21 August 2007
PARLIAMENT OF THE
JOINT BUDGET COMMITTEE:
EXPENDITURE REPORT
FIRST QUARTER 2007/08: DRAFT 2
1.
INTRODUCTION
In pursuing the
ideal of building a democratic society through reconciliation and
socio-economic transformation the challenge for government has been how to
optimally align and utilize the nations resources. It is the responsibility of
Parliament, as the guardian of the public interest, to ensure that government
is responsive to the needs of the people. To accomplish this Parliament has
established a variety of mechanisms and instruments, predominately various
specialized committees, to effectively monitor government spending plans and
performance.
The Joint Budget Committee (JBC) was established to,
amongst other things, monitor and report on government expenditure. In so
doing, the JBC will review and report on departmental spending on a quarterly
basis. In accordance with this practice, this report provides an analysis of
departments’ expenditure for the first quarter of the 2007/08 financial year. The
report is divided into four main sections. These include an analysis of first
quarter expenditure in terms of total expenditure, current expenditure,
transfer expenditure and capital expenditure, respectively.
1.
TOTAL EXPENDITURE
Total expenditure consists of current expenditure, transfer payments and
capital expenditure. By the end of the first quarter of the 2007/08
financial year, Departments spent on average of 22.33% of their total budgets.
This amounts to R66.7 billion in the first quarter of 2007/08 compared to R55.7
billion is the first quarter of the previous financial year. In percentage
terms this is a slight improvement on the previous years first quarter
expenditure of 21.44%. Departments’ spent on average 9.1% of their budget
during April, 7.29% in May and 5.93% in June.
By the end of
the first quarter of the 2006/07 financial year, Departments spent an average
of 21.44% of their total budgets.
Departments’ spent on average 7.11% of their budget during April 2006,
7.22% in May 2006 and 7.11% in June 2006.
Table 1
represents Departments’ expenditure at the end of the first quarter.
Table 1:
Departmental Expenditure at the end of the First Quarter
|
R'000 |
Total Budget |
Total
Expenditure |
% Total Exp.
for 1st Quarter |
2006/07 %
First Quarter Exp. |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
Voted Amounts |
299,177,741 |
66,792,673 |
22.33% |
21.44% |
9.10% |
7.29% |
5.93% |
|
|
|
|
|
|
|
|
|
|
|
|
Central Government
Administration |
40,798,702 |
3,710,326 |
9.09% |
8.66% |
2.32% |
3.17% |
3.63% |
|
|
The Presidency |
254,741 |
50,761 |
19.93% |
17.87% |
7.00% |
5.96% |
6.97% |
|
|
Parliament |
835,714 |
146,516 |
17.53% |
14.11% |
9.05% |
3.72% |
4.75% |
|
|
Foreign Affairs |
3,856,363 |
584,857 |
15.17% |
20.09% |
1.47% |
3.95% |
9.75% |
|
|
Home Affairs |
3,314,589 |
491,638 |
14.83% |
18.48% |
4.37% |
6.42% |
4.04% |
|
|
Provincial and Local
Government |
28,844,175 |
1,560,021 |
5.41% |
3.81% |
1.86% |
1.77% |
1.81% |
|
|
Public Works |
3,693,120 |
876,533 |
23.73% |
25.59% |
3.17% |
10.03% |
10.53% |
|
|
|
|
|
|
|
|
|
|
|
|
Financial and
Administrative Services |
22,782,011 |
5,801,692 |
25.47% |
20.68% |
7.96% |
11.82% |
5.68% |
|
|
Government Communications
and Information Services |
375,812 |
115,326 |
30.69% |
26.41% |
20.56% |
6.41% |
3.72% |
|
|
National Treasury |
19,708,178 |
4,333,375 |
21.99% |
20.89% |
4.82% |
12.21% |
4.96% |
|
|
Public Service and
Administration |
357,283 |
74,132 |
20.75% |
20.67% |
6.33% |
5.63% |
8.79% |
|
|
Public Service Commission
|
105,357 |
23,079 |
21.91% |
21.23% |
7.13% |
8.25% |
6.52% |
|
|
S A Management
Development Institute |
71,126 |
16,720 |
23.51% |
23.17% |
7.19% |
8.53% |
7.79% |
|
|
Statistics |
1,100,289 |
187,469 |
17.04% |
16.06% |
4.40% |
5.65% |
6.99% |
|
|
|
|
|
|
|
|
|
|
|
|
Social Services |
102,686,269 |
30,742,537 |
29.94% |
31.57% |
15.47% |
8.90% |
5.57% |
|
|
Arts and Culture |
1,608,019 |
403,079 |
25.07% |
24.59% |
12.77% |
5.22% |
7.08% |
|
|
Education |
16,000,923 |
7,826,605 |
48.91% |
47.43% |
24.61% |
18.68% |
5.62% |
|
|
Health |
12,655,132 |
3,012,675 |
23.81% |
23.39% |
6.91% |
9.31% |
7.58% |
|
|
Labour |
2,032,865 |
560,242 |
27.56% |
21.70% |
4.52% |
19.05% |
3.99% |
|
|
Social Development |
67,232,108 |
17,935,360 |
26.68% |
29.88% |
15.74% |
5.52% |
5.42% |
|
|
Sport and Recreation |
3,157,222 |
1,004,576 |
31.82% |
21.97% |
5.94% |
25.12% |
0.76% |
|
|
|
|
|
|
|
|
|
|
|
|
Justice and Protection
Services |
79,940,717 |
15,621,268 |
19.54% |
18.29% |
6.13% |
6.07% |
7.34% |
|
|
Correctional Services |
10,742,331 |
2,362,586 |
21.99% |
17.57% |
5.99% |
7.21% |
8.80% |
|
|
Defence |
25,922,255 |
4,149,803 |
16.01% |
14.39% |
4.43% |
4.24% |
7.34% |
|
|
Independent Complaints
Directorate |
80,891 |
16,605 |
20.53% |
21.91% |
5.63% |
8.09% |
6.80% |
|
|
Justice and
Constitutional Development |
7,277,770 |
1,379,833 |
18.96% |
18.92% |
5.51% |
6.84% |
6.61% |
|
|
Safety and Security |
35,917,470 |
7,712,441 |
21.47% |
21.26% |
7.52% |
6.89% |
7.06% |
|
|
|
|
|
|
|
|
|
|
|
|
Economic Services and
Infrastructure Development |
52,970,042 |
10,916,850 |
20.61% |
16.14% |
6.95% |
7.26% |
6.40% |
|
|
Agriculture |
2,281,166 |
433,140 |
18.99% |
18.05% |
4.82% |
8.48% |
5.69% |
|
|
Communications |
1,423,533 |
306,893 |
21.56% |
10.32% |
1.86% |
8.14% |
11.56% |
|
|
Environmental Affairs and
Tourism |
2,590,771 |
825,489 |
31.86% |
33.44% |
17.00% |
7.71% |
7.16% |
|
|
Housing |
8,877,608 |
1,502,852 |
16.93% |
20.87% |
5.87% |
4.77% |
6.29% |
|
|
Land Affairs |
5,678,519 |
1,317,048 |
23.19% |
9.67% |
6.95% |
9.51% |
6.73% |
|
|
Minerals and Energy |
2,966,113 |
770,564 |
25.98% |
13.88% |
7.80% |
10.24% |
7.94% |
|
|
Public Enterprises |
1,063,966 |
1,051,591 |
98.84% |
20.51% |
66.17% |
15.59% |
17.08% |
|
|
Science and Technology |
3,142,479 |
586,628 |
18.67% |
20.28% |
9.38% |
5.41% |
3.87% |
|
|
Trade and Industry |
4,845,583 |
1,001,561 |
20.67% |
12.15% |
5.35% |
9.19% |
6.13% |
|
|
Transport |
15,857,923 |
3,290,369 |
20.75% |
14.39% |
7.60% |
6.28% |
6.86% |
|
|
Water Affairs and
Forestry |
5,306,347 |
882,306 |
16.63% |
16.07% |
3.69% |
8.63% |
4.30% |
Table 1
illustrates that nine Departments spent more or equal to 25% of their total
budgets as at the end of the first quarter. They are the Department of Arts and
Culture, Government Communications and Information Services, Education, Labour,
Social Development, Sport and Recreation South Africa, Environmental Affairs
and Tourism, Minerals and Energy, and Public Enterprises. The remaining
twenty-five Departments spent less than 25% of their budgets.
The following
Departments spent a great deal more or less than 25% of their budgets during
the first quarter of the 2007/08 financial year.
Department of Public Enterprises
The Department
of Public Enterprise (DPE) has oversight responsibilities over the affairs and
performance of state-owned enterprises (SOE). In this role it acts as the
shareholder-representative of government, ensuring that state-owned enterprises
are commercially viable and contribute to the growth of the country’s economy.
The department further ensures that SOEs business strategies are aligned with
sector departmental policies and regulatory frameworks such as the Public
Finance Management Act (Act 1, 1999).
The Departments
budget as stated in the 2007 Estimates of National Expenditure was R1.064
billion. At the end of the first quarter total expenditure was R1.052 billion
or 98.84% of the Departments total budget. Of the R1.052 billion spent by the
department thus far R1.025 billion was transfer expenditure. The current budget
for the Department is R129.4 million and of this amount R26 million or 20.46%
was spent during the first three months. The original projections as supplied
by National Departments at the start of the 2007/08 financial year, also known
as the Approved Drawings on the National Revenue fund indicates that the
Department planed spending R438.4 million during the first 3 months of the
financial year. The Department therefore spent more than double its intended
projections.
Its important to
note that the Minister of Finance indicated that about R3
billion was set aside as contingency money. That this money will allow for
unforeseeable and unavoidable expenditure. With regard to the Pebble Bed
Modular Reactor (PBMR) and InfraCo the funding is subject to the approval of
business plans and resolutions of outstanding regulatory requirements.
Department of Education
The Department
of Education was the second highest spending Department. They spent R7.8
billion or 48.91% of their total budget during the first quarter. During the
first quarter of the previous financial year the Department spent R6.7 billion
or 47% of its total budget. The Department of Education spent 11.93% of its
current budget, 50.69% of its transfer budget and 27.23% of its capital budget
during the first 3 months of the financial year. The Department spent less than
the Approved Drawings on the National Revenue fund that indicate that the
department planned spending R8.444 billion during the first quarter.
It’s important
to note that 95.41% of the Departments budget constitutes transfer payments.
Most of this money is transfers to public higher education institutions, public
entities and transfers to provinces for conditional grants managed by the
Department as per the Division of Revenue Act. Of the departments total budget 74.1%
is transfer payments to public higher education institutions. The department
has a standing approval with National Treasury to transfer 50% of the total
grant to higher education institutions during April and May of each year. The
remaining 50% is pay over the remaining months up until November. This is done
to assist these institutions with their cash flow management. During the first
three months of the 2007/08 financial year the department transferred 55.22% or
R6.596 billion of the total grant to higher education institutions.
In respect to
conditional grants, the Department thus far transferred 25% of the allocation
for the HIV and Aids grant as well as for the National School Nutrition
Programme totalling R963 million. In respect to the FET Colleges
Recapitalisation grant, 50% or R297 million was transferred in accordance with
the payment schedule. Public entities reporting to the Department receive
payments on a quarterly basis which amounted to R889 million during the first
quarter.
The Department
monitors expenditure by higher education institutions via monthly reports as
well as annual reports, which include annual financial statements. Conditional
grants are monitored in accordance to the Division of Revenue Act through
receiving monthly financial reports and quarterly narrative reports. These are
reports are checked against the approved business plans for each province.
Public entities are monitored through quarterly reports which include financial
and performance information based on approved strategic plans of the public
entities.
Of the R87.3
million spent thus far on current expenditure, R44.285 million was for
Compensation of employees. total compensation of Employees budget for the
2007/08 financial year is R263 million, which means that the department thus
far only spent 16.83% of its budget for compensation of employees.
Department of Sport and
Recreation
The Department
of Sport and Recreation spent R1 billion or 31.82% of its total budget during
the first quarter. This is significantly higher than the previous financial
year where the Department only spent R77 million during the first three months.
Of the R1 billion spent thus far by the Department R982 million is transfer
expenditure. Thus far the Department only spent R198 million or 10.74% of its
current budget that is meant for compensation of employees and the purchases of
goods and services. The Department only spent R24 million or 0.78% of its
budget during the month of June.
Department of Transport
The Department
of Transport spent R3.290 billion or 20.75% of its total budget during the
first quarter. Of the R3.290 billion spent thus far by the Department R3.204
billion was transfer expenditure. Thus far the Department only spent R85
million or 11.81% of its current budget that is meant for compensation of
employees and the purchases of goods and services.
The Department
furnished the Committee with a detailed breakdown of current expenditure. The
Department has a total current budget of R722.666 million of this amount R180.826
million is allocated for compensation of employees. In the period under review the Department
spent R29.134 million or 16% this allocation. The reasons given by the
Department for under expenditure on compensation of employees is because of the
high level of vacant posts, partly due the restructuring of the Department, and
partly due to the high number of resignations that were experienced during the
past financial year. The establishment was increased in May 2006 with an
additional 99 posts, which brought the total establishment to 1022 posts, of
which 414 were not funded on the budget.
During the MTEF
budgeting process that culminated in the 2007 Estimates of National
Expenditure, additional funding of R15 million per annum was allocated from 2007/08
onwards that enabled the Department to prioritise and fill posts that were
previously unfunded in its new structure. On 16 April 2007, 66 posts were
activated on the establishment, which leaves a total of 348 posts unfunded.
Although the reduction of the vacancy rate was identified as a critical area,
and the Department continuously filled vacant posts, the number of filled posts
only increased slightly between 1 April 2006 and 31 March 2007, because of 63
resignations during the year while 66 posts could be filled. Between 1 April
2007 and 31 July 2007, 55 posts were filled while 14 staff members resigned.
Of the R722.666
million allocated to current expenditure R541.840 million are assigned to goods
and services. During the period under review the Department spent R56.233
million or 10.39% of its goods and services budget. The Department gave
detailed explanations per programme for under expenditure on goods and
services.
Department of Provincial and
Local Government
This Department
spent the lowest percentage of its budget during the first quarter of the
financial year. The Department spent R1.56 billion or 5.41 % of its budget
during the first quarter. Around 96% of the Department’s expenditure consisted
of transfers through Programme Six: Provincial and Local Government Transfers
and the reason for the low expenditure during the first quarter is because of
the transfer schedule of the equitable share, paid every four months by the
department. The first payment is due during July 2007. During the previous
financial year the first payment was made during July (R6.77 billion) the
second payment in November (R5.1 billion), and the final payment was made
during February (R8.42 billion). Current/ operational expenditure for the first
3 months of the financial year was R69 million or 19.55%.
Department of Home Affairs
The Department
of Home Affairs was the second lowest spending Department during the first
three months. The Department spent R492 million or 14.83% of their budget
during the first quarter. The Department spent R144.9 million or 4.37% during
April, R212.9 million or 6.42% during May, and R133.9 million or 4.04% during
June. The Department spent less than the amount stated on the Approved Drawings
on the National Revenue Fund, which states that the Department planned spending
R699.38 million during the first quarter. At the end of the previous financial
year the Department under spent its budget by R237 million or 8%. Thus far the
Department spent R352 million or 16.92% of its current budget, R128 million or
25.22% of its transfer budget, and R11.6 million or 1.6% of its capital budget.
Department of Housing
The Department
spent R1.5 billion or 16.97% of its budget during the first quarter. The
Department spent R520 million or 4.37% during April, R423 million or 6.42%
during May, and R559 million or 4.04% during June. The Department spent less
than the amount stated on the Approved Drawings on the National Revenue Fund,
which states that the Department planned spending R1.8 billion during the first
quarter. At the end of the previous financial year the Department under spent
its budget by R171 million or 2.3%. Thus far the Department only spent R50
million or 12.8% of its current budget, R1.45 billion or 17.12% of its transfer
budget, and R884 thousand or 13.45% of its capital budget.
Its important to
note that 98.01% of the departments budget is appropriated to programme 4 were
the integrated housing and human settlement grant is located. This programme
also houses the operational budget for public entities. The remaining 3.99% of
the Departments budget represents the Departments operational budget.
The Department
reported back on its level of expenditure as per programme.
Programme 1:
Administration, has a budget of R116.4 million. Of this the department spent
R23.2 million or 20% during the first quarter of the financial year. Of the
R69.683 million available for goods and services within this programme the
Department only spent R10.368 million or 15% during the first quarter. The Department
states that under spending in this programme is attributed to the ordering of
goods and services of which delivery and for invoices are being awaited. The
Department anticipate that expenditure will start to increase as the year
progress.
Programme 2:
Housing Policy Research and Planning has a budget of R89.979 million for
2007/08 of this the Department only spent R4.422 million or 5% during the
period under review. Only 8% of the compensation of employees budget of R28
million and 3% of the goods and services budget of R58.2 million was spent
during the first quarter. The Department states that under spending can be
attributed to a delay in the payment of invoices on the information management
systems. As well as a delay in the service level agreement with SITA due to the
rigorous reviewing process that were followed and which are now in the process
of approval. The department stated that as soon as the service level agreements
are approved the expenditure will start to increase.
Programme 3:
Housing Implementation Support has a budget of R147.9 million for 2007/08 of
this R15.5 million or 10% were spent during the period under review. Only 13%
of the compensation of employees budget of R17.6 million and 10% of the goods
and services budget of R129.9 million was spent during the first quarter. The
department states that under spending on this programme is as a result of the
Accreditation on Municipalities project which was slow. Expenditure is expected
to improve in the next quarter as business plans were received, reviewed and
approved during the first quarter.
Programme 4:
Housing Development Finance has a budget of R8.523 billion for 2007/08 of this
R1.459 billion or 17% was spent during the period under review. Twenty five
percent of the compensation of employees budget of R17.296 million and 13% of
the goods and services budget of R27.76 million was spent during the first
quarter. This programme consists mainly on conditional grants to provinces and
transfer payments to public entities under the control of the Department. Of
the R8.477 billion allocated for transfer payments R1.44 billion or 17% was
transferred during the period under review. This is inline with projected
expenditure for the period. The transfer of funds to provinces is based on
inputs received from the different provincial governments and is based on
project life cycles were expenditure peak towards the end of the completion of
the project.
Regarding the
monitoring of transferred funds, the department states that they receive monthly
reports on financial and non-financial information that is reviewed and
followed-up with provinces. Conditional grants are monitored in accordance to
the Division of Revenue Act. The Department visit provincial departments to
review their expenditure performance and as well as revise their monthly cash
flows when required. In addition a Chief Financial Officers Forum has been
re-established where issues of non-spending in relation to business plans are
debated.
2. Current
Expenditure
Current expenditure is categorised into two main components namely
compensation of employees and goods and services. Compensation of employees
includes most payments to government employees, except social contributions and
payments to government employees working on capital projects (classified as
capitalised payments). Goods and services cover all goods and services used by
a government department or entity, this includes amongst others items such as
communication, computer services, consultants and contractors, maintenance,
repairs and running costs, operational leases, and travel and subsistence
allowances.
Table 2
represents Departments’ overall Current Expenditure for the first quarter of
the 2007/08 financial year. Departments’ spent on average 20.42% of their Current
budgets during the first 3 months. This translates into R18.37 billion of a
total of R89.97 billion. They spent on average 6.45% of their Current budgets
during April, 6.31% during May and 7.65% during June. During the first 3 months
of the 2006/07 financial year Departments spent on average 19.7% of its current
budgets.
Table 2: Current
Expenditure at the end of the First Quarter
|
R'000 |
Total Current
Budget |
Current Exp.
for First Quarter |
% Cur. Exp.
for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Voted Amounts |
89,967,889 |
18,373,632 |
20.42% |
6.45% |
6.32% |
7.66% |
|
|
|
|
|
|
|
|
|
|
|
Central Government
Administration |
7,466,875 |
1,361,701 |
18.24% |
3.65% |
6.23% |
8.35% |
|
|
The Presidency |
223,138 |
42,476 |
19.04% |
4.47% |
6.79% |
7.78% |
|
|
Parliament |
574,826 |
82,836 |
14.41% |
2.31% |
5.38% |
6.72% |
|
|
Foreign Affairs |
2,772,176 |
492,177 |
17.75% |
2.05% |
5.22% |
10.49% |
|
|
Home Affairs |
2,079,228 |
351,772 |
16.92% |
4.58% |
5.99% |
6.35% |
|
|
Provincial and Local
Government |
352,077 |
68,818 |
19.55% |
5.97% |
5.99% |
7.59% |
|
|
Public Works |
1,465,430 |
323,622 |
22.08% |
5.22% |
8.78% |
8.08% |
|
|
|
|
|
|
|
|
|
|
|
Financial and
Administrative Services |
4,620,815 |
881,662 |
19.08% |
12.03% |
6.46% |
0.59% |
|
|
Government Communications
and Information Services |
250,515 |
70,788 |
28.26% |
13.18% |
9.54% |
5.54% |
|
|
National Treasury |
2,684,869 |
501,753 |
18.69% |
5.21% |
6.80% |
6.68% |
|
|
Public Service and
Administration |
335,291 |
72,319 |
21.57% |
6.48% |
5.76% |
9.34% |
|
|
Public Service Commission
|
103,663 |
22,757 |
21.95% |
6.99% |
8.38% |
6.59% |
|
|
S A Management
Development Institute |
40,293 |
8,814 |
21.87% |
5.68% |
8.40% |
7.80% |
|
|
Statistics |
1,076,763 |
178,748 |
16.60% |
4.42% |
5.65% |
6.53% |
|
|
|
|
|
|
|
|
|
|
|
Social Services |
3,594,735 |
613,533 |
17.07% |
4.78% |
6.21% |
6.07% |
|
|
Arts and Culture |
256,233 |
69,736 |
27.22% |
5.47% |
8.54% |
13.21% |
|
|
Education |
731,023 |
87,246 |
11.93% |
2.89% |
4.65% |
4.40% |
|
|
Health |
860,193 |
130,633 |
15.19% |
4.08% |
6.41% |
4.69% |
|
|
Labour |
1,159,812 |
247,579 |
21.35% |
6.83% |
7.73% |
6.79% |
|
|
Social Development |
389,836 |
57,117 |
14.65% |
4.00% |
4.33% |
6.32% |
|
|
Sport and Recreation |
197,638 |
21,222 |
10.74% |
3.46% |
2.91% |
4.36% |
|
|
|
|
|
|
|
|
|
|
|
Justice and Protection
Services |
65,177,048 |
13,970,116 |
21.43% |
6.75% |
6.79% |
7.90% |
|
|
Correctional Services |
9,678,717 |
2,246,157 |
23.21% |
6.39% |
7.27% |
9.55% |
|
|
Defence |
15,930,305 |
3,212,673 |
20.17% |
5.68% |
5.98% |
8.51% |
|
|
Independent Complaints
Directorate |
76,527 |
16,208 |
21.18% |
5.88% |
8.50% |
6.80% |
|
|
Justice and
Constitutional Development |
5,902,483 |
1,079,249 |
18.28% |
5.13% |
6.57% |
6.58% |
|
|
Safety and Security |
33,589,016 |
7,415,829 |
22.08% |
7.64% |
7.07% |
7.36% |
|
|
|
|
|
|
|
|
|
|
|
Economic Services and
Infrastructure Development |
9,108,416 |
1,546,620 |
16.98% |
4.47% |
2.94% |
9.57% |
|
|
Agriculture |
921,407 |
174,817 |
18.97% |
4.58% |
6.64% |
7.75% |
|
|
Communications |
321,689 |
62,316 |
19.37% |
7.59% |
5.91% |
5.87% |
|
|
Environmental Affairs and
Tourism |
639,646 |
141,693 |
22.15% |
6.34% |
7.72% |
8.09% |
|
|
Housing |
393,596 |
50,332 |
12.79% |
3.44% |
3.77% |
5.58% |
|
|
Land Affairs |
1,265,561 |
211,133 |
16.68% |
3.99% |
6.08% |
6.62% |
|
|
Minerals and Energy |
574,130 |
108,146 |
18.84% |
4.73% |
6.16% |
7.94% |
|
|
Public Enterprises |
129,421 |
26,483 |
20.46% |
234.88% |
-224.77% |
10.36% |
|
|
Science and Technology |
222,226 |
42,168 |
18.98% |
5.36% |
7.19% |
6.43% |
|
|
Trade and Industry |
871,828 |
140,448 |
16.11% |
4.21% |
5.44% |
6.47% |
|
|
Transport |
722,666 |
85,353 |
11.81% |
2.07% |
6.66% |
3.08% |
|
|
Water Affairs and
Forestry |
3,175,667 |
530,214 |
16.70% |
4.57% |
6.01% |
6.12% |
Table 2
illustrates that only two Departments spent more or equal to 25% of their
current budgets as at the end of the first quarter. They are the Department of
Arts and Culture and Government Communications and Information Services. The
remaining 32 Departments spent less than 25% of their current budgets and 21 of
them less than 20% of total current budgets.
Table
3 illustrates Departments’ with the highest current expenditure at the end of
the first quarter.
Table 3: Highest Current Expenditure to date
|
R'000 |
Total Current
Budget |
Current Exp.
for First Quarter |
% Cur. Exp.
for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Government Communications
and Information Services |
250,515 |
70,788 |
28.26% |
13.18% |
9.54% |
5.54% |
|
|
Arts and Culture |
256,233 |
69,736 |
27.22% |
5.47% |
8.54% |
13.21% |
|
|
Correctional Services |
9,678,717 |
2,246,157 |
23.21% |
6.39% |
7.27% |
9.55% |
|
|
Environmental Affairs and
Tourism |
639,646 |
141,693 |
22.15% |
6.34% |
7.72% |
8.09% |
|
|
Public Works |
1,465,430 |
323,622 |
22.08% |
5.22% |
8.78% |
8.08% |
Government
Communications and Information Services spent the highest portion
of their Current budget by the end of June, i.e. R70.8 million or 28.26%. The
second highest spending Department was Arts and Culture with R69.7 million or
27.22%. The above-mentioned departments spent plus-minus 25% of their current
budgets by the end of the first quarter, which is considered to be an
appropriate level of expenditure.
Table
4 illustrates Departments’ with the lowest current expenditure at the end of
the first quarter.
Table 4: Lowest Current
Expenditure to date
|
R'000 |
Total Current
Budget |
Current Exp.
for First Quarter |
% Cur. Exp.
for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Sport and Recreation |
197,638 |
21,222 |
10.74% |
3.46% |
2.91% |
4.36% |
|
|
Transport |
722,666 |
85,353 |
11.81% |
2.07% |
6.66% |
3.08% |
|
|
Education |
731,023 |
87,246 |
11.93% |
2.89% |
4.65% |
4.40% |
|
|
Housing |
393,596 |
50,332 |
12.79% |
3.44% |
3.77% |
5.58% |
|
|
Parliament |
574,826 |
82,836 |
14.41% |
2.31% |
5.38% |
6.72% |
The
Department of Sport and Recreation spent the lowest share of their Current
budget, R21.2 million or 10.74%. The second lowest spender was the Department
of Transport, who spent R85 million or 11.81% of their Current budget. During
the 2006/07 financial year the Department of Sport and Recreation South
Africa spent 61.19% of its Current budget; Transport
66.07%; Education 88.63%; and Housing 95.56%.
As can be seen
from the figures above the aforementioned Departments are following the same
trends as last financial year where money were shifted using virements from
compensation of employees to other line budgets.
3. Transfer Payments
Transfers and subsidies include all unrequited payments made by a
government department or entity. A payment is unrequited if the government
department or entity does not receive anything directly in return for the
transfer to the other party. Both current and capital transfers are included in
this item.
Table 5 represents Departments’ overall Transfer expenditure for
the first quarter of the 2007/08 financial year. Departments’ transferred on
average 23.53% or R47.7 billion of their Transfer budgets during the first 3
months. They transferred on average 7.8% of their Transfer budgets during
April, 7.8% during May and 5.26% during June.
|
R'000 |
Total Transfer
Budget |
Transfer
Payments for First Quarter |
% Transfer
Exp. for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Voted Amounts |
202,562,856 |
47,655,465 |
23.53% |
10.46% |
7.80% |
5.26% |
|
|
|
|
|
|
|
|
|
|
|
Central Government
Administration |
31,320,269 |
2,263,289 |
7.23% |
2.13% |
2.51% |
2.58% |
|
|
The Presidency |
24,716 |
7,868 |
31.83% |
31.75% |
0.13% |
-0.05% |
|
|
Parliament |
247,903 |
63,356 |
25.56% |
25.15% |
0.00% |
0.40% |
|
|
Foreign Affairs |
640,153 |
72,501 |
11.33% |
0.00% |
0.01% |
11.31% |
|
|
Home Affairs |
508,523 |
128,269 |
25.22% |
8.43% |
16.63% |
0.16% |
|
|
Provincial and Local
Government |
28,486,832 |
1,490,832 |
5.23% |
1.81% |
1.69% |
1.74% |
|
|
Public Works |
1,412,142 |
500,463 |
35.44% |
2.87% |
15.71% |
16.85% |
|
|
|
|
|
|
|
|
|
|
|
Financial and
Administrative Services |
18,117,413 |
4,907,652 |
27.09% |
4.73% |
12.29% |
10.07% |
|
|
Government Communications
and Information Services |
123,087 |
43,810 |
35.59% |
35.59% |
0.00% |
0.00% |
|
|
National Treasury |
17,011,419 |
3,830,554 |
22.52% |
4.76% |
13.07% |
4.69% |
|
|
Public Service and
Administration |
18,868 |
1,438 |
7.62% |
4.36% |
3.26% |
0.00% |
|
|
Public Service Commission
|
27 |
0 |
0.00% |
0.00% |
0.00% |
0.00% |
|
|
S A Management
Development Institute |
29,216 |
7,200 |
24.64% |
8.21% |
8.21% |
8.21% |
|
|
Statistics |
1,176 |
-298 |
-25.34% |
0.00% |
-24.40% |
-0.94% |
|
|
|
|
|
|
|
|
|
|
|
Social Services |
99,000,698 |
30,120,364 |
30.42% |
15.87% |
9.00% |
5.56% |
|
|
Arts and Culture |
1,346,644 |
333,343 |
24.75% |
14.21% |
4.61% |
5.94% |
|
|
Education |
15,265,892 |
7,738,264 |
50.69% |
25.66% |
19.35% |
5.68% |
|
|
Health |
11,760,745 |
2,879,301 |
24.48% |
7.14% |
9.52% |
7.82% |
|
|
Labour |
835,993 |
310,526 |
37.14% |
1.46% |
35.53% |
0.15% |
|
|
Social Development |
66,832,820 |
17,876,478 |
26.75% |
15.81% |
5.52% |
5.41% |
|
|
Sport and Recreation |
2,958,604 |
982,452 |
33.21% |
6.09% |
26.61% |
0.51% |
|
|
|
|
|
|
|
|
|
|
|
Justice and Protection
Services |
10,901,375 |
1,205,487 |
11.06% |
3.21% |
2.13% |
5.72% |
|
|
Correctional Services |
30,859 |
7,048 |
22.84% |
8.31% |
7.66% |
6.87% |
|
|
Defence |
9,607,151 |
895,979 |
9.33% |
2.44% |
1.43% |
5.45% |
|
|
Independent Complaints
Directorate |
48 |
5 |
10.42% |
0.00% |
10.42% |
0.00% |
|
|
Justice and
Constitutional Development |
943,241 |
222,952 |
23.64% |
9.00% |
7.29% |
7.35% |
|
|
Safety and Security |
320,076 |
79,503 |
24.84% |
8.87% |
7.17% |
8.80% |
|
|
|
|
|
|
|
|
|
|
|
Economic Services and
Infrastructure Development |
43,223,101 |
9,158,673 |
21.19% |
8.34% |
8.45% |
4.40% |
|
|
Agriculture |
1,308,824 |
234,852 |
17.94% |
4.95% |
9.86% |
3.13% |
|
|
Communications |
1,094,301 |
242,892 |
22.20% |
0.16% |
8.74% |
13.30% |
|
|
Environmental Affairs and
Tourism |
1,947,449 |
678,207 |
34.83% |
20.50% |
7.62% |
6.70% |
|
|
Housing |
8,477,441 |
1,451,636 |
17.12% |
5.98% |
4.81% |
6.33% |
|
|
Land Affairs |
4,014,373 |
950,178 |
23.67% |
7.19% |
9.74% |
6.75% |
|
|
Minerals and Energy |
2,382,824 |
662,094 |
27.79% |
8.57% |
11.25% |
7.97% |
|
|
Public Enterprises |
933,620 |
1,024,948 |
109.78% |
42.84% |
48.91% |
18.03% |
|
|
Science and Technology |
2,917,799 |
543,827 |
18.64% |
9.68% |
5.28% |
3.68% |
|
|
Trade and Industry |
3,956,163 |
857,438 |
21.67% |
5.62% |
10.00% |
6.06% |
|
|
Transport |
15,093,723 |
3,204,620 |
21.23% |
7.89% |
6.28% |
7.06% |
|
|
Water Affairs and
Forestry |
2,030,204 |
332,929 |
16.40% |
2.19% |
12.72% |
1.48% |
Table
6 illustrates Departments’ with the highest Transfer expenditure at the end of
the first quarter.
Table 6: Highest Transfer Expenditure to date
|
R'000 |
Total Transfer
Budget |
Transfer
Payments for First Quarter |
% Transfer
Exp. for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Public Enterprises |
933,620 |
1,024,948 |
109.78% |
42.84% |
48.91% |
18.03% |
|
|
Education |
15,265,892 |
7,738,264 |
50.69% |
25.66% |
19.35% |
5.68% |
|
|
Labour |
835,993 |
310,526 |
37.14% |
1.46% |
35.53% |
0.15% |
|
|
Government Communications
and Information Services |
123,087 |
43,810 |
35.59% |
35.59% |
0.00% |
0.00% |
|
|
Public Works |
1,412,142 |
500,463 |
35.44% |
2.87% |
15.71% |
16.85% |
The
Department of Public Enterprises transferred the highest percentage of their
transfer budget, i.e. R1.02 billion or 109.78%. The Department of Education
transferred the second highest share of its transfer budget, R7.7 billion or 50.69%.
At the end of the 2006/07 financial year Public Enterprises
transferred 89.88% of its transfer budget, Education 100%, Labour 102.49%, Government
Communications and Information Services 100%, and Public Works 99.48%.
Table
7 illustrates Departments’ with the lowest Transfer expenditure at the end of
the first quarter.
Table 7: Lowest Transfer Expenditure to date
|
R'000 |
Total Transfer
Budget |
Transfer
Payments for First Quarter |
% Transfer
Exp. for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Provincial and Local
Government |
28,486,832 |
1,490,832 |
5.23% |
1.81% |
1.69% |
1.73% |
|
|
Public Service and
Administration |
18,868 |
1,438 |
7.62% |
4.36% |
3.26% |
0.00% |
|
|
Defence |
9,607,151 |
895,979 |
9.33% |
2.44% |
1.43% |
5.46% |
The
Department of Local Government transferred the lowest percentage of its budget
by the end of the first quarter; they transferred R1.49 billion or 5.23% of
their transfer budget. The Department of Public Service and Administration
transferred 7.62% of its Transfer budget. During the 2006/07 financial year the
Department of Provincial and Local Government transferred 96.77% of its
Transfer budget, Public Service and Administration 100.7%, and Defence 102.2%.
4. Capital Expenditure
Capital assets comprise five main categories, namely
buildings and other fixed assets, machinery and equipment, cultivated assets,
software and other intangible asset and land and sub-soil assets. Expenditure
on goods, such as items worth less than R5000, are not included under capital
expenditure but categorised as goods and services.
Table
8 represents Departments’ overall Capital expenditure for the first quarter of
the 2007/08 financial year. Departments’ spent on
average 11.49% of their Capital budgets during the first 3 months. They spent
on average 3% of their Capital budgets during April, 4.86% during May and 3.13%
during June. Average departmental spending on Capital budgets is much lower
than Current and Transfer expenditure.
|
R'000 |
Total Capital
Budget |
Capital Exp.
for First Quarter |
% Capital Exp.
for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Voted Amounts |
6,646,996 |
763,576 |
11.49% |
3.48% |
4.87% |
3.13% |
|
|
|
|
|
|
|
|
|
|
|
Central Government
Administration |
2,011,558 |
85,336 |
4.24% |
0.36% |
1.55% |
2.33% |
|
|
The Presidency |
6,887 |
417 |
6.05% |
0.00% |
0.00% |
6.05% |
|
|
Parliament |
12,985 |
324 |
2.50% |
0.00% |
1.50% |
0.99% |
|
|
Foreign Affairs |
444,034 |
20,179 |
4.54% |
0.00% |
1.67% |
2.87% |
|
|
Home Affairs |
726,838 |
11,597 |
1.60% |
0.94% |
0.51% |
0.15% |
|
|
Provincial and Local
Government |
5,266 |
371 |
7.05% |
5.26% |
0.49% |
1.29% |
|
|
Public Works |
815,548 |
52,448 |
6.43% |
0.01% |
2.44% |
3.98% |
|
|
|
|
|
|
|
|
|
|
|
Financial and
Administrative Services |
43,783 |
12,378 |
28.27% |
4.57% |
6.55% |
17.15% |
|
|
Government Communications
and Information Services |
2,210 |
728 |
32.94% |
19.68% |
8.51% |
4.75% |
|
|
National Treasury |
11,890 |
1,068 |
8.98% |
0.20% |
5.14% |
3.64% |
|
|
Public Service and
Administration |
3,124 |
375 |
12.00% |
2.02% |
6.40% |
3.59% |
|
|
Public Service Commission
|
1,667 |
322 |
19.32% |
16.20% |
0.60% |
2.52% |
|
|
S A Management
Development Institute |
1,617 |
706 |
43.66% |
26.28% |
17.38% |
0.00% |
|
|
h |
22,350 |
9,019 |
40.35% |
3.51% |
7.06% |
29.78% |
|
|
|
|
|
|
|
|
|
|
|
Social Services |
90,836 |
8,640 |
9.51% |
2.70% |
5.55% |
1.26% |
|
|
Arts and Culture |
5,142 |
0 |
0.00% |
0.00% |
0.00% |
0.00% |
|
|
Education |
4,008 |
1,095 |
27.32% |
3.69% |
20.38% |
3.24% |
|
|
Health |
34,194 |
2,741 |
8.02% |
0.59% |
9.53% |
-2.11% |
|
|
Labour |
37,060 |
2,137 |
5.77% |
0.86% |
1.59% |
3.32% |
|
|
Social Development |
9,452 |
1,765 |
18.67% |
11.86% |
3.06% |
3.76% |
|
|
Sport and Recreation |
980 |
902 |
92.04% |
67.76% |
9.39% |
14.90% |
|
|
|
|
|
|
|
|
|
|
|
Justice and Protection
Services |
3,862,294 |
445,665 |
11.54% |
3.95% |
5.01% |
2.58% |
|
|
Correctional Services |
1,032,755 |
109,381 |
10.59% |
2.14% |
6.66% |
1.79% |
|
|
Defence |
384,799 |
41,151 |
10.69% |
2.48% |
2.37% |
5.85% |
|
|
Independent Complaints
Directorate |
4,316 |
392 |
9.08% |
1.32% |
0.90% |
6.86% |
|
|
Justice and
Constitutional Development |
432,046 |
77,632 |
17.97% |
3.01% |
9.62% |
5.34% |
|
|
Safety and Security |
2,008,378 |
217,109 |
10.81% |
5.36% |
3.69% |
1.76% |
|
|
|
|
|
|
|
|
|
|
|
Economic Services and
Infrastructure Development |
638,525 |
211,557 |
33.13% |
10.57% |
14.25% |
8.32% |
|
|
Agriculture |
50,935 |
23,471 |
46.08% |
5.97% |
6.18% |
33.93% |
|
|
Communications |
7,543 |
1,685 |
22.34% |
3.82% |
17.08% |
1.45% |
|
|
Environmental Affairs and
Tourism |
3,676 |
5,589 |
152.04% |
15.32% |
49.51% |
87.21% |
|
|
Housing |
6,571 |
884 |
13.45% |
1.64% |
9.21% |
2.60% |
|
|
Land Affairs |
398,585 |
155,737 |
39.07% |
14.05% |
18.10% |
6.92% |
|
|
Minerals and Energy |
9,159 |
324 |
3.54% |
0.36% |
3.08% |
0.10% |
|
|
Public Enterprises |
925 |
160 |
17.30% |
0.00% |
15.46% |
1.84% |
|
|
Science and Technology |
2,454 |
633 |
25.79% |
12.18% |
4.81% |
8.80% |
|
|
Trade and Industry |
17,592 |
3,675 |
20.89% |
3.09% |
13.68% |
4.12% |
|
|
Transport |
41,534 |
396 |
0.95% |
0.15% |
0.58% |
0.23% |
|
|
Water Affairs and
Forestry |
100,476 |
19,163 |
19.07% |
6.51% |
8.74% |
3.82% |
Table
9 illustrates Departments’ with the highest Capital expenditure at the end of
the first quarter.
Table 9: Highest Capital Expenditure to date
|
R'000 |
Total Capital
Budget |
Capital Exp.
for First Quarter |
% Capital Exp.
for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Environmental Affairs and
Tourism |
3,676 |
5,589 |
152.04% |
15.32% |
49.51% |
87.21% |
|
|
Sport and Recreation |
980 |
902 |
92.04% |
67.78% |
9.39% |
14.87% |
|
|
S A Management
Development Institute |
1,617 |
706 |
43.66% |
26.28% |
17.38% |
0.00% |
|
|
Agriculture |
50,935 |
23,471 |
46.08% |
5.97% |
6.18% |
33.93% |
|
|
Statistics |
22,350 |
9,019 |
40.35% |
3.51% |
7.06% |
29.78% |
The
Department of Environmental Affairs and Tourism spent the highest
percentage of their Capital budget at the end of the first quarter (152.04%).
The Department of Sport and Recreation South Africa spent the second highest
share of its Capital Budget (92.04%). At the end of the 2006/07 financial year Environmental
Affairs and Tourism spent 83.31% of its Capital budget, Sport and Recreation
South Africa 26.03%, S A Management Development Institute 109.92%; Agriculture 189.21%, and Statistics South Africa 77.31%.
Table
10 illustrates Departments’ with the lowest Capital expenditure at the end of
the first quarter.
|
R'000 |
Total Capital
Budget |
Capital Exp.
for First Quarter |
% Capital Exp.
for First Quarter |
April % Exp. |
May % Exp. |
June % Exp. |
|
|
|
|
|
|
|
|
|
|
|
Arts and Culture |
5,142 |
0 |
0.00% |
0.00% |
0.00% |
0.00% |
|
|
Transport |
41,534 |
396 |
0.95% |
0.15% |
0.58% |
0.22% |
|
|
Home Affairs |
726,838 |
11,597 |
1.60% |
0.94% |
0.51% |
0.15% |
|
|
Parliament |
12,985 |
324 |
2.50% |
0.00% |
1.50% |
1.00% |
|
|
Minerals and Energy |
9,159 |
324 |
3.54% |
0.36% |
3.08% |
0.10% |
The
Department of Arts and Culture spent none of its Capital budget (0%), while the
Department of Transport spent 0.95% of its Capital budget. During the 2006/07
financial year the Department of Arts and Culture only spent 0.79% of its
Capital budget, Transport 33.44%, Home Affairs 156%; Parliament 26.42%; and Minerals and
Energy 144%.
5. Conclusion
Departments
spent on average 20.42% of their current budgets, 23.53% of their transfer
budgets and 11.49 % of their capital budgets during the first quarter of the
2006/07 financial year. This translates to a total expenditure of R66.79
billion or 22.33%. during the previous financial year Departments spent R55.7
billion or 21.44%.