Thulisile Mapongwana
Eastern Cape Finance MEC Mlungisi Mvoko says the province will lose more than R2.2 billion of its equitable share allocation over the medium term, placing additional pressure on the provincial fiscus.
Tabling the 2026/27 provincial budget on Friday, Mvoko says the reduction follows updates to national data used to determine how funds are allocated to provinces.
He says the provincial government has raised concerns with National Treasury about the use of mid-year population estimates, which the province believes underestimate the Eastern Cape’s population compared to census data.
Despite the looming funding cut, the province expects total receipts of about R105 billion in the coming financial year. This includes R86.5 billion from the equitable share, R16.6 billion in conditional grants, and about R1.8 billion in provincial own revenue.
Education remains the biggest beneficiary of the provincial budget, receiving R47.2 billion to fund more than 52-thousand educator posts, the National School Nutrition Programme, and learner support materials.
Eastern Cape Education MEC Fundile Gade has welcomed the allocation, saying it will help strengthen early childhood development and improve foundational learning.
Gade says R1.7 billion has been earmarked for early childhood development infrastructure, which will help expand access to early learning centres and improve literacy and numeracy outcomes.
He says the funding will also help the province maintain educator posts while strengthening performance in key subjects such as mathematics and science.
The Health Department has been allocated nearly R33 billion to strengthen healthcare services, including funding for medicines, laboratory services, emergency medical services and the employment of additional doctors.
Health MEC Ntandokazi Capa says while the allocation is welcomed, the department still faces significant pressures as a labour-intensive sector.
She says priorities will include ensuring medicine availability, strengthening emergency medical services and employing more doctors and community health workers.
The Transport Department will receive R6.6 billion, with R2.7 billion set aside for road maintenance and upgrades across the province.
More than R9 billion has also been earmarked for infrastructure projects across key sectors, including schools, hospitals, roads and government facilities.
Agriculture has been allocated R2.7 billion to support food security programmes, producer support and veterinary services.
Agriculture MEC Nonceba Kontsiwe says part of the funding will help the province respond to the Foot-and-Mouth Disease outbreak, including additional funding for vaccines to protect livestock.
The Human Settlements Department will receive more than R2.1 billion to deliver housing and upgrade informal settlements.
However, projected provincial spending of about R104.9 billion will result in a deficit of roughly R1.7 billion.
Mvoko says the province will use its own revenue to cushion the shortfall while strengthening revenue collection and cutting non-essential spending in an effort to protect frontline services.
Meanwhile, the official opposition says the loss of equitable share funding raises serious concerns about the province’s financial sustainability.
Democratic Alliance MPL Malcom Figg says the budget relies on overly optimistic economic growth projections and assumes the province will collect more own revenue despite departments historically failing to meet their targets.
Dr Figg has also criticised delays in infrastructure projects, saying some contractors abandon projects after receiving funds.
He says the party will call for contractors who leave sites without completing work to be blacklisted to prevent further waste of public money.
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