The Eastern Cape Provincial Government has tabled a R105 billion provincial budget for the 2026/27 financial year, aimed at protecting frontline services while stimulating economic growth and infrastructure development. Delivering the budget speech in the Provincial Legislature today, Finance MEC Mlungisi Mvoko said the budget balances fiscal discipline with the need to expand opportunities and improve service delivery.
This budget is not merely a financial plan; it is a strategic instrument to advance the developmental aspirations of the people of the Eastern Cape,” he said. Total provincial receipts for the year amount to R105 billion, made up of R86.5 billion in equitable share, R16.6 billion in conditional grants, and R1.8 billion in provincial own revenue.
However, the province continues to operate under fiscal pressure, including the projected loss of more than R2.2 billion in equitable share allocations over the medium term due to national data updates. Despite these challenges, the provincial government says the budget prioritises service delivery, infrastructure investment and economic growth.
Education receives the largest allocation at R47.2 billion, followed by health at R32.9 billion, reflecting government s commitment to social services. Other major allocations include R6.6 billion for transport, R2.7 billion for public works and infrastructure, and R2.7 billion for agriculture. The budget also aims to stimulate economic activity by supporting small businesses, agriculture, tourism and the automotive sector.
Government has allocated R119.9 million to the Eastern Cape Development Corporation to support small businesses and cooperatives, while the Economic Development Fund receives R50 million for strategic economic projects. Agriculture remains a key priority for rural development and food security, with R2.7 billion allocated to expand production and strengthen agricultural value chains.
The province is also investing in tourism, the creative sector and the automotive industry to diversify the economy and create jobs. MEC Mvoko said fiscal discipline remains essential to protect services and ensure sustainability. Every rand lost through inefficiency is a rand taken away from service delivery to our people,” he said.
