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7 May 2010

Presentation to the Select Committee on Appropriations Devolution of Property Rate Funds Grant NATIONAL TREASURY. 7 May 2010. Public Works, Roads and Transport – Provinces as at 31 December 2009. Public Works, Roads and Transport – Provinces as at 31 December 2009.

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7 May 2010

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  1. Presentation to the Select Committee on AppropriationsDevolution of Property Rate Funds GrantNATIONAL TREASURY 7 May 2010

  2. Public Works, Roads and Transport– Provincesas at 31 December 2009

  3. Public Works, Roads and Transport– Provincesas at 31 December 2009 • Spending is at R25.8bn or 68.7% against R37.6bn adjusted budget • 12.4% of total provincial adjusted budgets • Increase of R1bn or 4.2% compared to same period of last year • WC – 38.2%; KZN and LP – 13.5% • Projected overspending of R620m in 4 provinces (NW – R297.5m ;GP – R201m) • Personnel spending at R4.7bn or 73.9% (R6.3bn adjusted budget) • Projected overspending of R195m in 4 provinces (GP – R138.1m; LP – R29.3m) • Capital spending at R5.3bn or 68.2% • Projected underspending of R340.1m in 5 provinces • (EC – R133.9m; NC – R103m; FS – R84.9m) • Low rate of capital spending in NC (6.6%) and LP (39.6%) • GP (121%) and NW (88.4%) reflects the highest rate of capital spending

  4. Public Works, Roads and Transport– Provincesas at 31 March 2010

  5. Public Works, Roads and Transport– Provincesas at 31 March 2010 • Spending is at R36.8bn or 97.6% against R37.7bn adjusted budget • 12.4% of total provincial adjusted budgets • Increase of R3.9bn or 11.8% compared to same period of last year • WC – 39.7%; MPU – 20.7% and FS – 19% • Preliminary underspending of R972.9m in 8 provinces • LP – R388.2m; WC – 304.9m and EC – R90m • Personnel spending at R6.4bn or 101.8% (R6.3bn adjusted budget) • Preliminary overspending of R195m in 3 provinces (GP – R118.2m; LP – R50m and EC – 27.2 ) • Capital spending at R7.7bn or 99.7% • Preliminary underspending of R309.4m in 4 provinces (WC – R176.5m; FS – R102.1m and LP – R30.3 ) • Low rate of capital spending in FS (87%) and LP (87.2%) • NC (120.9%) and EC (105.5%) reflects the highest rate of capital spending

  6. CG: Devolution of Property Rate Funds Grant

  7. Devolution of Property Rates Funds Grant

  8. Concluding Comments • Provincial public works departments are responsible for the payment of municipal property rates for all departments in a province. Failure to do this may lead to a termination or disruption of services such as water and electricity • Outcomes have deteriorated since 2008/09, where under-spending was just over R202m. • Spending on this grant is highly reliant on the rating and billing capacities of municipalities. • Poor municipal property management, poor billing systems, late billing, etc. influence negatively on a province’s ability to meet its obligations. • Provinces with former “homeland” government structures within their jurisdiction are particularly negatively affected, due to the incomplete rating of properties in these areas. • The budget for this grant was adjusted upwards by R353.2m in 2009/10, due to the under-funding of certain provinces. • Reasonably accurate baselines going forward are essential before the devolution process can be completed.

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