ANALYSIS OF BUDGET VOTE 4: DEPARTMENT OF HOME AFFAIRS (2005)
7 March 2005
The aim of the Department of Home Affairs is to protect and regulate the interest of the inhabitants of the Republic of South Africa in respect of their individual status, identity and specific rights and powers, and to promote a supporting service to this effect.
Strategicoverviewandkeypolicydevelopments
After the 1994 democratic elections, Government was faced with the challenge of aligning state machinery with new constitutional responsibilities. The Department of Home Affairs experienced major challenges in responding to the demands its faces. The Department's medium-term focus is centred on the Turn-around Strategy, developed in 2003. Central to this strategy is the need to reform the Department's core civic and immigration services. In addition, a concerted effort is being made to improve service delivery across the Department, improving the physical state of offices, and increasing access to people in remote areas. The accelerated implementation of the Home Affairs National Identification System (HANIS) is also a key component of the strategy.
Civicservices
One of the key challenges faced by the Department is the need to find a balance between fast tracking citizen registration and ensuring the integrity of South African citizenship. In this regard, the Department aims to introduce a permanent citizen registration campaign to reach all persons not registered. The campaign will raise awareness about the value of identity documentation for accessing Government services, such as grants, education, Home Affairs, as well as other private sector services.
Turnaround interventions focussing on overall, capacity and infrastructure development, and especially the Information Technology (IT) Strategy, will play critical role in improving services to citizens. This is also important for combating fraud and corruption, and improving business processes.
Marriage laws are being reviewed to bring them in line with the needs of a non- discriminatory society. Together with the Department of Justice and Constitutional Development, the Department is in the process of finalising draft legislation, with the aim of consolidating all marriage legislation into a single Act.
The registration of births is important for poverty alleviation strategies, as this will assist the Department of Social Development to register children for the Child Support Grant (CSG). In order to achieve this objective, the Department will strengthen its partnerships with relevant stakeholders and role-players.
Nationalimmigration
In line with new immigration policy, based on the Immigration Act (No. 13 of 2002) as amended, the Department aims to process and approve immigration applications guided by South Africa's skills and investment needs, as well as its economic, social and cultural interests.
The Department is in the process of establishing a new, dedicated immigration branch that will eventually become a law enforcement agency. The Department has started recruiting personnel for the branch, and this will be accelerated in the medium term. The Department has committed itself to the upgrading of ports of entry, and to working with other departments to ensure border posts are administered efficiently.
Servicedelivery
The Department created a sub programme called, Service Delivery in the Programme 2: Delivery of Services. This sub programme is aimed at determining the adequacy of systems and facilities at the interface between departmental staff and clients. Specific interventions include infrastructure and human capacity development in order to deliver services in the spirit of Batho Pele.
The Department has implemented a number of interventions aimed at increasing the reach of its services. These include: acquiring additional offices and mobile units, upgrading of existing offices, increases in the staff complement. In addition, the Department instituted the 'Client is Always Right' campaign, and initiated a 24-hour client service centre in November 2004. The service centre enables the public, other government departments and the private sector to make enquiries about progress with applications, and will assist with clearing blockages and fast- track processes.
HomeAffairsNationalIdentificationSystem(HANIS)
The HANIS system, initiated in 1999, aims to provide an image identification and information system for profiling the South African population, in order to accurately identify all people in the country and assist the beneficiaries of government services. A complete feasibility study and procurement analysis for the Identification Document (ID) smart card was conducted in 2004. The tender process will commence during the first half of 2005/06, and will enable the Department to deliver the smart card product towards the end of 2007.
ExpendituretrendsfortheDepartment
The Department of Home Affairs is organised into three programmes as outlined below:
Department2004/05
For 2005/06, an amount of R3 billion is allocated to the Department of Home Affairs, suggesting an increase of about R600 million from the adjusted appropriation for 2004/05. This constitutes a real increase of 20,8°/ from the previous financial year.
In 2004/05, the main appropriation was R2.27 billion, but this amount was increased to R2,38 billion through in the adjusted appropriation when Department indicated a shortfall of R104 million. However, the revised estimate for 2004/0 sets that the Department's expenditure at R2,19 billion.
Following the trend between 2001/02 and 2004/05, significant growth in expenditure is set for 2005/06. This is mainly due to large increases in transfers to the Independent Electoral Commission (IEC) for the 2005 local government elections. Expenditure is then expected to decline to R2,6 billion in 2006/07 before rising again in 2007/08 to reach an expected R2,8 billion.
Increases in the Department’s operational budget over the next three years will go towards the upgrading and development of the IT infrastructure and capital investment projects to refurbish, relocate and upgrade regional offices and offices at ports of entry. In addition, increases in expenditure on compensation of employees are set to continue, as the Department expands it human resources capacity.
The budget makes provision for additional allocations of R282,6 million for 2005/06, R246, 7 million for 2006/07 and R417 million for 2007/08. Of this, R160 million, R12 million and R63 million have been allocated to the IEC, while the remaining additional funds will go towards establishing the new immigration branch, provision of staff and infrastructure, the combating of fraud and corruption, and investment in improved information systems.
Transfersandsubsidies
Transfers to provinces, and other institutions amounts R894 million in 2005/06, and constitutes 30% of the departmental expenditure. Transfers are mainly dominated by those to Departmental agencies and accounts, such as the IEC and the Film and Publication Board.
Issues to consider
- The Department received an additional R104 million through the adjustment appropriation, but it is projected that the Department will not be able to spend their original appropriation. Why did the Department request additional funds, and will the Department be to spend the R78 million, as
indicated in the revised estimate before the end of the 2004/05 financial year?
- In 2003/04, the Department failed to spend all voted funds allocated to it is the Department experiencing a capacity problem?
- What percentage of the Department's budget will be allocated to addressing shortages of staff, especially in regional offices?
Programme1:Administration
Administration provides for the overall management, administration and information systems support for the Department. The programme provides of policy formulation, organising the department, centralised administrative, legs and office support services, managing departmental personnel and financial administration programme, determining working methods and procedures, and exercising control through head office.
Programme 1 has been allocated an amount of R 355,9 million for the 2005/06 financial year, signalling a decline of R74,5 million from the adjusted appropriation for the previous financial year. In real terms, this indicates a decline of 21,5%. Expenditure is expected to increase to reach to R564,1 million in 2007/08. These increases are mainly due to Information Technology (IT investments.
Within the additional amounts allocated to the 2005 Budget, R45,9 million in 2005/06, R71,8 million in 2006/07 and R83,1 million in 2007/08 are intended for compensation of employees, an internship programme and information systems
Issuestoconsider:
- In 2004/05, the Management subprogramme received an allocation of R8,15 million in the original appropriation, but this figure was adjusted to R60,65 million. Please explain the reason for the adjustment?
- Why is there a decline in expenditure for the Management subprogramn in 2005/06?
Programme2:DeliveryofServices
The Delivery of Services Programme was formed by combining the previous Services to Citizens and Immigration programmes, since there is such a do relationship between the two kinds of service. The new programme provide services to citizens by granting rights and powers to members of the populate and dealing with travel and passport matters, citizenship and population registration. It is also responsible for controlling immigration according to South Africa's skills and investments needs, and controls visitors who enter the country temporarily.
Expenditure for Programme 2: Delivery of Services is set for R1,64 billion in 2005/06, which indicates real growth of 19,3% from the previous financial year. Expenditure grows significantly from R1,33 billion in the adjusted in 2004/05, and then increases slowly over the next two years. This is largely attributed to higher expenditure on the Population Register subprogramme, linked to capital investments for HANIS, as well as large increases in the allocation to the Immigration Control subprogramme.
Additional funding received in the 2005 budget amounting to R73,1 million (2005/06), R157.9 million (2006/07) and R249.9 million (2007/08), is intended for compensation of employees, mobile units, vehicles, a passport printer and birth registration and permanent registration campaigns.
Issuestoconsider:
- The Population Register subprogramme was allocated R962,6 million the original appropriation for 2004/05. However, in the adjusted appropriation this amount has been adjusted downwards to R386,7. What was the reason for the adjustment?
- What percentage of the Immigration Control subprogramme's budget is dedicated to the compensation of employees?
- Did the Department achieve its target set for 2004/05, to correctly process 95% of all passports and travel documents within five weeks? If not, why not?
Programme3:AuxiliaryandAssociatedServices
The Auxiliary and Associated Services Programme is responsible for funding the Films and Publications Board, Government Printing Works, and the IEC. In addition, expenditure for departmental vehicles and capital works is included in this programme.
Programme 3: Auxiliary and Associated Services
An amount of R974 million is allocated to the Home Affairs Service Delivery Programme for 2005/06, which is an increase of 53,5% in real terms from the previous financial year. Transfers to the IEC (90,8%) make up most of the expenditure of this programme, explaining the large movements in allocations, as the lEC's costs are driven by the electoral cycle. Major expenses up to 2003/04 were as result of the 2004 national elections, and the high expenditure in 2004/05, and the significant increase in 2006/07 are due to the 2005 local government elections.
Government Motor Transport grows with 99% in real terms, and expenditure is expected to rise as it invests in new vehicles.
The 2005 budget allocated additional funds of R163.7 million (2005/06), R16.9 million (2006/07) and R83,9 million (2007/08), which will mainly go towards transfers to the IEC.
Issuestoconsider
- Expenditure for the Government Motor Transport subprogramme increase significantly from the previous financial year. What proportion will be dedicated to addressing the shortage of vehicles in regional offices, especially with regard to the immigration function?
- Why is there a decline in expenditure from 2004/05 for the Property Management subprogramme?
Public Entities reporting to the Minister
i. Film and Publication Board The Film and Publication Board is a statutory body, established in terms of the Film and Publications Act (1996). The Act regulates the creation, production, possession, exhibition and distribution of films, interactive computer games and publications. The Board is also responsible for monitoring the business of adult premise, to ensure that the business is conducted in strict compliance with their license and registration conditions.
The Board is funded by annual transfer, and will receive transfers to the amount of R6,8 million for 2005/06, R7,2 million for 2006/07, and R7,7 million for 2007/08.
ii. GovernmentPrintingWorks(GPW) The GPW provides stationary and related items to government departments, provincial governments and local authorities. It publishes, markets, and distributes government publication, but also provides related services top other African countries.
In line with a Cabinet resolution, National Treasury has re-listed the GPW as a schedule 3A national public entity. The enabling legislation will be submitted for parliamentary consideration in the second quarter of 2005.
Conclusion
Overall, the Department's programmes are experiencing real increases in 2005/06, with the exception of Programme 1.' Administration. Expenditure trends for 2004/05 reflects the priorities the Department set for itself in terms of its Turn-around Strategy, and include the compensation for employees, HANIS, Population Register and upgrade of regional offices.
Sources
Republic of South Africa. (2005). BudgetReview,2005. Cape Town: Formeset Printers.
Republic of South Africa. (2005). EstimatesofNationalExpenditure,2005. Cape Town: Formeset Printers.
Republic of South Africa. (2004). EstimatesofNationalExpenditure,2004. Cape Town: Formeset Printers.
