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% |