GDID ANNUAL REPORT 2024/25

Linking performance with budgets In the 2024/2025 financial year, Programme 2 recorded actual expenditure of R2.605 billion against a final appropriation of R2.605 billion, meaning the Department spent all its allocated budget. This contrasts with the 2023/2024 financial year, where the programme spent R2.954 billion of its R2.969 billion allocation, resulting in an under-expenditure of R15.482 million. The financial performance is summarised per sub-programme below: Sub-programme: Construction • 2024/2025: Appropriation – R297.544 million; Actual – R296.002 million; Under-expenditure – R1.542 million • 2023/2024: Appropriation – R612.972 million; Actual – R600.907 million; Under-expenditure – R12.065 million The over in 2024/2025 is primarily due to project delivery costs associated with infrastructure maintenance and cleaning services, which include pest control contracts. These expenditures were critical to ensuring the functionality, safety, and compliance of public infrastructure facilities. The decrease in allocation for 2024/25 is due to solar budget that was allocated in the 2023/24 financial year. Sub-programme: Maintenance • 2024/2025: Appropriation – R804.658 million; Actual – R804.592 million; Under-expenditure – R66 thousands • 2023/2024: Appropriation – R741.111 million; Actual – R743.692 million; Over-expenditure – R2.581 million Sub-programme: Immovable Asset Management • 2024/2025: Appropriation – R1.503 billion; Actual – R1.505 billion; Over-expenditure – R1.608 million • 2023/2024: Appropriation – R1.614 billion; Actual – R1.608 billion; Under-expenditure – R5.998 million Goods and Services within this sub-programme are overspending, largely due to insufficient budget allocations for operational leases, which continue to exert pressure on available funds despite the receipt of additional earmarked funding for leases. The allocation for leases remains inadequate to fully cover existing contractual commitments. To address this, the Department is implementing a co-signing arrangement with the Client Departments for lease agreements. This preventative measure is intended to promote shared accountability and mitigate the current risk where the Department of Infrastructure Development (DID) bears sole liability under lease contracts. Additionally, as part of the year-end budget adjustment process, the Department will defer the payment of rates and taxes and redirect these funds to Goods and Services to help address the overspending pressures. Despite the financial pressures experienced in the 2024/2025 financial year, the expenditure incurred under Programme 2 directly contributed to the achievement of key infrastructure outputs. The overspending in the Construction and Maintenance sub-programmes enabled the Department to accelerate infrastructure delivery, improve the condition of government buildings, and ensure continuity of essential services such as pest control and cleaning in high-use facilities. Additionally, increased compensation of employee expenditure supported the deployment of critical technical personnel, improving turnaround times on maintenance and project execution. The investment in Goods and Services within Immovable Asset Management ensured that core facilities remained operational through ongoing lease agreements, even amidst budgetary constraints. These efforts, although financially demanding, have sustained service delivery standards, safeguarded assets, and strengthened the Department’s infrastructure support across sectors. The subprogramme spent approximately 100% of the allocated budget.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT