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Select Committee on Finance National Council of Provinces Presented by: Jan Hattingh

Outcome of Conditional Grants & Capital Expenditure as at 31 March 2006 (Preliminary Outcome) [Section 32 of PFMA]. Select Committee on Finance National Council of Provinces Presented by: Jan Hattingh Intergovernmental Relations National Treasury 02 May 2006. National Treasury’s Role.

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Select Committee on Finance National Council of Provinces Presented by: Jan Hattingh

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  1. Outcome of Conditional Grants & Capital Expenditure as at 31 March 2006(Preliminary Outcome)[Section 32 of PFMA] Select Committee on Finance National Council of Provinces Presented by: Jan Hattingh Intergovernmental Relations National Treasury 02 May 2006

  2. National Treasury’s Role • National Treasury (NT) develops culture of publishing information • Assessing credibility of provincial budgets • Ensure that each provincial treasury prepares quarterly reports for its Cabinet or Exco • NT prepares a consolidated quarterly report for all provinces

  3. Key highlights • Presentation covers provincial preliminary outcome (as at 31 March 2006) for the 2005/06 financial year • Spending is at R214,8bn (98,0%) of adjusted budget (R219,2bn) • The highest rate of spending is in KN (99,8%); WC and EC (98,6%) • Lowest in FS (94,4%) and NW (95,8%)

  4. Provincial Aggregated Expenditure

  5. Key highlights • Spending in social services sectors: • Education at R72,0bn (99,6%) • Health at R46,9bn (99,5%) • Social Development at R58,0bn (96,7%) • Personnel spending at R95,7bn (99,0%) • Capital expenditure is at R13,1bn (94,0%)

  6. Provincial Aggregated Expenditure

  7. Social Services • Social services adjusted budgets at R179,4bn - 81,9% of total provincial budgets (education, health, social development) • Provinces have spent R176,9bn or 98,6% • R21,3bn or 13,7% more compared to last year • Spending accounts for 82,4% of total provincial spending • Education at 33,5%, • Health at 21,8% • Social Development at 27,0% • KN (100,4%), LP and NC (99,6%) records the highest rate of spending while FS (95,3%) and NW (97,0%) the lowest

  8. Education • Spending at R72,0bn or 99,6% against R72,3bn adjusted budget • Increase of R7,5bn or 11,7% compared to the previous year • Low rate of education spending in GP (96,3%) and MP (97,0%) • LP (102,9%) and KN (101,5%) reflects the highest rate of spending in education • Education Personnel spending at R58,2bn or 99,9% (R58,3bn adjusted budget) • Goods and services (mostly LSM) at R7,1bn or 98,8% (R7,2bn adjusted budget) • Capital spending at R2,8bn or 83,0% • Increase of R436,7m or 18,5% compared to spending last year • Low rate of capital spending in MP (52,3%) and FS (74,7%) • NC (103,3%) and NW (97,0%) reflects the highest rate of capital spending in education

  9. Education

  10. Provincial Public Ordinary School Education (Programme 2)

  11. Provincial Education – Personnel

  12. Provincial Education – NPNC

  13. Health • Spending at R46,9bn or 99,5% against R47,2bn adjusted budget • Increase of R6,7bn or 16,6% compared to the previous year • Low rate of health spending in LP (94,4%) and EC (98,3%) • NC (105,8%) and GP (101,3%) reflects the highest rate of spending in health • Health Personnel spending at R25,4bn or 99,4% (R25,6bn adjusted budget) • Capital spending at R3,8bn or 92,4% • Increase of 53,0% compared to spending for the same period last year • Low rate of capital spending in NC (75,5%) and LP (77,5%) • GP (114,4%) and WC (97,3%) reflects the highest rate of capital spending in health

  14. Health

  15. Health – Programme Analyses Prog 2: Provincial District Health Services • Spending at R18,4bn or 100,8% of R18,2bn adjusted budget • Lowest rate of spending in FS (94,2%) and highest in KN (105,3%) Prog 4: Provincial Hospital Services • Spending at R11,7bn or 99,9% of R11,8bn adjusted budget • Lowest rate of spending in KN (95,6%) and highest in FS (106,8%) Prog 5: Central Hospital Services • Spending at R8,1bn or 103,8% of R7,8bn adjusted budget • Lowest rate of spending in LP (95,0%) and highest in GP (106,3%)

  16. Provincial District Health Services (Programme 2)

  17. Provincial Hospital Services (Programme 4)

  18. Central Hospital Services (Programme 5)

  19. Provincial Health – Personnel

  20. Provincial Health – NPNC

  21. Social Development • Spending at R58,0bn or 96,7% against R60,0bn adjusted budget • Increase of R7,0bn or 13,8% compared to the previous year • Low rate of spending in FS (89,4%) and NW (93,0%) • LP (99,0%) and KN (98,8%) reflects the highest rate of spending • Underspent by R2,0bn • Underspending linked to key initiatives to address weaknesses in the grant administration system: • investigation and prosecution of fraudulent activities • comprehensive review of all temporary disability grants • implementation of systems that provides updates on key indicators for how the programme is being administered, including early warning indicators • piloting, finalising and implementing a new disability assessment tool

  22. Social Development

  23. Provincial Social Grants (Programme 2)

  24. Social Grants - Beneficiary Numbers

  25. Social Grants - Payments

  26. Personnel • Provincial personnel spending totalled R95,7bn or 99,0% of R96,7bn personnel adjusted budgets • Increase of R7,8bn or 8,9% over comparative spending last year • LP projecting to overspend by R451,3m • Low level of personnel spending in GP (96,1%) and WC (96,3%) • LP (103,4%) and NW (99,9%) reflects the highest level of personnel spending

  27. Personnel

  28. Payments for Capital Assets Trends (Capital Expenditure)

  29. Payments for Capital Assets • Provinces have spent R13,1bn or 94,0% of R14,0bn adjusted capital budgets • Increase of R2,8bn or 26,8% to comparative spending during last year • Low rate of capital spending in NW (82,3%) and MP (82,6%) • GP (116,2%) and WC (95,9%) reflects the highest rate of capital spending • Largest provincial capital budgets (adjusted) are for public works, roads and transport departments at R4,8bn or 34,3% • Spending at R5,1bn or 106,4% compared to R4,5bn spent last year (12,3% increase) • Overspent by R308,5m

  30. Payments for Capital Assets

  31. Payments for Capital Assets Education

  32. Payments for Capital AssetsHealth

  33. Payments for Capital Assets Public Works, Roads & Transport

  34. Integrated Housing and Human Settlement Development Grant (transfers)

  35. Conditional Grants

  36. Conditional Grants – Flow of Info

  37. Conditional Grants • Conditional grant allocations total R75,1bn (2005 DoRA and Adjusted Estimates Gazette of 07 December 2005) • Social assistance grants making up the bulk at R55,9bn • Reported expenditure excludes Schedule 4 grants such as the NTS Grant and Provincial Infrastructure grant • These grants are included in “general” provincial expenditure • Specific grants that show low spending include: - Forensic Pathology Services (Health) (14,9%) - Disaster Relief (DPLG) (83,8%) - Hospital Revitalisation (84,2%) - Social Assistance Administration (93,5%) - Agricultural Disaster Management (93,8%)

  38. Conditional Grants

  39. Conditional Grants - continued

  40. Conditional Grants • 3 or more provinces have spent less than 90,0% for the following grants: • Hospital Revitalisation (Health) • Integrated Nutrition Programme (Health) • Social Assistance Administration • However the majority of grants reflects spending within the 90,0% and 95,0% range

  41. Conditional Grants

  42. Important dates and submissions

  43. Publication Dates for Provincial S32 Reports • 2006/07 Financial Year: • 1st Quarter (as at 30 June 2006) 28 July 2006 • 2nd Quarter (as at 30 September 2006) 30 October 2006 • 3rd Quarter (as at 31 December 2006) 30 January 2007 • 4th Quarter (as at 31 March 2007) 30 April 2007

  44. Proposed Dates for QPRs • Practice Note 3 of 2005 (issued with effect from 1 August 2005): • National departments administering conditional grants are required to table QPRs (including both financial and non-financial information) with the SCOF in the NCOP at the end of each quarter in line with the requirements of Sections 19(1)(c) and 21(2)(d) of the Act, Grant Frameworks and Treasury Regulation 5.3 • Departments are required to provide the NT with copies of the reports tabled at SCOF in NCOP. The quarterly reports for each quarter should be tabled by the dates provided • The dates are as follows: • Third Quarter: 07 February 2006 • Fourth Quarter: 08 May 2006

  45. Detail on Conditional Grants by Grant Type

  46. Agriculture GrantsLand Care Programme: Poverty Relief andInfrastructure Development • Objective (Schedule 5 Grant): • To address the degradation problems of natural/agricultural resources and improve the social-economic status, and food security of rural communities • Preliminary Outcome: • Agriculture spent R47,7m or 119,2% (90,1% incl. prov roll-overs) of the R40m allocation (R52,9m incl. prov roll-overs) • Transfers amounted to 100,0% • Highest: FS 175,3%; EC 171,0% and MP 150,6% • Lowest: NW 21,1% and NC 98,1% • Service Delivery Outcome: • Department / Sector to respond

  47. Agriculture GrantsComprehensive Agriculture Support Programme • Objective (Schedule 4 Grant): • To enhance the provision of support services to promote and facilitate agricultural development targeting beneficiaries of the Land and Agrarian Reform programme and resource poor land-users • Preliminary Outcome: • Spending of this grants is subsumed in the spending of a range of programmes and therefore no reporting is required • However, provinces reported spending of R265,7m or 106,3% (86,0% incl. provincial roll-overs) of R250m allocation (R309m incl. provincial roll-overs) • Transfers amounted to 100,0% • Highest: FS 172,9%; EC 141,1% and LP 125,0% • Lowest: NW 13,0%; NC 69,7% and GP 79,9% • Service Delivery Outcome: • Department / Sector to respond

  48. Education GrantsHIV and Aids Grant (Life Skills Education) • Objectives (Schedule 5 Grant): • To ensure access to an appropriate and effective integrated system of prevention, care and support for children infected and affected by HIV and Aids • To deliver life skills, sexuality and HIV and Aids education in primary and secondary schools • Preliminary Outcome: • Education spent R182,1m or 133,6% (98,3% incl. prov. roll-overs) of the R136,3m allocation (R185,3m incl. prov. roll-overs) • Transfers amounted to 100,0% • Highest: EC 195,9%; KN 163,1% and NW 124,3% • Lowest: NC 87,5% and LP 87,7% • Service Delivery Outcome: • Department / Sector to respond

  49. Education GrantsNational School Nutrition Programme • Objective (Schedule 5 Grant): • To improve the nutrition status of South African children: specifically to enhance active learning capacity and improve attendance in schools • Preliminary Outcome: • Education spent R1 048m or 94,2% (85,5% incl. prov. roll-overs) of the R1 112m allocation (R1 225m incl. prov. roll-overs) • Transfers amounted to 100,0% • Highest: NW 110,8%; EC 102,7% and WC 100,9% • Lowest: KN 82,1%; MP 89,5% and GP 90,6% • Service Delivery Outcome: • Department / Sector to respond

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