Minister in the Presidency: Planning, Monitoring and Evaluation Budget Speech
11 May 2018
Minister in the Presidency: Planning, Monitoring and Evaluation, Ms Nkosazana Dlamini Zuma, gave Budget Vote Speech on the 11 May 2018
Ministers and Deputy Ministers here present
Honourable Chairperson and Members of the Portfolio Committee
Deputy Chairperson and Commissioners of the National Planning Commission (NPC)
Secretary of the National Planning Commission (NPC), Mr Tshediso Matona
Director-General of DPME, Ms Mpumi Mpofu
Statistician General, Mr Risenga Maluleke
Our Distinguished Guests
Ladies and Gentlemen
It is my immense honour to present the 2018/19 Budget Vote for the Department of Planning, Monitoring and Evaluation (DPME). I must express my sincere gratitude to my predecessor, the Honourable Jeff Radebe, for establishing a solid foundation for effective planning, monitoring and evaluation of government programmes.
I am tabling this budget vote at a historic moment as we mark the centenary of both the late Mama Nontsikelelo Albertina Sisulu, a leader who dedicated her life to the emancipation of women, and Tata Nelson Rolihlahla Mandela, the first President of the democratic Republic of South Africa.
It is important that as a nation we draw inspiration from the rich legacy of these stalwarts of the liberation struggle and in their pursuit for a democratic society. In honour of these stalwarts, let us uphold the principles, values and vision for a non-racial, sexiest and democratic South Africa.
Winnie Madikizela-Mandela Tribute
In April, just over a month ago we lost yet another stalwart, Nomzamo Winifred Madikizela-Mandela who was the epitome of fortitude, courage and resilience. The youth across the length and breadth of country mourned her passing by affirming “She has not died, she has multiplied”. She might have ceased to breathe, but her legacy remains in each and every one of us. A rock never dies; it lives through different epochs. That is why we maintain: “Wathint’ abafazi, wathint’ imbokodo!”
The National Development Plan (NDP) recognises that our developmental trajectory and prosperity is intricately intertwined with that of the African continent. The month of May is Africa Month, and the 25th of May is Africa Day to be celebrated under the theme, “A Year of Nelson Mandela: Building a Better Africa and a Better World”.
The NDP aspiration for socio-economic transformation in our country also finds expression in the African Union’s Agenda 2063, as well as the United Nation’s Sustainable Development Goals. Similarly, our commitment is to cooperate with fellow African countries, focus on women and the youth, harness the strength and resourcefulness of our diverse Africa’s population, in building a united Africa that is self-sustaining, peaceful and is recognised as an influential global player, as espoused in the AU Agenda 2063.
Reflection on the 24 Years of Freedom
In the past 24 years of our democracy, our government has made strides to expand access to education and health, to provide decent human settlements, to support the most vulnerable to overcome the poverty and underdevelopment inherited from the Apartheid dispensation.
In 2012, the people of South Africa, through Parliament, adopted the NDP as the overarching plan for the country to guide government and society, in addressing the challenges of poverty, unemployment and inequality. In 2014, Government translated the NDP into 14 outcomes in terms of the Medium term Expenditure Framework (MTSF). We are guided by our conviction that democracy in our country cannot flourish if the people remain in abject poverty, without land and tangible prospects for a better life.
Madam Speaker, last year the DPME completed the Mid-Term Review of performance in implementing the NDP. The Review has highlighted several areas in which government efforts are making good progress. However, it also pointed out many areas of underperformance that require intervention, if we are to achieve significant progress towards the goals of the NDP on reducing poverty, inequality and unemployment.
In health, steady but consistent progress is being made on a range of indicators. Evidence from Statistics South Africa points to the fact that the total Life Expectancy (LE) at birth has increased from 59.6 years in 2009 to 62.5 years in 2014 and to 64 years in 2017 (StatsSA, 2017). The Maternal Mortality Ratio has improved from a baseline of 310 maternal deaths per 100 000 live births in 2009 to 135 deaths per 100 000 live births in 2016.
Infant mortality rate improved from 42.8 deaths per 1000 live births in 2009 to 36.6 deaths in 2014, to 32.8 deaths per 1000 live births in 2017 (StatsSA, 2017). Access to Antiretroviral Therapy (ART) increased from 2.9 million in 2014, to 4.0 million people living with HIV being retained on ART by 2017.
In order to mitigate against poverty, our government has provided a comprehensive safety net to vulnerable people. A total of 17 million people benefit from social grants provided by government.
Since the post-2008 economic slowdown, achieving economic transformation, inclusion and accelerated growth has proven to be the biggest challenge facing the country, and rising unemployment is the most urgent challenge, particularly among youth.
Recent figures point to a rebound in the economy’s growth rate. The country's GDP rebounded by 2.5% in Quarter 2 (Q2) of 2017 and subsequently to 2% in Quarter 3 of 2017. Both these figures reflect improvement compared to the 0.7% decline in Quarter 1 of 2017. More needs to be done to bring us closer to the achievement of the NDP GDP growth and employment targets.
Other studies highlight a mixed score-card of progress in some areas, and many remaining challenges. The World Bank’s report on Overcoming Poverty and Inequality in South Africa finds that although poverty substantially reduced from the year 2000 – thanks to redistributive policies of government, it remains far too high, and the country ranks as the most unequal, with the burden of these social ills born mainly by blacks and rural areas.
According to StatsSA’s Quarterly Labour Force Survey, while overall unemployment was at 26.7% in quarter 4 of 2017, for those aged 15 to 24 who were not in school, the rate was 51%. No country can develop without employing the most abundant of its human resources, the youth.
It is a known fact that the issue of land remains one of the major hindrances in transforming the lives of the people. Equitable distribution of land among all the people of South Africa will accelerate spatial transformation and ensure economic participation of all the citizens. We have not made the headway our country needs in this area if freedom and democracy are to have any meaning for the majority of our people. We therefore welcome the adoption of a motion by this parliament to expropriate land without compensation.
Spatial transformation, particularly in metropolitan municipalities, could bring about fundamental change in the socio-economic conditions of the marginalized communities. The NDP recognizes that, without deliberate and focused efforts to change the spatial configuration, public and private sector spending can exacerbate the existing spatial divisions and reinforce economic exclusion.
We are also looking forward to the development of a National Spatial Development Framework which is to ensure that national level policies with a spatial impact are consistent and coherent, and that policy instruments across government support the overall spatial transformation agenda.
Chairperson, this frank assessment of our performance and our challenges should not detract from the fact that South Africa is a better place to live and that the lives of the majority of ordinary South Africans are improving since the dawn of democracy.
However, it is imperative that in the remainder of the years to the NDP’s vision 2030, more work needs to be done to ensure that all the people of South Africa equitably share the benefits of our democracy.
The Need for Better Planning, Better Implementation and Better Outcomes
It is our collective obligation to improve our implementation of the NDP, and to do so urgently. In this context, the DPME has a critical role to play, to ensure that government’s plans, programmes and services are delivered to the best possible standards of excellence and translated into sound and achievable 5 year NDP Implementation plan.
The implementation of the NDP 2030, has only 12 years left and over the last two, 5year Implementation Plan cycles, we will focus on driving Implementation, defining the resources required, geographical location, skills required and role for our social partners to implement these plans.
To strengthen the alignment of the programmes of different spheres and the rest of the public sector, with the NDP. The DPME monitors the performance of local government through the Local Government Management Improvement Model (LGMIM) and its mandate has been expanded to include State Owned Entities, Public Entities and Development Finance Institutions.
Current planning in government, and planning legislation, is fragmented, which undermines policy coherence, coordination, resulting in poor implementation and outcomes. he NPC proposed the need for legislation which was jointly developed with DPME, in consultation with relevant stakeholders, the Integrated Planning Framework Bill. The Bill seeks to achieve coordinated (existing plans) and integrate planning across all spheres of government, for more effective implementation of the NDP. The Bill was recently approved by Cabinet for publication in the Government Gazette for public comments. It is hoped that the Bill will be passed during the remainder of the term of this current Parliament.
In the coming months, DPME will conduct a comprehensive review of government performance in the first 25years of democracy and to enhance prioritisation and to highlight areas for urgent intervention leading to 2030.
Evaluation, Evidence and Knowledge Systems
A key component of the Integrated Planning Bill is to build partnerships in information and research coordination, sharing, knowledge generation in the public and private sector. This will enhance and strengthen evidence-base policy making and planning in government. This initiative towards a ‘Knowledge Hub’ will enhance the quality of DPME’s data analysis, research, medium and long term planning, monitoring and evaluation capability.
Last year, a total of 59 evaluations were undertaken as part of the National Evaluation Plan (NEP) covering over R100 billion of government expenditure. I am proud to report that this has now risen to 67, covering over R143 billion of government expenditure. In addition, seven provinces have provincial evaluation plans, with 102 evaluations planned. Some 57 national and provincial departments now have departmental evaluation plans, with over 300 additional evaluations planned.
Over the last year some important evaluations have been concluded and made available in the public domain. These include the National School Nutrition Programme (where over 9 million learners are being fed), State Response to Violence against Women and Children, Social Housing, Upgrading of Informal Settlements, amongst others. This year important new evaluations will be initiated, including of SOE Governance, the Mining Charter, Non Profit Organisations and Government relationships, SAPS Detective Services, and Scholar Transport.
Whilst the work of DPME in evaluations is focused on programme across government. Our intention is to allow for a more diverse evaluation system that also conducts shorter period (few months) evaluations in crisis situations and collaborating with all Departments on longer term Sectoral Reviews.
Evidence based policy making
The StatsSA Sectoral Surveys such as Labour Force, Household and Travel survey immensely benefit our planning, policy making and impact assessment. This family of StatsSA, National Planning Commission and DPME represent the strategic continuum of Data, Research, Planning, Monitoring and Evaluation, which is indispensable to a developmental state like ours. One is incomplete without the other. A developmental State, based on successful historical precedents, refers to state-led planning, which state has significant authority to exert political power through regulation and intervention.
DPME recently led the coordination of various Government Departments, assisting the President in supervising the work of Government through InterMinisterial Committees such as for Comprehensive Social Security - SASSA over the social grants payment and now in the North West Province.
DPME is also responsible for the development of long term plans and this relies heavily on population forecasts, indicative of demographic dividend which show future economic growth potential. Similarly, economic growth analysis by sector enables government to support and prioritise through budget allocation, those sectors that will lead to real sustainable growth.
Realignment of Budget with NDP Priorities
Cabinet’s decision for DPME and National Treasury to develop an annual Budget Prioritisation Framework, (‘Mandate Paper’), a robust planning and prioritisation tool. It is the strategic framework for decision-making by the National Treasury on identified budget priorities, issued ahead of National Treasury’s budget allocation process each year to advance the goals of the NDP.
Since 2014, DPME has been pioneering Operation Phakisa as an innovative approach to planning and delivery involving stakeholders within and outside government in a specific sector challenge, to jointly identify and implement solutions.
The Operation Phakisa methodology was borrowed from Malaysia’s Big, Fast Results and indicates our commitment to accelerate the socio-economic transformation of the country. Thus far, we have undertaken Seven Operation Phakisa initiatives in the following sectors: Biodiversity Economy, Chemicals and Waste Economy, Oceans Economy, Ideal Clinic Realisation and Maintenance Programme, ICT in Education, Mining and Agriculture, Rural Development and Land Reform.
Since its launch in July 2014, Operation Phakisa in the Ocean Economy has unlocked R26 billion in both public sector and private sector investments, and a total of 6 633 jobs have been created.
In the education sector, Operation Phakisa: ICT has ensured that a total of 15 967 schools are connected by all devices out of a target of 24 775 since its launch in October 2016. Additionally, 152 offline e-library units were purchased for distribution to 65 second chance centres while the number of tablets distributed has reached 98 528 units. Further, a total of 17 233 teachers were trained in 2017 and Grade 9 Mathematics and Science interactive content has been developed for distribution to schools.
The Operation Phakisa methodology has also been applied in the Mining and Agriculture, Rural Development and Land Restitution sectors, and chemical and waste economy in which 27 and 20 initiatives have been identified, respectively.
DPME also gathers evidence related to the state of frontline service centres to change the experience of our people’s access to government services. Over the past three months, a pilot has been underway of the concept of mystery clients who are deployed to various service points around Gauteng.
An improvement monitoring approach has also been adopted to ensure speedy resolution of issues identified in our communities. For instance, the Traditional Council of Mulamule village raised the following issues with us: construction of Mdabula – Mphambo road, establishment of satellite police station, construction of a library, TVET College and the provision of running water. Subsequent to the DPME interventions, the road is being constructed, the plans and budget for the library and construction process will commence. The satellite police station is up and running, water has been provided by Vhembe District municipality, and a TVET college satellite campus has been constructed in Malamulele.
Our frontline monitoring programme is also assisting in promoting public-private partnerships to address challenges in our service delivery facility. Recently, R2 million was raised for the refurbishment of Tshepeha Secondary School in Grootvlei Mpumalanga through partnership with Eskom’s Grootvlei Power Station.
The Presidential Hotline - which is now in its seventh year - continues to improve the lives of people and provides direct access to citizens, seeking information, struggling to resolve service delivery issues and gives insights into where there are problems in the government system.
The Presidential Hotline is a monitoring mechanisms that provide valuable insight into service delivery challenges as experienced in communities and at frontline facilities. It is a system that cuts across the whole of government coordinating and integrating complaints of citizen and connected to all nine Offices of the Premier across the country.
It is an additional tool and early warning sign of public sector performance. It has the capability of disaggregation of information to lower level of government right down to ward level. It is highly accessible to citizens because it is toll free.
Some of the key challenges of the Presidential Hotline
The Presidential hotline has faced some challenges of non-functionality of Complaints Management Systems at Municipal Level affecting the coordination of Presidential Hotline case resolution. We will ensure the institutionalisation of complaints management at municipal level to overcome this challenge.
We found that prioritization of hotline cases by management at provincial and local remains a challenges, that HODs and DGs must taking leadership in ensuring resolution of hotline referred cases. There may also be a general slow pace in government officials of resolving service delivery, which has an impact in the number of days taken to resolve reported cases. We will ensure implementation of disciplinary action across all spheres of government against government officials drag their feet in dealing with plight of South African citizens.
Monitoring the Payment of Suppliers within 30 Days
The Department is also using our monitoring capability to ensure the sustainability of Small Businesses. As the biggest client, it is imperative that government contributes in sustaining small, medium and micro enterprises (SMMEs). Small businesses have the potential to grow our economy and create employment. Non-payment of suppliers negatively impacts on sustainability of small businesses, and therefore on economic growth and employment creation. The DPME is tasked with the responsibility to ensure that departments and state agencies meet their obligation to pay suppliers with valid invoices within 30 days.
In the short space of time since DPME took on this task, R327 Million has been paid to various service providers. As at March 2017, the number of legitimate invoices paid after 30 days were 17 113 to the value of R1.3 billion. We call on SMMEs to report any delays that extend beyond the set 30day period to inform the department.
Chairperson, young people are our most valuable asset in society. We must equip them with skills and knowledge so that they can actively contribute to our growth and development as a nation. The most defining factor in our development endeavours will be a massive skills revolution. Young people must be the primary architects of this revolution.
We will urgently lead the work towards the Skills Revolution to benefit our young people. For example, the NDP says we must increase the graduation rate of FET colleges to 75% by 2030 and we must expand the role of state owned enterprises in training artisans and technical professionals.
We will diversify the various initiatives to achieve a massive transformation in skills level in South Africa including skilling through revival of old centres of education excellence across the country, turnaround strategy for the TVET college and expanding to network of TVETs to every municipality for and expansion to artisanship and technical trades. Promoting University Town as skills and employment hubs, accessing all scholarships on offer, deployment of young people in multilateral global governance institutions to gain international experience. Driving skills development through SETAs at a massive scale and through other Government Institutions.
We will continue to work closely with the National Youth Development Agency (NYDA) to augment youth development in the country. The NYDA is central in government’s strategy of empowering young people and thus establishing a firm foundation for the future of our country. It is therefore commendable that the NYDA has developed the Integrated Youth Development Strategy (IYDS) to create a multi-sectoral framework within which youth development programmes can be implemented in an integrated manner and maximise outcomes. The strategy will enhance the ongoing work of the NYDA in promoting youth development and creating platforms for young people to participate building an inclusive society.
Over the past three years, the NYDA has introduced the grant funding programme to stimulate youth entrepreneurship. Among the many successful stories, the NYDA funded Shadreck Sithole and Sibusiso Malambule to nurture their business in IT Support and network design. The NYDA will soon open fifteen (15) new branches offices with the aim of reaching young people across the 54 districts which will be WI-FI hotspots.
The NYDA Solomon Kalushi Mahlangu Scholarship Fund has benefitted over one hundred (100) young people who went on to graduate from various fields of study and will also look at assisting students who want to pursue their post-graduate education and study at international institutions of higher learning across the world.
The NYDA also continues to champion the National Youth Service programme to promote social cohesion, nation building and reconstruct society, by developing the abilities of young people through Service and learning. The NYDA has partnered with the National Department of Arts and Culture (DAC) to implement The Young Patriots Programme (TYPP) which has engaged 300 participants committed to promoting social cohesion and nation building. We urge young people across the racial lines to register for this programme through the NYDA and urge other sectors of government to partner with the NYDA and create opportunities for young people.
We call on the rest of society to support young people’s innovation, ideas and create platforms for them to grow their initiatives. We have invited some of the brightest young minds who have conceptualized new innovations that could assist in changing our society. We have with us Elija Djan who invented a brick, made out of paper called ‘Nubrix’ which addresses two chronic problems in South Africa: a build-up of paper waste and a chronic housing shortage. Phumlani Ntloko has developed a mobile Computer Numerical Control (CNC) machine to test prototypes - which can also do 3D printing - at less than a third of the cost of an imported unit.
The DPME welcomes the allocated budget of R927.4 million for the 2018/19 financial year, which is expected to increase to R972.2 million and R1.032 billion respectively over the MTEF. We will use the budget to effectively make a contribution towards an integrated planning framework and monitoring of government plans for their impact in society. DPME has now an expanded organisational structure and has significantly reduces its vacancy rate which has only been hampered by internal candidates being most successful in filling new posts and therefore creating new vacancies.
We are mindful of the constrained economic and fiscal environment and will ensure that the allocated resources are used in the interests of the people. It is worth mentioning that the Department has obtained clean audit opinions for the last five financial years. The audit for the 2017/18 financial year is underway, and we are confident that we will continue the track record of clean audits and good governance.
As I conclude, honourable members and fellow South Africans, I would like to remind you that the fight for liberation was underpinned by the need for people to be free from oppression, hunger and starvation. It was in view of these fundamental issues that during his address at the national Freedom Day commemoration in 1998, President Mandela declared:
“Our freedom and our rights will only gain their full meaning as we succeed together in overcoming the divisions and inequalities of our past and in improving the lives of especially the poor.”
I request that this house support the Budget 2018/19 of the Department of Planning, Monitoring and Evaluation.
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