Medium Term Budget Policy Statement: hearings

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Meeting Summary

A summary of this committee meeting is not yet available.

Meeting report


5 November 2002

: Mr N Nene (ANC) [NA]; Mr T Ralane (ANC) [NCOP]

Document handed out
Presentation by Department of Education (Appendix 1)
Presentation by Department of Social Development (Appendix 2)
Presentation by Department of Health
Presentation by Department of Provincial and Local Government

The Department of Education outlined its policy priorities for the 2003 MTEF allocations, the implications on the Department and the status of its service delivery. The discussion on this presentation raised concern with the need to provide funds for persons to continue their studies as well as the provision of education facilities such as equipment, books and libraries in the rural areas. Clarity was sought about the Department's plans to increase the current number of feeding schemes, and about the areas of its functioning which the Department feels needs more attention.

The Department of Social Development focused on its MTEF budget priorities for 2003/2004 to 2005/2006, and the various items under its baseline allocations. During the discussion in the presentation Members raised concern with the cost and implementation of the extension of the Child Support Grant to children above 14 years, the measures taken by the Department to improve its delivery of grants and its plans to support the sustainability of income-generating projects for the community.

The Department of Health dealt with an assessment of the Health sector particularly as well as an overall assessment, the pressures and priorities facing the Department and the funding received by National Treasury for 2003/2004. Members sought clarity on the effect of inflation rates on the social services sector generally, the problems with equipment and infrastructure backlogs and the maintenance of hospital infrastructure, and on the transfer of certain health services from municipalities to the Department.

The Department of Provincial and Local Government outlined its strategic priorities and MTBPS challenges, and provided a summary of its MTEF outlook. During the discussion, Members raised concern with the problems experienced in the transition to the new local government dispensation and the measures put in place by the Department to deal with this. Clarity was sought on the installation of the Ventilated Improved Pit Latrine and the authority responsible for its implementation, the importance of the Integrated Development Plans, Project Management Units and Planning Implementation and Management Support Systems projects. A progress report was provided on the implementation of the Urban Renewal Programme (URP) and Integrated Sustainable Rural Development Project (ISRDP) projects. Concern was raised with the fact that municipalities are able to access funding even though they have not submitted a strategic plan, and the Department explained how it plans to deal with this matter.

Introduction by the Minister of Health
Minister Asmal stated that he is pleased that the Committee is dealing with poverty alleviation and economic development because poverty violates all the rights guaranteed by the Constitution, and the full potential of every person can only be freed when this problem is addressed. The Human Resource Development (HRD) policy was adopted by both the Ministers of Labour and Education in February 2002. The Department of Finance has to be congratulated because the budget policy statement has responded positively to government goals, and these hearings are important for Parliamentary oversight over the funding of government and its priorities. The signals for education look positive.

Presentation by the Department of Education
Mr Bobby Soobrayan, Deputy Director-General: Education Planning from the Department of Education (the DDG), conducted the presentation (see Appendix) which focused on the government's policy priorities for the 2003 MTEF allocation, the relationship between education and poverty alleviation and key strategies to deal with poverty, the MTBPS implications for the education sector, the various programmes and policies introduced by the Department of Education (the Department), the status of service delivery and managing the Department's performance.

Mr L Zita (ANC) [NA] contended that the funding structure for tertiary education institutions does pose a problem for poor South Africans, because one finds that persons that have passed Matric five years ago are still unable to pay the necessary registration fees.

The Minister replied that the Department is concerned by this issue, but the universities insist on this requirement. What is needed here is a social solution and not accounting solutions and the solutions adopted by other countries cannot simply be insisted upon, because those countries have a much more developed economy. The Department is currently retrieving 20% of the student loans as opposed to the 5-6% rate in Australia, and the United Kingdom has gone so far as to abolish this scheme. The Department is thus getting a return on its investment.

A member of the Department's delegation added that the Department is aware of this and did conduct an urgent review of the national student financial aid scheme, and a partnership has been struck with NGO's and CBO's functioning on the ground to identify those learners who are really in need of financial assistance. This is aimed at avoiding the occurrence of the situation in which "smart kids try to cheat the system", and there are NGO's that currently pay for the schooling of learners and provide financial assistance. The Department would then come in as partners to ensure that those learners then move on to tertiary education and receive the necessary funds.

As mentioned by the Minister, a system will be implemented in 2004 that aims to provide application and information services on a national level, so that all learners are able to receive all relevant information on all tertiary institutions, including bursaries and financial assistance and the actual application forms. The Department is facing many challenges on this front at the moment.

Secondly, Mr Zita stated that in the past education was used as an integrating exercise and it seems that globalisation is putting an end to this, but clarity is needed as to how the Department plans to prepare students for the uncertain future.

The Minister responded that this should be exaggerated and the Department wants to encourage the perception that their is an ethical basis in education and training. The Minister stated that he is against the WTO initiative to include education and training as part of the Public Service, as this would merely commodify the inherent values in the education and training sector. The Department is currently engaged in restructuring the technical colleges so that the necessary skills may be made available for development and for lifelong education, and there is also a move to do away with the requirement that learners would have to repeat a year when transferring from a university to a college, for example. The fact of the matter is that presently only 10% of learners move on to higher education.

Thirdly, Mr Zita suggested that the attitude of learners to education and the education system is an important issue, because the education system has to adapt to the future changes in society.

The Minister replied that those learners currently in primary school are the first products of post-Apartheid and are the joy and hope of South Africa, because they are able to interact with different cultures as the schools are now integrated. Thus one of the primary matters is the extent to which the school reflects and accommodates interaction.

Fourthly, Mr Zita asked the Department to explain who is in charge of public education, and the Department's plans to make libraries available in the townships and rural areas.

The Minister replied that a study conducted two years ago indicated that there are not sufficient numbers of libraries in schools, and many of those that do have libraries are not sufficiently effective. It was discovered that 60% of South African schools do not have libraries and 40% merely have a small room called a library, and the provision of Internet facilities is also important here. The school should become the center of community life and provide much of the resources needed by the community, and an ethical and moral basis has to be built here so that the community can take ownership of the school. Community involvement is therefore important as the libraries will be set up in or near the school for the availability of the public. The Department has devised a policy dealing with where schools will be built and the quality of the buildings, and the Department of Public Works is working closely with the MEC's for Education in the various provinces on this.

Ms R Southgate (ACDP) [NA] stated that the 5% increase in teaching staff is welcomed and is a blessing. Yet the present feeding schemes are "hopelessly inadequate" and the Department is asked to unpack its nutritional plans.

The Minister responded that these schemes are reviewed every four to five years, and the Department will submit its report to Parliament between now and 2004. This report will be compiled in terms of the poorer schools, and the establishment of a school garden plot is important to provide a cooked meal to learners and the community, and a reward or incentive for those who excel is encouraged.

The DDG added that a national school nutrition programme has been introduced which aims to extend this beyond primary schools, and two factors were considered during the planning process. The first is nutritional content and the mode of delivery of the food, and here all efforts are being made to move towards the provision of cooked meals, and the Department of Health will be sought in fixing the standards of nutrition here. The second dealt with the huge logistical challenge facing the Department to implement the R800m initiative which is a huge task, and the services of consultants will be employed to ensure this is met.

Secondly, Ms Southgate contended that additional schools are needed, especially in the rural areas, where schools have a lifespan of fifteen years. The Department is asked to explain its plans to address this.

Mr Zita asked for the precise percentage of the Department's budget that has been allocated for capital spending.

The DDG responded to these questions by stating that at a low point the Department invests R500m on school infrastructure and this amount has now increased four-fold at 3-4% of the public school budget. The problem here does however lie with maintenance expenditure which contributes to the lifespan of schools and one of the factors here is the lack of a sufficient maintenance budget, and is also related to the following two factors. Firstly, the cutback on cleaning services of non-maintenance services and, secondly, the attitudes of learners and teachers, as stated earlier by the Minister, and a programme will be introduced to ensure schools become a more active component of community life.

Mr D Hanekom (ANC) [NA] stated that his questions would focus on the bigger picture and asked the Department to explain whether, assuming a good policy framework is in place, it would be of the opinion that its current budget is a good reflection of its policy priorities, especially with regard to the distribution of resources or shifts.

The DDG replied that the Department has identified the importance of focusing on future education and training as well as on ECD. The Department strongly believes that the success of the provision of the welfare grants have a tremendous impact on the community, especially the increase in the uptake of child grants, and this development could even be more beneficial than teachers. Post-natal health programmes are also important for the first two years of the child's life. The Integrated Sustainable Rural Development Strategy and the Urban Renewal Programme are important here as the community matures, especially the Constitutional jurisprudence, which will place the Department in a much better position to respond to its challenges.

Secondly, Mr Hanekom asked the Minister to share his reflections on the MTBPS and "where it is taking us", as well as the areas that deserve greater attention.

The Minister responded that the Department's first priority by and large is Early Childhood Development (ECD), as stated by the DDG during the presentation, and the new age of admission programme will be rolled out by 2004. A problem in most schools is not the lack of teachers but rather the need for morning and afternoon care, or the "platoon system", and the real problem therefore is the availability of classrooms.

The second priority is the special needs programme for learners with disabilities, and the biggest disability is poverty and its effect on the brain capacity of the learner, and the absence of nutrition could effect the brain damage to the child. It is for this reason that a yearly tests for eyes, moths and ears of learners will be introduced. Yet these tests are already conducted in the richer schools, and the Department would provide these tests to all schools in a perfect world. Yet as matters currently stand, the Department is only able to provide the services that its available capacity allows. This will be done in conjunction with the Department of Health.

The third priority deals with the way in which teaching is done in South Africa, because the current through-put rate stands at 15% at a cost of R1,5b per year. The Department has to improve its through-put rate and capture the imagination of those learners in their first years, and evaluation similar to a national teacher's award is needed, which has now been supported by the teachers unions after opposing it for some time. This would motivate both the teacher and the learner. If such measures are not implemented, the education system would be imprisoned by the past. The Department is now looking increasingly at the policy of government departments and questions the extent to which greater interaction is facilitated.

The DDG added that the Department started off with a huge plan aimed especially at personnel expenditure, and public schools required such a large investment that the Department was unable to properly focus on ECD. The Department is expected, within five years, to remove the rigidity here so that a much more flexible approach to the provision of ECD and Adult Basic Education and Training Programme (ABET). There is currently much more discretion flexibility here, so that the Department can also do justice to its other mandates.

Ms Q Mahlangu (ANC) [NCOP] contended that it was stated that the National School Nutrition Programme (SNP) would be moved from the Department of Health to the Department of Education, and the Department is requested to provide Members with an update of the recent developments here.

The DDG replied that the current plan is that the Department of Health would manage the scheme for the remainder of this financial year, during the 2003/2004 financial year it will remain primarily a Department of Health function, and during 2004 the SNP will be brought over to the Department to manage.

Ms R Taljaard (DP) [NA] asked how the Department of Labour's SITA's and those of the Department will be working together to ensure that the Department yields the skills needed for economic growth. This is especially important at the tertiary level because the current yield is insufficient, and the current functioning and projections of budgetary allocations make provision for complimentary allocations.

The DDG replied that the Department's relationship with the Department of Labour is extremely strong and continues via the interdepartmental committees and continues to meet regularly. At the moment functions are being transferred from the SITA's back to the provider of the service. The indicators identified by the SITA will be used to address this issue, so that the Department can be more proactive here.

Secondly, Ms Taljaard asked whether a review has been conducted into the reprioritisation of funding, because the Committee would find this information important.

The DDG responded that this has not yet been completed.

Mr L Kgwele (ANC) [NA] contended that he appreciates the work being done by the SNP but asked whether the Department has considered expanding this programme to include women in the rural communities, in order to address poverty alleviation.

The DDG responded that this is the first and most important prize, but the Department has to ensure that it has the necessary funds to impact poverty alleviation.

Secondly, Mr Kgwele asked whether the ABET and ELSEN (Inclusive Education) programmes could not be extended to the rural communities especially, as it is in those areas that there is an urgent need for such initiatives.

The DDG responded that the ELSEN programme does take into account those in the rural community, and also considers the barriers to learning such as poverty.

Thirdly, Mr Kgwele contended that accountability and the support structures have to be improved to look at the implementation of the programmes, because it is at school level that the inefficiencies occur.

The DDG replied that it does play an important role in the Department's plan, and efforts are being made to shift the inefficiencies without changing the funding and school environment. This is part of an ongoing process.

A Member (ANC) asked the Department to explain whether it will meet its targets by 2004.

The DDG replied that this will be assessed by January 2004 as a realistic date, because the provinces have to be allowed to prepare for this as well.

Secondly, the Member referred to the extent of co-ordination taking place within the Department, and suggested that this be extended beyond the social services cluster, as mentioned by the Minister. This co-ordination has to be strengthened especially with regard to efforts to alleviate poverty, and here the Department of Labour has to be included and the creation of school gardens, which would require the assistance of the Department of Agriculture.

The DDG responded that the Department will work closed with the Department of Health and other relevant departments, but the Forum of South African Directors General will impact this the most.

Mr G Schneeman (ANC) [NA] asked the Department to explain whether it has given any thought to extending the SNP beyond school hours, because it is a very important programme. During 2001 Members of Parliament were actively involved in a feeding programme in the West Rand that operated during the school vacation, and approximately 2000 children were fed per day. This is therefore an important programme, and perhaps other departments should be consulted here.

The DDG responded that the Department agrees with this proposal as it is also an important means to deal with HIV/AIDS children and orphans, who are being fed on an average of 100 days per year. This programme could be arranged with the assistance of the CBO's and NGO's or any other relevant institution.

Secondly, Mr Schneeman stated that there is a lack of learning material in the township areas especially, and particularly with reference to science equipment. What has the Department planned to bring those schools up to date with the more advanced schools?

Ms Mahlangu stated that a further factor contributing to the problem with under-resourcing of schools is the fact that many learners do not return the textbooks that they used in the previous year. What is the Department doing to address this?

The DDG replied to these questions by informing Members that this is a huge problem that the Department has inherited, but with the assistance of the learners, teachers unions and school governing bodies this matter can be addressed.

The Department was unable to answer all the questions posed due to time constraints, and committed to providing written responses to the following questions:

Ms N Mtsweni (ANC) [NA] asked the Department to explain its plans to include those children who are not currently at any pre-primary school, and its plans to provide them with ECD as well.

Secondly, Ms Mtsweni asked whether the Department has devised any programmes to address the increase in the failure rate. It seems that the problem here is not that the learner is "stupid" but rather that they begin their examination preparation at too late a stage, and perhaps a programme should be introduced to assist them to prepare for examinations.

Mr Kgwele stated that Cabinet has decided that the Department of Health will take over this function from the Department so that there can be better collaboration between the tow departments, but clarity is needed as to what will happen during the transition phase during the interim. This is especially important for those learners who are not currently part of the SNP scheme.

Ms Taljaard stated that the MTEF includes recapitalisation and merger costs, but the Department is asked to provide Members with clear figures on these, and the Department is also asked to explain whether the MTEF allocation sufficiently covers these costs in the tertiary sector.

Presentation by the Department of Social Development
Mr Madonsela, the Acting Director-General of the Department, conducted the presentation (see Appendix) which focused on the medium-term budget priorities for 2003/2004 to 2005/2006, the Departmental budget for 2002/2003 and the various items under the MTEF baseline allocations.

Ms Taljaard contended that the Department's budgetary allocation does not allow it to keep up with its challenges. What is the relationship between the HIV/AIDS grant provided by the Department and the Department of Health, and will the current take up rate improve in the near future?

Mr Madonsela replied that the Department does not offer an HIV/AIDS grant but the Disability Grant is provided to people who are incapable of working, and this could therefore include those affected or infected by HIV/AIDS, because their status is such that they are not able to enter the labour market as determined by the Social Services Act.

Secondly, Ms Taljaard asked the Department to provide Members with an estimated cost of the provision of the Child Support Grant (CSG) to children older than fourteen years, in terms of the recent development.

Mr Madonsela responded that Cabinet has requested the Department to conduct a costing study of this matter. There are a number of permutations possible here, and these options will be reviewed by the social cluster before presentation to Cabinet in January 2003.

Thirdly, Ms Taljaard asked whether the findings of the Taylor Committee Report has been considered by the Department, and also asked the Department to provide Members with information on the costing and implementation here.

Mr Madonsela replied that Cabinet directed the relevant Departments to review the report and its input was received, and this will be considered by the Department in the compilation of its final report.

Fourthly, Ms Taljaard contended that the MTEF does not clearly state which Minister will be responsible for the R400m that has been allocated for food assistance. Will the Department be setting up this infrastructure with the assistance of the Independent Development Trust (IDT), or what role will the Department be playing here?

Mr Madonsela responded that the total amount for the programme currently stands at R4,8b, but there are a number of permutations inherent in the actual rolling-out of the programme.

Ms T Nwedamutswu, Deputy Director-General: Poverty Alleviation, added that she is not certain of the precise figures here, but contended that this is a cluster responsibility. The aim is to have a cluster that is not fragmented, so that an optimal impact may be ensured.

Ms Southgate contended that the Department seems to be having a problem with capacity, and it is asked to explain how it plans to deal with the challenges posed here to general delivery, especially with regard to delivery of the grants.

Ms Nwedamutswu responded that this is a cluster responsibility that calls for an integrated approach to its implementation.

Secondly, Ms Southgate stated that the R400m will clearly play a role information ensuring delivery of the grants, because it has been reported that many pensioners die because they are unable to access their pension grants.

Ms Nwedamutswu replied that an important matter here is identifying those households that include elderly family members, and these persons, children and those children affected or infected by HIV/AIDS are prioritised.

Thirdly, Ms Southgate asked by when the implementation of the CSG to children older than fourteen years will be implemented.

Mr Madonsela replied that it is difficult to answer this question because the decision to extend the grant has not yet been taken.

Fourthly, Ms Southgate stated that she has been informed of a case in which physically and mentally disabled eighteen year old has been turned away from a "special school", because the parents were not able to cover the costs and the grant was not available. How would the Department remedy this situation?

Mr Madonsela responded that the Department is experiencing problems with its grant administration, especially in the Eastern Cape Province. In an effort to improve the grant administration Cabinet has approved the establishment of a Specialised Agency to deal with the administration of grants, as a Schedule 3 public entity. The Departments of Transport, Public Service and Administration and Social Development are currently working on the mechanics of implementing this programme.

Mr Ashley Theron, Chief Director: Welfare Services, added that this is a gap area and services are offered by the Departments of Health, Education and Social Development for children in foster care or in a children's placement programme if they fall within the 18-21 age group. But this has to be addressed by the Department.

Ms Southgate asked the Department to elaborate on the six government departments involved in the new child care legislation, as mentioned during the presentation.

Mr Theron replied that the six departments involved are the Departments of Education, Safety and Security, Health, Office of the President, Justice and Constitutional Development and Transport.

Ms Mahlangu referred to the slide entitled "Improvement of Social Security System" which provides that the process is irreversible, but the system is still causing problems even though the Department contends that is has improved.

Mr Madonsela responded that the replacement of SOCPEN, the Department's grant payment system, involved a series of steps. The first dealt with the development of norms and standards in July 2001 to set the parameters for the system. Secondly, the Department is looking at options of other replacement models with regard to the information management system needed. The third phase involves consultation with the Department of Finance on the procurement plan for this system. The Department plans to take its time in implementing this system, because it cannot be implemented half-heartedly.

Secondly, Ms Mahlangu asked the Department to explain whether the extension of the CSG to children older than fourteen years has been implemented yet, because the presentation seems to suggest that this has already been implemented.

Mr Madonsela replied that Ms Mahlangu is correct in contending that it has not yet been implemented. Cabinet requested the Department to compile the figures and costing for its implementation, and this reflects an amount of R5b if the grant is increased to R140 per month.

Mr Schneeman asked whether the Department has put any mechanisms in place to monitor or support the economic sustainability of the income generating projects.

Ms Nwedamutswu responded that this is the second year that government is implementing its poverty relief programme within the MTEF framework, and this is supposed to be a consolidating stage. The concerns raised by Mr Schneeman are the challenges facing the Department. The Department has requested assistance from both the SABS and CSIR to review the Department's capacity building programmes and financial initiatives for the programme with regard to its self-sustainability in the long-term.

The aim here is to build a community foundation so that all projects are made to belong to the community itself, and not to any individual. The methodology will play a vital role here in ensuring sustainability and in enabling a smooth shift from the previous Department of Welfare to the current Department of Social Development, and also to ensure that the community is empowered. This assessment is expected to be completed before June 2003.

Secondly, Mr Schneeman asked whether the Department has interacted with other government departments in implementing these mechanisms.

Ms Nwedamutswu responded that most departments have their own preferential funding systems, but the departments have jointly devised a programme that enables access to these funds. These amounts are however fragmented and in small quantities and it has to be cleared up with budget services to ensure social facilitation.

The Department was unable to answer all the questions posed within the allocated time, and the following questions were referred to it for written reply:

Mr E Saloojee (ANC) [NA] stated that 90% of the Department's funding is allocated to social security, whereas only 10% is dedicated to the developmental side, and this imbalance has to be addressed. Is the thinking of the Department here that the national agency will take over from the provincial structures? What are the implications here for the developmental side of the Department , and what are the cost implications here?

Ms N Tsheole (ANC) [NA] asked the Department to explain the role it will be playing in the Child Justice Bill because it was indicated that it has not yet been costed. How long will it take the Department of Justice and Constitutional Development to process the Bill so that it can be implemented as soon as possible, because there are numerous implications for the Department.

Secondly, Ms Tsheole asked the Department to supply the timeframes for the implementation of the new programmes, and whether the budget would cover the new legislation.

Thirdly, Ms Tsheole asked whether the Department has devised any active enforcement policies with regard to these new programmes, how these policies will be implemented and how soon this will be done. These programmes cannot be implemented without ensuring community participation.

Ms C Botha (DP) [NCOP] asked how social workers were classified.

Secondly, Ms Botha contended that there is currently a shortage in social workers and there is a real need for additional social workers. What plans have the Department devised to address this need?

Mr Kgwele referred to the implementation of norms and standards mentioned earlier that are aimed at improving the social security system, and asked the Department to explain the measures it has put in place to ensure accountability here, and how it will ensure improved service delivery.

Ms Taljaard stated that the Department has to ensure that the Taylor Committee Report has to be considered, whatever the nature of the decision eventually taken.

Secondly, Ms Taljaard referred to the budgetary allocation and asked whether any of the grants provided by the Department keep track of inflation rates.

Thirdly, Ms Taljaard stated that Ms Nwedamutswu had said earlier that the Department is not leading the process with regard to the spending of the R400m on food assistance, but further clarity is needed as to the role played by the Department here.

Finally, Ms Taljaard asked the Department to explain its role in the victim empowerment programmes.

Presentation by the Department of Health
Dr K Chetty, DDG: Health Services Delivery, conducted the presentation (see document attached) which outlined the assessment of both the Health sector as well as the overall assessment, the pressure and priorities facing the Department, the summary of funding requests for 2003/2004 financial year and the funds allocated by the National Treasury and the concerns raised by the Department with regard to funding.

Ms Taljaard referred to the unforeseen expenditure in the adjustments estimate, and asked whether the unforeseen HIV/AIDS litigation could also fall under this category.

Dr Chetty replied that this appears to be a general comment, but stated that the unforeseen is generally considered over a period of time, and is included in the whole budgeting process.

Secondly, Ms Taljaard asked the Department to explain how much work has been done by the Technical Committee on Pregnant Mother to Child Transfer (PMTCT) since the Constitutional Court ruling, as well as an indication of the costs roll-out envisaged here.

Dr Chetty responded that the Department is currently conducting extensive work in this area, including a detailed costing study.

Ms Taljaard stated that it would be important for Members to get this information, especially the cost estimates, and further sought clarity on the extent to which inflation rates have impacted the social services sector in general, as well as the equipment and infrastructure backlogs.

Mr V Brijlal, Director: Health Finances and Economics, added that this is quite a broad issue and stated that the allocation indicated in the MTBPS for 2002 is over and above this allocation, and is therefore not a true reflection. A holistic and collaborative approach will be adopted in addressing this matter in 2003.

Dr Chetty replied that the Treasury is sympathetic to the financial needs of the Department, but whether the Department has in fact received what it has asked for is another issue.

Ms Mahlangu asked whether any mechanisms have been put in place to ensure compliance with the extended R1,3b allocation in the MTEF, as there is concern regarding the spending patterns here.

Dr Chetty responded that this problem has been identified and the Department is working with the Department of Education to address this matter. This is so especially with regard to the feeding scheme, in order to ensure it is properly managed, monitored and implemented.

Secondly, Ms Mahlangu referred to the slide entitled "Health Pressure and Priorities" dealing with "Personnel" and asked whether the community service could not be extended to other areas, whether an assessment is being done of the current community services programmes and whether any weaknesses are being identified.

Dr Chetty replied that the assessment was conducted and concern was expressed as to whether the current extent of community service is in fact adequately addressing the needs of the community. The aim here is to ensure that those doctors give back to the sector, as they are being paid for their services.

Mr Zita referred to the same slide dealing with the "Overall Assessment" and sought clarity on what precisely is meant by the phrase "still needs more effort".

Dr Chetty responded that this means that in those areas in which insufficient funding was allocated the Department keeps on exploring other sources of funding, and in this regard it works together with the National Treasury.

Secondly, Mr Zita referred to the slide entitled "Health Pressures and Priorities" dealing with "Health Inflation" and contended that, although the anti-AIDS drugs are manufactured locally, the domestic products do not in general seem to be having any major effect on reducing the costs of these drugs.

Dr Chetty replied that the Department is exploring this matter further but it has to be remembered that this cannot be a "short-term thing", because the final solution has to allow South Africa to be competitive internationally.

Thirdly, Mr Zita asked the Department to explain whether the public perceives it to have confidence in the South African health system, and whether the Department has ever checked up on this?

Dr Chetty responded that these surveys are conducted, and all the viewpoints aired are considered.

Fourthly, Mr Zita related the reported story about "barefoot doctors" in China who possess a basic knowledge of the key diseases to enable them to address the problem, and are any steps being taken locally in this fashion?

Dr Chetty replied that this is an interesting development and it could perhaps be given some thought.

Ms Southgate referred to the maintenance of hospital infrastructure and equipment and contended that the problem here is with the management of these assets, and this matter has to be looked at because it appears to be a provincial problem.

Dr Chetty responded that there is a backlog, but this matter is being addressed via a comprehensive approach that is part of an ongoing maintenance initiative.

Secondly, Ms Southgate stated that the presentation mentioned that two projects are being undertaken per province, whereas she was under the impression that the correct amount was three projects.

Dr Chetty replied that two hospitals have been identified within each province in a particular year, and a list of the projects can be made available to Members.

Thirdly, Ms Southgate contended that the Department of Provincial and Local Government is currently evaluating the division of powers and functions of the category B and C municipalities, and the possible handing over of certain functions to the Department of Health. It is accepted that the principle that the funding will follow the function will be applied here, and the Department is asked to indicate when this process will be undertaken.

Dr Chetty responded that this matter is being addressed via the National Health Bill that is currently being considered by the State Law Advisors, and will soon be tabled in Parliament. It was agreed that "municipal health services" would be defined in that Bill as "environmental health", and the transfer of this health aspect to the Department will be done in terms of the Constitution. This change is being effected because the municipalities were performing certain health-related functions that did not fall within the definition of "Primary Health Care" (PHC), and it was thus decided to narrow the ambit of its functions. The Department is working closely with the Department of Provincial and Local Government on this matter.

Ms Mahlangu referred to the need to revitalise hospitals and asked whether the Department has devised any plans to convert portions of a hospital into private wards or to take on medical aids, as this would seem to address them problem being experienced with the "brain drain". Has this been done and, if so, how far has the process progressed?

Dr Chetty replied that at this stage of the developments the Department cannot look solely at Public Private Partnerships (PPP), but instead has to look at the whole spectrum. The Department is currently engaged in a number of projects called differential amenities which looks at providing the same service to all, but the fact of the matter is that the private wards do demand and generate more revenue, such as those at the Johannesburg, Universitas and Kimberly hospitals.

Presentation by the Department of Provincial and Local Government
Mr E Africa, Deputy Director-General: Governance and Development, conducted the presentation (see document attached) which outlines the Department's mission and mandate, its strategic priorities and MTBPS challenges, provides a summary of the Department's MTEF outlook, its basic services and infrastructure investment and the development and consolidation projects being undertaken by the Department.

Mr T Ralane (ANC) [NCOP] referred to the "Basic Services and Infrastructure Investment" slide dealing with "Outputs" and the Urban Transport Fund (UTF), and the Department is asked to explain the link between the UTF and transport subsidies.

Mr Africa responded that the UTF will discuss this matter with the Department of Transport and the new municipalities within the grant structure, as this is an important question that has to be followed-up.

Secondly, Mr Ralane asked the Department to indicate the kinds of obstacles and challenges it is experiencing in providing services such as electricity, especially with regard to cross-border functions.

Mr Africa replied that the Department is working closely with the Department of Minerals and Energy in this area, and he is reluctant to speculate as to the outcome at this point in time. Cabinet has decided to embark on this route with that Department and SALGA to address the valid concerns raised. It has been acknowledged that Regional Electricity Distributors (REDs) could take away an important funding stream from municipalities.

Mr R Mohlala (ANC) [NA] contended that the presentation indicates that one of the Strategic Priorities for the Department is to provide leadership, and the local government sphere is the implementation arm of the entire government structure. Yet the problem currently facing the municipal councils is that the new dispensation is creating very serious problems in certain circumstances, such as the consolidation of sixteen municipal council CEO posts. It was then discovered that those CEO's were still kept in employment and that many people "were being paid for playing solitaire" on their computers. What has the Department planned to do here to address this problem?

Mr Africa replied that this is a cause of concern for the Department and it has put in place a local government transition fund, which is aimed at assisting municipalities with "once-off transitional costs". This was discussed at the last local government MinMec and it is a difficult issue for the Department to "come out clearly on", but it will work with SALGA on the introduction of guidelines and on identifying problems.

Mr Craig Clerihew, the Department's Chief Financial Officer, added that an investigation is currently underway to find means to improve the mobility of public servants between the three spheres of government, so that optimal utilisation of skills may be ensured.

Secondly, Mr Mohlala asked the Department to explain how it will implement any of its projects if it does not have strategic plans in place, because some municipal councils do not even have a strategic plan or master plan, yet they are still able to access the municipal grant. How is it possible for them to receive this grant if they have not presented a master plan?

Mr Africa responded that government has decided to move away from the use of master plans and has instead put in place Integrated Development Plans (IDPs). The master plan was essentially a comprehensive blueprint that sought to include and foresee any eventuality, whereas IDP's embody a strategic approach as a management instrument that seeks to cover issues related to the operation of the municipality. Out of a total of 284 municipalities nation wide 251 have completed and submitted their IDP's, and the Department is clearly not satisfied with this number because it expected all 284 to have submitted their IDP's by now. The Durban metropolitan is one of these, and the Department would have expected the better resourced urban municipalities to have completed their IDP's by now.

Those municipalities are still receiving financial assistance from the Department because the Constitution stipulates that every sphere of government is entitled to conditional portions of funds via the equitable share. The Department has also introduced conditional grants to be accessed by municipalities, but these funds can be withheld if the municipality does not comply with the requirements.

Mr Clerihew added that the amount transferred via the equitable share are the funds which the local government sphere is allocated in terms of the Constitution and not via conditional grants, because it is the conditional grants that first require the presentation of a business plan before any allocation can be made. This is so because the conditional grants are project-based rather than being a "once-off payment".

Mr Zita asked whether the projected increase in the MTEF allocation is a nominal increase.

Mr Clerihew replied that these are nominal figures and the amount currently stands at R27,8b in terms of the inflation adjustment, but these figures do not include the amounts for inflation.

Secondly, Mr Zita asked the Department to explain just how extensive the LED fund is, and how the municipalities will be able to access that fund.

Mr Africa responded that this fund is relatively small and, since its inception in 1994, the fund has grown from R12m in that year to R98m at the last account, and it is projected that it will grow even further to just under R120m in the next cycle. This is a very important fund in enabling municipalities to change their mindsets with regard to playing a developmental role, because the Constitution itself requires local government to provide social and economic development, and this fund assists municipalities to achieve this objective.

Thirdly, Mr Zita asked the Department to share the experiences of the IDP and ISRDP programmes to date, the lessons learnt so far and what precisely the essential elements are of the "innovative mode of planning, budgeting, delivery and governance" is, as mentioned on the "Urban Renewal Programme" slide.

Mr Africa replied that only 251 IDP's have been completed to date. All municipalities are required to submit a fully-fledged IDP, whereas they were previously only required to provide an interim plan. There thus shortcomings but the Department is making progress in this area, and some municipalities are even "stepping up" here.

The "innovative mode of planning, budgeting, delivery and governance" refers to integrated development planning and the Municipal Systems Act other than the IDP, and thus deals primarily with municipal or local government planning. It is aimed at dealing with the problems experienced by the Department in the past, and in the last two years the Department has realised the need to improve its understanding and expectations of IDP's in a number of respects. The IDP's should not only be seen as a municipal planning instrument but also as a means of facilitating interactive dialogue between all three spheres of government. The Department also has to look at how the provinces will become involved here as the IDP does bind the provinces as well, and the Department has to apply its mind to this matter.

Fourthly, Mr Zita referred to efficient service delivery, to which local government is central, and asked contended that one-stop centres are needed here that would allow municipalities to find and apply for grants at that site. This would give effect to the activist dimension of the Department's functioning, so that it can actually "go out and mobilise people".

Mr Africa responded that one of the key challenges facing the Department is how it will reconcile the role of municipalities as the delivery arm, while also serving as a "one-stop centre". This can be resolved and is an important institution that allows access to the public in an integrated manner. It supports the Multi-Purpose Community Centre (MPCC's) objectives, and here the Department will also be looking at ways to improve or facilitate the relationship between the MPCC's and the municipalities.

Ms Mahlangu contended that the presentation suggests that the implementation of the MTBPS depends on the availability of the necessary infrastructure, but this is not entirely the case because the Gauteng municipality possesses the necessary infrastructure but cannot give effect to the provisions of the MTBPS. Thus the Department's assertion does not hold in all municipalities, especially with regard to the provision of electricity, and what is the Department doing to address this issue?

Mr Africa replied that roll is not exclusively dependent on infrastructure but, in general, the rolling out of sustainable services such as water and electricity is dependent on hard infrastructure.

Secondly, Ms Mahlangu referred to the VIP toilets to be installed by the Department of Water Affairs and Forestry, and asked whether the Department would be made responsible for cleaning these toilets on a regular basis. What role will be played by the Department here in installing these toilets, because the public seems to be worse off than before.

Mr Africa responded that the Ventilated Improved Pit Latrine (VIP) is experiencing maintenance problems, and the Department has devised a sanitation programme that clarifies its status.

Thirdly, Ms Mahlangu contended that the IDP project is the nerve centre of the initiative, and the Department is asked to indicate whether it will be active and ensure community participation.

Mr Africa replied that the IDP is essentially a single structure operating at national level and functions primarily as an information and access service, and it is therefore not necessarily directly involved in the planning process but is instead a specialised entity.

Ms Mahlangu asked whether the IDP would establish a consultancy, and sought clarity on the role to be played by the Department in rescuing municipalities which lack the necessary capacity here.

Mr Africa responded that if one compares the interim IDP with the recently released fully-fledged IDP's it becomes evident that the latest IDP's do involve consultants. Yet the Department does not have a problem in principle with the use of consultants in drafting the IDP, but it does become a problem when the municipality is not providing adequate management and leadership over the project. The Department has reviewed this matter and got the municipal management to defend their IDP's as a sign of actual involvement in the drafting process, and the Department was highly impressed at the increase in the level of ownership in the IDP's.

Secondly, Ms Mahlangu asked whether there is co-ordination between the bodies involved in the installation of the VIP's and the Department.

Mr Africa replied that this is linked to the reason for the introduction of the municipal infrastructure grant because in some cases the situation does arise in which the Department looks at the local IDP and consults the municipality on the matter, and this would be dealt with up-front. Yet in some cases this is not the case as not all municipalities follow the same approach, and this is part of the problem. The National Sanitation Policy has been adopted and this would hopefully deal with issues in an up-front manner, especially ensuring co-ordination in sanitation-related matters.

Mr T Taabe (ANC) [NCOP] asked the Department to explain the role to be played by the Project Management Units (PMUs).

Mr Africa responded that the Department's aim here is to ensure that each municipality has the appropriate technical skills to devise and implement programmes. The problem here does not lie with the lack of funds to ensure this capacity, but is instead due to the manner in which the existing funds and capacity is being used and the problems with proper planning. The PMU's are therefore aimed at ensuring this capacity at that level.

Secondly, Mr Taabe asked the Department to explain the funding it has made available for the establishment and capacitating of the planned 35 Planning Implementation and Management Support Systems (PIMS), and also sought clarity as to what extent the Department will be rolling out these centres to deal. Is the establishment of 35 PIMS sufficient to deal with the challenges posed by the need for institutional capacity at local government level?

Mr Clerihew replied that these centres will be established in the area of the local authority, and it would thus be the authority that would establish these centres. The Department will continue to offer assistance via the Municipal Systems Improvement Grant which will grow from R100m to R132m and then on to R142m in the MTEF cycle, and these funds would be allocated to the PIMS centres.

Ms N Hlangwana (ANC) [NA] asked whether the adjustment estimates ensure sufficient accountability when the funds derived from the conditional grants are transferred to local government, and whether the Department has put in place any mechanisms to monitor this process.

Mr Clerihew responded that controls are placed on this transaction via the conditions imposed on the provision of grant, as there are a list of requirements in each grant which require regular reporting to National Treasury. Furthermore, impact-based auditing is conducted here.

Ms Botha referred to the local government objective of providing leadership and guidance, and sought clarity on the current situation in which municipalities are levying taxes on farmland in the absence of any express determination in the Property Rates Bill. When will that Bill be made available?

Mr Africa replied that Cabinet has recently approved the introduction of this Bill, and it must now be tabled in Parliament.

Mr Taabe sought clarity on the successes of the PIMS to date.

Mr Africa responded that there are approximately 35 PIMS centres nation-wide, and the Department's target for the next financial year is to increase this amount to 40 centres.

Secondly, Mr Taabe asked the Department to explain the level at which the PIMS project is being co-ordinated.

Mr Africa replied that Mr Clerihew has stated that these figures are decided by the municipality itself in terms of the municipal systems development grant, but informed Members that R65m will be rolled out over the next two years via the Rural Development Programme for the establishment of the PIMS centres. This is aimed at complementing the capacity of the district municipalities and seeks to make them directly accountable to the municipal manager or mayor.

Mr Kgwele asked the Department to explain the effects and implications of the transformation of the public service on local government, and contended that the issue of the devolution of powers to municipalities has not been canvassed in the presentation.

Mr Africa responded that the Department is looking at ways to improve the mobility of public servants between the three spheres of government, and the Department is of the view that the local government sphere would stand to gain the most here.

The Department is currently considering the issue of the devolution of powers and functions but has not yet devised anything substantial because different departments approach this matter from different viewpoints, and an assignment framework is needed to guide departments here. It is expected that this assignment framework will be developed by early 2003.

Mr Schneeman asked the Department to indicate by when, at the earliest, the Urban Renewal Programme (URP) and Integrated Sustainable Rural Development Project (ISRDP) would commence in the eight urban and thirteen rural nodes.

Mr Africa replied that the 21 nodes were identified in January/February 2001 and the implementation of the URP and ISRDP strategies was then launched later during 2001, and the strategic information programme was enacted when the Galaghadi site was established. Thus some implementation has already taken place.

Mr Clerihew added that the aim here is make the necessary expertise available to the municipality so that it might be assisted, and more details will be provided by National Treasury.

Mr Ralane asked the Department to indicate whether it has consulted the Financial and Fiscal Commission (FFC) on the MTBPS.

Mr Africa responded that the Department has noted the concerns raised by the FFC and will consult them.

Secondly, Mr Ralane asked whether there is sufficient co-ordination between the various entities involved in assessing the IDP.

Mr Africa replied that when the Department stated that it would be assessing the IDP's certain municipalities asked for the reasons behind this decision, and it was discovered that the Municipal Systems Act stipulates that this assessment function falls within the jurisdiction of the provincial structures. The provincial structures did conduct this assessment, and it now has to be ensured that the IDP's are of an acceptable quality.

There were no further questions or comments and the meeting was adjourned.

Appendix 1

Hearings on the MTBPS: Focus on the Education Sector

Presentation to the Joint Budget Committee
5 November 2002


- All except Higher Education is a concurrent function, with provinces responsible for budgets and implementation
- Minister of Education responsible for setting policy, norms and standards and monitoring and evaluation
- Strong focus on concurrence of functions, with emphassis on co-operative functions

Locate education within priorities of poverty relief and Human Capability Development
- Assess implications of MTBPS for education
- Signal strategies to improve service delivery and impact of education

Government's policy priorities
Poverty reduction and development, addressing the needs of vulnerable groups
- Investment in people, service delivery and economic growth.
- Expanding international commitments, including the promotion of NEPAD.

Priority areas for 2003 MTEF relevant to education
Extending social assistance, health and education programmes administered by provinces
- Higher education restructuring, including support for institutional mergers and investment in infrastructure

Education and Poverty
Poverty is the major determinant of educational attainment
- Yet, education is a key driver for development and, by extention, poverty eradication
- Human development and human capital determined by health, social development and education

Link between education and poverty eradication
Diagram not included

Key strategies to deal with poverty through education
Improve adequacy of funding for poor -equity in outcomes
- Human Resources Development strategy

Approach to dealing with poverty is captured in the HRD Strategy
Diagram not included

MTBPS implications for education sector - 2002/03
R2,2 billion of adjustment to provincial budgets for 2002/03 intended to step-up expenditure on Learner Support Materials before new school year

MTBPS implications for education sector - MIEF
- Projected spending on social services is R11,5b higher in 2003/04 and R15,6b higher in 2004/05.
- Real growth of 3,6% for education - alleviate pressure on the size of the budget envelope for education
- Projected increases in expenditure above the baseline for health and social development -very beneficial to education - because of positive impact of these sectors on education and reduction of provincial budget pressures

Restructuring of higher education
- Maintaining the subsidy level to higher education institutions
- Recaptalise existing institutions
- Invest in infrastructure to enable economies of scale that we seek to achieve through mergers
- Including creation of more robust planning capacity and systems to make institutions more responsive, ICT, modernisation of equipment and library stocks

National School Nutrition Programme
- High incidence of poverty - accentuated in recent months
- Powerful determinant of school attainment -impact on attendance, congitive development, concentration, physical development
- Strong projected growth over MTEF - R592m in 2002/03, R809m in 2003/04, R950m in 2004/05 and R1042m in 2005/06 (37% increase between 2002/03 and 2003/04; and 76% increase comparing 2005/06 to 2002/03)

Education infrastructure
Continues to show strong growth
- Continue to focus on improving rate and quality of expenditure
- Success in improving expenditure rates across all provinces, however some planning challenges need further attention -mainly in respect of demographic shifts
and rural schooling

Non-personnel, non-captial expenditure
Potential for strong growth - "...a substantial share of additional resources will be allocated to Learner Support Materials"
- Non-personnel, non-capital budgets for public ordinary schools were under servere pressure -averaging P200 per learner
- Contributed to rising demand for private contributions and visible shortages of key
education inputs in schools catering for poor
- Resulted in public call for adequate funding and in some cases, scrapping of fees

- Education significant role in prevention, care and support
- Education's strategic plan seeks to mainstream HIV and AIDS related strategies and to mobilise stakeholders into a coalition to fight HIV and AIDS
- Considerable allocations projected for HIV and AIDS conditional grant managed by the Department

Accelerated introduction of Early Childhood Development - Grade R in schools
- Source of the pressure - worsening poverty and HIV/AIDS increase the pressure for rapid roll-out of Grade R provisioning for all poor learners.
- ECD has major impact on educational attainment for children from poor backgrounds

Boosting Grade R delivery
- Keys to success:
~ DoE leadership in terms of systems, macro-planning and policy.
~ In provinces, a mix of 'add-on funding' and 'dividend funding'.
~ A strengthening in provincial capacity to manage dividends, and ECD delivery according to WP5.
~ Clear and effective targeting of poorer communities.

Kick-starting ABET delivery
- Source of the pressure:
~ HIV/AIDS and the need for adult education.
~ Parent illiteracy affects school performance negatively
~ Priorities around democratisation of our society and human rights
~ Strong impact on human development - eg. Impact of maternal literacy on child mortality rates

Pressures in Education
Of a non-budgetary nature
~ Related to management focus.
~ Refocusing within existing budgets can be powerful, non-conflictive tool for change.
- Of a budgetary nature
~ Related to trade-offs between;
Education sectors.
Government sectors.
Levels of government.
Aspects of service delivery, etc.

Improving the use of current inputs
- Emphassis must be on institutional efficiency
- Capacity of:
~ Teachers to teach.
~ Learners to learn.
Revisit poverty and nutrition factors.
~ Managers to manage.
Distinguish between managerial and systems capacity shortfalls. Build ' the district
office' as a system.
Equity in outcomes

Status of service delivery
1. Examination results and learner performance
- Declining repetition at SCE, but concerns about the decline in the proportion of 18 year-olds who write final examinations and in gross pass ratios.
- Improved credibility and security of the Senior Certificate Examinations.
- Fewer poor performing schools as interventions are working.
2. Quality of learner performance
Better quality learner performance, especially by female learners, so further reducing barriers to female learners will help.
- Key subject pass rates have increased.

Managing performance
Make performance measurement a priority
- Improve on present systems of quality management and accountability systems: Whole School Evaluation, Systemic Evaluation, Educator Performance Management, Development Appraissal system, quarterly reports to President
- Objective: integrated quality management system, which would include an indicator system to improve quality assurance and accountability

Ensure final MIEF projections are realised in provincial budgeting process
- Ensure that allocations are predictable
- Continue to focus on assessing composition of inputs - to strive for optimal mix
- The MTBPS looks positive for education

Appendix 2


Joint Budget Committee
Medium Term Budget Policy Statement
5 November 2002

Medium-term Budget Priorities: 2003/04-2005/06
- Poverty reduction, prioritising the most vulnerable groups
- Addressing impact of HIV/AIDS
- Improvement of the social security system
- Child protection measures
- Transformation of welfare services
- Implementation of recommendations of Ministerial Committee on Elderly Abuse

Poverty reduction
Priority focus is on children, especially those infected and affected by HIV/AIDS
- Range of child protection measures including:
~ Policy and legislation
~ Home/community-based care programmes
~ Social assistance (CSG & Foster Care)

Poverty reduction [2]
Poverty relief programme
~ Implementation of sustainable development programmes
~ Financial & technical assistance
~ Capacity building

Mitigating impact of HIV/AIDS
- National integrated plan on HIV/AIDS
~ Home/Community-Based care Programmes
~ Development of policy & legislation
~ Capacity building at all levels
- Key outputs
~ Establish Home-Based Care Projects and support to community-based initiatives (300)
Provision of essential material assistance to children and families
Training and support to community caregivers and volunteers
Counselling and referral services

Improvement of Social Security System
- Implementation of the recommendations of the Committee of Inquiry into Comprehensive Social Security
- Registration of eligible beneficiaries
- Enhancement & Replacement of the Grant Payment System (SOCPEN)
- Implementation of norms and standards
- Strengthening monitoring, evaluation and compliance

Child Protection Measures
- C
hild protection policies and legislation:
~ Proposed extension of the child support grant (CSG) to children of up to 14 yrs
~ New Child Care legislation
~ Child Justice Bill
~ Implement Child Abuse and Neglect Strategy

Transformation of welfare services
- Implementation of recommendations of Ministerial Committee on Elderly Abuse
~ New policies & legislation
~ Audit & inspection of old-age homes
~ Development of norms & standards
- Funding of NGOs
~ Financing policy
- Victim empowerment
~ Anti-rape strategy
~ Strategy on shelters for Abused Women and Children

Transformation of welfare services
Review and replacement of pre1994 legislation
- Expanded training of social service professionals in government and non-government sector
- Financial & administrative support to Advisory Board on Social Development

Departmental Budget 2002/03

Amount voted

R 409 261 000

Proposed Adjustments

R 6 317 000

- Rollovers

R 4 673 000

- inflation adjustment

R 10 990 000

Total allocation

R 420 251 000

Departmental Budget 2002/03 [2]

Amount voted

R 420 251 000

- Less:Special Allocations

R 291 262 000

Total Operation

R 128 989 000

~ Personnel allocation

R 56 039 000

~ Operational costs

R 72 950 000

Departmental Budget 2002/03 [3]

- Special Allocations


~ Poverty Relief

R 100 000 000

~ National Development Agency

R 96 745 000

~ Improvement of Social
Security System

R 25 849 000

~ Implementation Grant monitoring

R 5 000 000

~ Relief Funds

R 15 000 000


R 48 200 000

~ Victim Empowerment

R 468 000

- Total Special Allocations

R 291 262 000

MTEF Baseline Allocations



% increase


409 261



406 202



357 746



379 210


  • The decrease in 2004/05 is due to phasing out of the ISSS grant & poverty relief program.

    Conditional Grants
    - Department has managed conditional grants since 1998/99
    - Three remaining grants are:
    ~ Improvement of Social Security System (ISSS)
    ~ HIV/AIDS (National Integrated Plan for Children Infected and Affected)
    ~ Poverty Relief (Grant-in-kind)
    - ISSS being phased-out in current year.
    - Poverty relief available until 2003/04

    Allocations - ISSS









137 068

71 300

26 000

25 000



An amount of R10,8m (2001/02:R10,236m) was transferred to the 9 provinces.

Baseline Allocation per province- HIV/AIDS







12 500 000

46 500 000

64 235 000

68 185 000


900 000

1 500 000

1 600 000

1 600 000


13 400 000

48 000 000

65 835 000

69 785 000

Programme objectives:
~ Identification of vulnerable children for purposes of providing support and security
~ Fast track the access to social security grants- CSG, foster care & care dependency
~ Funding community based initiatives that support communities affected by HIV/AIDS
~ Awareness creation about services available orphans and other vulnerable children
~ Capacity building

Poverty Relief Annual Allocations











205 272

157 678

50 000

100 000

71 000

Funds are transferred to the Independent Development Trust for payment to projects.
IDT also assist with programme management.

Poverty Relief
Programme objectives:
~ Household food security through food production clusters
~ Social support structures in communitities
~ Targeted urban regeneration initiatives
~ Income generation projects for rural women
~ community-based child care initiatives Targeted economic and employment opportunities for the diabled
~ Development of social finance capacity of impoverished communities

Implications for Provinces
The substantial increase in expenditure on social grants during 2002/03 (average 15,2%) is welcomed
- However, unless the social security component (18%) of equitable share formula is adjusted upwards, a lot of pressure will be put on provincial Social Development budgets due to:
~ Impact of registration campaign
~ Extension of the CSG
~ Implementation of new child protection policies and legislation, e.g. child justice bill & new child care legislation
~ implementation of norms and standards on social security

Implication for national department
Increased demand for services requires the strengthening of internal capacity in the following areas:
~ Policy development and strategy management
~ Monitoring, evaluation and compliance
- Budget constraints is a serious limiting factor

- The significant increase in social spending over the medium-term (average real increase of 3,6 per cent) indeed indicates the government's commitment to the progressive realisation of the social and economic rights enshrined in our Constitution.


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