52,817 to be maintained.
“It is important to note the provincial government has fully funded the norms and standards on par to the national learner rate across all quintile levels.”
Mvoko said the province experienced extended low-growth periods during the decade before the onset of Covid-19 in 2020.
“Following the recovery in 2022, provincial economic growth reverted to a low-growth path, growing by 0.8% in 2023 and 0.4% in 2024.
“Despite the low growth of the past two years, the provincial economy is expected to marginally recover and grow 2% in 2025, and [growth] is projected to average 2.2% for the medium-term up to 2027.”
He said the fiscal environment required all those entrusted with the responsibility of managing public resources to do so prudently.
No additional resources would be allocated to departments for the 2025 medium-term expenditure framework (MTEF).
“The broader fiscal strategy of the government remains focused on fiscal sustainability, supporting the economy and reducing fiscal risks,” Mvoko said.
The provincial department of health was allocated R31.6bn in the 2025/2026 financial year and R97bn over the MTEF to support the equitable provision of public health services.
“The province will strengthen the rollout of the community outreach programmes through ward-based primary health care to provide an effective response to HIV/Aids, TB and cervical cancer patients for girls between nine and 14 years of age with a budget amounting to R3.1bn in 2025/2026 and R9.7bn over the MTEF,” Mvoko said.
The transport department would receive R5.9bn and public works and agriculture more than R2.5bn.
Mvoko said the R3.1bn budget allocation for the social development department would help fight gender-based violence and develop and implement social crime prevention programmes.
The community safety department is set to receive R155.3m, the lowest allocation of any department.
“This funding will also go towards enhancing community participation and structures against crime and to promote good relations between the police and the community,” Mvoko said.
Sport, recreation, arts and culture has been allocated R1bn.
Daily Dispatch
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.