Question NW2220 to the Minister of Finance
30 November 2016 - NW2220
Masango, Ms B to ask the Minister of Finance
What is the total approved budget for the takeover of the payment of grants by the SA Social Security Agency from Net1 for the (a) 2015-16, (b) 2016-17, (c) 2017-18 and (d) 2018-19 financial years?
Reply:
The amount originally planned for spending by SASSA and for payment contractors is shown in Table 1.
Table 1. Original planned spending by SASSA in total and for payment contractors.
|
R' 000 |
2015/16 |
2016/17 |
2017/18 |
2018/19 |
|
|
Audited Outcome |
Budget |
Estimates |
Estimates |
|
Total expenditure/ budgets |
6,686,478 |
7,351,089 |
7,697,571 |
7,911,091 |
|
Of which: payment Contractors |
2,025,559 |
2,179,364 |
2,202,043 |
2,329,761 |
Source: Data as at ENE 2016
SASSA will spend approximately R2.179 billion on payment contractors in 2016/17. In 2017/18 the Department of Social Development will transfer R7.697 billion to SASSA.
The Ministry of Social Development and SASSA need to respond on the specific spending amounts from SASSA’s budget and accumulated surpluses being used to build up systems in preparation to become the paymaster, and on related issues such as SASSA’s readiness to assume the paymaster role, what functions they intend to take over and which ones they will continue to contract out. The above figures, published in ENE 2016 are indicative since while Departmental Budgets are approved by Parliament, entity budgets are approved by Executive Authorities, in this case the line function Minister, Minister Dlamini.