Chairperson, hon members, the Eastern Cape province receives R35,9 billion in the new financial year. This provincial government receives 15% of the total transfers to all provinces. The amount of R4,6 billion which is the Eastern Cape's share constitutes conditional grants and a balance of R31,3 billion attributable to equitable share. In other words, the Eastern Cape receives 11,9% of the total conditional grant allocated to provinces.
The 2008 Division of Revenue Bill provides for increased public expenditure over the Medium-Term Expenditure Framework, focusing on programmes that reduce poverty and inequality. The budget for the Department of Education has been increased by 22,8% in the new financial year commencing in April 2008. The provincial department of education will use the additional resources to fund the following policy priorities: improvement in the conditions of service adjustment; funding for early childhood development; provision of textbooks for Grades 10, 11 and 12; infrastructure, namely school building programmes, additional funding for maintenance of schools infrastructure; and, lastly, funding for no-fee schools.
In the 2008-09 financial year, the budget of the Department of Health will increase by 20,8%. Included in this allocation are financial resources provided to continue the implementation of Project 5000, which commenced in the 2007-08 financial year. An amount has also been included in the department's allocation to boost the maintenance budget of the department.
The R294,4 million that was taken away from the provincial department in the 2007 Adjustments Estimate Budget, has also been restored and included in the additional amount provided in the department's budget. Part of the additional allocation will also fund the adjustment in the improvement of conditions of service, purchase of generators to forestall electricity disruptions in hospitals and the treatment of tuberculosis.
The budget of the Department of Social Development will increase by 56,9% in the next financial year. This will bring the department's allocation for the financial year 2008-09 to R1,4 billion. Among the expenditure items that the additional R502,3 million will fund are the following: 1,5% improvement in conditions of service adjustment; funding for occupational service dispensation; expansion of Early Childhood Development; developing of monitoring and evaluation systems; expansion of home and community based care; and provision of services to children in conflict with the law.
In addition, the R72 million that was taken away from the department in the 2007 Adjustments Estimate Budget, has been restored and included in the additional R502,3 million allocated to the department.
The budget of the Department of Economic Development and Environmental Affairs will increase by 15,1% in the 2008-09 financial year. The sharp increase of the department's 2008-09 allocation is attributable to the allocation of R100 million for the Accelerated and Shared Growth Initiative for South Africa-related projects that will be implemented in the coming financial year.
Also included in the additional allocation is an amount of R37,4 million carry-through cost for the Ugie/Maclear projects which fall under the Mhlaba District Municipality in the north eastern Cape; and R5 million to fund the planning of the provincial industrial strategy and economy-related projects, which are basically timber.
With effect from the 1 April 2008 financial year, Housing will become a fully fledged department with its own programmes and budget structures. This follows from the separation of Housing functions from Local Government and Traditional Affairs functions in the current financial year. For the 2008-09 financial year the Department of Housing will receive R1,4 billion, made up predominantly of the housing and human settlement and development. The setting-up cost and the carry-through cost of the department will be R21,6 million. The staff from Local Government and Traditional Affairs are expected to cross over with effect from 1 April 2008. The Eastern Cape provincial government declares its support for the 2008 Division of Revenue Bill without amendments. I thank you. [Applause.]