SUPPLEMENTARY ESTIMATE 2000/01

SUPPLEMENTARY ESTIMATE 2000/01

Presentation to the Portfolio Committee on Finance

Director-General: Finance

9 June 2000

Unallocated in Budget 2000

	R m
Poverty Relief, Infrastructure Investment & Job Summit projects	547
Integrated HIV/Aids Strategy	75
Total unallocated in Budget 2000	622
See Budget Review 2000, Table 6.4, p.136

Allocation Tabled

	Rm
Poverty Relief, Infrastructure Investment & Job Summit projects		448,4
Integrated HIV/Aids Strategy		75,0
Total allocated		523,4
Not allocated		98,6
To be suspended (Adjustments Estimate):
Health	21,0
Public Works	25,0
Welfare	83,0	129,0
To be allocated to post-flood reconstruction		227,6
As per Cabinet decision, 1 June 2000

Requests for progress reports & bids

- April 2000

Committee of officials (Finance, State Expenditure, Presidency and Labour): scrutiny of spending, progress & business plans

- May 2000

Interaction with departments - May 2000
Recommendations to Cabinet via MINCOMBUD

Cabinet finalised 1 June 2000

	R m
Agriculture (RP4, 3-1)	10,0
Arts, Culture, Science & Technology (RP4, 4-1)	30,0
Environmental Affairs & Tourism (RP4, 9-1)	99,0
Labour (RP4, 19-1)	3,4
Provincial & Local Government (RP4, 22-1)	75,0
Water Affairs & Forestry (RP4, 34-1)	231,0
Total allocated	448,4
To be allocated	98,6
As per Cabinet decision, 1 June 2000

R million	Budget 2000	Addition/ Reduction	Total
Agriculture	25,0	10,0	35,0
Arts, Culture, Science & Technology	-	30,0	30,0
Environmental Affairs & Tourism	-	99,0	99,0
Health	28,0	(21,0)	7,0
Housing	-	-	-
Labour	-	3,4	3,4
Provincial & Local Government	3,0	75,0	78,0
Public Works	274,0	(25,0)	249,0
Water Affairs & Forestry	120,0	231,0	351,0
Welfare	203,0	(83,0)	120,0
Total allocated	653,0	319,4	972,4
To be allocated	547,0		227,6
Total allocation	1200,0		1200,0

R million	Budget 2000	Addition/ Reduction	Total
Agriculture	25,0	10,0	35,0
Arts, Culture, Science & Technology	-	30,0	30,0
Environmental Affairs & Tourism	-	99,0	99,0
Health	28,0	(21,0)	7,0
Housing	-	-	-
Labour	-	3,4	3,4
Provincial & Local Government	3,0	75,0	78,0
Public Works	274,0	(25,0)	249,0
Water Affairs & Forestry	120,0	231,0	351,0
Welfare	203,0	(83,0)	120,0
Total allocated	653,0	319,4	972,4
To be allocated	547,0		227,6
Total allocation	1200,0		1200,0

Reason for Unallocated Amount & Suspensions

State of planning for allocation of 2000/01

Welfare

Some programmes as yet untested

Provincial & Local Government, Environmental Affairs & Tourism

Guard against too rapid expansion of new programmes

Provincial & Local Government, Environmental Affairs & Tourism

Significant under spending in previous years/large rollovers to be spent

Public Works, Health, Transport

Therefore: imprudent to allocate more on basis of expenditure trends & proposals received

Poverty Relief: Rollover Applications June 2000

	1999/00			Rollover request June 2000
R million	Allocation	Rollover	Total available	Rollover request June 2000
Agriculture	20,0	-	20,0	-
Enviro. Affairs & Tourism	70,0	-	70,0	35,3
Health	23,0	-	23,0	22,4
Housing	75,0	-	75,0	75,0
Labour	50,0	-	50,0	-
Prov. & Local Governm.	45,0	-	45,0	29,5
Public Works	377,0	274,0	651,0	256,0
Transport	100,0	-	100,0	-
Water Affairs & Forestry	200,0	3,0	203,0	-
Welfare	40,0	203,0	243,0	37,7
Total allocated	1 000,0	480,0	1 480,0	455,9
Highlighted Departments received money in Adjustments Estimate, others in Supplementary Budget

Reasons for under expenditure

Late finalisation of allocations to departments
Underestimation by departments of time necessary for planning
State of implementation plans
Complex disbursement mechanisms
Project management capacity in departments & projects

Outputs and impact of 1999/00 allocation (1)

standard format for reporting introduced from April 2000
First reports for year to March 2000 received in April 2000
Basis for objective evaluation in future
Variation in completeness and quality of reporting
As a result a comprehensive, standardised overall report not possible
Projects have:

delivered infrastructure (rural roads, water pipes, mobile craft centres, irrigation schemes)
provided more than 37 000 short term jobs and created more than 2 000 permanent jobs
provided skills development (bricklaying, baking, welding and small business skills)
provided start up capital and support for individuals and communities to start their own businesses
provided services to communities (waste removal, crèches, clearing of alien vegetation)

provided a space for working in an integrated manner. For example Working for Water, brings together the skills and expertise of 4 departments, NGOs, CBO and the private sector

Process for finalisation of allocations for 2001/02, 2002/03, and 2003/04

Proposal:

Earlier process

Start July 2000
Completed by November
Allocations to be finalised in initial estimates of expenditure

Three-year allocations across board to give more certainty
Priority to integrated & co-operative projects

(Evidence of some overlap & duplication;

Need to have strong central focus)

Steps to improve effectiveness of spending

Quarterly progress reporting in standard format

focuses on expenditure, outputs, impact
earlier identification of problems

"Technical committee" between Treasury & relevant departments

Sharing of information and more interaction amongst departments, especially with Treasury
Build capacity in key areas such as project management
Exploring options with entities such as IDT

Standard formats for business plans

Process regarding HIV/Aids allocation

Special allocation approved by Cabinet

- November 1999

Objective - effective & integrated response to the HIV/Aids problem in addition to existing allocations
Committee with Health as convenor

children & youth as focus

Social service departments draft plans - interaction with provinces

Integrated HIV/Aids Plan

Special allocation approved by Cabinet

- November 1999

Objective - effective & integrated response to the HIV/Aids problem in addition to existing allocations
Committee with Health as convenor

children & youth as focus

Social service departments draft plans - interaction with provinces

Integrated HIV/Aids Plan

Rolling out life skills and HIV/Aids education programmes in primary & secondary schools
Increases access to voluntary counseling and testing for HIV/Aids
Development and piloting of alternative and community based models of care

A community outreach/public campaign to link HIV/Aids initiatives

Integrated HIV/Aids: Allocation Tabled

	R million
Education (RP4, 8-1) National earmarked Conditional grant to provinces	4,4 26,9	31,3
Health (RP4, 13-1) National earmarked Conditional grant to provinces	20,1 16,8	36,9
Welfare (RP4, 35-1) National earmarked Conditional grant to provinces	1,2 5,6	6,8
Total		75,0
As per Cabinet decision, 1 June 2000

HIV/Aids Allocation: Utilisation

Life Skills Primary Schools Secondary Schools	28,3 10,7	39,0
Expanding voluntary counselling & testing		20,2
Piloting alternative models of care		13,0
Community Outreach		2,7
Total		75,0
As per Cabinet decision, 1 June 2000