ATC180425: Report on Budget Vote 12: Statistics South Africa: dated 25 April 2018

Public Service and Administration

The following report replaces the report of the Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation which was published on page 87 of ATC No 50 dated 26 April 2018.

 

Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation

REPORT ON BUDGET VOTE 12: STATISTICS SOUTH AFRICA: DATED 25 APRIL 2018

1. BACKGROUND

The Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans and Budget allocations of the Statistics South Africa tabled by the Minister of Planning Monitoring and Evaluation in terms of the Public Finance Management Act (Act No 32 of 2003), reports as follows:

1. INTRODUCTION

The Public Finance Management Act, section 27 clearly stipulates that the Minister must table the annual budget for a financial year in the National Assembly before the start of the financial year. In terms of section 10 (1) (c) of the Money Bills Amendment Procedures and Related Matters Act, No 9 of 2009, the relevant members of Cabinet must table updated strategic plan and annual performance plan for each department, public entity or institution, which must be referred to the relevant Committee for consideration and report.

In considering the annual performance plan, the Committee will ensure that a department budget allocation provide the country with accurate, quality and reliable statistics for all stakeholders. The allocation of the budget serve as a key instrument for government to promote socio-economic development efficiently. Budget allocation plays a critical role as an economic instrument of the government, as it reflects the country’s socio-economic policy priorities by translating priorities and political commitments into expenditures. Budget serves as a vital tool to operationalise government activities towards the achievement of its intended priorities. Budget highlights the constraints and trade-offs in policy choices.

In view of the above, on April 18, 2018, the Committee received presentation made by the Statistician-General of the Statistics South Africa on the Annual Performance Plan for 2018/19 financial year.

 

1. OVERVIEW OF THE STATISTICS SOUTH AFRICA

The main responsibility of Stats SA is to provide relevant and accurate statistics by corresponding with internationally approved practice to inform users of the dynamics of the economy and society. Stats SA is mandated through the Statistics Act [No.6 of 1999] to coordinate statistical production among organs of the state, the private sector and any other institutions to facilitate proper planning, decision making and monitoring and evaluation of policies and projects. Stats SA is guided by the 10 fundamental principles of official statistics of the United Nations, as well as the 6 principles adopted by the African Union in carrying out its duties.

The work programme of Stats SA focuses on the envisaged changes to legislation aimed at improving coordination of official statistics; implementing and strengthening the Community Survey, which will provide official statistical information at the municipal level; and bringing the production of Gross Domestic Product (GDP) under one roof.

 

1. NATIONAL DEVELOPMENT PLAN VISION 2030

The National Development Plan highlights the need for South Africa to build a state that is capable of playing a developmental and transformative role. This requires the state to formulate and implement policies that support that role. The NDP and the Medium Term Strategic Framework are informed by statistical information provided by Statistics South Africa, which publishes more than 200 statistical releases per year. The publications present statistical research that measures the development and transformation of the economy and society in a range of contexts.

Changing economic and societal realities have expanded the demand for statistical information: more detailed statistics are needed and more frequently if policies are to be responsive and effective. Statistics in the public domain must be of high quality. Responding to the increased demand for high quality statistics will require a national effort, and collaboration and partnerships between the producers and the users of statistics.

 

1. LEGISLATIVE MANDATE

Statistics South Africa is a national government department accountable to the Minister of Planning, Monitoring and Evaluation. Stats SA has a separate budget vote from the DPME. The activities of the department are regulated by the Statistics Act (Act No.6 of 1999), which ensures independence from political interference in the production and dissemination of official statistics. According to the Statistics Act, the purpose of official statistics is to assist organs of state, businesses, other organisations and the public in planning, decision-making, and monitoring or assessment of policies.

The Act makes provision for the appointment of a Statistician-General (SG) whose role in statistical production in the country is as follows: Firstly, as the National Statistical Authority to inform stakeholders on the economy and society by:

• Collecting, compiling and disseminating a wide range of economic, social and population statistics;
• Developing and maintaining database for national statistics on businesses and enumeration areas; and
• Liaising with other countries and statistical agencies as well as representing Stats SA and South Africa in statistical activities internationally.

Secondly, as the National Statistical Coordinator, to promote coordination among producers of official and other statistics in order to advance quality, comparability and optimum use of official statistics and to avoid duplication by:

• Formulating quality criteria and establishing standards, classifications and procedures
• Providing statistical advice; and
• Promoting a public culture of measurement

 

1. Strategic goals of the Statistics South Africa

The Medium Term Strategic Framework (MTSF) 2015-2020 outlines the following strategic goals:

• Radical economic transformation, rapid economic growth and job creation.
• Rural development, land and agrarian reform and food security.
• Ensuring access to adequate human settlements and quality basic services.
• Improving the quality of and expanding access to education and training.
• Ensuring quality health care and social security for all citizens.
• Fighting corruption and crime.
• Contributing to a better Africa and a better world.
• Social cohesion and nation building.

Key priorities for 2018/19 financial year are outlined below:

• Driving legislative reform
• Maintaining basic statistics
• Integrating, innovation and modernising the statistics value chain
• Re-alignment of the structure and resource
• Coordinating statistical production, creating new partnership and designating statistics as official
• Institutionalising the integrated indicator framework
• Planning for Census 2021

 

1. BUDGET ALLOCATION

The budget appropriated to the Statistics South Africa in 2018/19 financial year is R2 2146 billion. The budget allocated has been drastically reduced in the current financial year as compared to allocated budget of R2 489.1 in 2016/17 financial year. Stats SA to utilise the budget for the production and coordination of official and other statistics that inform users on changing dynamics in the economy, society and the environment. The spending focus over the medium term will be on the legislative reform to strengthen coordination between organs of state and improve the capabilities of information collection. Moreover, Stats SA spending focus over the medium term will be on the preparation of Census 2021. The services provided by Stats SA contribute towards enhanced planning, policy responsiveness and effectiveness and promote evidence-based decision making.

Cabinet has approved budget reductions of R14.2 million in 2018/19, R15.1 million in 2019/20 and R15,9 million in 2020/21 on the Administration programme in line with government’s objectives. These reductions are not expected to have a negative effect on the department’s planned outputs over the MTEF period, as the department intends adjusting its operations and delaying the implementation of various new projects and initiatives. Stats SA has approximately a staff complement of 1 352 in 2018/19 as compared to 1 408 employees in the previous years. There is a significant decrease of funded posts in the current financial year.  

Table 1: Budget per programme

 

Programme R'000	Revised Estimates 2017/18	Medium Term Expenditure Estimates
		2018/19	2019/20	2020/21
1. Administration	687.5	695.3	737.7	783.0
2.Economic Statistics	228.8	236.9	254.4	272.8
3. Population and Social Statistics	128.2	202.3	141.8	151.9
4. Methodology, Standard and Research	66.8	67.4	72.4	77.8
5. Statistical Support and Informatics	258.1	267.1	284.8	303.3
Statistical Collection and Outreach	585.1	608.0	651.9	698.3
Survey Operations	191.4	194.7	296.5	1 017.1
Total	2 146.3	2 217.7	2 439.4	3 304.1

Estimates of National Expenditure 2018

 

1. PROGRAMME PERFORMANCE

Statistics South Africa has seven programmes, which are as follows:

7.1 Programme 1: Administration

The purpose of the programme is to manage the department and provide centralised support services and capacity building. It coordinates statistical production among organs of state in line with the purpose of official statistics and statistical principles. The programme contributes to two strategic objectives: leading the development and coordination of statistical in the South African National Statistics System (SANSS) and improving productivity and service delivery.

Administration programme received budget allocation of R695.3 million to provide strategic direction, leadership, management and support services to the department. The spending focus over the medium term continues to be on the revision of the statistics legislation to drive statistical reform, particularly the statistical coordination, statistical geography, the data revolution, a state-wide statistical service and institutional arrangements.

Coordination between organs of state is essential for consistency and efficiency in the statistical system. An amount of R82 million has been set aside over the medium term for legislative reform. Of this R51 million is expected to be used for compensation of employees. The provision for statistical coordination between organs of state in the Act need to be strengthened to support the regulatory framework for a responsive South African National Statistics System (SANSS).

The South African National Statistics System coordinates the statistical production system among organs of the state. The National Statistics System is a tool that transform the current production of statistics, which is characterised by gaps in information, quality and capacity. Through the system, the department will be able to drive statistical planning, establish statistical production system in other organs of state, and establish governance structure.

Stats SA intends to invest in the technology to enhance strategic management processes. Introduction of technology on the data collection aspect will have a negative impact on the number of enumerators. In circumventing any job losses, Stats SA is intending to reskill, upskill and redeploy staff affected by the technology. In preparation of the Census 2021, Stats SA aims to develop fieldworker payment and supply chain management tool sourcing strategy. The Department will invest in ICT by implementing ICT life-cycle management, researching a policy-based management approach for new generation mobile workers. Furthermore, Stats South Africa is responsible for developing an information management strategy in collaboration with SANSS partners.

In order to increase statistical accuracy, reduce costs and bring about faster turnaround times for releasing official statistics to the public, the department intends to focus on modernising and automating its operations through the use of new technology such as digital data collection and digital maps and new statistical methodologies over the MTEF period. By 2020/21, Stats SA plans to migrate from the manual processes, data collection, which involve paper assisted personal interviews, to an automated process that involves conducting computer assisted personal interviews.

The department’s focus on digital migration over the medium term will enable it to improve the quality of its services and allow it to respond more effectively to the increased demand for statistical information. The digital migration programme is also expected to drive organisational reform in core functional and operational areas in terms of systems, processes, structures and technology, resulting in the department’s revising the manner in which it functions.   

The sub-programme Management for Corporate Service spending focus will mainly be on leading strategic initiatives such as the talent management programme, reduced vacancy rate, Human Resource Strategy, monitoring the implementation of the corporate service strategy and work programme and review of recruitment and internship programmes and bursary allocation. The sub-programme contributed enormously in improving efficiency, effectiveness and good governance in the public sector.

1. Programme 2: Economic Statistics

The Economics Statistics programme produces economic statistics to inform evidence-based economic development and transformation in line with internationally recognised practices. Programme Management for Economic Statistics provides strategic direction and leadership.

Economic Statistics programme received an allocation of R254.4 million to fulfil its mandate of production of statistics to inform evidence economic development. Over the medium term, the Stats SA will fund initiatives to expand the economic and social statistical information. The spending focus in the programme will be utilised for publishing quarterly Gross Domestic Product (GDP) from the income and production side. Statistics South Africa will further start publishing GDP from the expenditure side. Stats SA will expand and improve economic statistics information by reviewing changes on the national accounts. The department is to publish thematic reports on the dynamics of the economy.

Stats SA intends to publish on monthly, quarterly basis and annual industry and trade statistics. As part of growing and ensuring greater support for the tourism sector, the department will publish biannual and annual domestic and international tourism statistics. In addition to the annual statistical releases, Stats SA to publish five yearly transport statistics. Stats SA will publish on a quarterly and annual basis, government financial statistics through updating time series data for GFS surveys. Stats SA will provide information on the level of inflation by producing the consumer price index and various producer price indices. Key output for 2018/19 include monthly Consumer Price Index (CPI) and Producer Price Index (PPI) and technical reports. 

1. Programme 3: Population and Social Statistics

The purpose of the programme is to produce population, demographic, labor market and social statistics to meet user requirements in line with internationally recognised practices. Population and social statistics inform evidence-based socio-economic development and transformation in line with internationally recognised practices. Programme 3 contributes to strategic objectives in an effort to expand the statistical information base by increasing its depth, breadth and geographic spread for evidence-based planning, monitoring and decision-making for the use by both the public and private sector.

Population and Social Statistics received budget allocation of R202.3 million will be spent on producing population and social statistics to inform evidence-based on socio-economic development. The programme will provide information on poverty level and income and expenditure trends in South Africa. The spending focus in the programme will mainly be on providing information on population estimates collected through population censuses and surveys. Key outputs in 2018/19 include a thematic report on nuptiality, provincial profiles in Census Survey 2016, and content development methodologies for Census 2021 tested at a cost of R8.4 million.  

Stats SA publishes statistics on births, deaths, marriages, divorces, tourism and migration based on administrative. Key outputs for 2018/19 include and an annual publication on tourism and migration, annual publications on mortality and causes of death, documented immigrants, perinatal deaths and divorces, mortality and causes of death, a thematic report on non-communicable diseases and research on alternative data sources on health at a cost of R13.6 million. The provision of the poverty levels and income and expenditure trends are crucial information to assist in planning and policy development. Population estimates collected through a means of population censuses and surveys is one of the core mandate of the Stats SA.

With regard to Social Statistics, Stats SA will provide information on living conditions, domestic tourism, education and crime by means of conducting household surveys.  Key outputs in 2018/19 include an annual and biannual domestic tourism survey, report on 2 development indicators and technical support to stakeholders to improve service delivery statistics. In terms of labour statistics, Stats SA will provide information on employment levels in the formal, non-agriculture sector as well as labour market trends in South Africa.  Key output includes the quarterly release on employment levels, the quarterly publication of labour market trends and an annual report on labour market dynamics in South Africa. Moreover, Stats SA will provide information on poverty levels and income and expenditure trends in South Africa.  

1. Programme 4: Methodology, Standards and Research

The purpose of the programme is to provide expertise on quality and methodology for official statistics, standards for conducting surveys, and business sampling frames. In addition, it conducts policy research and analysis on emerging policy matters. The programme contributes to enhancing public confidence and trust in official statistics. The main objectives of the programme is to improve comparability and accuracy of statistical information by annually reviewing and evaluating methodological compliance in survey areas.

Programme Methodology, Standards and Research received R67.4 million to provide strategic direction on the quality and methodology of official statistics. The spending focus in this programme will be on business register and improving the sampling frame for economic statistics. Business register is a sampling frame for economic statistics, completing surveys of large business, providing quarterly snapshots and financial sampling frames and a unit of model implemented at a cost of R34.2 million. 

Stats SA provides information on integrative statistical advice and support to policy planners and development practitioners and participates in knowledge research and innovation on key development themes.  Key output includes three research reports on government socio-economic planning, two research reports on spatial analysis, an experimental Growth Accounting Framework. In addition, the programme will provide integrative statistical advice and support to policy planners and development practitioners, participates in knowledge research and innovation on key development themes.

1. Programme 5: Statistical Support and Informatics

This programme aims to enable service delivery programmes by using technology in the production and use of official statistics. It informs policy through the use of statistical geography. The programme promotes and provides better access to official statistics. The programme contributes towards enhancing public confidence and trust in statistics and investing in the learning and growth of the organisation. Moreover, the programme collaborates with partners to build and maintain a reliable sampling frame for household surveys by updating the spatial information frame annually.

Statistical Support and Informatics programme received an allocation of R267.1 million to enable service delivery programmes by using technology in the production and use of official statistics. The spending focus in this programme is on the data management and technology which provides technology infrastructure to the department and supports data management across statistical series. Stats SA intends to provide geospatial information and spatial analysis tools. Among key outputs include the geospatial applications developed, web-based solutions developed and implemented at a cost of R22.9 million.

Under this programme, Stats SA will edit, publish and distribution services to survey areas. Furthermore, Stats SA will provide technology infrastructure to the department and supports data management across statistical series. In addition, Stats SA will improve data and information management across the department by modernising the way business is conducted and supported by technology.   

1. Programme 6: Statistical Collection and Outreach

The purpose of the programme is to provide data collection and dissemination services to inform policy processes and to support decision-making through statistical information. In addition, engaging stakeholders through platforms and providing effective communication services. Promoting statistical development and cooperation in South Africa, Africa and the world is also one of the crucial functions of the programme.

The main objectives is to increase the use of official statistics by government and the public on an ongoing basis. Furthermore, manage external and internal communications on statistical matters by issuing daily, weekly and monthly information updates through the media on an ongoing basis. The programme provides integrated data collection services and disseminate quality statics to provincial and local stakeholders and the public by ensuring an average annual data collection rate of 85 per cent. Further ensures alignment with international standards, best practice and statistical skills development by increasing participation, sharing and learning in international statistical initiatives on an ongoing basis.

Statistical Collection and Outreach programme received an allocation of R608.0 million to execute its core mandate of data collection and dissemination of statistical services. The spending focus in this programme will be to provide integrated data collection and dissemination services, and promotes the use and coordination of official statistics to provincial and local stakeholders. Key outputs include administering survey instruments for surveys, planning for Census 2021, collaborative mapping to maintain and update the GIF at a cost R550.7 million.

Statistics South Africa intends to improve the relationship with the media through training initiative, new social media platforms for the dissemination of statistics and communication campaigns for the organisational projects, strategic interventions to improve internal and external communication. The programme will manage relations with international statistical with international statistical agencies, promotes agencies, promotes statistical development in Africa and builds partnerships. 

1. Programme 7: Survey Operations

The purpose of the programme is to coordinate survey operations for household surveys and provide processing services to produce official statistics. The programme conducts independent household survey monitoring and evaluation activities. The programme contributes towards improving productivity and service delivery. The programme will expand statistical information base for use by government, the private sector and the general public by conducting a population census every 10 years as well as large-scale population surveys between censuses is one of the focus areas.

Survey Operation programme received budget allocation of R194.7 million to coordinate survey operations for household surveys and provide processing services to produce official statistics. Data processing and editing will be one of the spending focus in this programme. Stats SA manages the editing and processing of data which include, amongst the processing of reports and editing of questionnaires. In addition, the department is to report on the processing of questionnaire and death notification forms, report on strengthening a common data processing platform and digital data collection for the household survey at a cost of R72.9 million.

Stats SA will conduct periodic population censuses or large-scale population surveys. The department to monitors the quality of field operations of household surveys and censuses and conducts independent evaluations. Key outputs include monitoring and evaluation of Census 2021 tests, monitoring of QLFS and evaluation of Continuous Data Collection at a cost of R19.5 million.

1. OBSERVATION AND KEY FINDINGS

The Portfolio Committee observed the following matters in relation to the Budget Vote 12 of Statistics South Africa:

1. The Committee considered and welcomed the Annual Performance Plan for 2018/19 of Statistics South Africa. The Committee noted that Stats SA had discontinued certain projects due to budget shortfalls experienced across the entire public service. Stats SA was encouraged to devise a strategy to implement more projects within budget constraints rather than discontinuing certain crucial projects, such as poverty estimates, completely.  

 

1. In terms of the legislative reform, the Committee noted the progress made thus far with regard to the amendment to the Statistical Act that will drive statistical reform in the country, with a particular emphasis on statistical coordination, statistical geography, the data revolution, a state-wide statistical service and institutional arrangements. The amendment will further ensure coordination between organs of state for the purpose of enhancing efficiency in the statistical system. Stats SA was further advised to reconsider reviewing definitions in the Act.

 

1. The Committee noted that Stats SA continuously exercises their mandate regarding the Statistical Act of 1999 to coordinate the production of statistics produced by other organs of state. Also, the Committee noted that Stats SA ensures quality assurance of all organs of state planning to conduct a statistical survey before implementation. The Committee is of the view that Stats SA should assist the organs of state with experts/specialists on the methodology when designing various statistical surveys conducted by the institutions of government. 

 

1. Over 104 staff members had left Stats SA in 2017/18 financial year, which totals 170 vacancies in the department. Stats SA reported that staff members who left the department, are mostly specialist and technically skilled people who could have been retained if there was an adequate budget on compensation of employees. The budget shortfall realised on the compensation of employees had resulted in Stats SA being unable to fill vacancies of 170 staff members who left the department in 2017/18 financial year. 

 

1. The Committee noted that Stats SA had several senior manager positions in an acting capacity, who in turn experience overload of work due to the inability to fill positions.  Senior managers are overworked in some instances, performing dual responsibilities.

 

1. The Committee noted the budget shortfall on compensation of employees whilst Stats SA is in a process of planning for Census 2021. The Committee was concerned about the risk of losing competent people to other sectors, impact on the ability to conduct surveys and the resultant compromise the department will derive in a long term to rebuild such a capacity. The quality of statistics might also be affected as a result of the severe budget cuts.

 

1. Stats SA was encouraged to utilise social media platforms optimally to ensure that their statistical information reach out as many people as possible. The use of other forms of social media platforms for the dissemination of statistical results was acknowledged. However, Stats SA cautioned the usage of the social media platforms to communicate statistical releases. Social media platforms information can be easily manipulated and compromise the quality, credibility and reliability of the Stats SA statistical releases.

 

1. The Committee urged Stats SA to gradually move away from manual data collection to more advanced electronic data collection that is affordable, quicker and faster without compromising the quality aspects on the statistical data. During the transition of manual data collection to Computer-Assisted Personal Interview, Stats SA was encouraged to reskill and retrain enumerators on the electronic data collection, taking note of lessons learned from the KwaZulu Natal province, Citizen Satisfactory Survey conducted using technology to collect data.

 

1.  Tracking of child development throughout to tertiary education is welcomed by the Committee. Stats SA was encouraged to consider tracking students who have completed tertiary education who remained jobless.       

 

1. The Committee emphasised the importance of the role of the statistical releases in influencing decision making in government planning. It is therefore the role and responsibility of the Department of Planning, Monitoring and Evaluation to ensure statistics information find expression in policy decision making of government priorities and align such data with long or/ short term planning.

 

 

1. RECOMMENDATIONS

The Portfolio Committee recommends that the Statistics South Africa, through the Minister of the Department of Planning, Monitoring and Evaluation, must ensure that:

1. Statistics South Africa speed up the amendment of the Statistics Act (1999) to drive statistical reform in order to inform infrastructure planning. The amendments of the Act should firmly respond to the evolving environment, the data revolution, a state-wide statistical service and institutional arrangements. The amended Act will enable the country to respond to the United Nations Sustainable Goals, the Africa Agenda 2063 and the National Development Plan.  The amendment of the Act should enhance Stats SA to become more responsive to a growing agenda that requires more statistical information. The Act should further be amended to increase number of years Census get collected in every 10 years.  

 

1. Stats SA should gradually migrate from manual data collection to electronic data collection (Computer-Assisted Personal Interview) which will save more cost in future. Stats SA should take into cognisance that in a short term digitalisation might be expensive, however in a long term massive saving will be realised. Stats SA should conduct cost benefit analysis of the digitalisation of data collection in a short and long term. In moving towards the implementation digitalisation, Stats SA should sustain the momentum of producing quality, reliable and credible statistical information for the country. Modernisation of statistical processes is strategic and requires the department to be flexible and agile to provide quality statistics quickly at an acceptable cost.

 

1.  Stats SA should intensify efforts to plan for the Census for 2021 through retraining and reskilling all role players to make the survey successful. Skilled workforce would be able to produce quality and reliable statistics, which will also influence policy making and budgeting. Stats SA should present to the Committee the preparations and the strategy regarding Census 2021.

 

1. The National Treasury working with the Department of Planning, Monitoring and Evaluation on the Mandate Paper (Budget Prioritisation Framework) should ensure Stats SA is provided with adequate funds to conduct Census 2021.    

 

1. Stats SA should leverage its relationship with African countries in the continent and expand statistical knowledge to their Statistical counterparts on the continent. Stats SA should begin to venture into assisting African countries in collecting credible statistical information with the aim of growing the economy on the continent.

 

 

1. CONCLUSION

In conclusion, Statistics South Africa remain a key strategic player in a transformative agenda by producing evidence based, quality and accurate official statistics for the country. It is therefore critically important for the government during the budget allocation decision to take into cognisance the paramount importance the department like Statistics South Africa contributes in shaping socioeconomic development in the country and throughout the continent. As much as the Committee understands and acknowledges that government is confronted with budget shortfalls, collection of statistics should remain a priority to inform future planning and budget allocation, particularly the Mandate Paper and Medium Term Strategic Framework.      

The Committee will, through its oversight role, assist Stats SA in strengthening coordination amongst organs of state on the statistical information. Statistical information plays a critical role in the value chain and should enhance planning, policy formulation, monitoring and evaluation in government. Statistics South Africa should not be put at risk of releasing unreliable statistical information as result of budget shortfalls or cuts. Stats SA has to be well-resourced to inform planning and policy agenda of government. 

 

The Portfolio Committee recommends as follows:

That the House adopts and approves the Budget Vote 12 of the Statistics South Africa.

Report to be considered