DRAFT 1

EXPENDITURE REPORT FOR JULY 2005

The report analyses the expenditure trends of national departments for the month of July 2005. The report indicates that Departmental expenditure has decreased as compared to July 2004. Average Departmental expenditure for July was 7.47%, as opposed to 8.74% at the same time last year. Furthermore, total average expenditure to date has decreased from 31.03% in July 2004 to 30.60% in July 2005.

Highest and Lowest Spenders in July

Table 1: Highest spending Departments

R'000

Total Budget

Total Expenditure

% Total Expenditure

Total Expenditure

% Total Expenditure

for the month

For the month

To date

To date

Agriculture

1684738

334997

19.88%

644079

38.23%

Defence

22459432

2858157

12.73%

7295060

32.48%

Government Communications and Information Services

249130

27856

11.18%

85645

34.38%

Water Affairs and Forestry

3557412

358701

10.08%

1049272

29.50%

The Presidency

213463

20786

9.74%

64337

30.14%

Table 1 illustrates that the Department of Agriculture was the highest spender in July, with an expenditure of 19.88 per cent. Most of the department’s expenditure consisted of transfers, followed by current expenditure.

Departments whose average total expenditure was higher than that of Agriculture were Education (58.60%) and Public Enterprises (38.788%). The Department of Agriculture recorded a total expenditure of 38.23% at the end of July 2005.

Table 2: Lowest spending Departments

R'000

Total Budget

Total Expenditure

% Total Expenditure

Total Expenditure

% Total Expenditure

For the month

To date

To date

Provincial and Local Government

15580777

285387

1.83%

1695904

10.88%

Arts and Culture

1082699

28641

2.65%

274595

25.36%

Home Affairs

2972711

109234

3.67%

756230

25.44%

Minerals and Energy

2117585

82242

3.88%

383095

18.09%

Land Affairs

3881513

183271

4.72%

636678

16.40%

The Department of Provincial and Local Government was the lowest spender in July 2005, spending 1.83% of its budget, followed by the Department of Arts and Culture (2.65%).

The Department of Provincial and Local government has indicated that it has cash flow projections and that it spends according to these, but has not forwarded these to the Joint Budget Committee yet.

The cash flow projections of the Department of Agriculture indicate that the Department spent most of its funds on transfers to provinces and Municipalities, as well as to public corporations and private enterprises.

Conclusion

Departmental expenditure trends are similar to those of the last financial year, with the exception of the Department of Agriculture, that has made a significant transfer, making it one of the highest spending Departments to date. In addition, Departments are underspending significantly on Capital Expenditure while spending most of their funds on transfers.

Current expenditure accounts for 28.15% of expenditure (from 29.14% in July 2004), transfer expenditure 32.56% (from 33.35% in July 2004) and capital expenditure only 13.17% (from 18.30% in July 2004). The trends indicates that most of the expenditure of Departments goes to transfers.

Appendix 1: Overall Expenditure to Date

Table 3

R'000

Total Budget

Total Expenditure

% Total Expenditure

Total Expenditure

% Total Expenditure

For the Month

For the month

To date

To date

Voted Amounts

221405759

16531170

7.47%

67756481

30.60%

Central Government Administration

27593328

1036516

3.76%

4706393

17.06%

The Presidency

213463

20786

9.74%

64337

30.14%

Parliament

677255

55396

8.18%

221584

32.72%

Foreign Affairs

2595071

166331

6.41%

636905

24.54%

Home Affairs

2972711

109234

3.67%

756230

25.44%

Provincial and Local Government

15580777

285387

1.83%

1695904

10.88%

Public Works

5554051

399382

7.19%

1331433

23.97%

Financial and Administrative Services

15329901

1215509

7.93%

4197093

27.38%

Government Communications and Information Services

249130

27856

11.18%

85645

34.38%

National Treasury

13990708

1119952

8.00%

3864722

27.62%

Public Enterprises

91983

6405

6.96%

35671

38.78%

Public Service and Administration

167726

10728

6.40%

36515

21.77%

Public Service Commission

82050

7400

9.02%

26438

32.22%

S A Management Development Institute

57047

3649

6.40%

14920

26.15%

Statistics South Africa

691257

39519

5.72%

133182

19.27%

Social Services

81371732

5829158

7.16%

30852617

37.92%

Arts and Culture

1082699

28641

2.65%

274595

25.36%

Education

12397064

1169906

9.44%

7264566

58.60%

Health

9825237

764324

7.78%

3017378

30.71%

Labour

1313977

79363

6.04%

346490

26.37%

Social Development

56549127

3768493

6.66%

19897400

35.19%

Sport and Recreation South Africa

203628

18431

9.05%

52188

25.63%

Justice and Protection Services

65272095

5826104

8.93%

19066383

29.21%

Correctional Services

9234085

578414

6.26%

2275893

24.65%

Defence

22459432

2858157

12.73%

7295060

32.48%

Independent Complaints Directorate

49522

3702

7.48%

15045

30.38%

Justice and Constitutional Development

5072061

352641

6.95%

1337780

26.38%

Safety and Security

28456995

2033190

7.14%

8142605

28.61%

Economic Services and Infrastructure Development

31838703

2623883

8.24%

8933995

28.06%

Agriculture

1684738

334997

19.88%

644079

38.23%

Communications

1017503

77085

7.58%

253065

24.87%

Environmental Affairs and Tourism

1723111

100669

5.84%

613124

35.58%

Housing

5191712

495496

9.54%

1815443

34.97%

Land Affairs

3881513

183271

4.72%

636678

16.40%

Minerals and Energy

2117585

82242

3.88%

383095

18.09%

Science and Technology

1986639

123503

6.22%

552648

27.82%

Trade and Industry

3076331

267929

8.71%

833286

27.09%

Transport

7602159

599990

7.89%

2153305

28.32%

Water Affairs and Forestry

3557412

358701

10.08%

1049272

29.50%