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Provincial Government: Projected and Actual Expenditure on Buildings and other Fixed Structures 2018/19 - 2024/25 (December 2024)

Three quarters into the 2024/25 financial year, and provinces spent 72 percent of the aggregated R31.4bn budget towards capital expenditure on buildings and other fixed structures, a marginal improvement from having spent 69 percent during the same period in the 2023/24 financial year. This translated to an overall 11 percent y-y nominal increase, with the Western Cape (having spent 73 percent of its R 5.5bn budget) showing the strongest increase of 45 percent y-y (or R1.2bn). Kwazulu Natal with the highest annual budget across all provinces, spent 76% of its R6.5bn, resulting in a 9 percent y-y nominal increase (or R435m) also showing an improvement from the previous financial year. Gauteng increased actual expenditure by 9 percent, despite having spent less than 70 percent of its annual R4.1bn, with actual expenditure in the Eastern Cape up by 11 percent (or R206m) having spent 73 percent of its R2.8bn.

Expenditure on the Provincial Roads Maintenance Grant however fell 7 percent y-y during the three-quarter period (despite a 9 percent increase in the 2024/25 Budgetary allocations), with the expenditure rate slowing from 87 percent to 75 percent. Gauteng showed the worst performance, with an expenditure rate of 64 percent, compared to Western Cape's 94 percent spent by December 2024.

With no nominal change in the Human Settlement Development Grants for provinces in the 2024/25 financial period (meaning a decline in real terms), aggregated actual expenditure showed a 3 percent y-y nominal increase, led by the Western Cape (up 34 percent y-y) and Gauteng (with the highest budget across provinces at R3.9bn) up 11 percent y-y.

Aggregated capital payments towards buildings and other fixed structures represented less than 4 percent (3.9%) of total payments made by provinces during the first three quarters, compared to over 60 percent represented by compensation of employees. Limpopo has the highest contribution of payments to employees (66 percent) and one of the lowest towards payments for buildings and other fixed structures at just 2.3 percent. The lowest contribution is in Gauteng, where a mere 2.2 percent of expenditure related to buildings and other fixed structures, with 58 percent allocated to employees. The Western Cape provinces allocated 54 percent to employees compared to an above average 6.5 percent towards buildings and other fixed structures.

 

Full provincial details provided in the accompanying workbook that includes actual and projected expenditure for period 2018/19 to 2024/25 (December 2024).

 

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