Eastern Cape MEC for Finance, Mlungisi Mvoko, delivered the province’s 2025 budget speech in Bhisho on Tuesday and announced that there will be no additional resources allocated to departments for the 2025 Medium-Term Expenditure Framework (MTEF).
Instead, departments must identify alternative funding sources, including reprioritization, public-private partnerships (PPPs), donor funding, and revenue generation.
“We encourage everyone to identify alternative funding sources to augment the provincial fiscus,” Mvoko stated. “These include reprioritisation, trade-offs within and between clusters, and pledging of conditional grants.”
The province will continue implementing cost-saving initiatives such as zero-based budgeting, spending reviews, and service delivery model adjustments to optimize resource allocation.
Inclusive Growth and Development
Under the theme “Inclusive Growth and Development Through Government Allocative Efficacy,” The MEC said the 2025/26 budget prioritizes the poor and vulnerable while supporting economic growth and job creation.
“For our economy to grow and create more employment opportunities, it is critical that we create an environment conducive to private investment, continue to invest in public infrastructure, and support businesses,” Mvoko said.
To achieve this, the province will focus on reducing bureaucratic red tape, enhancing infrastructure, and engaging businesses to attract investment.
However, the Democratic Alliance (DA) has criticized the budget, arguing that it fails to present a clear roadmap for economic recovery.
Budget Allocations and Deficit Management
The province has received R97.6 billion from the national government, comprising R82.4 billion in equitable share and R15.2 billion in conditional grants. Total provincial payments for 2025/26 amount to R100 billion, resulting in a budget deficit of R2.3 billion.
“To cushion the deficit, we have considered utilizing R1.8 billion from Provincial Own Revenue and R506.8 million from own reserves,” Mvoko said.
The Social Protection, Community, and Human Development cluster receives the largest share, with R79.4 billion for 2025/26 and R254.7 billion over the MTEF. The Economic Sector, Investment, Employment, and Infrastructure Development cluster is allocated R16.4 billion for 2025/26, while the Governance, State Capacity, and Institutional Development cluster receives R3.2 billion.
Infrastructure Investments and Economic Development
Infrastructure development remains a key driver of economic growth. The South African National Roads Agency (SANRAL) is investing R20 billion in road infrastructure, including the N2 Wild Coast project, expected to rise to R56 billion by 2027.
“The construction of the Msikaba Bridge is ongoing, with the bridge deck expected to be completed this year,” Mvoko noted.
Rail and port infrastructure improvements are also a priority. Project Ukuvuselela aims to boost rail capacity between Gauteng and the Port of Port Elizabeth, facilitating the transportation of 150,000 fully built vehicles annually by 2026.
“The project is expected to create 9,500 indirect jobs and 2,500 direct jobs in the province, with an investment value of R8.4 billion,” he added.
Social Infrastructure and Public Services
Meanwhile, Mvoko said investment in social infrastructure remains a priority.
The Department of Education receives R1.9 billion for school construction, maintenance, and hostel development, while the Department of Health gets R1.6 billion for hospital upgrades, oncology infrastructure, and health facility refurbishments.
“The Nelson Mandela Academic Hospital is one of the health facilities that will benefit from this program,” Mvoko said.
Additionally, R1.5 billion is allocated to the Department of Human Settlements for building 4,970 housing units.
Opposition's Verdict
Despite these allocations, DA MPL Dr Malcolm Figg has raised concerns about the sustainability of the province’s financial management, stating that the reliance on reserves signals a weakening fiscal foundation.
He strongly criticized the lack of straightforward measures to address inefficiencies in key departments. They argue that while billions are allocated to the Department of Health, no specific measures have been outlined to stabilize its finances, improve billing, or curb wasteful expenditure.
Similarly, the opposition has condemned the R11 million increase in the Community Safety budget as insufficient, calling it "contemptuous given the scale of the crisis" of rising crime in the Eastern Cape.
The DA further cast doubt on the impact of the government’s job creation initiatives, stating that Expanded Public Works Programmes and youth employment schemes only provide temporary relief and do not lead to sustainable employment.
The DA argues that this budget does not offer real hope but rather more of the same “recycled rhetoric, misplaced priorities, and no meaningful shift in how public money is spent.”
However, despite financial constraints, Mvoko emphasized that the budget seeks to drive economic growth, support the vulnerable, and invest in essential infrastructure.
“We must ensure that every rand spent achieves maximum impact,” he concluded.
