Report of the Joint Budget Committee on
Expenditure
First
Quarter, 2008/09 Financial Year - dated 14 August 2008
The Joint Budget Committee (JBC), having considered
Government expenditure for the first quarter of the 2008/09 financial year,
reports as follows:
INTRODUCTION
This report examines
departments’ expenditure for the first quarter of the 2008/09 financial year,
April to June, and makes a number of findings and recommendations. In
conducting oversight the Committee called on National Treasury as well as the
departments of Public Works and Communications to engage on expenditure during
the quarter.
National Government managed to increase
its aggregate expenditure in the first quarter of 2008/09 compared to the same
period last year. Spending relative to the budget nevertheless remained the
same at approximately 23 per cent. In terms of the economic
classifications, national departments spent 20.8 per cent of the current
budget, 23 per cent on transfers and subsidies and 17.6 per cent of the available
capital budget during the quarter.
The President, in the State of the Nation Address 2008, articulated the need
for Business Unusual. This was understood to mean that government departments
and agencies must take extra-ordinary measures to improve planning, budgeting
and implementation; and to accelerate service delivery. In this context the
Committee was disappointed that departmental expenditure patterns, especially
expenditure against allocated budgets, were similar to previous years. This
suggests that many departments have not fully taken account of, or responded
to, the urgency implicit in the President’s address. It is imperative that departmental spending is accelerated and used with maximum effectiveness
and efficiency in order to meet government’s socio-economic objectives.
It should again be
emphasized that, while
the Committee is able through its oversight activities to establish reasons for
certain expenditures, it is nevertheless important that spending levels in all
departments and sectors, and the associated outputs and outcomes, are closely
examined. This is important as aggregate expenditures frequently mask
under-spending in specific programmes and sub-programmes.
In response to a JBC recommendation
that the content of Section 32 Reports, published in terms of the Public
Finance Management Act (PFMA, be revised and expanded, National Treasury
proposed the introduction of a Quarterly National Programme and Economic
Classification Report in the 2008/09 financial year. The first Quarterly
National Programme and Economic Classification Report was duly submitted at the
end of July 2008, and discussed with National Treasury on 01 August 2008. The
introduction of this report will assist Parliament to scrutinize departmental
financial management and performance more
closely going forward.
Given that “in-year” monitoring and reporting practices are still being
developed, however, further engagements with National Treasury on the content
and format of these reports are envisaged.
1. TOTAL EXPENDITURE
The Appropriation Act
2008 allocated R605.1 billion for the 2008/09 financial year – R345.3 billion
for national departments and R259.8 for direct charges against the National
Revenue Fund. By the end of the first quarter departments spent approximately
R139.2 billion or 23 per cent of the appropriation, R76.7 billion of the
appropriated funds and R62 billion for direct charges. As mentioned, whereas
total aggregate expenditure grew compared
to the same period in 2007/08, the level of spending relative to the
budget remained constant. National departments spent R20.8 billion or 20.8 per
cent of the available current budget, R54.6 billion or 23 per cent of the
budget for transfers and subsidies and R1.3 billion or 17.6 per cent of the
available capital budget.
Table 1: First Quarter
Expenditure by Economic Classification
|
|
Available Budget |
Actual Expenditure |
|
|
|
99.865.319 |
20.814.663 |
20.8% |
|
|
237.955.448 |
54.635.233 |
22.96% |
|
|
7.486.800 |
1.313.995 |
17.55% |
|
|
345.307.566 |
76.763.890 |
22.2% |
|
Direct Charges |
259.788.340 |
|
24.0% |
|
|
605.095.906 |
139.228.463 |
23.0% |
R thousand
Departments that recorded the lowest level of expenditure relative to their
total budgets included Provincial and Local Government, Communications, Foreign
Affairs and the Public Services and Administration. These departments all spent
comparatively less in the first quarter compared to the previous year. Of particular
concern, however, are departments that spent considerably less than their
year-to-date benchmark[1]
i.e. less than they had planned for the quarter. The reasons for these spending
levels are examined in subsequent sections.
Table 2: Highest Variance
between YTD Benchmark and Actual Expenditure
|
Departments |
Total Budget |
Actual Expenditure |
|
|
|
|
3.007.862 |
925.598 (30.7%) |
51.9% |
|
|
|
1.723.605 |
175.248 (10.2%) |
31.2% |
|
|
|
4.340.708 |
586.777 (13.52%) |
30.7% |
|
|
Agriculture |
2.534.671 |
|
35.76% |
|
|
Public Services and Administration |
412.306 |
|
23.9% |
|
R thousand
2. CURRENT PAYMENTS
The total current budget in national departments for 2008/09 was R 99.8
billion, an increase of approximately R10 billion compared to 2007/08. Of this
amount, R61 billion was appropriated for compensation of employees or
personnel, and R38 billion for goods and services. By the end of the first quarter
departments spent approximately R 20.8 billion, or 20.8 per cent, of the
available budget: R13.9 billion or 22 per cent for compensation and R6.8
billion or 18 per cent for goods and services.
Current expenditure is categorized into two main components, namely:
Compensation of Employees or Personnel and Goods and Services. Further
subcategories are Interest and Rent, Financial Transactions and Unauthorized
Expenditure – see Table 3 below. While aggregate expenditure increased from the
last financial year, spending relative to the budget remained similar for the
major subcategories.
Table 3: Total Current Payments
|
|
Total Budget |
|
|
|
Compensation of Employees |
61.726.207 |
13.932.448 |
|
|
Goods and Services |
38.138.308 |
6.876.696 |
|
|
Interest and Rent of Land |
804 |
67 |
|
|
Financial Transactions and |
- |
3.439 |
|
|
Unauthorized Expenditure |
- |
13 |
|
R thousand
Spending on Interest and Rent on Land declined sharply from
previous years due to under-spending at the Department of Water Affairs and
Forestry (DWAF). The Committee has made further enquires in this regard and is
awaiting explanations. The R3.4 million spent on Financial
Transactions was due to thefts, losses and other irregular expenditures which could not
be estimated. The Committee believes that these expenditures may be incorrectly
classified. The Committee intends pursuing this issue, and identifying the
departments in question. The Unauthorized Expenditure of R13 thousand occurred because
of an incorrect allocation in the Department of Public Services and Administration (DPSA).
According to the DPSA, this amount should have been recorded as fruitless and
wasteful expenditure.
The accuracy of cash flow projections and spending benchmarks notwithstanding,
current expenditure, and specifically compensation of employees, should be
relatively constant and predictable at around 25 per cent every quarter.
Departments which recorded the lowest current expenditure relative to their
budgets included Foreign Affairs, Sports and Recreation, Housing, Water Affairs
and Forestry and Defence – see Table 4 below. In terms of personnel
expenditure, the
South African Management Development Institute (SAMDI) and Statistics South
Africa (StatsSA) as well as the departments of Communications, Home Affairs,
and Public Enterprises all spent below 20 per cent of their available
funds.
Table 4: Lowest Current
Expenditure as a Percentage of Budget Allocation
|
|
Total Budget |
Actual Expenditure |
|
|
Foreign Affairs |
2.980.867 |
330.740 |
|
|
Sports and Recreation |
254.798 |
30.414 |
|
|
Housing |
497.429 |
70.616 |
|
|
Water Affairs and Forestry |
3.786.771 |
603.572 |
|
|
Defence |
18.050.911 |
3.426.589 |
|
R thousand
The level of current spending against the
budget is an indication of capacity shortcomings and suggests that departments
will again make substantial shifts and virements during the adjustments budget.
As highlighted in previous reports, this is a persistent and negative trend
that is ultimately indicative of weak human resource and financial planning. In this
regard, the Committee welcomes
the undertaking that the amounts identified for efficiency savings in the
forthcoming Budget 2009/10 will take account of vacancy rates and spending on
personnel.
The Department of Foreign Affairs (DFA) spent R330.7 million or
11 per cent of its allocated current budget, with under-spending in both
compensation and goods and services.
According to information made available to the Committee, however, this
does not represent an accurate reflection of the department’s current balance
as advances paid to foreign missions for their monthly expenditure are paid
from suspense accounts. Expenditure is then only recorded once mission accounts
interface with the Basic Accounting System (BAS) at head office. To ensure
accurate monitoring and facilitate oversight, measures are ultimately required
to resolve this problem[2].
Of immediate concern is the fact that, given the low level of current
expenditure, there is again a possibility of substantial virements from
compensation of employees during the adjustments budget as was the case in
previous years.
The Department of Sports and
Recreation South Africa (SRSA) spent R 30.4 million or 12 per cent its
current budget during the quarter. Of this amount, R12 million was for
compensation of employees and R17 million, or nine per cent of the available
budget, for goods and services. While the SRSA’s aggregate expenditure only
deviated by five per cent from the approved drawings for the quarter, the
departmental vacancy rate of 45 per cent, as reflected in the latest SRSA
Annual Report[3], represents an ongoing risk.
The Department of Housing (DoH) spent R70.6 million or 14.2 per cent of its
allocated current budget. Of this amount, R26.7 million or 20 per cent was for
personnel and R43 million or 12 per cent for goods and services. Given capacity
challenges in department and the sector, and the impact this has on effective
expenditure and service delivery, the Committee expects a notable reduction in
vacancies through the year. Improvements are also required in monitoring and
intergovernmental co-ordination.
3. TRANSFERS
AND SUBSIDIES
The total transfer budget in the national sphere amounted to R238 billion,
an increase of approximately R35 billion compared to 2007/08. By the end of the
first quarter, departments spent R54 billion or 23 per cent of this amount.
This represents an improvement of approximately R7 billion in terms of
aggregate expenditure compared to 2007/08. Year-on-year spending nevertheless
remained similar across most subcategories with the exception of transfers to
public corporations and entities, which rose from 11.7 per cent in 2007/08 to
26.3 per cent in 2008/09, and transfers to foreign Governments and
organizations, which fell from 30.3 per cent in 2007/08 to 6.9 per cent for
this year.
Table 5: Total Payments for
Transfers and Subsidies
|
Receiving Entities |
Total Budget |
|
|
|
Provinces and Municipalities |
80.602.845 |
14.173.060 |
|
|
Dept. Agencies and Accounts |
42.527.998 |
9.190.742 |
|
|
Universities and Technikons |
13.586.474 |
6.908.200 |
|
|
Public Corporations and Enterprises |
18.889.723 |
4.965.575 |
|
|
Foreign Governments and
Organizations |
979.350 |
66.947 |
|
|
Non-Profit Institutions |
1.685.267 |
250.892 |
|
|
|
79.683.791 |
19.079.818 |
|
R thousand
Transfers and subsidies include all unrequited payments made by departments or
entities[4]. Both current and capital transfers are
included in this item. Transfers and subsidies remain the single largest
economic classification and it is therefore imperative that Parliament, and the
Committee in particular, is able to monitor and oversee the manner in which these
funds are utilized.
A substantial portion of the
transfer budget, approximately R80.6 billion, was allocated for departmental
grants to provinces and municipalities. Of this amount, R38.7 billion was
allocated for the provinces. By June 2008, departments had transferred R10
billion (excluding Schedule 4 Grants) or 25 per cent of the available budget.
Specific grants that showed a low rate of spending included the Community
Library Services Grant at 5.9 per cent, the Land Care Programme at 6.5 per cent,
HIV and AIDS (Life skills Education) at 9.8 per cent and the Mass Sport and
Recreation Participation Programme at 10.1 per cent. Many of these grants were
not fully utilized last year.
Departments transferred R9 billion or 21.6 per cent of the R42 billion
appropriated for departmental agencies and accounts and R4.9 billion or 26.3
per cent of the R18 billion earmarked for public corporations and
enterprises. A number of
departments reported delays in payments to agencies and enterprises. These
included Public Works, Social Development, Sports and Recreation, Agriculture,
Housing, Minerals and Energy, Trade and Industry, Public Enterprises and
Communications.
The departments of Communications
and Public Enterprises (DPE) recorded the highest variances between actual and
projected expenditure during the first quarter – as noted in the Table 2 – by
approximately 21 per cent. With
the Department of Communications (DoC) slow expenditure was attributed to
delayed transfers to Sentech, the South Africa Post Office Ltd. (SAPO) and the
Universal Service Agency Fund (USAF). In
its engagement with the Department, the Committee established that transfers to
Sentech had been withheld pending a more detailed business plan and cash flows statements.
With respect to SAPO Ltd, delays were due to concerns over expenditure patterns
and repeated roll-overs. DoC had reportedly met with SAPO to address these
issues. The Committee also noted a lack of co-operation between the Department
and the Auditor
General (AG) which has resulted in disagreements over the accuracy of certain
audit findings[5]. Such disagreements are
unacceptable and should be the subject of further enquiries by the relevant
parliamentary committees.
In general, the financial sustainability and performance of the State-Owned
Enterprises (SOEs) remains a concern. A special adjustments budget was
introduced during the course of last year to deal with financial pressures
experienced by a number of SOEs. If such interventions are to be minimized,
urgent measures are needed to improve operations and reduce risks associated
with these enterprises. The Committee has taken cognizance of the restructuring
at the South African Airways (SAA) and the Land Bank.
The low level of spending on transfers to Foreign Governments
and Organizations was mainly due to cash flow constraints in the Department of
Foreign Affairs (DFA) and lower than anticipated transfers from National
Treasury. The DFA funded the
construction of a new head office during the quarter and consequently held back
transfers until additional funds can be drawn. In the case of National
Treasury, there were lower than expected transfers on the Common Monetary
Agreement Payment and the African Development Bank. Although low transfers will
not necessary translate into under-expenditure, the Committee has taken
cognizance of the fact that National Treasury has recorded significant
under-spending in the past.
Given the evident operating and delivery challenges in many provinces, public
agencies and entities, it is critical that transfers are made as planned; undue
delays can have a serious impact of public services. It is, however, imperative
that National Treasury and the relevant departments ensure the funds are not
transferred without the requisite assurances and implementation plans. The
cases highlighted will be assessed again during the second quarter.
4. CAPITAL
PAYMENTS
The total 2008/09 Appropriation for capital in the national sphere
was R7.5 billion, an increase of approximately R900 million compared to
2007/08. By the end of the first quarter, departments spent R1.3 billion or
17.5 per cent of the available budget.
While capital expenditure remains lower than other economic classifications,
17.5 per cent represents a significant improvement compared to the same period
last year when only 11.1 per cent was spent. This was the result of improved
spending in the two largest capital subcategories, namely Buildings and
Structures and Machinery and Equipment.
Capital budgets are comprised of Buildings and Structures, Machinery and
Equipment, Cultivated Assets, Software and other Intangible Assets and Land and
Subsoil Assets.
Table 6: Total Capital Payments
|
|
Total Budget |
|
|
|
Buildings and Structures |
3.900.603 |
778.209 |
|
|
Machinery and Equipment |
2.546.845 |
283.840 |
|
|
Cultivated Assets |
625 |
1.391 |
|
|
Software and intangible Assets |
186.054 |
2.793 |
|
|
Land and subsoil Assets |
852.673 |
247.761 |
|
R thousand
While increased spending during the first quarter is a
positive development, and points to enhanced departmental planning and
capacity, capital expenditure is again likely to accelerate dramatically
through the year. Over the past several years the trend has been for
departments to spend around 50 per cent of their capital budgets during the
last three months.
As in previous years, there were again large variances between the departments
in capital spending. Of the 34 departments, seven spent more than 30 per cent
of their total capital budgets, while eight spent less than 10 per cent. Departments
which recorded the lowest capital expenditure relative to their total budgets
included Arts and Culture, Transport, Labour, Environmental Affairs and Tourism
and Agriculture.
Table 7: Lowest Capital Expenditure as a
Percentage of Budget Allocation
|
|
Total Budget |
|
|
|
Arts and Culture |
5.409 |
2 |
|
|
Transport |
42.290 |
1.114 |
|
|
Labour |
44.714 |
1.196 |
|
|
|
|
|
|
|
Environmental Affairs and Tourism |
14.323 |
992 |
|
R
thousand
Three of
the five, namely Arts and Culture, Transport and Labour, under-spent on capital
for 2007/08. The
continuing low levels of capital expenditure are therefore cause for concern
and should be the subject of closer scrutiny.
The Department of Transport (DoT) spent R1 million, or 2.6 per cent of its
capital budget during the quarter. R38.7 million budgeted for the
The Department of Public Works (DPW) managed to spend R120 million or 11
per cent of its allocated capital during the quarter. In the Committee’s
engagement with the DPW,
the Department highlighted that this was a considerable improvement compared
to the first quarter of last year when only 5 per cent of available funds was
utilized. Increased
expenditure was attributed to reforms in the department’s procurement strategy.
The Committee also welcomed the DPW’s initiative to enter into memoranda of
understanding with other line departments to strengthen inter-departmental
co-operation – identified as a challenge in previous Committee reports.
Notwithstanding these developments, the Committee was cautious over the
expected expenditure spike in February – reportedly due to delayed invoicing
and payments to construction companies. Delayed payments have the potential to adversely affect suppliers
and small business. Asset management in the department also
remains a serious challenge.
The unusually high expenditure of 222 per cent under Cultivated Assets[6]
was attributed to the higher than anticipated demand for police dogs and horses
by the South African Police Services (SAPS). The SAPS budgeted R625 thousand
for these acquisitions although demand exceeded expectations by approximately
R700 thousand.
5. FINDINGS
First quarter spending again suggests poor planning on the part of certain
departments, highlighted by the variances between actual spending and year-to-date
benchmarks. In addition, whereas spending aggregates have generally improved,
under-spending was evident in a number of programmes. These rather typical
spending patterns are disappointing given the imperative of Business Unusual.
The Committee intends calling the respective executive authorities to explain
planning and expenditure deficiencies.
Vacancies
continue to have a negative impact on budgeting and service delivery. Departments must
therefore make every effort to fill vacant posts before the end of the second
financial quarter especially those in senior management – identified by the
President as an Apex Priority. Personnel expenditure in SAMDI, StatsSA as well as
the departments of Communications, Home Affairs and Public Enterprises – all below
20 per cent of available budgets – are of particular concern. The expenditure
challenges arising from the use of suspense accounts in the departments of
Foreign Affairs and Housing must also be addressed.
3. National
departments spent R54.6 billion, or 23 per cent, of the available budget for
transfers and subsidies. Of concern were reported delays in the transfer of
funds to certain entities due to outstanding business plans and service level
agreements. While funds should not be
transferred without the necessary assurances, the Committee is strongly of the
view that business plans should be finalized before the start of each financial
year.
4. The financial sustainability
and performance of the SOEs remains an ongoing concern. In this regard, the Committee has taken
cognizance of the restructuring processes at the South African Airways (SAA) and
the Land Bank. In the case of the Department of
Communications and associated enterprises, the Committee has noted challenges
with the development of new communications infrastructure, a further Apex
Priority. There is a further concern regarding the possible duplication of
functions and financial support given to certain enterprises and projects. The
Committee intends to interrogate these issues during the year.
5 National Government spent R1.3 billion or
17.5 per cent of the available capital budget by June 2008, a considerable
improvement compared to the same period last year. While increased capital expenditure is a positive
development, the Committee believes that there are still serious deficiencies
in departmental planning, management and procurement systems. Government
contracting and procurement must be improved to ensure effective spending and
minimize the impact of complications and delays on suppliers and small
business.
6. RECOMMENDATIONS
Based on its observations and findings the Committee recommends the following:
Given that poor planning remains a chronic problem, National Treasury, in
conjunction with other relevant departments, should prioritise the
consolidation of planning, budgeting and monitoring processes. In particular,
National Treasury should fast track the implementation of Performance Information
Framework.
2. Related to the above,
departments must ensure that objectives and performance indicators, as set out
in their strategic and budgetary statements, are both quantifiable and in
alignment with nationally defined policy priorities.
As raised
in previous reports, capacity constraints have a serious impact on effective budgeting
and service delivery. In this regard, all departments should submit an
assessment of skills required and a recruitment action plan by the end of
September this year – in time for Parliament’s engagement with the Medium-Term
Budget Policy Statement (MTBPS). In addition, the Department of Public
Services and Administration (DPSA) should submit a report to Parliament on
progress with filling senior posts across government.
4. Finally, the further refinement
of the Quarterly National Programme and Economic Classification Report should
be concluded by the end of the second financial quarter. The Report should
include:
a) Additional
explanatory detail on total expenditure for the economic classifications and
subcategories;
b) Details of expenditure flows
through the respective departmental suspense accounts including the amounts in
each account, and;
c) A breakdown of expenditure
related to major infrastructure and capital projects.
Report to be considered.
---------------------------- ------------------------------
Hon Ms LL Mabe (NA) Hon Mr BJ Mkhaliphi (NCOP)
Date: Date:
EXPENDITURE PER VOTE: NATIONAL
|
|
2008/09 |
2007/08 |
||||
|
|
Actual |
Available |
% of
Budget |
Actual |
Available |
% of
Budget |
|
Expenditure
per Vote |
expenditure |
budget |
spent |
expenditure |
budget |
spent |
|
|
(April
- June) |
|
|
(April
- June) |
|
|
|
|
|
|
|
|
|
|
|
R'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
PRESIDENCY |
75,756 |
290,040 |
26.12% |
50,761 |
254,741 |
19.93% |
|
2 PARLIAMENT |
195,131 |
904,532 |
21.57% |
147,082 |
835,714 |
17.60% |
|
3 FOREIGN
AFFAIRS |
586,777 |
4,340,708 |
13.52% |
584,856 |
3,856,363 |
15.17% |
|
4 HOME
AFFAIRS |
755,350 |
4,505,019 |
16.77% |
491,637 |
3,314,589 |
14.83% |
|
5 PUBLIC
WORKS |
686,483 |
4,141,402 |
16.58% |
876,532 |
3,693,120 |
23.73% |
|
6
GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM |
116,545 |
418,255 |
27.86% |
115,328 |
375,812 |
30.69% |
|
7
NATIONAL TREASURY |
4,789,857 |
21,318,192 |
22.47% |
4,333,377 |
19,708,178 |
21.99% |
|
8 PUBLIC
SERVICE AND ADMINISTRATION |
63,623 |
412,306 |
15.43% |
74,132 |
357,283 |
20.75% |
|
9 PUBLIC
SERVICE COMMISSION |
27,991 |
111,172 |
25.18% |
23,079 |
105,357 |
21.91% |
|
10 SA
MANAGEMENT DEVELOPMENT INSTITUTE |
23,960 |
105,527 |
22.71% |
16,675 |
71,126 |
23.44% |
|
11
STATISTICS |
211,507 |
1,272,219 |
16.63% |
187,470 |
1,100,289 |
17.04% |
|
12 ARTS
AND CULTURE |
452,982 |
2,117,082 |
21.40% |
403,079 |
1,608,019 |
25.07% |
|
13
EDUCATION |
8,685,291 |
18,857,546 |
46.06% |
7,826,606 |
16,000,923 |
48.91% |
|
14 HEALTH |
3,661,393 |
15,100,845 |
24.25% |
3,012,675 |
12,655,132 |
23.81% |
|
15 LABOUR |
431,669 |
1,732,911 |
24.91% |
560,244 |
2,032,865 |
27.56% |
|
16 SOCIAL
DEVELOPMENT |
18,619,810 |
76,007,974 |
24.50% |
17,935,359 |
67,232,108 |
26.68% |
|
17 SPORT
AND RECREATION |
1,686,623 |
3,496,248 |
48.24% |
1,004,575 |
3,157,222 |
31.82% |
|
18
CORRECTIONAL SERVICES |
2,779,327 |
11,671,834 |
23.81% |
2,362,586 |
10,742,331 |
21.99% |
|
19
DEFENCE |
4,526,116 |
28,233,155 |
16.03% |
4,149,803 |
25,922,255 |
16.01% |
|
20
INDEPENDENT COMPLAINTS DIRECTORATE |
20,396 |
98,497 |
20.71% |
16,607 |
80,891 |
20.53% |
|
21
JUSTICE AND CONSTITUTIONAL DEVELOPMENT |
1,615,647 |
8,341,432 |
19.37% |
1,379,838 |
7,277,770 |
18.96% |
|
22 SAFETY
AND SECURITY |
9,034,808 |
40,453,243 |
22.33% |
7,712,440 |
35,917,470 |
21.47% |
|
23
AGRICULTURE |
558,636 |
2,534,671 |
22.04% |
433,142 |
2,281,166 |
18.99% |
|
24
COMMUNICATIONS |
175,248 |
1,723,605 |
10.17% |
306,894 |
1,423,533 |
21.56% |
|
25
ENVIRONMENTAL AFFAIRS AND TOURISM |
993,321 |
3,061,686 |
32.44% |
825,487 |
2,590,771 |
31.86% |
|
26
HOUSING |
2,400,598 |
10,586,523 |
22.68% |
1,502,849 |
8,877,608 |
16.93% |
|
27 LAND
AFFAIRS |
1,323,010 |
6,659,396 |
19.87% |
1,317,049 |
5,678,519 |
23.19% |
|
28
MINERALS AND ENERGY |
647,753 |
3,595,423 |
18.02% |
770,563 |
2,966,113 |
25.98% |
|
29
PROVINCIAL AND LOCAL GOVERNMENT |
1,884,896 |
34,193,880 |
5.51% |
1,560,021 |
28,844,175 |
5.41% |
|
30 PUBLIC
ENTERPRISES |
925,598 |
3,007,862 |
30.77% |
1,051,591 |
1,063,966 |
98.84% |
|
31
SCIENCE AND TECHNOLOGY |
971,983 |
3,703,972 |
26.24% |
586,629 |
3,142,479 |
18.67% |
|
32 TRADE
AND INDUSTRY |
883,757 |
5,102,605 |
17.32% |
1,001,561 |
4,845,583 |
20.67% |
|
33
TRANSPORT |
5,677,583 |
20,508,528 |
27.68% |
3,290,367 |
15,857,923 |
20.75% |
|
34 WATER
AFFAIRS AND FORESTRY |
1,274,465 |
6,699,276 |
19.02% |
882,305 |
5,306,347 |
16.63% |
|
Subtotal:
Appropriated funds |
76,763,890 |
345,307,566 |
22.23% |
66,793,199 |
299,177,741 |
22.33% |
|
Direct
charges per Vote |
|
|
|
|
|
|
|
1
PRESIDENCY |
578 |
2,455 |
23.54% |
539 |
2,219 |
24.29% |
|
2
PARLIAMENT |
60,281 |
253,979 |
23.73% |
55,758 |
242,380 |
23.00% |
|
7
NATIONAL TREASURY |
|
|
|
|
|
|
|
Provinces
Equitable Share |
49,844,253 |
199,376,977 |
25.00% |
47,955,993 |
171,271,393 |
28.00% |
|
State
Debt Costs |
10,527,030 |
51,236,000 |
20.55% |
9,159,486 |
52,916,000 |
17.31% |
|
15 LABOUR |
|
|
|
|
|
|
|
Sector
Education and Training Authorities |
1,375,087 |
6,023,680 |
22.83% |
1,152,852 |
4,800,000 |
24.02% |
|
National
Skills Fund |
343,771 |
1,505,920 |
22.83% |
288,213 |
1,200,000 |
24.02% |
|
21
JUSTICE AND CONSTITUTIONAL DEVELOPMENT |
313,573 |
1,389,329 |
22.57% |
293,837 |
1,263,518 |
23.26% |
|
Subtotal:
Direct charges |
62,464,573 |
259,788,340 |
24.04% |
58,906,678 |
231,695,510 |
25.42% |
|
TOTAL
EXPENDITURE |
139,228,463 |
605,095,906 |
23.01% |
125,699,877 |
530,873,251 |
23.68% |
EXPENDITURE BY ECONOMIC CLASSIFICATION
|
NATIONAL
DEPARTMENTS |
||||||
|
|
2008/09 |
2007/08 |
||||
|
Expenditure
by Economic Classification |
Actual |
Available |
% of
Budget |
Actual |
Available |
% of
Budget |
|
|
expenditure |
budget |
spent |
expenditure |
budget |
spent |
|
|
(April
- June) |
|
|
(April
- June) |
|
|
|
|
|
|
|
|
|
|
|
R' 000 |
|
|
|
|
|
|
|
Current
payments |
20,814,663 |
99,865,319 |
20.84% |
18,351,243 |
89,944,276 |
20.40% |
|
Of
which: |
|
|
|
|
|
|
|
Compensation
of employees |
13,932,448 |
61,726,207 |
22.57% |
12,797,079 |
56,321,208 |
22.72% |
|
Goods and
services |
6,878,696 |
38,138,308 |
18.04% |
5,546,197 |
33,622,300 |
16.50% |
|
Interest
and rent on land |
67 |
804 |
8.33% |
299 |
768 |
38.93% |
|
Financial
Transactions and assets and
liabilities |
3,439 |
- |
- |
7,223 |
- |
- |
|
Unauthorised
expenditure |
13 |
- |
- |
445 |
- |
- |
|
|
|
|
|
|
|
|
|
Transfers
and Subsidies |
54,635,233 |
237,955,448 |
22.96% |
47,696,394 |
202,567,068 |
23.55% |
|
Of
which: |
|
|
|
|
|
|
|
Provinces
and municipalities |
14,173,060 |
80,602,845 |
17.58% |
10,101,388 |
66,678,675 |
15.15% |
|
Departmental
agencies and accounts |
9,190,742 |
42,527,998 |
21.61% |
7,942,246 |
37,901,775 |
20.95% |
|
Universities
and technikons |
6,908,200 |
13,586,474 |
50.85% |
6,603,832 |
11,967,790 |
55.18% |
|
Public
corporations & private enterprises |
4,965,575 |
18,889,723 |
26.29% |
109,910 |
941,847 |
11.67% |
|
Foreign
governments & international organisations |
66,947 |
979,350 |
6.84% |
4,505,421 |
14,861,047 |
30.32% |
|
Non-profit
institutions |
250,892 |
1,685,267 |
14.89% |
148,391 |
1,393,644 |
10.65% |
|
Households |
19,079,818 |
79,683,791 |
23.94% |
18,285,205 |
68,822,290 |
26.57% |
|
|
|
|
|
|
|
|
|
Payments
for capital assets |
1,313,995 |
7,486,800 |
17.55% |
745,563 |
6,666,397 |
11.18% |
|
Of
which: |
|
|
|
|
|
|
|
Buildings
and other fixed structures |
778,209 |
3,900,603 |
19.95% |
315,496 |
3,319,548 |
9.50% |
|
Machinery
and equipment |
283,840 |
2,546,845 |
11.14% |
251,000 |
2,483,820 |
10.11% |
|
Cultivated
assets |
1,391 |
625 |
222.56% |
574 |
1,040 |
55.19% |
|
Software
and other intangible assets |
2,793 |
186,054 |
1.50% |
21,369 |
524,936 |
4.07% |
|
Land and
subsoil assets |
247,761 |
852,673 |
29.06% |
157,124 |
337,053 |
46.62% |
|
|
|
|
|
|
|
|
|
Subtotal:
Appropriated funds |
76,763,890 |
345,307,566 |
22.23% |
66,793,199 |
299,177,741 |
22.33% |
|
Direct
charges per Vote |
|
|
|
|
|
|
|
1
PRESIDENCY |
|
|
|
|
|
|
|
Current |
578 |
2,455 |
23.54% |
539 |
2,219 |
24.29% |
|
2
PARLIAMENT |
|
|
|
|
|
|
|
Current |
60,281 |
253,979 |
23.73% |
55,758 |
242,380 |
23.00% |
|
7
NATIONAL TREASURY |
|
|
|
|
|
|
|
Current |
60,371,283 |
250,612,977 |
24.09% |
57,115,479 |
224,187,393 |
25.48% |
|
15 LABOUR |
|
|
|
|
|
|
|
Current |
1,718,858 |
7,529,600 |
22.83% |
1,441,065 |
6,000,000 |
24.02% |
|
21
JUSTICE AND CONSTITUTIONAL DEVELOPMENT |
|
|
|
|
|
|
|
Current |
313,573 |
1,389,329 |
22.57% |
293,837 |
1,263,518 |
23.26% |
|
Subtotal:
Direct charges |
62,464,573 |
259,788,340 |
24.04% |
58,906,678 |
231,695,510 |
25.42% |
|
TOTAL
EXPENDITURE |
139,228,463 |
605,095,906 |
23.01% |
125,699,877 |
530,873,251 |
23.68% |
[1] The spending benchmark is based on estimated spending
as determined at the beginning of the financial year in the approved drawings
on the National Revenue Fund.
[2] The Department of
Housing (DoH) has experienced a similar problem with payments to the Government
Communication and Information Systems (GCIS) under Programme 3: Housing
Delivery Support.
[3] 2006/07
[4] A payment is unrequited if the
department does not receive anything directly, financial or otherwise, in
return from the recipient party.
[5] Discrepancies involved the status of Department’s
asset management, the implementation of the Human Resource Plan and payments to
suppliers.
[6] Assets that can be utilized repeatedly in
the production process.