Over the medium term, expenditure is expected to decrease from R1.249 billion to R210.7 million, at an average annual rate of 14.2 per cent, as a result of further reductions in transfer payments to State-owned companies. Spending on compensation of employees is expected to increase to R118.1 million over the medium term, at an average annual rate of 5.7 per cent, due to adjustments for improved conditions of service and an increase in the department's staff complement.