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BUDGET PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES 24 APRIL 2012

BUDGET PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES 24 APRIL 2012. PRESENTATION OUTLINE. Planning and Budgeting Process Additional Funding request DHA allocation over the MTEF period Budget allocation: 2011/12 vs 2012/13 Budget allocation: Programmes

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BUDGET PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES 24 APRIL 2012

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  1. BUDGET PRESENTATION TO THE SELECT COMMITTEE ON SOCIAL SERVICES 24 APRIL 2012

  2. PRESENTATION OUTLINE Planning and Budgeting Process Additional Funding request DHA allocation over the MTEF period Budget allocation: 2011/12 vs 2012/13 Budget allocation: Programmes Budget allocation per Province Estimates of National Expenditure Challenges Budget vs Expenditure 2009/10 – 2011/2012

  3. PLANNING AND BUDGETING PROCESS • The planning and budgeting process started with the development of the Strategic Plan which covers the three years of the Medium Term Expenditure Framework (MTEF). • The plans are then broken down into priorities for each of the three years, which is called Annual Performance Plan • Once the planning cycle is complete, that is when the budgeting process starts • The Budgeting process starts with a costing of the Key Performance Area of the Strategic and Annual Performance Plan (APP) on the following basis: • Compensation of employees is calculated using the incremental budgeting approach (meaning it takes the compensation of the current year multiplied by the inflationary increase as determined by National Treasury) plus any additional staff needed to implement the APP • Contractual obligations (e.g. leases) is calculated based on the escalation clause in the agreements • Other operating costs (e.g. telephone) is also calculated on the incremental budgeting approach • All other expenditure is calculated using zero based budgeting

  4. PLANNING AND BUDGETING PROCESS • Once the costing is complete, the Department submits its budget request to National Treasury for funding of its Plan. For the MTEF 2012/13 to 2014/15, the Department requested the following and the National Treasury Allocation was as follows: • NOTES • Re-prioritisation was done within the budget to ensure that all priorities included in the Strategic Plans are funded within the above allocation. • The R110-m has been allocated to DPW, however it is earmarked specifically to Home Affairs. In 2012/13 the allocated amount will be used to acquire office space at the maritime border facilities and for improvements at several border posts. For the remainder of the MTEF the amount will be used for the construction of residential space for employees and additional office space to replace the use of tents at the Lebombo, Beitbridge and Maseru Border Posts.

  5. ADDITIONAL REQUEST TO NT FOR THE MTEF

  6. ADDITIONAL REQUEST TO NT FOR THE MTEF (cont…)

  7. DHA BUDGET 2012/13 to 2014/15 • NOTES • The major contributors to the decrease from 2011/12 to 2012/13 relates to once-off funding from National Treasury to cover the shortfall in the production cost of passports (R327 Million as well as the R234 million decrease in IT Modernisation (previously known as WAIO) budget. Only R314 million has been allocated for IT Modernisation as against the R548 million previously allocated. • No funding allocated for passports as a Trading Account has been established for all passport related revenue and expenditure in line with the National Treasury recommendation.

  8. DHA BUDGET 2012/13 to 2014/15ECONOMIC CLASSIFICATION • Notes • The compensation of employees budget is calculated on total of 10, 775 funded posts. • The department is re-prioritsing its budget to ensure that sea and air ports of entry are adequately capacitated.

  9. BUDGET ALLOCATION: 2011/12 vs 2012/13

  10. BUDGET : 2012/13 – PER PROGRAMME

  11. BUDGET : 2012/13 – ALLOCATION PER PROVINCE

  12. ESTIMATE OF NATIONAL EXPENDITURE 2012/13 IT Modernisation has been budgeted under Transversal IT Projects (R314,862,000) Over the MTEF, the following projects will be completed: live capture functionality for identity documents and passports, the cleaning of the national population register; core systems integration of civics and immigration; the visa and permitting system, the rollout of the movement control system to 30 remaining ports of entry. 1

  13. ESTIMATE OF NATIONAL EXPENDITURE 2012/13 1

  14. ESTIMATE OF NATIONAL EXPENDITURE 2012/13 1

  15. CHALLENGES • Insufficient funding for Advanced Passenger Processing system (only R50-m allocated) • The implementation of the Border Post Infrastructure is in conjunction with DPW. It is not solely in the hands of the DHA • Inadequate capacity within sea and air ports of entry • Financial management capacity both skills and human resources

  16. BUDGET vs. EXPENDITURE 2009/10-2011/12 • Notes for 2011/12 • Included in the savings is earmarked funds of R46 million for the printing of passports. • A request to roll over R53 million will be submitted to National Treasury to fund the unauthorised expenditure relating to 2005/06 financial year approved without funding. • Therefore the preliminary saving is R54,503 million

  17. THANK YOU

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