Budget discussion

PUBLIC WORKS PORTFOLIO COMMITTEE
25 August 2004
BUDGET DISCUSSION

Chairperson: Mr F Bhengu (ANC)

Documents handed out:
None

SUMMARY
The Finance Department briefed the Committee on guidelines that would help them draw up a well-balanced budget. Members raised concern about emergency situations that needed immediate funding not catered for in the budget. They were told to weigh up their priorities and shelve less urgent projects. Members were not satisfied with the interaction between their Committee and the Department, especially regarding communication channels, and suggested that the Minister meet the Committee at least once a month. The Chairperson promised to raise such problems with the Department.

MINUTES

Finance Department briefing
Ms Kheswa reported that most Committees had previously come up with huge budgets which were not approved by the presiding officers because the budgets were not compatible with national priorities. She advised the Committee to start with their 5-year business plan as a guiding document. Under the 'Social Contract' between government and citizens', Public Works was expected to play a leading role in poverty alleviation, providing employment, skills development and improving infrastructure. The annual Budget speech by the Minister of Finance had clarified these priorities, and the interim budget in October would do so further. She took Members through the fundamentals of preparing a budget which took into account the spending of the previous financial year.

Discussion
Mr L Mashile (ANC) enquired if it was possible for the Department to streamline all activities taken annually and reconcile them with new activities.

Ms M Ramotsamai (ANC) asked how would Committees converted broad frameworks to monetary value. He wondered how the budget catered for emergency situations.

Ms Kheswa pointed out that the format was not cast in stone; it was just a flexible guideline. Committees were expected to weigh their priorities to accommodate crises. Emergency cases were accommodated through additional allocations in October. Members were not expected to come up with monetary value themselves, but their identified priorities would be calculated in monetary value by dedicated experts.

Mr Mashile asked what would happen if some budgetary activities were not approved by the Presiding Officers. Ms Kheswa replied that Committees had to motivate their budgets with realistic objectives and outcomes, but the final decisions rested with the Presiding Officers.

The Chairperson briefly outlined the following week's training programme for Members and invited Members to discuss the programme for clarity. Ms Ramotsamai objected, stating that most Members had not been given the relevant document beforehand. The Chairperson instructed the Secretary to distribute this before future discussions.

Mr J Blanche (DA) and other Members complained about the ineffectiveness of communication channels between the Committee and the Department. Some Members suggested a monthly meeting with the Minister and the Committee. The Chairperson acknowledged the problem and promised to sort it out with the Department.

The meeting was adjourned.