28 August 2007
JOINT BUDGET COMMITTEE:
EXPENDITURE REPORT
FIRST QUARTER 2007/08: DRAFT 3
INTRODUCTION
In pursuing the
ideal of building a democratic society through reconciliation and
socio-economic transformation, the challenge for government has been how to
optimally align and utilize the nations resources. It
is the responsibility of Parliament, as the guardian of the public interest, to
ensure that government is responsive to the needs of the people. To accomplish
this Parliament has established a variety of mechanisms and instruments,
predominately various specialized committees, to effectively monitor government
spending plans and performance.
The Joint Budget Committee (JBC) was established to, amongst other
things, monitor and report on government expenditure as provided in reports
published by Treasury in terms of Section 32 of the Public Finance Management
Act. The JBC has reviewed and reported on departmental spending on a quarterly
basis. In accordance with this practice, this report provides an analysis of
departments’ expenditure for the first quarter of the 2007/08 financial year.
The report is divided into two substantial sections. The first section
includes a general analysis of spending in terms of the economic
classifications of total, current, transfer and capital expenditure and in so
doing highlights instances of atypical departmental expenditure. The second
expands of these observations and examines spending in selected Departments.
SECTION ONE: REVIEW OF FIRST QUARTER EXPENDITURE
1. TOTAL EXPENDITURE
Total expenditure, consisting of current expenditure, transfer payments
and capital expenditure for the national and provincial spheres for the 2007/08
financial year is estimated at R530 billion - representing an increase of approximately
R60 billion compared to 2006/07. In the national sphere, that is excluding the
provincial equitable share, the estimate is reduced to R 261 billion. By the end of
the first quarter of 2007/08, national departments had spent R66.7 billion or
22.33% of the national budget. This compares favourably with the R55.7 billion
or 21.44% noted in the first quarter of the previous financial year.
Table 1
represents Departments’ expenditure at the end of the first quarter.
Table 1:
Departmental Expenditure at the end of the First Quarter
|
R'000 |
Total Budget |
Total
Expenditure |
% Total Exp.
for 1st Quarter |
2006/07 %
First Quarter Exp. |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Voted Amounts |
299,177,741 |
66,792,673 |
22.33% |
21.44% |
9.10% |
7.29% |
5.93% |
|
|
|
|
|
|
|
|
|
|
|
|
Central Government
Administration |
40,798,702 |
3,710,326 |
9.09% |
8.66% |
2.32% |
3.17% |
3.63% |
|
|
The Presidency |
254,741 |
50,761 |
19.93% |
17.87% |
7.00% |
5.96% |
6.97% |
|
|
Parliament |
835,714 |
146,516 |
17.53% |
14.11% |
9.05% |
3.72% |
4.75% |
|
|
Foreign Affairs |
3,856,363 |
584,857 |
15.17% |
20.09% |
1.47% |
3.95% |
9.75% |
|
|
Home Affairs |
3,314,589 |
491,638 |
14.83% |
18.48% |
4.37% |
6.42% |
4.04% |
|
|
Provincial and Local
Government |
28,844,175 |
1,560,021 |
5.41% |
3.81% |
1.86% |
1.77% |
1.81% |
|
|
Public Works |
3,693,120 |
876,533 |
23.73% |
25.59% |
3.17% |
10.03% |
10.53% |
|
|
|
|
|
|
|
|
|
|
|
|
Financial and
Administrative Services |
22,782,011 |
5,801,692 |
25.47% |
20.68% |
7.96% |
11.82% |
5.68% |
|
|
Government Communications
and Information Services |
375,812 |
115,326 |
30.69% |
26.41% |
20.56% |
6.41% |
3.72% |
|
|
National Treasury |
19,708,178 |
4,333,375 |
21.99% |
20.89% |
4.82% |
12.21% |
4.96% |
|
|
Public Service and
Administration |
357,283 |
74,132 |
20.75% |
20.67% |
6.33% |
5.63% |
8.79% |
|
|
Public Service Commission
|
105,357 |
23,079 |
21.91% |
21.23% |
7.13% |
8.25% |
6.52% |
|
|
S A Management
Development Institute |
71,126 |
16,720 |
23.51% |
23.17% |
7.19% |
8.53% |
7.79% |
|
|
Statistics South Africa |
1,100,289 |
187,469 |
17.04% |
16.06% |
4.40% |
5.65% |
6.99% |
|
|
|
|
|