Report of the Joint Budget Committee on National and Provincial Expenditure for the period April to June 2005, dated 31 August 2005:

Report of the Joint Budget Committee on National and Provincial Expenditure for the period April to June 2005, dated 31 August 2005:

Part A: National Expenditure
Departments started the current financial year with a low expenditure of 5% in April 2005, increasing sharply to 11.13% in May and decreasing to 7% in June 2005.

The most notable difference between this report and the reports of the previous three financial years is the shift in expenditure trends of the Departments of Communications and Foreign Affairs. Both Departments had been the lowest spenders for three consecutive financial years. However, the trend has changed in this financial year.

Lowest Spending Departments as at 30 June 2005

Table 1

R'000	Total Budget	Expenditure for the Month	% Expenditure for the month (June)	Total Expenditure to date	% Expenditure to date

Voted Amounts	221405759	15508050	7.00%	51225311	23.14%

The Presidency	213463	12265	5.75%	43551	20.40%
Parliament	677255	55396	8.18%	166188	24.54%
Foreign Affairs	2595071	240077	9.25%	470574	18.13%
Home Affairs	2972711	274559	9.24%	646996	21.76%
Provincial and Local Government	15 580 777	462 299	2.97%	1 410 517	9.05%
Public Works	5554051	338723	6.10%	932051	16.78%

Financial and Administrative Services	15329901	880287	5.74%	2981584	19.45%
Government Communications and Information Services	249130	11179	4.49%	57789	23.20%
National Treasury	13990708	813949	5.82%	2744770	19.62%
Public Enterprises	91983	4934	5.36%	29266	31.82%
Land Affairs	3 881 513	204 562	5.27%	453 407	11.68%
Statistics South Africa	691 257	27 740	4.01%	93 663	13.55%
Minerals and Energy	2 117 585	72 513	3.42%	300 853	14.21%
Public Service Commission	82050	7580	9.24%	19038	23.20%
S A Management Development Institute	57047	4751	8.33%	11271	19.76%
Public Service and Administration	167 726	10 154	6.05%	25 787	15.37%

Social Services	81371732	7192562	8.84%	25023459	30.75%
Arts and Culture	1082699	63867	5.90%	245954	22.72%
Education	12397064	931398	7.51%	6094660	49.16%
Health	9825237	748752	7.62%	2253054	22.93%
Labour	1313977	87506	6.66%	267127	20.33%
Social Development	56549127	5352459	9.47%	16128907	28.52%
Sport and Recreation South Africa	203628	8580	4.21%	33757	16.58%

Justice and Protection Services	65272095	4214552	6.46%	13240279	20.28%
Correctional Services	9234085	576681	6.25%	1697479	18.38%
Defence	22459432	1233262	5.49%	4436903	19.76%
Independent Complaints Directorate	49522	3670	7.41%	11343	22.90%
Justice and Constitutional Development	5072061	346570	6.83%	985139	19.42%
Safety and Security	28456995	2054369	7.22%	6109415	21.47%

Economic Services and Infrastructure Development	31838703	1837330	5.77%	6310112	19.82%
Agriculture	1684738	94769	5.63%	309082	18.35%
Communications	1017503	113647	11.17%	175980	17.30%
Environmental Affairs and Tourism	1723111	64130	3.72%	512455	29.74%
Housing	5191712	438209	8.44%	1319947	25.42%

The Department of Provincial and Local Government was the lowest spending Department at the end of the first quarter despite the fact that it has spent three times more than its allocated capital budget already.

Statistics South Africa, which has been one of the lowest spenders for the preceding two financial years, was still one of the lowest spenders at the end of the first quarter.

Highest spending Departments as at 30 June 2005

Table 2

R'000	Total Budget	Expenditure for the Month	% Expenditure for the month	Total Expenditure to date	% Expenditure to date

Voted Amounts	221405759	15508050	7.00%	51225311	23.14%

Central Government Administration	27593328	1383319	5.01%	3669877	13.30%
The Presidency	213463	12265	5.75%	43551	20.40%
Parliament	677255	55396	8.18%	166188	24.54%
Foreign Affairs	2595071	240077	9.25%	470574	18.13%
Home Affairs	2972711	274559	9.24%	646996	21.76%
Provincial and Local Government	15580777	462299	2.97%	1410517	9.05%
Public Works	5554051	338723	6.10%	932051	16.78%

Financial and Administrative Services	15329901	880287	5.74%	2981584	19.45%
Government Communications and Information Services	249130	11179	4.49%	57789	23.20%
National Treasury	13990708	813949	5.82%	2744770	19.62%
Education	12397064	931 398	7.51%	6 094 660	49.16%
Public Enterprises	91 983	4 934	5.36%	29 266	31.82%
Public Service and Administration	167726	10154	6.05%	25787	15.37%
Public Service Commission	82050	7580	9.24%	19038	23.20%
S A Management Development Institute	57047	4751	8.33%	11271	19.76%
Statistics South Africa	691257	27740	4.01%	93663	13.55%

Arts and Culture	1082699	63867	5.90%	245954	22.72%
Environmental Affairs and Tourism	1 723 111	64 130	3.72%	512 455	29.74%
Health	9825237	748752	7.62%	2253054	22.93%
Labour	1313977	87506	6.66%	267127	20.33%
Social Development	56549127	535 2459	9.47%	16 128 907	28.52%
Sport and Recreation South Africa	203628	8580	4.21%	33757	16.58%

Justice and Protection Services	65272095	4214552	6.46%	13240279	20.28%
Correctional Services	9234085	576681	6.25%	1697479	18.38%
Defence	22459432	1233262	5.49%	4436903	19.76%
Independent Complaints Directorate	49522	3670	7.41%	11343	22.90%
Justice and Constitutional Development	5072061	346570	6.83%	985139	19.42%
Safety and Security	28456995	2054369	7.22%	6109415	21.47%

Economic Services and Infrastructure Development	31838703	1837330	5.77%	6310112	19.82%
Agriculture	1684738	94769	5.63%	309082	18.35%
Communications	1017503	113647	11.17%	175980	17.30%
Housing	5 191 712	438 209	8.44%	1 319 947	25.42%

Current, transfer and capital expenditure

Departments have started out with extremely low capital expenditures. The following graph illustrates the expenditure breakdown of Departments. While Current expenditure has averaged 20% and Transfer expenditure 24.91%, capital expenditure has averaged only 9.67% of Departmental Expenditure.

Figure 1 provides a graphic illustration of the current, transfer and capital expenditure of National Departments.

Figure 1

Departments spent an average of 6.29% of their current expenditure in April 2005, increasing to 7.16% and 7.26% in May and June respectively. Furthermore, transfer expenditure was 4.47% in April, increasing to 13.40% in May and decreasing to 7.03% in June. The Departments of Public Enterprises and Correctional Services spent 61.37% and 68.15% of their transfer budgets in April 2005, respectively. The Department of Correctional Services spent a further 72% of its transfer budget in May 2005 and has already exceeded its transfer budget.

Spending on capital payments has been very slow. In April 2005, Departments spent an average of 2.49% of their capital expenditure, increasing slightly to 3.82% in May and 3.37% in June.

Responses for expenditure Trends

Statistics South Africa

Statistics South Africa has provided the following reasons for its delays in expenditure:

The Department has R200 million budgeted for community surveys which has been delayed by technical procedures. The Minister of Finance, who is also the political head of Stats SA, has instructed that Stats SA agree with the Statistics Council regarding the logistics of the survey. The two organisations have met several times to discuss how the survey should be conducted, as well as other logistical and demographic factors to be considered, but no formal agreement has been reached as yet.

Most of the Department’s capital expenditure will be spent on the community survey on the Community Survey Administration System. The Department, therefore, expects its capital expenditure to improve as soon as this process starts.

The Income and Expenditure Survey, which was due to start in April, only started on 1 August 2005. Therefore, expenditure in this regard has been delayed.

The Department has several vacancies that it is currently filling, thus the low current expenditure.

Department of Public Enterprises

The Department indicated that the high expenditure on transfers was due to the restructuring of Alexander Bay Mining Corporation (ALEXCO), which is a mine that is managed by the Department. The Department gave instruction for a study to be conducted at the mine in 2004. The purpose of the study was to assess the value of ALEXCO, and to ascertain whether it’s economically favourable for the Department to keep it. The Department thus had to pay for this study in this financial year.

The Department has made a once-off payment of R12 million towards legal costs in this financial year. The Department is involved in a legal battle with the Richterveldt community for mining rights of ALEXCO. The R12 million was a once-off payment and there will not be any other legal payments in this financial year. The department expects to pay another R450 million in legal fees in the 2006/07 financial year.

The Department normally advances money to the Diabo trust and the Khulisa trust, which serve to subsidise the shares of communities, e.g. Telkom shares. The Department has, however, held back payments to these trusts due to the fact that the financial reports of the trust have indicated that the trusts are now self-sustainable.

Independent Complaints Directorate (ICD)

The ICD presented the following motivation for the slight overspending in terms of capital payments during the first quarter of the current financial year:
1. The building currently in use to accommodate the staff of the National Office of the ICD in Pretoria does not provide sufficiently for the increase of staff numbers, assets, equipment and information. This prompted a request to the Department of Public Works during the 2004/05 financial year to obtain alternative office space. Prescripts allow the latter Department to provide for the additional accommodation, whilst the user department is expected to incur the expenditure of such additional accommodation for the first three years of occupation. A payment of approximately R 575 000 was thus made to the Department of Public Works to defray the lease expenditure of the additional office space, for the current financial year.

2. The ICD catered for the payment of the accruals from the previous financial year during the first quarter but did not budget for the expenditure in terms of the additional accommodation.

In the past, the Department of Public Works catered for the procurement of accommodation for all departments from its budget. The Department however, experienced difficulties in coping with the increasing needs for accommodation by the various departments. In dealing with this issue, the Department introduced guidelines that departments had to follow when additional or new office accommodation was required in the 2004/05 financial year in order to manage the process more effectively. The ICD was thus compelled to incur the payment from savings created in the budget, without having budgeted for it.

3. At the onset of the current financial year, The ICD was aware of this expenditure from the beginning of the financial year and planned accordingly. The next and last payment in this regard, will be effected in the first quarter of the next financial year, which will also be a once off payment.

4. The ICD makes use of its cash flow projections and spends accordingly. In this regard, the ICD expects to remain within its budgeted allocation and will not overspend its budget. This once-off payment will only be repeated in the first quarter of next year (2006/7).

Provincial and Local Government (DPLG)

The Department confirmed that the total expenditure up to 30 June 2005 was 9,2% of the total appropriation. However, it also highlighted that it was necessary to analyse the DPLG budget in two elements.

the operational budget includes transfers to public entities and associated institutions. This relates to Programmes 1 to 5 plus Programme 7 of the Department. In this regard the figures are:

Appropriation R301 275 000

Expenditure to 30 June R 84 958 154

Less: Misallocation R 18 482 538

Actual Expenditure R 66 475 616

% Expenditure 22,1%

The Transfers to Local Government which appear in Programme

6. In this regard the figures are:

Appropriation R15 279 502 00

Expenditure to 30 June R1 325 560 085

Plus: Misallocation R18 482 538

Actual Expenditure R 1 344 042 623

% Expenditure 8,8%

The payments to municipalities are regulated by the payment schedules provided in terms of the Division of Revenue Act. The Equitable Share is paid in four installments and the First Quarter national in the Last Quarter for municipalities. There is a process to align the payment schedules for the differing financial years and to do this, the First Quarter payment in May 2005 was at a level far below a pro rata 25%. In addition, a number of payments were delayed on instruction from the National Treasury in respect of municipalities that had not submitted financial statements for the past two years and had not provided satisfactory explanation.

The Department indicated that it was not aware of where the 200% capital expenditure was coming from as its capital expenditure figures has been derived as the actual BAS figures. These were reported to the National Treasury as follows:

Appropriation R5 790 000

Expenditure to 30 June R1 395 740

% Expenditure 24,1%

In addition, there are also transfers to Local Government in respect of the Municipal Infrastructure Grant, which are recorded as Capital Transfer as follows:

Appropriation R5 436 161 000

Expenditure R1 027 069 323

% Expenditure 18,9%

The Department confirmed that it has cash-flow projections and that it tries as much as it can to follow them.

Attempts to obtain clarification regarding the Department of Correctional Services were unsuccessful.

Part B: Provincial Expenditure

Provinces had spent an average of 21.94% of their budgets at the end of the first quarter of the 2005/06 financial year. The North West Province was the lowest spender, spending 17.66% of its budget. In addition, provinces spent an average on 22.79%, 21.28% and 16.57% on current, transfer and capital expenditure respectively. Figure 2 provides a graphical depiction of the breakdown in expenditure.

Table 3

R'000	Total budget	Quarterly Expenditure	% Quarterly Expenditure

Eastern Cape	33 989 039	7 697 396	22.65%
Free State	14 541 544	3 269 009	22.48%
Gauteng	33 408 077	7 140 795	21.37%
Kwazulu-Natal	45 573 056	10 232 177	22.45%
Limpopo	27 958 070	6 087 989	21.78%
Mpumalanga	15 075 353	3 595 992	23.85%
Northern Cape	5 047 696	1 258 792	24.94%
North West	17 458 762	3 083 937	17.66%
Western Cape	20 627 849	4 508 316	21.86%

Average	213 679 446	46 874 403	21.94%

Figure 2

Recommendations

The Committee should invite Chairpersons of Portfolio Committees to hearings with departments, as well as work hand in hand with Portfolio Committees in monitoring departments through their cash flow projections and strategic plans.

The Joint Budget Committee should request clarity from departments on their cash flow projections in order to ascertain that these speak to the departments’ strategic plans.

Appendix 1: Total expenditure of National Departments As at 30 June 2005

Table 4

R'000	Total Budget	Expenditure for the Month	% Expenditure for the month	Total Expenditure to date	% Expenditure to date

Voted Amounts	221 405 759	15 508 050	7.00%	51 225 311	23.14%

Central Government Administration	27 593 328	1 383 319	5.01%	3 669 877	13.30%
The Presidency	213 463	12 265	5.75%	43 551	20.40%
Parliament	677 255	55 396	8.18%	166 188	24.54%
Foreign Affairs	2 595 071	240 077	9.25%	470 574	18.13%
Home Affairs	2 972 711	274 559	9.24%	646 996	21.76%
Provincial and Local Government	15 580 777	462 299	2.97%	1 410 517	9.05%
Public Works	5 554 051	338 723	6.10%	932 051	16.78%

Financial and Administrative Services	15 329 901	880 287	5.74%	2 981 584	19.45%
Government Communications and Information Services	249 130	11 179	4.49%	57 789	23.20%
National Treasury	13 990 708	813 949	5.82%	2 744 770	19.62%
Public Enterprises	91 983	4 934	5.36%	29 266	31.82%
Public Service and Administration	167 726	10 154	6.05%	25 787	15.37%
Public Service Commission	82 050	7 580	9.24%	19 038	23.20%
S A Management Development Institute	57 047	4 751	8.33%	11 271	19.76%
Statistics South Africa	691 257	27 740	4.01%	93 663	13.55%

Social Services	81 371 732	7 192 562	8.84%	25 023 459	30.75%
Arts and Culture	1 082 699	63 867	5.90%	245 954	22.72%
Education	12 397 064	931 398	7.51%	6 094 660	49.16%
Health	9 825 237	748 752	7.62%	2 253 054	22.93%
Labour	1 313 977	87 506	6.66%	267 127	20.33%
Social Development	56 549 127	5 352 459	9.47%	16 128 907	28.52%
Sport and Recreation South Africa	203 628	8 580	4.21%	33 757	16.58%

Justice and Protection Services	65 272 095	4 214 552	6.46%	13 240 279	20.28%
Correctional Services	923 4085	576 681	6.25%	1697 479	18.38%
Defence	22 459 432	1233262	5.49%	4 436 903	19.76%
Independent Complaints Directorate	49 522	3 670	7.41%	11 343	22.90%
Justice and Constitutional Development	5 072 061	346 570	6.83%	985 139	19.42%
Safety and Security	28 456 995	2 054 369	7.22%	6 109 415	21.47%

Economic Services and Infrastructure Development	31 838 703	1 837 330	5.77%	6310 112	19.82%
Agriculture	1 684 738	94 769	5.63%	309 082	18.35%
Communications	1 017 503	113 647	11.17%	175 980	17.30%
Environmental Affairs and Tourism	1 723 111	64 130	3.72%	512 455	29.74%
Housing	5191 712	438 209	8.44%	1 319 947	25.42%
Land Affairs	3 881 513	204 562	5.27%	453 407	11.68%
Minerals and Energy	2 117 585	72 513	3.42%	300 853	14.21%
Science and Technology	1 986 639	139 962	7.05%	429 145	21.60%
Trade and Industry	3 076 331	166 224	5.40%	565 357	18.38%
Transport	7 602 159	401 376	5.28%	1 553 315	20.43%
Water Affairs and Forestry	3 557 412	141 938	3.99%	690 571	19.41%

Appendix 2: Current Expenditure of National Departments as at 30 June 2005

Table 5

R'000	Current Budget	Current Expenditure	% Current Expenditure for the month	Current Expenditure to date	% Current Expenditure to date

Voted Amounts	71 110 801	5 162 660	7.26%	14 726 137	20.71%

Central Government Administration	7 761 070	683 135	8.80%	174 156	22.43%
The Presidency	188 986	12 087	6.40%	36 296	19.21%
Parliament	527 756	42 938	8.14%	12 8814	24.41%
Foreign Affairs	2 014 234	228 355	11.34%	431 996	21.45%
Home Affairs	1 299 059	104 617	8.05%	302 384	23.28%
Provincial and Local Government	229 018	21 131	9.23%	49 040	21.41%
Public Works	350 2017	274 007	7.82%	792 626	22.63%

Financial and Administrative Services	3 257 125	200 009	6.14%	616 663	18.93%
Government Communications and Information Services	170 351	10 932	6.42%	32 910	19.32%
National Treasury	2 074 879	138 593	6.68%	434 133	20.92%
Public Enterprises	72 698	4 846	6.67%	16 346	22.48%
Public Service and Administration	163 971	10 087	6.15%	25 499	15.55%
Public Service Commission	80 138	7 215	9.00%	18 612	23.22%
S A Management Development Institute	30 996	2 216	7.15%	4 226	13.63%
Statistics South Africa	664 092	26 120	3.93%	84 937	12.79%

Social Services	2 768 390	188 021	6.79%	522 194	18.86%
Arts and Culture	168 770	20 880	12.37%	54 717	32.42%
Education	463 424	23 780	5.13%	67 942	14.66%
Health	699 810	43 236	6.18%	125 899	17.99%
Labour	891 039	69 249	7.77%	183 969	20.65%
Social Development	432 763	24 648	5.70%	77 134	17.82%
Sport and Recreation South Africa	112 584	6 228	5.53%	12 533	11.13%

Justice and Protection Services	51 437 910	3 732 319	7.26%	10 829 333	21.05%
Correctional Services	7 858 725	557 700	7.10%	1 585 694	20.18%
Defence	12837175	925 519	7.21%	2 623 855	20.44%
Independent Complaints Directorate	48 293	3 027	6.27%	9 990	20.69%
Justice and Constitutional Development	3 949 180	269 627	6.83%	777 644	19.69%
Safety and Security	26 744 537	1 976 446	7.39%	5 832 150	21.81%

Economic Services and Infrastructure Development	5 886 306	359 176	6.10%	1 016 791	17.27%
Agriculture	790 689	51 848	6.56%	120 710	15.27%
Communications	247 141	15 978	6.47%	44 856	18.15%
Environmental Affairs and Tourism	481 988	24 966	5.18%	108 928	22.60%
Housing	240 851	12 282	5.10%	31 001	12.87%
Land Affairs	787 380	56 331	7.15%	143 521	18.23%
Minerals and Energy	462 700	28 394	6.14%	78 368	16.94%
Science and Technology	156 607	9 809	6.26%	29 093	18.58%
Trade and Industry	640 454	39 503	6.17%	107 402	16.77%
Transport	534 675	24 980	4.67%	71 429	13.36%
Water Affairs and Forestry	154 3821	95 806	6.21%	281 483	18.23%

Appendix 3: Transfer expenditure of National Departments as at 30 June 2005

Table 6

R'000	Transfer Budget	Transfers for the month	% Transfers for the month	Transfers to date	% Transfers to date

Voted Amounts	144 139 747	10 137 820	7.03%	35 903 660	24.91%

Central Government Administration	17 703 909	649 870	3.67%	1 777 610	10.04%
The Presidency	19 222	23	0.12%	6 776	35.25%
Parliament	97 171	8 097	8.33%	24 291	25.00%
Foreign Affairs	348 927	4 254	1.22%	34 558	9.90%
Home Affairs	894 215	162 509	18.17%	306 934	34.32%
Provincial and Local Government	15 345 969	441 072	2.87%	1 341 625	8.74%
Public Works	998 405	33 915	3.40%	63 426	6.35%

Financial and Administrative Services	12 024 632	675 504	5.62%	234 9775	19.54%
Government Communications and Information Services	76 469	17	0.02%	24 378	31.88%
National Treasury	11 903 138	673 238	5.66%	2 305 655	19.37%
Public Enterprises	18 758	11	0.06%	12 817	68.33%
Public Service and Administration	361	26	7.20%	63	17.45%
Public Service Commission	183		0.00%		0.00%
S A Management Development Institute	24 788	2 255	9.10%	6 765	27.29%
Statistics South Africa	935	-43	-4.60%	97	10.37%

Social Services	78 443 732	6 993 922	8.92%	24 477 164	31.20%
Arts and Culture	909 567	42 983	4.73%	191 233	21.02%
Education	11 889 082	906 176	7.62%	6 024 317	50.67%
Health	9 097 514	705 318	7.75%	2 126 279	23.37%
Labour	350 368	11 755	3.36%	67 029	19.13%
Social Development	56 111 169	5 325 363	9.49%	16 047 315	28.60%
Sport and Recreation South Africa	86 032	2 327	2.70%	20 991	24.40%

Justice and Protection Services	10519254	400 043	3.80%	2 142 497	20.37%
Correctional Services	38 124	-2 288	-6.00%	48 770	127.92%
Defence	9 357 388	307 743	3.29%	1 813 048	19.38%
Independent Complaints Directorate	149	7	4.70%	21	14.09%
Justice and Constitutional Development	695 622	70 413	10.12%	191 394	27.51%
Safety and Security	427 971	24 168	5.65%	89 263	20.86%

Economic Services and Infrastructure Development	25 448 220	1 418 481	5.57%	5156 614	20.26%
Agriculture	864 993	36 565	4.23%	176 393	20.39%
Communications	763 882	96 700	12.66%	129 443	16.95%
Environmental Affairs and Tourism	1 190 330	3 1065	2.61%	389 595	32.73%
Housing	4 947 840	425 613	8.60%	1 287 328	26.02%
Land Affairs	3 058 267	146 163	4.78%	306 747	10.03%
Minerals and Energy	1 647 942	44 100	2.68%	222 396	13.50%
Science and Technology	1 829 227	129 994	7.11%	399 733	21.85%
Trade and Industry	2 424 187	126 558	5.22%	457 688	18.88%
Transport	7 057 209	375 753	5.32%	1 480 876	20.98%
Water Affairs and Forestry	1 664 343	5 970	0.36%	306 415	18.41%

Appendix 4: Capital expenditure of National Departments as at 30 June 2005

Table 7

R'000	Capital Budget	Capital Expenditure	% Capital Expenditure for the month	Capital Expenditure to date	% Capital Expenditure to date

Voted Amounts	6 155 211	207 570	3.37%	595 514	9.67%

Central Government Administration	2 128 349	50 314	2.36%	151 111	7.10%
The Presidency	5 255	155	2.95%	479	9.12%
Parliament	52 328	4 361	8.33%	13 083	25.00%
Foreign Affairs	231 910	7 468	3.22%	4 020	1.73%
Home Affairs	779 437	7 433	0.95%	37 678	4.83%
Provincial and Local Government	5 790	96	1.66%	19 852	342.87%
Public Works	1 053 629	30801	2.92%	75 999	7.21%

Financial and Administrative Services	48 144	4 774	9.92%	15 146	31.46%
Government Communications and Information Services	2 310	230	9.96%	501	21.69%
National Treasury	12 691	2 118	16.69%	4 982	39.26%
Public Enterprises	527	77	14.61%	103	19.54%
Public Service and Administration	3 394	41	1.21%	225	6.63%
Public Service Commission	1 729	365	21.11%	426	24.64%
S A Management Development Institute	1 263	280	22.17%	280	22.17%
Statistics South Africa	26 230	1 663	6.34%	8 629	32.90%

Social Services	159 610	10 619	6.65%	24 101	15.10%
Arts and Culture	4 362	4	0.09%	4	0.09%
Education	44 558	1 442	3.24%	2 401	5.39%
Health	27 913	198	0.71%	876	3.14%
Labour	72 570	6 502	8.96%	16 129	22.23%
Social Development	5 195	2 448	47.12%	4 458	85.81%
Sport and Recreation South Africa	5 012	25	0.50%	233	4.65%

Justice and Protection Services	3 314 931	82 190	2.48%	268 449	8.10%
Correctional Services	1 337 236	21 269	1.59%	63 014	4.71%
Defence	264 869		0.00%		0.00%
Independent Complaints Directorate	1 080	636	58.89%	1 332	123.33%
Justice and Constitutional Development	427 259	6 530	1.53%	16 101	3.77%
Safety and Security	1 284 487	53 755	4.18%	188 002	14.64%

Economic Services and Infrastructure Development	504 177	59 673	11.84%	136 707	27.11%
Agriculture	29 056	6 356	21.88%	11 979	41.23%
Communications	6 480	969	14.95%	1 681	25.94%
Environmental Affairs and Tourism	50 793	8 099	15.95%	13 932	27.43%
Housing	3 021	314	10.39%	1 618	53.56%
Land Affairs	35 866	2 068	5.77%	3 139	8.75%
Minerals and Energy	6 943	19	0.27%	89	1.28%
Science and Technology	805	160	19.88%	319	39.63%
Trade and Industry	11 690	163	1.39%	267	2.28%
Transport	10 275	643	6.26%	1 010	9.83%
Water Affairs and Forestry	349 248	40 882	11.71%	102 673	29.40%

Appendix 5: Current provincial expenditure

Table 8

R'000	Current budget	Current Expenditure	% Current Expenditure

Eastern Cape	19 501 708	4 558 749	23.38%
Free State	9 100 054	2 088 768	22.95%
Gauteng	20 245 842	4 611 629	22.78%
Kwazulu-Natal	27 786 104	6259889	22.53%
Limpopo	17 536 318	3 941713	22.48%
Mpumalanga	9 552 570	2 278 478	23.85%
Northern Cape	3 092 539	737 901	23.86%
North West	10 629 825	2 364 508	22.24%
Western Cape	1 2942 643	2 868 695	22.16%

Average	130 387 603	2 9710 330	22.79%

Appendix 6: Transfer Provincial Expenditure

Table 9

R'000	Transfer budget	Transfer Expenditure	% Transfer Expenditure

Eastern Cape	12 866 364	2 878 710	22.37%
Free State	4 897 768	1 095 482	22.37%
Gauteng	11 707 249	2 252 639	19.24%
Kwazulu-Natal	14 766 630	3 410 542	23.10%
Limpopo	8 928 833	1 977 092	22.14%
Mpumalanga	4 449 330	1 087 198	24.44%
Northern Cape	1 674 364	466 425	27.86%
North West	5 861 363	584 692	9.98%
Western Cape	6 241 245	1 439 477	23.06%

Average	71 393 146	15 192 257	21.28%

Appendix 7: Capital Provincial Expenditure

Table 10

R'000	Capital budget	Capital Expenditure	% Capital Expenditure

Eastern Cape	1 620 967	259 937	16.04%
Free State	543 722	84 759	15.59%
Gauteng	1 454 986	276 527	19.01%
Kwazulu-Natal	3 020 322	561 746	18.60%
Limpopo	1 492 919	169 184	11.33%
Mpumalanga	1 073 473	230 316	21.46%
Northern Cape	280 793	54 466	19.40%
North West	967 574	134 737	13.93%
Western Cape	1 443 961	200 144	13.86%

Average	11 898 717	1 971 816	16.57%

Sources

Statement of National and Provincial Governments’ revenue, expenditure and National borrowing as at 30 April 2005; National Treasury.

Statement of National and Provincial Governments’ revenue, expenditure and National borrowing as at 31 May 2005; National Treasury.

Statement of National and Provincial Governments’ revenue, expenditure and National borrowing as at 30 June 2005; National Treasury.

Report to be considered.