Estimates of National Expenditure 2003

1. Estimates of National Expenditure2003 NATIONAL TREASURY

2. Contents • Welcome 09h00 • Overview • Budget process • Recent reforms • Discussion • Tea 10h30 • ENE outline • Main data sections • Evaluating ENE chapter • Discussion National Treasury

3. Overview of the ENE • Outcome of administrative and executive process • National Government’s medium term service delivery, policy developments and performance – alongside 3 year spending plan • Measurable objectives are introduced for each programme • Provide Parliament with clear statement of spending aim of programmes. National Treasury

4. April May June July August Sep Oct Nov Dec Jan Feb March MTEF budget process Prioritisation Preparing budget submissions Macroeconomic framework, fiscal policy & DoR MTEC: Recommendations MTBPS MTEF: Approval Preparation of Budget Documents National Treasury

5. Spending pressures across 3 spheres. (4*4s & 10*10s) Vertical division of revenue between national, provincial and local government. (political outcome) Resource envelope Horizontal division based on spending priorities and departmental plans. Macroeconomic framework, fiscal policy and DoR Expected outcome: Equitable division of national revenue fund between three spheres ofgovernment National Treasury

6. Medium Term Expenditure Committee (MTEC) • Evaluate competing demands on the basis of business plans • Evaluate new policies and the expansion of existing outputs, and its impact on indicative allocations • Negotiate increase to ‘baseline’ • Parallel structure at national and provincial Expected outcome: Prepare new MTEF recommendation for Executive consideration andapproval National Treasury

7. Departments: • Revise Strategic Plans • Reprioritise within allocations to programmes • Prepare ENE Cabinet approve new MTEF ENE tabled in Parliament at time of Budget speech Preparation for Budget Expected outcome: Budget legislation and documentation tabled on Budget Day National Treasury

8. Recent reforms • Measurable objectives for each programme • Section 27.4 of PFMA • Quantifiable results within MTEF period • Shift focus to outputs and their impact • Health example “Reduce mortality and morbidity, and monitor and evaluate these trends through research and epidemiological surveillance to ensure that national health policies and programmes are having their desired impact” National Treasury

9. Recent reforms (cont.) • More descriptive output information table • quality, quantity and timeliness measures • Reporting on recent outputs • More selective reporting on Public Entities • New infrastructure expenditure table National Treasury

10. ENE outline • Accountability information • Department Aim • Programme purpose and measurable objective • Strategic overview • Expenditure estimates and trends • Departmental receipts National Treasury

11. ENE outline (cont.) • Programme data • Subprogramme description • Expenditure trends • Service delivery objectives and indicators • Recent outputs • Medium term output targets • Public Entities reporting to the Minister • Expenditure tables National Treasury

12. Main data sections • Programme purpose and measurable objectives • example • Strategic overview • Main policy developments, achievements and future plans • example National Treasury

13. Main data sections (cont) • Expenditure estimates & trends • Programme, economic classification and standard item • 2003/04 voted by Parliament • 2004/05 to 2005/06 form the basis for planning the 2004 Budget • example National Treasury

14. Main data sections (cont) • Service delivery objectives and indicators • Recent outputs • Brief summary of achievement on output targets in 2002 ENE • Medium-term output targets • Subprogramme outputs, indicators and targets • Outputs should relate to, and aid in the ahievement of measurable objectives • example National Treasury

15. Evaluation of chapters • Checklist on main data sections National Treasury