PARLIAMENT INFORMATION SERVICES: RESEARCH
By K. Pasensie
27 May 2004

LAND AFFAIRS BUDGET VOTE 30:
AN ANALYSIS

Introduction

The core strategic objective of the Department of Land Affairs is to provide access to land and to extend the rights in land of the previously disadvantaged communities. The 2004/2005 should this effect to by providing adequate funding to deal with the three legs of land reform, i.e. tenure reform, redistribution and restitution.

The analysis of the Land Affairs 2004/2005 Budget is done within the measurable objectives and targets the Department of Land Affairs has set it in working towards attaining its core objective. This brief will focus on, (1) whether the stated priorities in of the Department match priorities in the budget, and (2) lists questions, which need further explanation from the Department.

The 2004/2005 Budget

The amount budgeted for the Land Affairs Budget 2004/2005 is R1, 788 152bn, which constitute an 8 percent increase from the R1, 654 997bn budgeted for the 2003/2004 financial year.

The 2004/2005 is distributed amongst the 7 programmes of the Land Affairs Budget. These are:

1. Administration: Provides strategic and logical support in the form of corporate and executive services.
2. Surveys and Mapping: Provide national mapping, aerial photography and national control survey systems in support of national infrastructure and sustainable development.
3. Cadastral Surveys: Provide cadastral survey control and information services.
4. Restitution: Takes the responsibility for the settlement of land restitution claims.
5. Land Reform: Takes responsibility for the provision of sustainable land redistribution programmes, tenure security and the management of state land.
6. Spatial Planning and Information: Provide for land use management systems, spatial plans and spatial information.
7. Auxiliary and Associated Services: Augment the Registration of Deeds Account, etc.

Table I below provides a quick overview of how the Land Affairs budget is distributed among the 7 programmes.

Table I: Programme budgets as a percentage of the total Land Affairs budget

Note: Percentages are based on own calculations and are based on nominal figures and do not
represent the Real Value.

For the purpose of this brief, an analysis of programmes 4 and 5 are of particular interest because these programmes represent the most pertinent strategic areas. However, it must be noted that the other 5 programmes are not by any means of less importance.

Programme 4: Restitution

Through this programme, the Department of Land Affairs gives effect to Section 42D of the Restitution of Land Rights Act which gives the Minister powers to settle claims administratively. The aim of the programme is thus to restore land and provide suitable compensation to victims of forced removals.

The fact that 52 percent of the entire Land Affairs Budget is allocated to this programme is indicative of the Department, and indeed Government's commitment in terms of restoring land rights as set out in Act 22 of 1994. The programme budget of R933, 225 million is distributed amongst 3 subprograms, of these 83 percent goes to the subprogram Restitution Grants (see table 2 below), which is responsible for the distribution of grants used to restore land and provide alternative land to victims of forced removals.

Table 2: Subprograms as a percentage of entire programme budget

It is also interesting to note that during a briefing by the Chief Land Claims Commissioner, Mr. Tozi Gwanya, it was argued that the land rights commission would require R1, 2bn per year to speed up the land restitution programme. Government responded by increasing the expenditure for the Restitution Programme by approximately R1, 6bn. This increase is also not far off the amount of R1, 7bn which the people's Budget Campaign said would be needed to settle the outstanding 36 444 claims by December 2005.

In terms of Programme 4's medium-term output targets, the Department of Land Affairs have set itself the target of settling 23 977 by March 2005, which can only be attainable if the verification and validation processes of the restitution process is dealt expediently. For this reason, the Regional Offices subprogramme, which is responsible for negotiating restitution agreements and providing administrative support to regional land claims commissioners, has seen a significant increase in its budget, form R46 million in 2000/2001 to R155 million in 2006/2007.

Question(s)

1. With the escalation of the average price per ha, will the Programme Budget be adequate to settle the target claims by March 2005?

Programme 5: Land Reform

It is significant to note that the most important subprogramme of this Programme is the Land Reform Grants subprogramme, which receives the bulk (65 percent. See table 2 below)) of the R933 million allocated. The Land Reform Grants subprogramme makes grants available, amongst others, to the Land Reform for Agricultural Development programme (LRAD).

Table 2: Subprogrammes as a percentage of entire programme budget