By Thapelo Molefe
Eastern Cape Premier Oscar Mabuyane has tabled a tighter R1.5 billion budget for the Office of the Premier, with key programmes facing cuts and funding shifts that could impact youth development and digital expansion plans.
Presenting the 2026/27 policy and budget speech on Wednesday, Mabuyane said the allocation had declined from about R1.6 billion in the previous financial year, forcing the provincial government to reprioritise spending.
Among the most notable changes is a significant reduction in Programme Three, which has been cut by 11.5% due to the absence of funding for the Isiqalo Youth Fund in the current allocation cycle.
The fund, which supports young entrepreneurs, has been a flagship initiative of the provincial government. Mabuyane said 50 enterprises had already been funded, with a target of 60 businesses to receive support worth R40 million.
However, the funding gap raises questions about the sustainability and future expansion of the programme.
“There can’t be an MEC for finance if there’s no allocation of Isiqalo,” Mabuyane said, acknowledging concerns around the programme’s performance and funding consistency.
Programme Four, which includes executive support and major projects such as broadband rollout, has been cut by 17%. Mabuyane attributed this to the “front-loading” of funds in the previous financial year, when large portions of the budget were spent upfront.
The reduction suggests that while infrastructure investment has already been initiated, less funding will be available in the current cycle to expand or accelerate digital connectivity projects.
This comes as the province continues to emphasise digital transformation and e-government services as part of its long-term strategy.
Despite the cuts, some areas have seen modest increases. Administration (Programme One) received a 2.4% boost to absorb inflationary pressures, while Programme Two, focused on institutional coordination and planning, rose by 7.3%.
Mabuyane said the budget must respond to mounting socio-economic challenges, including unemployment, poverty and inequality.
The Office of the Premier will continue to drive five priorities: economic growth, education, health, community development and building a capable state.
He said the province would sharpen coordination across departments, strengthen oversight and ensure existing programmes deliver measurable impact.
Mabuyane also committed to ongoing investment promotion and support for key sectors such as agriculture, tourism, manufacturing and the oceans economy.
“We remain committed to prudently managing the budget and ensuring effective use of public funds,” he said.
He called on lawmakers to back the budget, describing it as a necessary adjustment to balance fiscal constraints with the province’s development ambitions.
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