September 2006

 

Report of the Joint Budget Committee

First Quarter National Expenditure 2006/2007 Financial Year

 

 

1. Total Expenditure

 

By the end of the first quarter of the 2006/07 financial year, Departments spent an average of 21.44% of their total budgets.  Departments’ spent on average 7.11% of their budget during April, 7.22% in May and 7.11% in June. To date departments spent R55.7 billion. The cash flow projections provided by the National Treasury indicate that Departments had planned to spend R60.1 billion during the first quarter of the financial year, which suggests that Departments “underspent” by R4.4 billion.

 

 

Table 1 illustrates Departments’ with the highest expenditure at the end of the first quarter.

 

Table 1: Highest Total Expenditure to date

 

Total Budget

Total Expenditure to date

% Total Expenditure to date

Cash Flow Projections to date

Over/Under Expenditure to date

Expenditure as % of Projected Expenditure

R'000

 

 

 

 

 

 

 

Education

14129233

6701696

47.43%

6916006

-214310

96.90%

Environmental Affairs and Tourism

2018053

674822

33.44%

635852

38970

106.13%

Social Development

62005460

18529523

29.88%

15174713

3354810

122.11%

Government Communications and Information Services

288037

76066

26.41%

83162

-7096

91.47%

Public Works

3080181

788249

25.59%

1063256

-275007

74.14%

 

 

The Department of Education was by far the highest spending Department. They spent 47.43% of their total budget during the first quarter. The Department of Education spent 12.16% of its current budget, 48.49% of its transfer budget and 26.88% of its capital budget during the first 3 months of the financial year. Even though the department spent almost half of its budget during the first 3 months it does not appear that they will overspend their budget based on the cashflow projections provided to National Treasury. Of the top 5 spending Departments, 2 spent more than the cash flow projections 2006/07 provided by National Treasury. They are the Departments of Environmental Affairs and Tourism and Social Development. The biggest concern is the Department of Social Development, which spent R3.3 billion more than they planned to spend during the first quarter.

 


Table 2 illustrates Departments’ with the lowest expenditure at the end of the first quarter.

 

Table 2: Lowest Total Expenditure to date

 

Total Budget

Total Expenditure to date

% Total Expenditure to date

Cash Flow Projections to date

Over/Under Expenditure to date

Expenditure as % of Projected Expenditure

R'000

 

 

 

 

 

 

 

Provincial and Local Government

24903440

947590

3.81%

1744996

-797406

54.30%

Land Affairs

4852196

469199

9.67%

1153956

-684757

40.66%

Communications

1280194

132136

10.32%

299825

-167689

44.07%

Trade and Industry

3665912

445276

12.15%

1228719

-783443

36.24%

Minerals and Energy

2548272

353597

13.88%

761547

-407950

46.43%

 

The Department of Provincial and Local Government was the lowest spender during the first quarter, spending only 3.81% of their budget. The Department had planned to spend 7% of its budget in the first quarter. During the first quarter of the 2005/06 financial year the Department spent 8.8% of its total budget. All of these Departments spent significantly less than they had planed to spend. At the end of the 2005/06 financial year the Department of Provincial and Local Government spent 99.98% of its total budget; Land Affairs 73.15%; Communications 99.83%; Trade and Industry 92.93%; and Minerals and Energy 96.25%.

 

Table 3 represents Departments’ expenditure at the end of the first quarter.

 

Table 3: Departmental Expenditure to date

 

Total Budget

Total Expenditure to date

% Total Expenditure to date

Cash Flow Projections to date

Over/Under Expenditure to date

Expenditure as % of Projected Expenditure

R'000

 

 

 

 

 

 

 

Voted Amounts

260025664

55737859

21.44%

60148300

-4410441

92.67%

 

 

 

 

 

 

 

Central Government Administration

34864231

3020644

8.66%

4512283

-1491639

66.94%

The Presidency

255923

45744

17.87%

66962

-21218

68.31%

Parliament

782133

110373

14.11%

127784

-17411

86.37%

Foreign Affairs

3042149

611055

20.09%

827750

-216695

73.82%

Home Affairs

2800405

517633

18.48%

681535

-163902

75.95%

Provincial and Local Government

24903440

947590

3.81%

1744996

-797406

54.30%

Public Works

3080181

788249

25.59%

1063256

-275007

74.14%

 

 

 

 

 

 

 

Financial and Administrative Services

18074778

3737736

20.68%

4132481

-394745

90.45%

Government Communications and Information Services

288037

76066

26.41%

83162

-7096

91.47%

National Treasury

15547945

3247593

20.89%

3578467

-330874

90.75%

Public Enterprises

683457

140148

20.51%

142730

-2582

98.19%

Public Service and Administration

325610

67294

20.67%

62348

4946

107.93%

Public Service Commission

96328

20446

21.23%

24534

-4088

83.34%

S A Management Development Institute

58918

13654

23.17%

14264

-610

95.72%

Statistics South Africa

1074483

172535

16.06%

226976

-54441

76.01%

 

 

 

 

 

 

 

Social Services

90588067

28597749

31.57%

25716245

2881504

111.20%

Arts and Culture

1318476

324227

24.59%

337620

-13393

96.03%

Education

14129233

6701696

47.43%

6916006

-214310

96.90%

Health

11269996

2636613

23.39%

2814279

-177666

93.69%

Labour

1512749

328329

21.70%

374670

-46341

87.63%

Social Development

62005460

18529523

29.88%

15174713

3354810

122.11%

Sport and Recreation South Africa

352153

77361

21.97%

98957

-21596

78.18%

 

 

 

 

 

 

 

Justice and Protection Services

73354334

13419910

18.29%

14916283

-1496373

89.97%

Correctional Services

10630712

1868163

17.57%

2302808

-434645

81.13%

Defence

23830105

3428322

14.39%

3707212

-278890

92.48%

Independent Complaints Directorate

65906

14440

21.91%

15583

-1143

92.67%

Justice and Constitutional Development

6269880

1186391

18.92%

1480131

-293740

80.15%

Safety and Security

32557731

6922594

21.26%

7410549

-487955

93.42%

 

 

 

 

 

 

 

Economic Services and Infrastructure Development

43144254

6961820

16.14%

10871008

-3909188

64.04%

Agriculture

1957648

353356

18.05%

386741

-33385

91.37%

Communications

1280194

132136

10.32%

299825

-167689

44.07%

Environmental Affairs and Tourism

2018053

674822

33.44%

635852

38970

106.13%

Housing

6860883

1432076

20.87%

1455593

-23517

98.38%

Land Affairs

4852196

469199

9.67%

1153956

-684757

40.66%

Minerals and Energy

2548272

353597

13.88%

761547

-407950

46.43%

Science and Technology

2614093

530031

20.28%

835359

-305328

63.45%

Trade and Industry

3665912

445276

12.15%

1228719

-783443

36.24%

Transport

12870458

1851798

14.39%

3100380

-1248582

59.73%

Water Affairs and Forestry

4476545

719529

16.07%

1013036

-293507

71.03%

 

Table 3 illustrates that 31 Departments spent less than they had predicted and 3[1] spent more than what they had planned to spend during the first quarter of the 2006/07 financial year. Six departments spent less than 60% based on the cash flow projections provided by National Treasury. These are the Departments of Provincial and Local Government, Communications, Land Affairs, Trade and Industry, Transport, and Minerals and Energy.

 

2. Current Expenditure

 

Table 4 represents Departments’ overall Current Expenditure for the first quarter of the 2006/07 financial year. Departments’ spent on average 19.70% of their Current budgets during the first 3 months. They spent on average 5.95% of their Current budgets during April, 6.72% during May and 7.03% during June. During the first 3 months of the 2005/06 financial year Departments spent on average 21.2% of its current budgets.

 

Table 4: Current Expenditure to date

 

Total Current Budget

Current Expenditure for June

% Current Expenditure for the month

Current Expenditure to date

% Current Expenditure to date

R'000

 

 

 

 

 

 

Voted Amounts

81424542

5723531

7.03%

16036692

19.70%

 

 

 

 

 

 

Central Government Administration

6401952

576345

9.00%

1271229

19.86%

The Presidency

223239

14287

6.40%

38247

17.13%

Parliament

601352

63062

10.49%

107989

17.96%

Foreign Affairs

2158818

208774

9.67%

426813

19.77%

Home Affairs

1844348

145074

7.87%

366758

19.89%

Provincial and Local Government

322600

23877

7.40%

60475

18.75%

Public Works

1251595

121271

9.69%

270947

21.65%

 

 

 

 

 

 

Financial and Administrative Services

4205417

248415

5.91%

731172

17.39%

Government Communications and Information Services

192937

9801

5.08%

41084

21.29%

National Treasury

2427774

146773

6.05%

413499

17.03%

Public Enterprises

101905

7352

7.21%

19873

19.50%

Public Service and Administration

323027

23702

7.34%

62213

19.26%

Public Service Commission

94654

7163

7.57%

20235

21.38%

S A Management Development Institute

33466

2657

7.94%

6913

20.66%

Statistics South Africa

1031654

50967

4.94%

167355

16.22%

 

 

 

 

 

 

Social Services

3189475

216315

6.78%

555031

17.40%

Arts and Culture

232999

42450

18.22%

105578

45.31%

Education

575864

26284

4.56%

70024

12.16%

Health

808864

38123

4.71%

107793

13.33%

Labour

1117202

83560

7.48%

202077

18.09%

Social Development

277304

18123

6.54%

52856

19.06%

Sport and Recreation South Africa

177242

7775

4.39%

16703

9.42%

 

 

 

 

 

 

Justice and Protection Services

59801679

4340245

7.26%

12143545

20.31%

Correctional Services

9234476

679003

7.35%

1776857

19.24%

Defence

14896326

1047197

7.03%

2845356

19.10%

Independent Complaints Directorate

64034

3854

6.02%

13838

21.61%

Justice and Constitutional Development

5007839

305739

6.11%

833783

16.65%

Safety and Security

30599004

2304452

7.53%

6673711

21.81%

 

 

 

 

 

 

Economic Services and Infrastructure Development

7826019

342211

4.37%

1335715

17.07%

Agriculture

882202

47909

5.43%

127615

14.47%

Communications

304320

21052

6.92%

62031

20.38%

Environmental Affairs and Tourism

615129

32219

5.24%

117131

19.04%

Housing

373512

15887

4.25%

33535

8.98%

Land Affairs

990648

55940

5.65%

149290

15.07%

Minerals and Energy

534923

33846

6.33%

88601

16.56%

Science and Technology

180770

18238

10.09%

46010

25.45%

Trade and Industry

769869

55020

7.15%

113610

14.76%

Transport

538852

-161948

-30.05%

105194

19.52%

Water Affairs and Forestry

2635794

224048

8.50%

492698

18.69%

 

Table 5 illustrates Departments’ with the highest current expenditure at the end of the first quarter.

 

Table 5: Highest Current Expenditure to date

 

Total Current Budget

Current Expenditure for June

% Current Expenditure for the month

Current Expenditure to date

% Current Expenditure to date

R'000

 

 

 

 

 

 

Arts and Culture

232999

42450

18.22%

105578

45.31%

Science and Technology

180770

18238

10.09%

46010

25.45%

Safety and Security

30599004

2304452

7.53%

6673711

21.81%

Public Works

1251595

121271

9.69%

270947

21.65%

Independent Complaints Directorate

64034

3854

6.02%

13838

21.61%

 

The Department of Arts and Culture spent by far the highest portion of their Current budget at the end of June (45.31%). The second highest spending Department is Science and Technology (25.45%). During the 2005/06 financial year Arts and Culture spent 109.24% of its Current budget; Science and Technology 106.25%; Safety and Security 97.98%; Public Works 103.83%; and the Independent Complaints Directorate 97.21%.

 

 

Table 6 illustrates Departments’ with the lowest current expenditure at the end of the first quarter.

 

Table 6: Lowest Current Expenditure to date

 

Total Current Budget

Current Expenditure for June

% Current Expenditure for the month

Current Expenditure to date

% Current Expenditure to date

R'000

 

 

 

 

 

 

Housing

373512

15887

4.25%

33535

8.98%

Sport and Recreation South Africa

177242

7775

4.39%

16703

9.42%

Education

575864

26284

4.56%

70024

12.16%

Health

808864

38123

4.71%

107793

13.33%

Agriculture

882202

47909

5.43%

127615

14.47%

 

The Department of Housing spent the lowest share of their Current budget (8.98%). The second lowest spender was Sport and Recreation South Africa, which spent 9.42% of its Current budget. During the 2005/06 financial year the Department of Housing spent 89.95% of its Current budget; Sport and Recreation South Africa 261.83%; Education 98.12%; Health 81.19%; and Agriculture 81.73%.


3. Transfer Payments

 

Table 7 represents Departments’ overall Transfer expenditure for the first quarter of the 2006/07 financial year. Departments’ spent on average 22.66% of their Transfer budgets during the first 3 months. They spent on average 7.8% of their Transfer budgets during April, 7.6% during May and 7.26% during June.

 

Table 7: Transfer Payments to date

 

Total Transfer Budget

Transfers Expenditure for June

% Transfer Expenditure for the month

Transfers Expenditure to date

% Transfer Expenditure to date

R'000

Voted Amounts

172625097

12534970

7.26%

39111755

22.66%

 

 

 

 

 

 

Central Government Administration

26832308

636522

2.37%

1668539

6.22%

The Presidency

26407

588

2.23%

7371

27.91%

Parliament

158061

0

0.00%

0

0.00%

Foreign Affairs

485579

100103

20.62%

170064

35.02%

Home Affairs

361169

729

0.20%

129109

35.75%

Provincial and Local Government

24574782

423170

1.72%

886638

3.61%

Public Works

1226310

111932

9.13%

475357

38.76%

 

 

 

 

 

 

Financial and Administrative Services

13806165

1177456

8.53%

2997448

21.71%

Government Communications and Information Services

93083

23

0.02%

34278

36.83%

National Treasury

13107620

1053726

8.04%

2833028

21.61%

Public Enterprises

581086

120015

20.65%

120041

20.66%

Public Service and Administration

409

1611

393.89%

3918

957.95%

Public Service Commission

92

38

41.30%

41

44.57%

S A Management Development Institute

23063

1950

8.46%

5850

25.37%

Statistics South Africa

812

93

11.45%

292

35.96%

 

 

 

 

 

 

Social Services

87328400

8279339

9.48%

28035327

32.10%

Arts and Culture

1080681

60563

5.60%

218649

20.23%

Education

13546832

844195

6.23%

6629915

48.94%

Health

10433090

790485

7.58%

2525565

24.21%

Labour

372945

7594

2.04%

125585

33.67%

Social Development

61722516

6573855

10.65%

18475028

29.93%

Sport and Recreation South Africa

172336

2647

1.54%

60585

35.16%

 

 

 

 

 

 

Justice and Protection Services

9846694

516666

5.25%

861374

8.75%

Correctional Services

32348

3674

11.36%

11311

34.97%

Defence

8635529

403618

4.67%

545663

6.32%

Independent Complaints Directorate

72

9

12.50%

24

33.33%

Justice and Constitutional Development

803017

79239

9.87%

221208

27.55%

Safety and Security

375728

30126

8.02%

83168

22.14%

 

 

 

 

 

 

Economic Services and Infrastructure Development

34811530

1924987

5.53%

5549067

15.94%

Agriculture

1042387

64530

6.19%

209338

20.08%

Communications

968884

65073

6.72%

68788

7.10%

Environmental Affairs and Tourism

1388862

84419

6.08%

551151

39.68%

Housing

6483438

525174

8.10%

1398014

21.56%

Land Affairs

3806189

153994

4.05%

317423

8.34%

Minerals and Energy

2008633

54146

2.70%

264688

13.18%

Science and Technology

2299469

116919

5.08%

474141

20.62%

Trade and Industry

2887190

148306

5.14%

330237

11.44%

Transport

12293670

646213

5.26%

1745837

14.20%

Water Affairs and Forestry

1632808

66213

4.06%

189450

11.60%

 

Table 8 illustrates Departments’ with the highest Transfer expenditure at the end of the first quarter.

 

Table 8: Highest Transfer Expenditure to date

 

Total Transfer Budget

Transfers Expenditure for June

% Transfer Expenditure for the month

Transfers Expenditure to date

% Transfer Expenditure to date

R'000

 

 

 

 

 

 

Public Service and Administration

409

1611

393.89%

3918

957.95%

Education

13546832

844195

6.23%

6629915

48.94%

Public Service Commission

92

38

41.30%

41

44.57%

Environmental Affairs and Tourism

1388862

84419

6.08%

551151

39.68%

Public Works

1226310

111932

9.13%

475357

38.76%

 

Public Service and Administration spent the highest percentage of their Transfer budget (957.95%). The Department of Education spent the second highest share of its Transfer Budget (48.94%). At the end of the 2005/06 financial year Public Service and Administration spent 87.35% of its Transfer budget, Education 98.78%, Public Service Commission 0.5%, Environmental Affairs and Tourism 100%, and Public Works only 98.95%.

 

Table 9 illustrates Departments’ with the lowest Transfer expenditure at the end of the first quarter.

 

Table 9: Lowest Transfer Expenditure to date

 

Total Transfer Budget

Transfers Expenditure for June

% Transfer Expenditure for the month

Transfers Expenditure to date

% Transfer Expenditure to date

R'000

 

 

 

 

 

 

Parliament

158061

0

0.00%

0

0.00%

Provincial and Local Government

24574782

423170

1.72%

886638

3.61%

Defence

8635529

403618

4.67%

545663

6.32%

Communications

968884

65073

6.72%

68788

7.10%

Land Affairs

3806189

153994

4.05%

317423

8.34%

 

Parliament spent none of its Transfer budget (0%), while the Department of Provincial and Local Government spent 3.61% of its Transfer budget. During the 2005/06 financial year the Parliament spent 89.95% of its Transfer budget, Provincial and Local Government 100%, Defence 100.73%, Communications 101.1%, Land Affairs only 69.52%.

 

4. Capital Expenditure

 

Table 10 represents Departments’ overall Capital expenditure for the first quarter of the 2006/07 financial year. Departments’ spent on average 9.86% of their Capital budgets during the first 3 months. They spent on average 3% of their Capital budgets during April, 3.16% during May and 3.7% during June. Average departmental spending on Capital budgets is much lower than Current and Transfer expenditure.

 

Table 10: Capital Expenditure to date

 

Total Capital Budget

Capital Expenditure for June

% Capital Expenditure for the month

Capital Expenditure to date

% Capital Expenditure to date

R'000

Voted Amounts

5976025

221107

3.70%

589412

9.86%

 

 

 

 

 

 

Central Government Administration

1629971

53366

3.27%

80876

4.96%

The Presidency

6277

21

0.33%

126

2.01%

Parliament

22720

1720

7.57%

2384

10.49%

Foreign Affairs

397752

7653

1.92%

14178

3.56%

Home Affairs

594888

4823

0.81%

21766

3.66%

Provincial and Local Government

6058

251

4.14%

477

7.87%

Public Works

602276

38898

6.46%

41945

6.96%

 

 

 

 

 

 

Financial and Administrative Services

63196

3245

5.13%

9116

14.42%

Government Communications and Information Services

2017

193

9.57%

704

34.90%

National Treasury

12551

141

1.12%

1066

8.49%

Public Enterprises

466

146

31.33%

234

50.21%

Public Service and Administration

2174

581

26.72%

1163

53.50%

Public Service Commission

1582

162

10.24%

170

10.75%

S A Management Development Institute

2389

353

14.78%

891

37.30%

Statistics South Africa

42017

1669

3.97%

4888

11.63%

 

 

 

 

 

 

Social Services

70192

2895

4.12%

7391

10.53%

Arts and Culture

4796

0

0.00%

0

0.00%

Education

6537

1621

24.80%

1757

26.88%

Health

28042

576

2.05%

3255

11.61%

Labour

22602

168

0.74%

667

2.95%

Social Development

5640

503

8.92%

1639

29.06%

Sport and Recreation South Africa

2575

27

1.05%

73

2.83%

 

 

 

 

 

 

Justice and Protection Services

3705961

132085

3.56%

414991

11.20%

Correctional Services

1363888

21057

1.54%

79995

5.87%

Defence

298250

17821

5.98%

37303

12.51%

Independent Complaints Directorate

1800

118

6.56%

578

32.11%

Justice and Constitutional Development

459024

41110

8.96%

131400

28.63%

Safety and Security

1582999

51979

3.28%

165715

10.47%

Economic Services and Infrastructure Development

506705

29516

5.83%

77038

15.20%

Agriculture

33059

11160

33.76%

16403

49.62%

Communications

6990

612

8.76%

1317

18.84%

Environmental Affairs and Tourism

14062

216

1.54%

6540

46.51%

Housing

3933

152

3.86%

527

13.40%

Land Affairs

55359

1519

2.74%

2486

4.49%

Minerals and Energy

4716

178

3.77%

308

6.53%

Science and Technology

133854

38

0.03%

9880

7.38%

Trade and Industry

8853

826

9.33%

1429

16.14%

Transport

37936

215

0.57%

767

2.02%

Water Affairs and Forestry

207943

14600

7.02%

37381

17.98%

 

Table 11 illustrates Departments’ with the highest Capital expenditure at the end of the first quarter.

 

Table 11: Highest Capital Expenditure to date

 

Total Capital Budget

Capital Expenditure for June

% Capital Expenditure for the month

Capital Expenditure to date

% Capital Expenditure to date

R'000

Public Service and Administration

2174

581

26.72%

1163

53.50%

Public Enterprises

466

146

31.33%

234

50.21%

Agriculture

33059

11160

33.76%

16403

49.62%

Environmental Affairs and Tourism

14062

216

1.54%

6540

46.51%

S A Management Development Institute

2389

353

14.78%

891

37.30%

 

The Department of Public Service and Administration spent the highest percentage of their Capital budget at the end of the first quarter (53.50%). Public Enterprises spent the second highest share of its Capital Budget (50.21%). At the end of the 2005/06 financial year Public Service and Administration spent 157.9% of its Capital budget, Public Enterprises 180.08%, Agriculture 222.37%; Environmental Affairs and Tourism spent 100.64%, and South African Management Development Institute 133.39%. All of the top 5 spending Departments’ at the end of the first quarter of the 2006/07 financial year overspent their Capital budgets during the 2005/06 financial year.

 

Table 12 illustrates Departments’ with the lowest Capital expenditure at the end of the first quarter.

 

Table 12: Lowest Capital Expenditure to date

 

Total Capital Budget

Capital Expenditure for June

% Capital Expenditure for the month

Capital Expenditure to date

% Capital Expenditure to date

R'000

Arts and Culture

4796

0

0.00%

0

0.00%

The Presidency

6277

21

0.33%

126

2.01%

Transport

37936

215

0.57%

767

2.02%

Sport and Recreation South Africa

2575

27

1.05%

73

2.83%

Labour

22602

168

0.74%

667

2.95%


The Department of Arts and Culture spent none of its Capital budget (0%), while the Presidency spent 0.33% of its Capital budget. During the 2005/06 financial year the Department of Arts and Culture only spent 1.86% of its Capital budget, The Presidency 206.74%, Transport 186.84%; Sport and Recreation South Africa 214.39%; and Labour 85.67%.

 

5. Conclusion

 

Departments spent on average 19.70% of their current budgets, 22.66% of their transfer budgets and 9.86 % of their capital budgets during the first quarter of the 2006/07 financial year. This translates to a total expenditure of R55.7 billion (21.44%). Based on the cash flow projections provided by National Treasury 31 Departments spent less than they predicted they were going to spend and 3 spent more than what they planned to spend during the first quarter.

 

Sources

 

·         Statements of National and Provincial Revenue, Expenditure and Borrowing, April 2006, National Treasury.

·         Statements of National and Provincial Revenue, Expenditure and Borrowing, May 2006, National Treasury.

·         Statements of National and Provincial Revenue, Expenditure and Borrowing, June 2006, National Treasury.

·         Cash Flow projections 2006/07 financial year.

 



[1] The 3 departments that spent more that what they planned to spend are Public Service and Administration, Social Development, and Environmental Affairs and Tourism