3. Expenditure is expected to increase at annual rate of 6,9 percent, reaching R18,8 billion in 2013/14.The projected increase is due largely to increased spending on the compensation of employees which in 2011/12 amounts to R10 964, 8 billion, or 66 percent of the budget. It should be noted that this allocation has increased at an annual rate of about 14,7 percent between 2007/08 and 2010/11 and is expected to grow to R12,2 billion in the medium term reflecting an annual average rate of 6 percent