INFORMATION SERVICES: RESEARCH

FIRST REPORT OF THE JOINT BUDGET COMMITTEE

The Joint Budget Committee, having considered the Statements of national and provincial governments’ revenue, expenditure and national borrowing for the fourth quarter ending in March 2003, issued by the National Treasury, reports as follows:

DEPARTMENTAL EXPENDITURE TRENDS FROM JANUARY TO MARCH 2003

The National Sphere of Government

As indicated in figure 1 below, total departmental expenditure showed a gradual increase from January to March 2003. However, these expenditure trends fluctuated dramatically in some departments, with the most pronounced expenditure increases being evident in March 2003.

Figure 1: Expenditure Trends for the First Quarter of 2003

Source: Constructed by the author using information provided by the National Treasury.

As evident in figure 2, the departments whose expenditure fluctuated the most are Social Development, Government Communications and Information Systems as well as Public Enterprises.

Figure 2: Fluctuating Departmental Spending Patterns

Source: Constructed by the author using National Treasury data.
The expenditure of the Departments of Communications, Sport and Recreation South Africa and Social Development increased sharply in March 2003. It is worth mentioning that Communications was still left with 50.08% of its budget unspent in February 2003. In a period of one month i.e. March 2003, the Department managed to spend almost all the remaining funds in its budget (49.72%).

Monthly Expenditure

The months under review are January, February and March 2003.

Departmental Expenditure Trends for January 2003

For January 2003, the average departmental expenditure (as a percentage of the budget votes) was 8.38%, with 20 departments spending less than this average. The Department of Education was a glaring example, spending 0.85% of the vote in January 2003.

Table 1: Least total budget expenditure by January 2003

Votes R’000	Revised Estimate	January 2002/03	As a % of vote	Year to date	% Spent to date	Balance	% Balance
Communications	887690	31047	3.50%	406131	45.75%	481559	54.25%
Public Enterprises	249078	50942	20.45%	134693	54.08%	114385	45.92%
Sport and Recreation SA	175902	7223	4.11%	104174	59.22%	71728	40.78%
Science and Technology	524062	101066	19.29%	329820	62.94%	194242	37.06%
Government Communications and Information Systems	153728	10872	7.07%	97044	63.13%	56684	36.87%
Public Service and Administration	148700	8780	5.90%	105903	71.22%	42797	28.78%
Trade and Industry	2554826	156632	6.13%	1846237	72.26%	708589	27.74%
Provincial and Local Government	6579638	594502	9.04%	4767443	72.46%	1812195	27.54%
Arts and Culture	457759	34890	7.62%	335850	73.37%	121909	26.63%
Home Affairs	1486752	47903	3.22%	1098169	73.86%	388583	26.14%

Source: Compiled by author using National Treasury data.

The Communications Department was still left with more than half i.e. 54.25% of its budget unspent by January 2003. Public Enterprises, Sport and Recreation South Africa, Science and Technology, Government Communications and Information Systems, Public Service and Administration, Trade and Industry, Provincial and Local Government, Arts and Culture and Home Affairs were also left with 45.92%, 40.78%, 37.06%, 36.87%, 28.78%, 27.74%, 27.54%, 26.63% and 26.14%, respectively. These percentages are much higher than the national average balance of 10.36%.

Among the lowest spending departments, Science and Technology and Public Enterprises increased their spending in January 2003 and spent 20.45% and 19.29% in one month, as compared to the January 2003 departmental average of 8.38%. All the other lowest spending departments were still spending a small percentage of their budget. Home Affairs, Communications and Sport and Recreation SA, for example, spent 3.22%, 3.50% and 4.11% (as a percentage of their budgets), respectively in January 2003.

Public Service and Administration is consistently spending a small percentage of less than 6% of its budget each month. For example, in October, November and December 2002, as well as in January 2003, the Department spent 3.91%, 3.97%, 5.64% and 5.90% respectively.

Table 2: Highest Departmental Expenditures by January 2002/03

Votes R’000	Revised Estimate	January 2002/03	As a % of vote	Year to date	% Spent to date	Balance	% Balance
Education	8876498	75728	0.85%	8572073	96.57%	304425	3.43%
SA Management Development Institute (SAMDI)	26370	4121	15.63%	24065	91.26%	2305	8.74%
Land Affairs	1091861	86708	7.94%	957515	87.70%	134346	12.30%
Statistics SA	360234	17230	4.78%	313293	86.97%	46941	13.03%
Social Development	420251	86191	20.51%	362027	86.15%	58224	13.85%
Foreign Affairs	2309623	191016	8.27%	1989119	86.12%	320504	13.88%
Parliament	312060	21917	7.02%	268227	85.95%	43833	14.05%
Correctional Services	7026833	712487	10.14%	5979162	85.09%	1047671	14.91%
Health	7653997	820015	10.71%	6496680	84.88%	1157317	15.12%
Transport	5832241	804192	13.79%	4921323	84.38%	910918	15.62%
Defence	18844734	1407332	7.47%	15851049	84.11%	2993685	15.89%

Source: Compiled by author using National Treasury data.

Although the Department of Education was left with less than 4% of its budget by January 2003, it has decreased its monthly spending to 0.85%, which is far less than the national monthly average of 8.38%. The question is whether the expenditure of 0.85% for January is realistic for the department? It appears as if Education is decreasing its monthly expenditure, which was 9.61% in October 2002, 7.51% in November and much lower at 1.71% in December 2002.

Social Development and SAMDI spent far more than the national average of 8.33% in January 2003, with these departments spending 20.51% and 15.63% respectively. Social Development increased from its December 2002 monthly expenditure of 14% and SAMDI increased sharply from 8.76% in December 2002 to the 15.63% in January 2003.

Departmental Expenditure Trends for February 2003

For February 2003, the average amount spent by each department for the month of February constitutes 7.44%. This indicates a slight decline from the January average of 8.38%. Departments such as Public Service and Administration (4.72%), Stats SA (5.12%), Education (1.17%), Social Development (5.06%), Defence (5.98%), Communications (4.17%), Trade and Industry (4.36%), Transport (4.34%), Arts and Culture (5.54%) spent much lower than the 7.44%.

In contrast, GCIS (25.055), Provincial and Local Government (18.63%), Science and Technology (15.97%), Sport and Recreation SA (11.15%), Environmental Affairs and Tourism (11.09%) and Independent Complaints Directorate (10.51%) spent considerable higher than the average of 7.44%. The GCIS’s expenditure of 25.05% in one month represents a sharp increase compared to the previous months.

Table 3: Lowest total budget expenditure by February 2002/03

R’000	Revised Estimate	February 2002/03	As a % of vote	Year to date	% Spent	Balance	% Balance

Votes	118520472	8815949	7.44%	106239503	89.64%	12280969	10.36%

Communications	887690	36978	4.17%	443109	49.92%	444581	50.08%
Public Enterprises	249078	34982	14.04%	169675	68.12%	79403	31.88%
Sport and Recreation SA	175902	19612	11.15%	123786	70.37%	52116	29.63%
Public Service and Administration	148700	7014	4.72%	112917	75.94%	35783	24.06%
Trade and Industry	2554826	111427	4.36%	1957664	76.63%	597162	23.37%
Arts and Culture	457759	25339	5.54%	361189	78.90%	96570	21.10%
Science and Technology	524062	83701	15.97%	413521	78.91%	110541	21.09%

Source: Compiled by author using National Treasury data.

The Communications Department was still left with slightly more than half of its voted amount (50.08%) by the end of February 2002/03. Other departments that had bigger balances as at the end of February 2002/03 are Public Enterprises, Sport and Recreation SA and Public Service and Administration. Although Communications, Public Enterprises and Sport and Recreation SA have substantially increased their monthly expenditure, Public Service and Administration is consistently spending a small percentage of its budget every month. For example, the Department spent 4.72% in February 2002/03.

In light of these department’s big balances, there is a possibility of underspending, given that March is the only month left in the financial year under review.

Table 4: Highest Departmental Expenditures by February 2002/03

R’000	Revised Estimate	February 2002/03	As a % of vote	Year to date	% Spent	Balance	% Balance
Votes
SA Management Development Institute	26370	1872	7.10%	25937	98.36%	433	1.64%
Education	8876498	104020	1.17%	8676093	97.74%	200405	2.26%
Foreign Affairs	2309623	216246	9.36%	2205365	95.49%	104258	4.51%
Land Affairs	1091861	73441	6.73%	1030956	94.42%	60905	5.58%
Parliament	312060	21917	7.02%	290144	92.98%	21916	7.02%
Public Works	3975100	364330	9.17%	3692757	92.90%	282343	7.10%
Statistics SA	360234	18430	5.12%	331723	92.09%	28511	7.91%
Correctional Services	7026833	487817	6.94%	6466979	92.03%	559854	7.97%
Health	7653997	536991	7.02%	7033671	91.90%	620326	8.10%
Social Development	420251	21255	5.06%	383282	91.20%	36969	8.80%
Provincial and Local Government	6579638	1225905	18.63%	5993348	91.09%	586290	8.91%
Safety and Security	19713544	1687651	8.56%	17905961	90.83%	1807583	9.17%
Housing	4299481	336413	7.82%	3882470	90.30%	417011	9.70%
Defence	18844734	1126755	5.98%	16977804	90.09%	1866930	9.91%

Source: Compiled by author using National Treasury data.

SAMDI, followed by Education, Foreign Affairs, Land Affairs and Parliament have the least balances. It is worth noting that Education, which had the highest expenditure in the previous quarter, has drastically decreased its expenditure per month since December 2002/03.

Other departments in the above category, such as Safety and Security, Housing, Social Development, Health, Defence, Correctional Services, Stats SA can probably survive on their balances as they managed to spend less than their current balances in February 2002/03
Departmental Expenditure Trends for March 2003

The average amount spent by each department for the month of March constitutes 9.30%. This indicates a slight increase from the February average of 7.44%.

Table 5: Lowest total budget expenditure by March 2002/03

R’000	Revised Estimate	March 2002/03	As a % of vote	Year to date	% Spent	Balance	% Balance

Votes	118 920 472	11 061 981	9.30%	117301484	98.64%	1 618 988	1.36%

Public Enterprises	249078	54266	21.79%	223941	89.91%	25137	10.09%
Trade and Industry	2554826	401251	15.71%	2358915	92.33%	195911	7.67%
Home Affairs	1486752	128861	8.67%	1376117	92.56%	110635	7.44%
Foreign Affairs	2479623	89924	3.63%	2295289	92.57%	184334	7.43%
Public Service and Administration	148700	24849	16.71%	137766	92.65%	10934	7.35%
Arts and Culture	457759	67175	14.67%	428264	93.56%	29495	6.44%
National Treasury	10356654	858814	8.29%	9846862	95.08%	509792	4.92%
The Presidency	136767	14145	10.34%	130129	95.15%	6638	4.85%

Source: Compiled by author using National Treasury data.

Public Enterprises has been the lowest spending department throughout the quarter. Although it has since increased its spending to 21.79% in March, it was still left with far more than the average balance of 1.36%.

Table 6: Highest Departmental Expenditures by March 2002/03

R’000	Revised Estimate	February 2002/03	As a % of vote	Year to date	% Spent	Balance	% Balance
Votes
SA Management Development Institute	26370	2411	9.14%	28348	107.50%	-1978	-7.50%
Public Works	3975100	444778	11.19%	4137535	104.09%	-162435	-4.09%
Statistics SA	360234	34591	9.60%	366314	101.69%	-6080	-1.69%
Correctional Services	7026833	584959	8.32%	7051938	100.36%	-25105	-0.36%

Source: Compiled by author using National Treasury data.

SAMDI, followed by Public Works, Statistics South Africa and Correctional Services had negative balances as at the end of March 2003. It is worth noting that departments that fell under the highest spending departments throughout the financial year are still left with minimal balances as at the end of March 2003. These include Education, Foreign Affairs, Social Development and Housing.

Parliament and Safety and Security are the only departments that have spent 100% of their voted amounts by the end of March 2003. Most departments were left with minimal balances of 0.3% to 3.5%. Given that these are unaudited figures, the scenario might change after the auditing process has taken place.

B. Provincial Expenditure

Overview

All the provinces under spent their budgets as at the end of March 2003. The Free State, Western Cape, Mpumalanga, Limpopo and the Eastern Cape are, however, the provinces that under spent the highest. They each under spent their budgets by 6.5%, 2.31%, 2.28%, 1.70% and 1.01% respectively. As the figure below indicates, Free State is the province with the most serious under spending problem.

Figure 3: Overall Provincial Under Expenditure

Source: Compiled by author using National Treasury data.

All the highest under spending provinces are among those that have received the largest budgets. Provinces that have received the highest shares under spent their budgets i.e. Eastern Cape, Gauteng, Limpopo and the Western Cape; each receiving 16.86%, 16.49%, 12.96% and 10.03%, respectively. Gauteng, however, under spent its budget marginally. It is also important to note that KwaZulu Natal, which received the largest budget of 19.63%, is not one of the highest under spending provinces.

Capital Expenditure

When one compares capital and current expenditure, all provinces under spent their capital budgets by an average of 15.70%. Of these provinces, the highest under spending provinces are the Eastern Cape and Free State; each under spending 33.84% and 30.11% of their budgets respectively. Although KwaZulu Natal, Northern Cape and Gauteng under spent less than the average of 15.70%; their under expenditures were still notably high i.e. 14.11%, 13.12% and 10.40% respectively.

Figure 4: Provincial Capital Under Expenditure

Source: Compiled by author using National Treasury data.

It is important to note that Gauteng, which had the largest capital budget allocation, under spent by 10.40% i.e. less than the average of 15.70%. Northern Cape, which received the lowest capital budget also under spent its capital budget by 13.12%. The Eastern Cape, which under spent more than a third of its capital budget, received the third highest capital budget.

A conclusion that may be drawn from the above pattern is that capacity problems still exist in provinces such as the Eastern Cape to spend their capital budgets.

Current Expenditure

The average provincial over expenditure of the current budgets was 0.52% as at the end of March 2003. Of the nine provinces, Eastern Cape, Gauteng, KwaZulu Natal, Northern Cape and North West over spent their current budgets by 3.06%, 1.86%, 1.60%, 1,40% and 0.85% respectively. In contrast, Free State, Mpumalanga, Western Cape and Limpopo provinces under spent their current budgets by 3.78%, 1.75%, 1.43% and 1.27% respectively. The Free State province appears to have a general under spending problem, having under spent the most of both its capital and current budgets.

Figure 5: Under and Over Expenditure of Provincial Current Budget

Source: Compiled by author using National Treasury data.

LIST OF APPENDICES

Appendix 1: January 2003 Expenditure

	Revised Estimate	January 2002/03	As a % of vote	Year to date	% Spent	Balance	% Balance

Voted Amounts	118520472	9928483	8.38%	97423554	82.20%	21096918	17.80%

CENTRAL GOVERNMENT ADMINISTRATION	14799940	1232363	8.33%	11556544	78.09%	3243396	21.91%

The Presidency	136767	10876	7.95%	105159	76.89%	31608	23.11%
Parliament	312060	21917	7.02%	268227	85.95%	43833	14.05%
Foreign Affairs	2309623	191016	8.27%	1989119	86.12%	320504	13.88%
Home Affairs	1486752	47903	3.22%	1098169	73.86%	388583	26.14%
Provincial and Local Government	6579638	594502	9.04%	4767443	72.46%	1812195	27.54%
Public Works	3975100	366149	9.21%	3328427	83.73%	646673	16.27%

FINANCIAL AND ADMINISTRATIVE SERVICES	11352735	1229917	10.83%	9021051	79.46%	2331684	20.54%

Government Communications and Information Systems	153728	10872	7.07%	97044	63.13%	56684	36.87%
National Treasury	10356654	1133896	10.95%	8300378	80.15%	2056276	19.85%
Public Enterprises	249078	50942	20.45%	134693	54.08%	114385	45.92%
Public Service and Administration	148700	8780	5.90%	105903	71.22%	42797	28.78%
Public Service Commission	57971	4076	7.03%	45675	78.79%	12296	21.21%
SA Management Development Institute	26370	4121	15.63%	24065	91.26%	2305	8.74%
Statistics SA	360234	17230	4.78%	313293	86.97%	46941	13.03%

SOCIAL SERVICES	21873873	1321411	6.04%	19528758	89.28%	2345115	10.72%

Arts, Culture, Science and Technology	447747	-75728	-16.91%	447747	100.00%
Education	8876498	75728	0.85%	8572073	96.57%	304425	3.43%
Health	7653997	820015	10.71%	6496680	84.88%	1157317	15.12%
Housing	4299481	332254	7.73%	3546057	82.48%	753424	17.52%
Social Development	420251	86191	20.51%	362027	86.15%	58224	13.85%
Sport and Recreation SA	175902	7223	4.11%	104174	59.22%	71728	40.78%
JUSTICE AND PROTECTION SERVICES	49868839	4185072	8.39%	41374545	82.97%	8494294	17.03%

Correctional Services	7026833	712487	10.14%	5979162	85.09%	1047671	14.91%
Defence	18844734	1407332	7.47%	15851049	84.11%	2993685	15.89%
Independent Complaints Directorate	31902	2277	7.14%	24629	77.20%	7273	22.80%
Justice and Constitutional Development	4251826	388742	9.14%	3301395	77.65%	950431	22.35%
Safety and Security	19713544	1674234	8.49%	16218310	82.27%	3495234	17.73%

ECONOMIC SERVICES AND INFRASTRUCTURE DEVELOPMENT	19643264	1823764	9.28%	15276986	77.77%	4366278	22.23%

Agriculture	944578	77265	8.18%	735660	77.88%	208918	22.12%
Communications	887690	31047	3.50%	406131	45.75%	481559	54.25%
Environmental Affairs and Tourism	1400586	113394	8.10%	1087733	77.66%	312853	22.34%
Labour	1296173	72271	5.58%	1025756	79.14%	270417	20.86%
Land Affairs	1091861	86708	7.94%	957515	87.70%	134346	12.30%
Minerals and Energy	1872618	103091	5.51%	1530210	81.72%	342408	18.28%
Trade and Industry	2554826	156632	6.13%	1846237	72.26%	708589	27.74%
Transport	5832241	804192	13.79%	4921323	84.38%	910918	15.62%
Water Affairs and Forestry	3762691	379164	10.08%	2766421	73.52%	996270	26.48%

SOCIAL SERVICES	981821	135956	13.85%	665670	67.80%	316151	32.20%

Arts and Culture	457759	34890	7.62%	335850	73.37%	121909	26.63%
Science and Technology	524062	101066	19.29%	329820	62.94%	194242	37.06%

Source: Compiled by author using National Treasury data.

Appendix 2: February 2003 Expenditure

R’000	Revised Estimate	February 2002/03	Year to date	% Spent	Balance	% Balance

Votes	118520472	9928483	97423554	82.20%	21096918	17.80%

CENTRAL GOVERNMENT ADMINISTRATION	14799940	1232363	11556544	78.09%	3243396	21.91%

1. The Presidency	136767	10876	105159	76.89%	31608	23.11%
2. Parliament	312060	21917	268227	85.95%	43833	14.05%
3. Foreign Affairs	2309623	191016	1989119	86.12%	320504	13.88%
4. Home Affairs	1486752	47903	1098169	73.86%	388583	26.14%
5. Provincial and Local Government	6579638	594502	4767443	72.46%	1812195	27.54%
6. Public Works	3975100	366149	3328427	83.73%	646673	16.27%

FINANCIAL AND ADMINISTRATIVE SERVICES	11352735	1229917	9021051	79.46%	2331684	20.54%

7. Government Communications and Information Systems	153728	10872	97044	63.13%	56684	36.87%
8. National Treasury	10356654	1133896	8300378	80.15%	2056276	19.85%
9. Public Enterprises	249078	50942	134693	54.08%	114385	45.92%
10. Public Service and Administration	148700	8780	105903	71.22%	42797	28.78%
11. Public Service Commission	57971	4076	45675	78.79%	12296	21.21%
12. SA Management Development Institute	26370	4121	24065	91.26%	2305	8.74%
13. Statistics SA	360234	17230	313293	86.97%	46941	13.03%

SOCIAL SERVICES	21873873	1321411	19528758	89.28%	2345115	10.72%

14. Arts, Culture, Science and Technology	447747	-75728	447747	100.00%
15. Education	8876498	75728	8572073	96.57%	304425	3.43%
16. Health	7653997	820015	6496680	84.88%	1157317	15.12%
17. Housing	4299481	332254	3546057	82.48%	753424	17.52%
18. Social Development	420251	86191	362027	86.15%	58224	13.85%
19. Sport and Recreation SA	175902	7223	104174	59.22%	71728	40.78%

JUSTICE AND PROTECTION SERVICES	49868839	4185072	41374545	82.97%	8494294	17.03%

20. Correctional Services	7026833	712487	5979162	85.09%	1047671	14.91%
21. Defence	18844734	1407332	15851049	84.11%	2993685	15.89%
22. Independent Complaints Directorate	31902	2277	24629	77.20%	7273	22.80%
23. Justice and Constitutional Development	4251826	388742	3301395	77.65%	950431	22.35%
24. Safety and Security	19713544	1674234	16218310	82.27%	3495234	17.73%

ECONOMIC SERVICES AND INFRASTRUCTURE DEVELOPMENT	19643264	1823764	15276986	77.77%	4366278	22.23%

25. Agriculture	944578	77265	735660	77.88%	208918	22.12%
26. Communications	887690	31047	406131	45.75%	481559	54.25%
27. Environmental Affairs and Tourism	1400586	113394	1087733	77.66%	312853	22.34%
28. Labour	1296173	72271	1025756	79.14%	270417	20.86%
29. Land Affairs	1091861	86708	957515	87.70%	134346	12.30%
30. Minerals and Energy	1872618	103091	1530210	81.72%	342408	18.28%
31. Trade and Industry	2554826	156632	1846237	72.26%	708589	27.74%
32. Transport	5832241	804192	4921323	84.38%	910918	15.62%
33. Water Affairs and Forestry	3762691	379164	2766421	73.52%	996270	26.48%

SOCIAL SERVICES	981821	135956	665670	67.80%	316151	32.20%

34. Arts and Culture	457759	34890	335850	73.37%	121909	26.63%
35. Science and Technology	524062	101066	329820	62.94%	194242	37.06%

Source: Compiled by author using National Treasury data.

Appendix 3: March 2003 Expenditure

	Revised Estimate	March 2002/03	As a % of vote	Unaudited Fiscal Year	% Spent to date	Balance	% Balance

Voted Amounts	118920472	11061981	9.30%	117301484	98.64%	1618988	1.36%

CENTRAL GOVERNMENT ADMINISTRATION	14799940	1263959	8.54%	14808813	100.06%	-8873	-0.06%

1. The Presidency	136767	14145	10.34%	130129	95.15%	6638	4.85%
2. Parliament	312060	21916	7.02%	312060	100.00%	0	0.00%
3. Foreign Affairs	2479623	89924	3.63%	2295289	92.57%	184334	7.43%
4. Home Affairs	1486752	128861	8.67%	1376117	92.56%	110635	7.44%
5. Provincial and Local Government	6579638	564335	8.58%	6557683	99.67%	21955	0.33%
6. Public Works	3975100	444778	11.19%	4137535	104.09%	-162435	-4.09%

FINACIAL AND ADMINISTRATIVE SERVICES	11352735	997967	8.79%	10812440	95.24%	540295	4.76%

7. Government Communications and Information Systems	153728	16492	10.73%	152049	98.91%	1679	1.09%
8. National Treasury	10356654	858814	8.29%	9846862	95.08%	509792	4.92%
9. Public Enterprises	249078	54266	21.79%	223941	89.91%	25137	10.09%
10. Public Service and Administration	148700	24849	16.71%	137766	92.65%	10934	7.35%
11. Public Service Commission	57971	6544	11.29%	57160	98.60%	811	1.40%
12. SA Management Development Institute	26370	2411	9.14%	28348	107.50%	-1978	-7.50%
13. Statistics SA	360234	34591	9.60%	366314	101.69%	-6080	-1.69%

SOCIAL SERVICES	21873873	1302480	5.95%	21849529	99.89%	24344	0.11%

14. Arts, Culture, Science and Technology	447744	9	0.00%	447756	100.00%	-12	0.00%
15. Education	8876498	117236	1.32%	8793329	99.06%	83169	0.94%
16. Health	7653997	546614	7.14%	7580285	99.04%	73712	0.96%
17. Housing	4299481	330495	7.69%	4212965	97.99%	86516	2.01%
18. Social Development	650251	256821	39.50%	640103	98.44%	10148	1.56%
19. Sport and Recreation SA	175902	51305	29.17%	175091	99.54%	811	0.46%

JUSTICE AND PROTECTION SERVICES	49868839	4794702	9.61%	49815894	99.89%	52945	0.11%

20. Correctional Services	7026833	584959	8.32%	7051938	100.36%	-25105	-0.36%
21. Defence	18844734	1854094	9.84%	18831898	99.93%	12836	0.07%
22. Independent Complaints Directorate	31902	3754	11.77%	31737	99.48%	165	0.52%
23. Justice and Constitutional Development	4251826	544312	12.80%	4186777	98.47%	65049	1.53%
24. Safety and Security	19713544	1807583	9.17%	19713544	100.00%	0	0.00%

ECONOMIC SERVICES AND INFRASTRUCTURE DEVELOPMENT	19643264	2535533	12.91%	19072758	97.10%	570506	2.90%

25. Agriculture	944578	112321	11.89%	917518	97.14%	27060	2.86%
26. Communications	887690	441354	49.72%	884463	99.64%	3227	0.36%
27. Environmental Affairs and Tourism	1400586	123540	8.82%	1366587	97.57%	33999	2.43%
28. Labour	1296173	176151	13.59%	1283026	98.99%	13147	1.01%
29. Land Affairs	1091861	42309	3.87%	1073265	98.30%	18596	1.70%
30. Minerals and Energy	1872618	194223	10.37%	1848762	98.73%	23856	1.27%
31. Trade and Industry	2554826	401251	15.71%	2358915	92.33%	195911	7.67%
32. Transport	5832241	534943	9.17%	5709434	97.89%	122807	2.11%
33. Water Affairs and Forestry	3762691	509441	13.54%	3630788	96.49%	131903	3.51%

SOCIAL SERVICES	981821	167340	17.04%	942050	95.95%	39771	4.05%

34. Arts and Culture	457759	67175	14.67%	428264	93.56%	29495	6.44%
35. Science and Technology	524062	100265	19.13%	513786	98.04%	10276	1.96%

Source: Compiled by author using National Treasury data.

Appendix 4: Departmental Expenditure for the Quarter

Vote	January 2002/03	February 2002/03	March 2002/03

The Presidency	7.95%	7.91%	10.34%
Parliament	7.02%	7.02%	7.02%
Foreign Affairs	8.27%	9.36%	3.63%
Home Affairs	3.22%	10.03%	8.67%
Provincial and Local Government	9.04%	18.63%	8.58%
Public Works	9.21%	9.17%	11.19%
Government Communications and Information Systems	7.07%	25.05%	10.73%
National Treasury	10.95%	6.64%	8.29%
Public Enterprises	20.45%	14.04%	21.79%
Public Service and Administration	5.90%	4.72%	16.71%
Public Service Commission	7.03%	8.52%	11.29%
SA Management Development Institute	15.63%	7.10%	9.14%
Statistics SA	4.78%	5.12%	9.60%
Education	0.85%	1.17%	1.32%
Health	10.71%	7.02%	7.14%
Housing	7.73%	7.82%	7.69%
Social Development	20.51%	5.06%	39.50%
Sport and Recreation SA	4.11%	11.15%	29.17%
Correctional Services	10.14%	6.94%	8.32%
Defence	7.47%	5.98%	9.84%
Independent Complaints Directorate	7.14%	10.51%	11.77%
Justice and Constitutional Development	9.14%	8.02%	12.80%
Safety and Security	8.49%	8.56%	9.17%
Agriculture	8.18%	7.36%	11.89%
Communications	3.50%	4.17%	49.72%
Environmental Affairs and Tourism	8.10%	11.09%	8.82%
Labour	5.58%	6.26%	13.59%
Land Affairs	7.94%	6.73%	3.87%
Minerals and Energy	5.51%	6.64%	10.37%
Trade and Industry	6.13%	4.36%	15.71%
Transport	13.79%	4.34%	9.17%
Water Affairs and Forestry	10.08%	9.43%	13.54%
Arts and Culture	7.62%	5.54%	14.67%
Science and Technology	19.29%	15.97%	19.13%

Source: Compiled by author using National Treasury data.
Appendix 5: Monthly Expenditure as a Percentage of the Revised Estimate from October 2002 to March 2003

Vote	October 2002/03	November 2002/03	December 2002/03	January 2002/03	February 2002/03	March 2002/03

The Presidency	10.13%	9.76%	7.19%	7.95%	7.91%	10.34%
Parliament	8.01%	6.79%	10.66%	7.02%	7.02%	7.02%
Foreign Affairs	6.28%	16.12%	7.66%	8.27%	9.36%	3.63%
Home Affairs	6.43%	14.35%	5.95%	3.22%	10.03%	8.67%
Provincial and Local Government	4.08%	17.80%	4.70%	9.04%	18.63%	8.58%
Public Works	7.74%	8.14%	7.84%	9.21%	9.17%	11.19%
Government Communications and Information Systems	8.94%	6.43%	11.93%	7.07%	25.05%	10.73%
National Treasury	10.09%	6.37%	6.01%	10.95%	6.64%	8.29%
Public Enterprises	2.30%	8.13%	14.48%	20.45%	14.04%	21.79%
Public Service and Administration	3.91%	3.97%	5.64%	5.90%	4.72%	16.71%
Public Service Commission	8.05%	8.62%	7.22%	7.03%	8.52%	11.29%
SA Management Development Institute	5.66%	10.40%	8.76%	15.63%	7.10%	9.14%
Statistics SA	8.14%	6.83%	5.40%	4.78%	5.12%	9.60%
Education	9.61%	7.51%	1.71%	0.85%	1.17%	1.32%
Health	9.58%	6.15%	10.57%	10.71%	7.02%	7.14%
Housing	9.22%	11.39%	9.12%	7.73%	7.82%	7.69%
Social Development	13.38%	2.70%	14.00%	20.51%	5.06%	39.50%
Sport and Recreation SA	7.96%	8.36%	5.43%	4.11%	11.15%	29.17%
Correctional Services	9.19%	8.74%	7.62%	10.14%	6.94%	8.32%
Defence	10.22%	5.59%	6.60%	7.47%	5.98%	9.84%
Independent Complaints Directorate	8.50%	8.75%	7.28%	7.14%	10.51%	11.77%
Justice and Constitutional Development	7.86%	7.59%	8.89%	9.14%	8.02%	12.80%
Safety and Security	8.22%	8.51%	8.32%	8.49%	8.56%	9.17%
Agriculture	6.70%	6.61%	6.36%	8.18%	7.36%	11.89%
Communications	6.05%	11.10%	3.31%	3.50%	4.17%	49.72%
Environmental Affairs and Tourism	4.33%	15.51%	12.86%	8.10%	11.09%	8.82%
Labour	7.41%	24.80%	4.87%	5.58%	6.26%	13.59%
Land Affairs	14.00%	10.44%	8.77%	7.94%	6.73%	3.87%
Minerals and Energy	24.68%	7.31%	7.62%	5.51%	6.64%	10.37%
Trade and Industry	8.73%	7.11%	4.91%	6.13%	4.36%	15.71%
Transport	7.13%	8.90%	6.25%	13.79%	4.34%	9.17%
Water Affairs and Forestry	5.79%	7.86%	9.85%	10.08%	9.43%	13.54%
Arts and Culture	36.78%	17.26%	11.71%	7.62%	5.54%	14.67%
Science and Technology	28.38%	7.98%	7.29%	19.29%	15.97%	19.13%

Source: Compiled by author using National Treasury data

Appendix 6: Provincial Expenditure

Province	Adjusted Budget 2002/03				Expenditure as at 31 March 2003			Over/Under Expenditure	% Under expenditure

R'000	Current	Capital	Total	% of Total Budget	Current	Capital	Total

Eastern Cape	22147046	2746662	24893708	16.86%	22824144	1817196	24641340	252368	1.01%
Free State	9407289	1090941	10498230	7.11%	9051359	762432	9813791	684439	6.52%
Gauteng	20600045	3760079	24360124	16.49%	20984210	3369024	24353234	6890	0.03%
KwaZulu Natal	25764870	3219077	28983947	19.63%	26176297	2765024	28941321	42626	0.15%
Limpopo	17535032	1605250	19140282	12.96%	17311905	1502224	18814129	326153	1.70%
Mpumalanga	9002277	1001848	10004125	6.77%	8845506	930627	9776133	227992	2.28%
Northern Cape	3114394	350502	3464896	2.35%	3158094	304527	3462621	2275	0.07%
North West	10485681	1034532	11520213	7.80%	10574794	942712	11517506	2707	0.02%
Western Cape	13265027	1551690	14816717	10.03%	13075583	1398330	14473913	342804	2.31%
Total Expenditure	131321661	16360581	147682242	100.00%	132001892	13792096	145793988	1888254	1.28%

Source: Compiled by author using National Treasury data.

Appendix 7: Provincial Capital Expenditure

R'000	Capital Budget	% of Total Budget	Capital Expenditure	Under Expenditure	% Under Expenditure

Eastern Cape	2746662	16.79%	1817196	929466	33.84%
Free State	1090941	6.67%	762432	328509	30.11%
Gauteng	3760079	22.98%	3369024	391055	10.40%
KwaZulu Natal	3219077	19.68%	2765024	454053	14.11%
Limpopo	1605250	9.81%	1502224	103026	6.42%
Mpumalanga	1001848	6.12%	930627	71221	7.11%
Northern Cape	350502	2.14%	304527	45975	13.12%
North West	1034532	6.32%	942712	91820	8.88%
Western Cape	1551690	9.48%	1398330	153360	9.88%
Total Expenditure	16360581	100.00%	13792096	2568485	15.70%

Appendix 8: Current Expenditure in Provinces

Province	Current budget	Current Expenditure	Over/Under Expenditure	As a % of Budget

Eastern Cape	22147046	22824144	-677098	-3.06%
Free State	9407289	9051359	355930	3.78%
Gauteng	20600045	20984210	-384165	-1.86%
Kwa Zulu Natal	25764870	26176297	-411427	-1.60%
Limpopo	17535032	17311905	223127	1.27%
Mpumalanga	9002277	8845506	156771	1.74%
Northern Cape	3114394	3158094	-43700	-1.40%
North West	10485681	10574794	-89113	-0.85%
Western Cape	13265027	13075583	189444	1.43%
Total	131321661	132001892	-680231	-0.52%

Source: Compiled by author using National Treasury data.

Sources

National Treasury. 2002. Government Gazette No. 24132.

National Treasury. 2002. Government Gazette No.24220.

National Treasury. 2002. Government Gazette No. 24339.

National Treasury, 2003. Statement of National Revenue, Expenditure and Borrowing as at 31 January 2003.

National Treasury, 2003. Statement of National Revenue, Expenditure and Borrowing as at 28 February 2003.

National Treasury, 2003. Statement of National Revenue, Expenditure and Borrowing as at 31 March 2003.

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