ATC080814: Report on Expenditure for 1st Quarter, 2008/09 Financial Year
Budget Committee on Appropriation
REPORT OF THE JOINT BUDGET COMMITTEE ON EXPENDITURE
FIRST QUARTER, 2008/09 FINANCIAL YEAR - DATED 14 AUGUST 2008
The Joint Budget Committee (JBC), having considered Government expenditure for the first quarter of the 2008/09 financial year, reports as follows:
INTRODUCTION
This report examines departments’ expenditure for the first quarter of the 2008/09 financial year, April to June, and makes a number of findings and recommendations. In conducting oversight the Committee called on National Treasury as well as the departments of Public Works and Communications to engage on expenditure during the quarter.
National Government managed to increase its aggregate expenditure in the first quarter of 2008/09 compared to the same period last year. Spending relative to the budget nevertheless remained the same at approximately 23 per cent. In terms of the economic classifications, national departments spent 20.8 per cent of the current budget, 23 per cent on transfers and subsidies and 17.6 per cent of the available capital budget during the quarter.
The President, in the State of the Nation Address 2008, articulated the need for Business Unusual. This was understood to mean that government departments and agencies must take extra-ordinary measures to improve planning, budgeting and implementation; and to accelerate service delivery. In this context the Committee was disappointed that departmental expenditure patterns, especially expenditure against allocated budgets, were similar to previous years. This suggests that many departments have not fully taken account of, or responded to, the urgency implicit in the President’s address. It is imperative that departmental spending is accelerated and used with maximum effectiveness and efficiency in order to meet government’s socio-economic objectives.
It should again be emphasized that, while the Committee is able through its oversight activities to establish reasons for certain expenditures, it is nevertheless important that spending levels in all departments and sectors, and the associated outputs and outcomes, are closely examined. This is important as aggregate expenditures frequently mask under-spending in specific programmes and sub-programmes.
In response to a JBC recommendation that the content of Section 32 Reports, published in terms of the Public Finance Management Act (PFMA, be revised and expanded, National Treasury proposed the introduction of a Quarterly National Programme and Economic Classification Report in the 2008/09 financial year. The first Quarterly National Programme and Economic Classification Report was duly submitted at the end of July 2008, and discussed with National Treasury on 01 August 2008. The introduction of this report will assist Parliament to scrutinize departmental financial management and performance more closely going forward. Given that “in-year” monitoring and reporting practices are still being developed, however, further engagements with National Treasury on the content and format of these reports are envisaged.
1. TOTAL EXPENDITURE
The Appropriation Act 2008 allocated R605.1 billion for the 2008/09 financial year – R345.3 billion for national departments and R259.8 for direct charges against the National Revenue Fund. By the end of the first quarter departments spent approximately R139.2 billion or 23 per cent of the appropriation, R76.7 billion of the appropriated funds and R62 billion for direct charges. As mentioned, whereas total aggregate expenditure grew compared to the same period in 2007/08, the level of spending relative to the budget remained constant. National departments spent R20.8 billion or 20.8 per cent of the available current budget, R54.6 billion or 23 per cent of the budget for transfers and subsidies and R1.3 billion or 17.6 per cent of the available capital budget.
Table 1: First Quarter Expenditure by Economic Classification
|
|
Available Budget |
Actual Expenditure |
|
|
|
99.865.319 |
20.814.663 |
20.8% |
|
|
237.955.448 |
54.635.233 |
22.96% |
|
|
7.486.800 |
1.313.995 |
17.55% |
|
|
345.307.566 |
76.763.890 |
22.2% |
|
Direct Charges |
259.788.340 |
|
24.0% |
|
|
605.095.906 |
139.228.463 |
23.0% |
R thousand
Departments that recorded the lowest level of expenditure relative to their total budgets included Provincial and Local Government, Communications, Foreign Affairs and the Public Services and Administration. These departments all spent comparatively less in the first quarter compared to the previous year. Of particular concern, however, are departments that spent considerably less than their year-to-date benchmark[1] i.e. less than they had planned for the quarter. The reasons for these spending levels are examined in subsequent sections.
Table 2: Highest Variance between YTD Benchmark and Actual Expenditure
|
Departments |
Total Budget |
Actual Expenditure |
|
|
|
|
3.007.862 |
925.598 (30.7%) |
51.9% |
|
|
|
1.723.605 |
175.248 (10.2%) |
31.2% |
|
|
|
4.340.708 |
586.777 (13.52%) |
30.7% |
|
|
Agriculture |
2.534.671 |
|
35.76% |
|
|
Public Services and Administration |
412.306 |
|
23.9% |
|
R thousand
2. CURRENT PAYMENTS
The total current budget in national departments for 2008/09 was R 99.8 billion, an increase of approximately R10 billion compared to 2007/08. Of this amount, R61 billion was appropriated for compensation of employees or personnel, and R38 billion for goods and services. By the end of the first quarter departments spent approximately R 20.8 billion, or 20.8 per cent, of the available budget: R13.9 billion or 22 per cent for compensation and R6.8 billion or 18 per cent for goods and services.
Current expenditure is categorized into two main components, namely: Compensation of Employees or Personnel and Goods and Services. Further subcategories are Interest and Rent, Financial Transactions and Unauthorized Expenditure – see Table 3 below. While aggregate expenditure increased from the last financial year, spending relative to the budget remained similar for the major subcategories.
Table 3: Total Current Payments
|
|
Total Budget |
|
|
|
Compensation of Employees |
61.726.207 |
13.932.448 |
|
|
Goods and Services |
38.138.308 |
6.876.696 |
|
|
Interest and Rent of Land |
804 |
67 |
|
|
Financial Transactions and |
- |
3.439 |
|
|
Unauthorized Expenditure |
- |
13 |
|
R thousand
Spending on Interest and Rent on Land declined sharply from previous years due to under-spending at the Department of Water Affairs and Forestry (DWAF). The Committee has made further enquires in this regard and is awaiting explanations. The R3.4 million spent on Financial Transactions was due to thefts, losses and other irregular expenditures which could not be estimated. The Committee believes that these expenditures may be incorrectly classified. The Committee intends pursuing this issue, and identifying the departments in question. The Unauthorized Expenditure of R13 thousand occurred because of an incorrect allocation in the Department of Public Services and Administration (DPSA). According to the DPSA, this amount should have been recorded as fruitless and wasteful expenditure.
The accuracy of cash flow projections and spending benchmarks notwithstanding, current expenditure, and specifically compensation of employees, should be relatively constant and predictable at around 25 per cent every quarter. Departments which recorded the lowest current expenditure relative to their budgets included Foreign Affairs, Sports and Recreation, Housing, Water Affairs and Forestry and Defence – see Table 4 below. In terms of personnel expenditure, the South African Management Development Institute (SAMDI) and Statistics South Africa (StatsSA) as well as the departments of Communications, Home Affairs, and Public Enterprises all spent below 20 per cent of their available funds.
Table 4: Lowest Current Expenditure as a Percentage of Budget Allocation
|
|
Total Budget |
Actual Expenditure |
|
|
Foreign Affairs |
2.980.867 |
330.740 |
|
|
Sports and Recreation |
254.798 |
30.414 |
|
|
Housing |
497.429 |
70.616 |
|
|
Water Affairs and Forestry |
3.786.771 |
603.572 |
|
|
Defence |
18.050.911 |
3.426.589 |
|
R thousand
The level of current spending against the budget is an indication of capacity shortcomings and suggests that departments will again make substantial shifts and virements during the adjustments budget. As highlighted in previous reports, this is a persistent and negative trend that is ultimately indicative of weak human resource and financial planning. In this regard, the Committee welcomes the undertaking that the amounts identified for efficiency savings in the forthcoming Budget 2009/10 will take account of vacancy rates and spending on personnel.
The Department of Foreign Affairs (DFA) spent R330.7 million or 11 per cent of its allocated current budget, with under-spending in both compensation and goods and services. According to information made available to the Committee, however, this does not represent an accurate reflection of the department’s current balance as advances paid to foreign missions for their monthly expenditure are paid from suspense accounts. Expenditure is then only recorded once mission accounts interface with the Basic Accounting System (BAS) at head office. To ensure accurate monitoring and facilitate oversight, measures are ultimately required to resolve this problem[2]. Of immediate concern is the fact that, given the low level of current expenditure, there is again a possibility of substantial virements from compensation of employees during the adjustments budget as was the case in previous years.
The Department of Sports and Recreation South Africa (SRSA) spent R 30.4 million or 12 per cent its current budget during the quarter. Of this amount, R12 million was for compensation of employees and R17 million, or nine per cent of the available budget, for goods and services. While the SRSA’s aggregate expenditure only deviated by five per cent from the approved drawings for the quarter, the departmental vacancy rate of 45 per cent, as reflected in the latest SRSA Annual Report[3], represents an ongoing risk.
The Department of Housing (DoH) spent R70.6 million or 14.2 per cent of its allocated current budget. Of this amount, R26.7 million or 20 per cent was for personnel and R43 million or 12 per cent for goods and services. Given capacity challenges in department and the sector, and the impact this has on effective expenditure and service delivery, the Committee expects a notable reduction in vacancies through the year. Improvements are also required in monitoring and intergovernmental co-ordination.
3. TRANSFERS AND SUBSIDIES
The total transfer budget in the national sphere amounted to R238 billion, an increase of approximately R35 billion compared to 2007/08. By the end of the first quarter, departments spent R54 billion or 23 per cent of this amount. This represents an improvement of approximately R7 billion in terms of aggregate expenditure compared to 2007/08. Year-on-year spending nevertheless remained similar across most subcategories with the exception of transfers to public corporations and entities, which rose from 11.7 per cent in 2007/08 to 26.3 per cent in 2008/09, and transfers to foreign Governments and organizations, which fell from 30.3 per cent in 2007/08 to 6.9 per cent for this year.
Table 5: Total Payments for Transfers and Subsidies
|
Receiving Entities |
Total Budget |
|
|
|
Provinces and Municipalities |
80.602.845 |
14.173.060 |
|
|
Dept. Agencies and Accounts |
42.527.998 |
9.190.742 |
|
|
Universities and Technikons |
13.586.474 |
6.908.200 |
|
|
Public Corporations and Enterprises |
18.889.723 |
4.965.575 |
|
|
Foreign Governments and Organizations |
979.350 |
66.947 |
|
|
Non-Profit Institutions |
1.685.267 |
250.892 |
|
|
|
79.683.791 |
19.079.818 |
|
R thousand
Transfers and subsidies include all unrequited payments made by departments or entities[4]. Both current and capital transfers are included in this item. Transfers and subsidies remain the single largest economic classification and it is therefore imperative that Parliament, and the Committee in particular, is able to monitor and oversee the manner in which these funds are utilized.
A substantial portion of the transfer budget, approximately R80.6 billion, was allocated for departmental grants to provinces and municipalities. Of this amount, R38.7 billion was allocated for the provinces. By June 2008, departments had transferred R10 billion (excluding Schedule 4 Grants) or 25 per cent of the available budget. Specific grants that showed a low rate of spending included the Community Library Services Grant at 5.9 per cent, the Land Care Programme at 6.5 per cent, HIV and AIDS (Life skills Education) at 9.8 per cent and the Mass Sport and Recreation Participation Programme at 10.1 per cent. Many of these grants were not fully utilized last year.
Departments transferred R9 billion or 21.6 per cent of the R42 billion appropriated for departmental agencies and accounts and R4.9 billion or 26.3 per cent of the R18 billion earmarked for public corporations and enterprises. A number of departments reported delays in payments to agencies and enterprises. These included Public Works, Social Development, Sports and Recreation, Agriculture, Housing, Minerals and Energy, Trade and Industry, Public Enterprises and Communications.
The departments of Communications and Public Enterprises (DPE) recorded the highest variances between actual and projected expenditure during the first quarter – as noted in the Table 2 – by approximately 21 per cent. With the Department of Communications (DoC) slow expenditure was attributed to delayed transfers to Sentech, the South Africa Post Office Ltd. (SAPO) and the Universal Service Agency Fund (USAF). In its engagement with the Department, the Committee established that transfers to Sentech had been withheld pending a more detailed business plan and cash flows statements. With respect to SAPO Ltd, delays were due to concerns over expenditure patterns and repeated roll-overs. DoC had reportedly met with SAPO to address these issues. The Committee also noted a lack of co-operation between the Department and the Auditor General (AG) which has resulted in disagreements over the accuracy of certain audit findings[5]. Such disagreements are unacceptable and should be the subject of further enquiries by the relevant parliamentary committees.
In general, the financial sustainability and performance of the State-Owned Enterprises (SOEs) remains a concern. A special adjustments budget was introduced during the course of last year to deal with financial pressures experienced by a number of SOEs. If such interventions are to be minimized, urgent measures are needed to improve operations and reduce risks associated with these enterprises. The Committee has taken cognizance of the restructuring at the South African Airways (SAA) and the Land Bank.
The low level of spending on transfers to Foreign Governments and Organizations was mainly due to cash flow constraints in the Department of Foreign Affairs (DFA) and lower than anticipated transfers from National Treasury. The DFA funded the construction of a new head office during the quarter and consequently held back transfers until additional funds can be drawn. In the case of National Treasury, there were lower than expected transfers on the Common Monetary Agreement Payment and the African Development Bank. Although low transfers will not necessary translate into under-expenditure, the Committee has taken cognizance of the fact that National Treasury has recorded significant under-spending in the past.
Given the evident operating and delivery challenges in many provinces, public agencies and entities, it is critical that transfers are made as planned; undue delays can have a serious impact of public services. It is, however, imperative that National Treasury and the relevant departments ensure the funds are not transferred without the requisite assurances and implementation plans. The cases highlighted will be assessed again during the second quarter.
4. CAPITAL PAYMENTS
The total 2008/09 Appropriation for capital in the national sphere was R7.5 billion, an increase of approximately R900 million compared to 2007/08. By the end of the first quarter, departments spent R1.3 billion or 17.5 per cent of the available budget.
While capital expenditure remains lower than other economic classifications, 17.5 per cent represents a significant improvement compared to the same period last year when only 11.1 per cent was spent. This was the result of improved spending in the two largest capital subcategories, namely Buildings and Structures and Machinery and Equipment. Capital budgets are comprised of Buildings and Structures, Machinery and Equipment, Cultivated Assets, Software and other Intangible Assets and Land and Subsoil Assets.
Table 6: Total Capital Payments
|
|
Total Budget |
|
|
|
Buildings and Structures |
3.900.603 |
778.209 |
|
|
Machinery and Equipment |
2.546.845 |
283.840 |
|
|
Cultivated Assets |
625 |
1.391 |
|
|
Software and intangible Assets |
186.054 |
2.793 |
|
|
Land and subsoil Assets |
852.673 |
247.761 |
|
R thousand
While increased spending during the first quarter is a positive development, and points to enhanced departmental planning and capacity, capital expenditure is again likely to accelerate dramatically through the year. Over the past several years the trend has been for departments to spend around 50 per cent of their capital budgets during the last three months.
As in previous years, there were again large variances between the departments in capital spending. Of the 34 departments, seven spent more than 30 per cent of their total capital budgets, while eight spent less than 10 per cent. Departments which recorded the lowest capital expenditure relative to their total budgets included Arts and Culture, Transport, Labour, Environmental Affairs and Tourism and Agriculture.
Table 7: Lowest Capital Expenditure as a Percentage of Budget Allocation
|
|
Total Budget |
|
|
|
Arts and Culture |
5.409 |
2 |
|
|
Transport |
42.290 |
1.114 |
|
|
Labour |
44.714 |
1.196 |
|
|
|
|
|
|
|
Environmental Affairs and Tourism |
14.323 |
992 |
|
R thousand
Three of the five, namely Arts and Culture, Transport and Labour, under-spent on capital for 2007/08. The continuing low levels of capital expenditure are therefore cause for concern and should be the subject of closer scrutiny.
The Department of Transport (DoT) spent R1 million, or 2.6 per cent of its capital budget during the quarter. R38.7 million budgeted for the Sani Pass and overload control facilities have not been paid owing to outstanding concerns over the appropriateness of payment mechanisms and ownership of assets. The Committee understands that a new conditional grant is being contemplated within the current financial year to overcome these difficulties. The persistent under-expenditure and the delayed implementation must be addressed as a priority. Separately, the Committee has also sent enquiries to the departments of Arts and Culture and Labour regarding the levels of capital expenditure. However, at the time of finalizing the report, responses to these queries had not been received.
The Department of Public Works (DPW) managed to spend R120 million or 11 per cent of its allocated capital during the quarter. In the Committee’s engagement with the DPW, the Department highlighted that this was a considerable improvement compared to the first quarter of last year when only 5 per cent of available funds was utilized. Increased expenditure was attributed to reforms in the department’s procurement strategy. The Committee also welcomed the DPW’s initiative to enter into memoranda of understanding with other line departments to strengthen inter-departmental co-operation – identified as a challenge in previous Committee reports. Notwithstanding these developments, the Committee was cautious over the expected expenditure spike in February – reportedly due to delayed invoicing and payments to construction companies. Delayed payments have the potential to adversely affect suppliers and small business. Asset management in the department also remains a serious challenge.
The unusually high expenditure of 222 per cent under Cultivated Assets[6] was attributed to the higher than anticipated demand for police dogs and horses by the South African Police Services (SAPS). The SAPS budgeted R625 thousand for these acquisitions although demand exceeded expectations by approximately R700 thousand.
5. FINDINGS
First quarter spending again suggests poor planning on the part of certain departments, highlighted by the variances between actual spending and year-to-date benchmarks. In addition, whereas spending aggregates have generally improved, under-spending was evident in a number of programmes. These rather typical spending patterns are disappointing given the imperative of Business Unusual. The Committee intends calling the respective executive authorities to explain planning and expenditure deficiencies.
Vacancies continue to have a negative impact on budgeting and service delivery. Departments must therefore make every effort to fill vacant posts before the end of the second financial quarter especially those in senior management – identified by the President as an Apex Priority. Personnel expenditure in SAMDI, StatsSA as well as the departments of Communications, Home Affairs and Public Enterprises – all below 20 per cent of available budgets – are of particular concern. The expenditure challenges arising from the use of suspense accounts in the departments of Foreign Affairs and Housing must also be addressed.
3. National departments spent R54.6 billion, or 23 per cent, of the available budget for transfers and subsidies. Of concern were reported delays in the transfer of funds to certain entities due to outstanding business plans and service level agreements. While funds should not be transferred without the necessary assurances, the Committee is strongly of the view that business plans should be finalized before the start of each financial year.
4. The financial sustainability and performance of the SOEs remains an ongoing concern. In this regard, the Committee has taken cognizance of the restructuring processes at the South African Airways (SAA) and the Land Bank. In the case of the Department of Communications and associated enterprises, the Committee has noted challenges with the development of new communications infrastructure, a further Apex Priority. There is a further concern regarding the possible duplication of functions and financial support given to certain enterprises and projects. The Committee intends to interrogate these issues during the year.
5 National Government spent R1.3 billion or 17.5 per cent of the available capital budget by June 2008, a considerable improvement compared to the same period last year. While increased capital expenditure is a positive development, the Committee believes that there are still serious deficiencies in departmental planning, management and procurement systems. Government contracting and procurement must be improved to ensure effective spending and minimize the impact of complications and delays on suppliers and small business.
6. RECOMMENDATIONS
Based on its observations and findings the Committee recommends the following:
Given that poor planning remains a chronic problem, National Treasury, in conjunction with other relevant departments, should prioritise the consolidation of planning, budgeting and monitoring processes. In particular, National Treasury should fast track the implementation of Performance Information Framework.
2. Related to the above, departments must ensure that objectives and performance indicators, as set out in their strategic and budgetary statements, are both quantifiable and in alignment with nationally defined policy priorities.
As raised in previous reports, capacity constraints have a serious impact on effective budgeting and service delivery. In this regard, all departments should submit an assessment of skills required and a recruitment action plan by the end of September this year – in time for Parliament’s engagement with the Medium-Term Budget Policy Statement (MTBPS). In addition, the Department of Public Services and Administration (DPSA) should submit a report to Parliament on progress with filling senior posts across government.
4. Finally, the further refinement of the Quarterly National Programme and Economic Classification Report should be concluded by the end of the second financial quarter. The Report should include:
a) Additional explanatory detail on total expenditure for the economic classifications and subcategories;
b) Details of expenditure flows through the respective departmental suspense accounts including the amounts in each account, and;
c) A breakdown of expenditure related to major infrastructure and capital projects.
Report to be considered.
---------------------------- ------------------------------
Hon Ms LL Mabe (NA) Hon Mr BJ Mkhaliphi (NCOP)
Date: Date:
EXPENDITURE PER VOTE: NATIONAL
|
|
2008/09 |
2007/08 |
||||
|
|
Actual |
Available |
% of Budget |
Actual |
Available |
% of Budget |
|
Expenditure per Vote |
expenditure |
budget |
spent |
expenditure |
budget |
spent |
|
|
(April - June) |
|
|
(April - June) |
|
|
|
|
|
|
|
|
|
|
|
R'000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 PRESIDENCY |
75,756 |
290,040 |
26.12% |
50,761 |
254,741 |
19.93% |
|
2 PARLIAMENT |
195,131 |
904,532 |
21.57% |
147,082 |
835,714 |
17.60% |
|
3 FOREIGN AFFAIRS |
586,777 |
4,340,708 |
13.52% |
584,856 |
3,856,363 |
15.17% |
|
4 HOME AFFAIRS |
755,350 |
4,505,019 |
16.77% |
491,637 |
3,314,589 |
14.83% |
|
5 PUBLIC WORKS |
686,483 |
4,141,402 |
16.58% |
876,532 |
3,693,120 |
23.73% |
|
6 GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM |
116,545 |
418,255 |
27.86% |
115,328 |
375,812 |
30.69% |
|
7 NATIONAL TREASURY |
4,789,857 |
21,318,192 |
22.47% |
4,333,377 |
19,708,178 |
21.99% |
|
8 PUBLIC SERVICE AND ADMINISTRATION |
63,623 |
412,306 |
15.43% |
74,132 |
357,283 |
20.75% |
|
9 PUBLIC SERVICE COMMISSION |
27,991 |
111,172 |
25.18% |
23,079 |
105,357 |
21.91% |
|
10 SA MANAGEMENT DEVELOPMENT INSTITUTE |
23,960 |
105,527 |
22.71% |
16,675 |
71,126 |
23.44% |
|
11 STATISTICSSOUTH AFRICA |
211,507 |
1,272,219 |
16.63% |
187,470 |
1,100,289 |
17.04% |
|
12 ARTS AND CULTURE |
452,982 |
2,117,082 |
21.40% |
403,079 |
1,608,019 |
25.07% |
|
13 EDUCATION |
8,685,291 |
18,857,546 |
46.06% |
7,826,606 |
16,000,923 |
48.91% |
|
14 HEALTH |
3,661,393 |
15,100,845 |
24.25% |
3,012,675 |
12,655,132 |
23.81% |
|
15 LABOUR |
431,669 |
1,732,911 |
24.91% |
560,244 |
2,032,865 |
27.56% |
|
16 SOCIAL DEVELOPMENT |
18,619,810 |
76,007,974 |
24.50% |
17,935,359 |
67,232,108 |
26.68% |
|
17 SPORT AND RECREATION |
1,686,623 |
3,496,248 |
48.24% |
1,004,575 |
3,157,222 |
31.82% |
|
18 CORRECTIONAL SERVICES |
2,779,327 |
11,671,834 |
23.81% |
2,362,586 |
10,742,331 |
21.99% |
|
19 DEFENCE |
4,526,116 |
28,233,155 |
16.03% |
4,149,803 |
25,922,255 |
16.01% |
|
20 INDEPENDENT COMPLAINTS DIRECTORATE |
20,396 |
98,497 |
20.71% |
16,607 |
80,891 |
20.53% |
|
21 JUSTICE AND CONSTITUTIONAL DEVELOPMENT |
1,615,647 |
8,341,432 |
19.37% |
1,379,838 |
7,277,770 |
18.96% |
|
22 SAFETY AND SECURITY |
9,034,808 |
40,453,243 |
22.33% |
7,712,440 |
35,917,470 |
21.47% |
|
23 AGRICULTURE |
558,636 |
2,534,671 |
22.04% |
433,142 |
2,281,166 |
18.99% |
|
24 COMMUNICATIONS |
175,248 |
1,723,605 |
10.17% |
306,894 |
1,423,533 |
21.56% |
|
25 ENVIRONMENTAL AFFAIRS AND TOURISM |
993,321 |
3,061,686 |
32.44% |
825,487 |
2,590,771 |
31.86% |
|
26 HOUSING |
2,400,598 |
10,586,523 |
22.68% |
1,502,849 |
8,877,608 |
16.93% |
|
27 LAND AFFAIRS |
1,323,010 |
6,659,396 |
19.87% |
1,317,049 |
5,678,519 |
23.19% |
|
28 MINERALS AND ENERGY |
647,753 |
3,595,423 |
18.02% |
770,563 |
2,966,113 |
25.98% |
|
29 PROVINCIAL AND LOCAL GOVERNMENT |
1,884,896 |
34,193,880 |
5.51% |
1,560,021 |
28,844,175 |
5.41% |
|
30 PUBLIC ENTERPRISES |
925,598 |
3,007,862 |
30.77% |
1,051,591 |
1,063,966 |
98.84% |
|
31 SCIENCE AND TECHNOLOGY |
971,983 |
3,703,972 |
26.24% |
586,629 |
3,142,479 |
18.67% |
|
32 TRADE AND INDUSTRY |
883,757 |
5,102,605 |
17.32% |
1,001,561 |
4,845,583 |
20.67% |
|
33 TRANSPORT |
5,677,583 |
20,508,528 |
27.68% |
3,290,367 |
15,857,923 |
20.75% |
|
34 WATER AFFAIRS AND FORESTRY |
1,274,465 |
6,699,276 |
19.02% |
882,305 |
5,306,347 |
16.63% |
|
Subtotal: Appropriated funds |
76,763,890 |
345,307,566 |
22.23% |
66,793,199 |
299,177,741 |
22.33% |
|
Direct charges per Vote |
|
|
|
|
|
|
|
1 PRESIDENCY |
578 |
2,455 |
23.54% |
539 |
2,219 |
24.29% |
|
2 PARLIAMENT |
60,281 |
253,979 |
23.73% |
55,758 |
242,380 |
23.00% |
|
7 NATIONAL TREASURY |
|
|
|
|
|
|
|
Provinces Equitable Share |
49,844,253 |
199,376,977 |
25.00% |
47,955,993 |
171,271,393 |
28.00% |
|
State Debt Costs |
10,527,030 |
51,236,000 |
20.55% |
9,159,486 |
52,916,000 |
17.31% |
|
15 LABOUR |
|
|
|
|
|
|
|
Sector Education and Training Authorities |
1,375,087 |
6,023,680 |
22.83% |
1,152,852 |
4,800,000 |
24.02% |
|
National Skills Fund |
343,771 |
1,505,920 |
22.83% |
288,213 |
1,200,000 |
24.02% |
|
21 JUSTICE AND CONSTITUTIONAL DEVELOPMENT |
313,573 |
1,389,329 |
22.57% |
293,837 |
1,263,518 |
23.26% |
|
Subtotal: Direct charges |
62,464,573 |
259,788,340 |
24.04% |
58,906,678 |
231,695,510 |
25.42% |
|
TOTAL EXPENDITURE |
139,228,463 |
605,095,906 |
23.01% |
125,699,877 |
530,873,251 |
23.68% |
EXPENDITURE BY ECONOMIC CLASSIFICATION
|
NATIONAL DEPARTMENTS |
||||||
|
|
2008/09 |
2007/08 |
||||
|
Expenditure by Economic Classification |
Actual |
Available |
% of Budget |
Actual |
Available |
% of Budget |
|
|
expenditure |
budget |
spent |
expenditure |
budget |
spent |
|
|
(April - June) |
|
|
(April - June) |
|
|
|
|
|
|
|
|
|
|
|
R' 000 |
|
|
|
|
|
|
|
Current payments |
20,814,663 |
99,865,319 |
20.84% |
18,351,243 |
89,944,276 |
20.40% |
|
Of which: |
|
|
|
|
|
|
|
Compensation of employees |
13,932,448 |
61,726,207 |
22.57% |
12,797,079 |
56,321,208 |
22.72% |
|
Goods and services |
6,878,696 |
38,138,308 |
18.04% |
5,546,197 |
33,622,300 |
16.50% |
|
Interest and rent on land |
67 |
804 |
8.33% |
299 |
768 |
38.93% |
|
Financial Transactions and assets and liabilities |
3,439 |
- |
- |
7,223 |
- |
- |
|
Unauthorised expenditure |
13 |
- |
- |
445 |
- |
- |
|
|
|
|
|
|
|
|
|
Transfers and Subsidies |
54,635,233 |
237,955,448 |
22.96% |
47,696,394 |
202,567,068 |
23.55% |
|
Of which: |
|
|
|
|
|
|
|
Provinces and municipalities |
14,173,060 |
80,602,845 |
17.58% |
10,101,388 |
66,678,675 |
15.15% |
|
Departmental agencies and accounts |
9,190,742 |
42,527,998 |
21.61% |
7,942,246 |
37,901,775 |
20.95% |
|
Universities and technikons |
6,908,200 |
13,586,474 |
50.85% |
6,603,832 |
11,967,790 |
55.18% |
|
Public corporations & private enterprises |
4,965,575 |
18,889,723 |
26.29% |
109,910 |
941,847 |
11.67% |
|
Foreign governments & international organisations |
66,947 |
979,350 |
6.84% |
4,505,421 |
14,861,047 |
30.32% |
|
Non-profit institutions |
250,892 |
1,685,267 |
14.89% |
148,391 |
1,393,644 |
10.65% |
|
Households |
19,079,818 |
79,683,791 |
23.94% |
18,285,205 |
68,822,290 |
26.57% |
|
|
|
|
|
|
|
|
|
Payments for capital assets |
1,313,995 |
7,486,800 |
17.55% |
745,563 |
6,666,397 |
11.18% |
|
Of which: |
|
|
|
|
|
|
|
Buildings and other fixed structures |
778,209 |
3,900,603 |
19.95% |
315,496 |
3,319,548 |
9.50% |
|
Machinery and equipment |
283,840 |
2,546,845 |
11.14% |
251,000 |
2,483,820 |
10.11% |
|
Cultivated assets |
1,391 |
625 |
222.56% |
574 |
1,040 |
55.19% |
|
Software and other intangible assets |
2,793 |
186,054 |
1.50% |
21,369 |
524,936 |
4.07% |
|
Land and subsoil assets |
247,761 |
852,673 |
29.06% |
157,124 |
337,053 |
46.62% |
|
|
|
|
|
|
|
|
|
Subtotal: Appropriated funds |
76,763,890 |
345,307,566 |
22.23% |
66,793,199 |
299,177,741 |
22.33% |
|
Direct charges per Vote |
|
|
|
|
|
|
|
1 PRESIDENCY |
|
|
|
|
|
|
|
Current |
578 |
2,455 |
23.54% |
539 |
2,219 |
24.29% |
|
2 PARLIAMENT |
|
|
|
|
|
|
|
Current |
60,281 |
253,979 |
23.73% |
55,758 |
242,380 |
23.00% |
|
7 NATIONAL TREASURY |
|
|
|
|
|
|
|
Current |
60,371,283 |
250,612,977 |
24.09% |
57,115,479 |
224,187,393 |
25.48% |
|
15 LABOUR |
|
|
|
|
|
|
|
Current |
1,718,858 |
7,529,600 |
22.83% |
1,441,065 |
6,000,000 |
24.02% |
|
21 JUSTICE AND CONSTITUTIONAL DEVELOPMENT |
|
|
|
|
|
|
|
Current |
313,573 |
1,389,329 |
22.57% |
293,837 |
1,263,518 |
23.26% |
|
Subtotal: Direct charges |
62,464,573 |
259,788,340 |
24.04% |
58,906,678 |
231,695,510 |
25.42% |
|
TOTAL EXPENDITURE |
139,228,463 |
605,095,906 |
23.01% |
125,699,877 |
530,873,251 |
23.68% |
[1] The spending benchmark is based on estimated spending as determined at the beginning of the financial year in the approved drawings on the National Revenue Fund.
[2] The Department of Housing (DoH) has experienced a similar problem with payments to the Government Communication and Information Systems (GCIS) under Programme 3: Housing Delivery Support.
[3] 2006/07
[4] A payment is unrequited if the department does not receive anything directly, financial or otherwise, in return from the recipient party.
[5] Discrepancies involved the status of Department’s asset management, the implementation of the Human Resource Plan and payments to suppliers.
[6] Assets that can be utilized repeatedly in the production process.
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