COMMITTEE ANNUAL REPORT

JUNE – NOVEMBER 2004

 

  1. Name of the Committee: Joint Budget Committee (JBC)
  2. Mandate of the Committee (vision, mission etc)

The JBC’s mandate is found in its Terms of Reference as resolved by both Houses of Parliament on 25 June 2004. The resolution established the Committee to:

(1) consider proposed allocations in the Medium-Term Expenditure Framework and the Appropriation Bill and whether these allocations are broadly in keeping with the policy directions of the Government;

(2) make proposals regarding the processes Parliament should follow with regard to its role in the developing of budgets in accordance with constitutional requirements;

(3) on a regular basis monitor monthly published actual revenue and expenditure per department, and to ascertain whether they are in line with budget projections;

(4) consider, when tabled, the Medium-Term Budget Policy Statement, with the exception of those sections dealing with the macro-economic situation and revenue;

(5) conduct hearings on the Medium-Term Expenditure Framework and Budget Policy Review Document, with the exception of those sections dealing with the macro-economic situation and revenue;

(6) exercise those powers in Joint Rule 32 that may assist in carrying out its functions;

(7) report—

(a) on the Medium-Term Budget Policy Statement regarding the matters referred to in paragraph 5; and

(b) quarterly regarding the matters referred to in paragraph 4; and

(8) consider and make proposals regarding the nature of its functions relative to those of other committees in respect of the budget process and conducting oversight, the Committee to report thereon from time to time as may be necessary and to submit a final report by not later than the end of the next budget cycle in Parliament.

    1. List of Entities Reporting to the Committee

The Committee monitors monthly expenditure by all Government Departments and reports to Parliament quarterly.

  1. Chairperson’s overview (summary for the year)
  2. The year 2004 was very short for the Committee. The new Committee was established on 25 June 2004, however, it was formally constituted on 8 October 2004 because of the delay by authorities in allocating members to the Committee. The National Assembly allocated its members to the Committee on 26 August 2004 and the National Council of provinces on 30 September 2004.

    During the period covered by this report the Committee still faced the problem of most members serving in it being core members of other busy Committees as it was the case with the previous Committee. This tends to hamper progress with the work of the Committee as it is, in most instances, difficult to get full attendance. As a Committee which is still in the developmental stage it is crucial to get all members on board. We would like to appeal to authorities to look into this matter and resolve it.

    We have also observed that Parliament regards this Committee as other joint Committees whose main task is monitoring and may therefore not need to meet frequently. According to the scheduling of meetings these Committees are scheduled to meet on Fridays only. In this regard we would also like to appeal to Parliament to reconsider this situation as it clear that this Committee has such a huge mandate.

     

  3. Core objectives (responsibilities)
  4. The Committee’s Terms of Reference are very broad and the Committee intends holding a series of workshops in order to unpack them and then formulate its vision/mission and core objectives.

    1. Legislation

(Highlight briefly the main provisions of the Bills referred to the Committee, submission received and indicate any amendments made)

Item 2 of the Committee’s Terms of Reference stipulates, amongst other, that the JBC must consider the Appropriation Bill. However, according to the current Parliamentary arrangement this Bill is still the competency of the Finance Portfolio and Select Committees and the JBC attends their hearings on the Bill.

 

      1. Matters other than mandated legislation:
        1. International agreements
        2. None

        3. Hearings on matters of national interest, if any…

- Medium Term Budget Policy Statement (MTBPS)

The MTBPS is aimed at providing a pre-budget view on the macro-economic context, assumptions and projections underlying the Budget, the medium term fiscal policy framework, and the main divisions of revenue between functions and spheres of government.

The JBC Committee held hearings on the MTBPS between 28 October and 03 November 2004 and tabled a report thereon in Parliament.

 

    1. Oversight

(Briefly indicate places where the committee conducted oversight, its findings and recommendations on the visit/s)

      1. Annual Reports

None

      1. Implementation of legislation

None

      1. Institutional Oversight

None

4.2.4 International / national visits (capacity building)

The Committee did not undertake any visits during the period covered by the Report. However, it is the Committee’s intention to undertake an international study tour of a country where the Budget Committee has been fully operational for a long time.

  1. Committee activities

5.1 Invitations for Co-Chairpersons – Any invitation received on behalf of the Committee and not in his/her individual capacity.

At invitation from the Minister of Finance, the Co-Chairpersons attended three meetings of the Budget Council in Pretoria and one Budget Council Lekgotla in George (Western Cape).

The Budget Council consists of the Minister of Finance and all the MECs of Finance. Its main function is to co-ordinate the different interests of national and provincial governments and to make sure that agreement is reached on how to share revenue.

    1. Conferences

None

6. Financial statements

Amount allocated for 2004/5 = R250 000

Less: Total Expenditure = R 85 657

---------------------------

- Catering = R 8 141

- Attendance of Budget Council meetings = R20 216

- Newspaper Adverts = R57 300

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Balance (as at 25 November 2004) R164 343*

* The big figure reflected in the balance is as a result of the Committee operating for a short period of time in 2004 and therefore should not be construed as underspending. Moreover, part of this amount would be used for Committee activities during the period from January to March 2005.

 

 

 

  1. Appendices

  1. COMPOSITION OF COMMITTEE

MEMBERSHIP:

MEMBER

DATE APPOINTED

(in current Parliament)

DATE DISCHARGED

African National Congress

Asiya, Mr S E (NA)

26/08/2004

 

Baloyi, Mr M R * (NA)

26/08/2004

 

Botha, Mr D J (NCOP)

30/09/2004

 

Cwele, Dr S C (NA)

26/08/2004

 

Davies, Dr R H * (NA)

26/08/2004

 

Goeieman, Mr M C (NCOP)

30/09/2004

 

Hogan, Ms B A (NA)

26/08/2004

 

Kannemeyer, Mr B W (NA)

26/08/2004

01/11/2004

Kolweni, Mr Z S (NCOP)

30/09/2004

 

Mabe, Ms L L (NA)

26/08/2004

 

Manyosi, Mr A T (NCOP)

30/09/2004

 

Mashiane, Ms L M (NA)

26/08/2004

 

Mkhaliphi, Mr B J (NCOP)

30/09/2004

 

Moloto, Mr K A* (NA)

26/08/2004

 

Nene, Mr N M (NA)

26/08/2004

 

Ntwanambi, Ms N D (NCOP)

30/09/2004

 

Nyanda, Ms F (NCOP)

30/09/2004

22/02/2005

Ralane, Mr T (NCOP)

30/09/2004

 

Robertson,

22/02/2005

 

Schneemann, Mr G D (NA)

26/08/2004

 

Sikakane, Mr M R (NA)

26/08/2004

 

Sithole, Mr D J * (NA)

26/08/2004

 

Zita, Mr L (NA)

26/08/2004

 
     

Democratic Alliance

Rabie, Dr P J (NA)

26/08/2004

 

Taljaard, Ms R (NA)

26/08/2004

01/01/2005

     

Inkatha Freedom Party

Raju, Mr N M (NCOP)

30/09/2004

Passed away on 27/10/2004

Smith, Mr P F * (NA)

26/08/2004

 

Woods, Dr G G (NA)

26/08/2004

 

 

   

United Democratic Movement

Stephens, Mr M (NA)

26/08/2004

 
     

African Christian Democratic Party

Durr, Mr K D S (NA)

26/08/2004

 
     

Independent Democrats

Burgess, Mr C (NA)

13/10/2004

 
     

New National Party

Sinclair, Mr K * (NCOP)

30/09/2004

 
     

* indicates an alternate member