Intergovernmental Fiscal Review

Presentation to Select Committee on Social Services
13 May 2003
4'-

Summary

Expanding mandate: from social grants and welfare services to poverty and food relief
· Extension of the safety net (income support):
Beneficiary numbers from 2,4 m in 1998 to more than 5.6 million in 2003
- Average annual growth of 18,2 per cent
- Child support grant implementation a major success:
2,Sm beneficiaries at end of March 2003
1
Summary

· Further expansion of the safety net through phased extension of the CSG to 14 year olds (adding an additional 3.2m

children into grant system)
· Annual adjustment of grant values for inflation
· Service delivery improvements in grant administration
introduction of norms and standards
- establishment of public entity

· Expansion of social welfare services and care for those infected and affected by HIV/Aids

Expenditure and Budget Trends

- Provincial expenditure grew from R19,4b in 1999/00 to R31,2b in 2002/03
- An annual average growth of 17,3 per cent
- 2002/03 expenditure is inflated by R2b special allocation for social grant arrears
- Accelerated growth over the period from R3 1,2 in 2002/03 to R51,2 billion in 2005/06
- an annual average growth rate of 17,9 per cent

Tables not included
Expenditure and Budget Trends

· Social Development grows from 19.4 per cent in 1999/00 to 25.8 per cent in 2005/06 as a share of overall provincial government expenditure

· Significant proportion of growth in budgets as result of the impact of extension of CSG
Conditional grant HOr9 billion over the MTEF

· Higher growth in poor provinces -indicative of a trend toward greater equity and equalisation of access to social grants

· Grants as proportion of Social Development Expenditure stabilising
Growth in other programmes
- Poverty and food relief

Table 6.7 Trends in beneficiary numbers
Table not included

Expansion of other social development services
· Real expenditure growth in welfare services and other developmental support services

· Welfare services expand by annual average of 13,2 per cent between 2002103 to 2005/06

· Other developmental support services expand by nearly 21 per cent per year

· Some of the factors behind expansion:
diversion programmes for children in conflict wit the law support and subsidization to shelters for abused women and children
subsidization to homes for other persons, disabled, children and drug treatment centres
community and home based care programmes for those infected and affected by HIVAIDSs
-- food security relief programme
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Strategic Plans of Provinces
· Strategic Plans (SPs) assist in further understanding the social development cost drivers
· Evaluation of the SPs show:
- strategic plans conforms to national guidelines and uniform budget structure
- me relationship between relationship between the department's vision, mission and strategic
goals is generally well stated
- strategic goals and core objectives are well-
defined II




Strategic Plans (cont.)
- SPs also provides a description of the legislative mandates of provinces
- the background information contained in 5P provides further insight into costs drivers within social development budgets (service delivery and organisational environment)
- generally, performance measures and indicators are well- defined and provides a close link with

budgets


· However, in certain SPs:
- There is a lack of quantitative and qualitative data in some programmes, which makes it difficult to measure objectives and indicators of certain programmes
- The summary of the delivery environment fails to give an analysis of the relevant sectors in which the Department works, and the main challenges faced in these different sectors.
- The "description of the strategic planning process" need more detail as to how inputs from different stakeholders were obtained as well as the planning cycle.