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SCOF (NCOP) Hearings Presented by: Intergovernmental Relations National Treasury

Provincial Budgets and Expenditure as at 31 December 2007 2007/08 Financial Year SPORTS, ARTS & CULTURE. SCOF (NCOP) Hearings Presented by: Intergovernmental Relations National Treasury. February 2008. Broad Observations. The presentation covers provincial spending as at 31 December 2007

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SCOF (NCOP) Hearings Presented by: Intergovernmental Relations National Treasury

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  1. Provincial Budgets and Expenditure as at 31 December 20072007/08 Financial YearSPORTS, ARTS & CULTURE SCOF (NCOP) Hearings Presented by: Intergovernmental Relations National Treasury February 2008

  2. Broad Observations • The presentation covers provincial spending as at 31 December 2007 • Based on Section 40(4) PFMA reports (IYM) submitted by PTs • Published in Government Gazette on 30 January 2008 • Provincial spending is on track with 71.6% or R153.9bn spent of their budgets • Projected overspending of R1.4 billion in 6 provinces • Includes adjusted budgets • National adjustments (R2.8bn) • Provincial adjustments (R1.6bn) • Total adjustments (R4.4bn) (health – R1.6bn, education – R1.2bn) • 4 provinces projecting to overspend education budgets (NW and KZN significantly; GT to underspend) • R1.2 billion added to cover wage agreement – only R641.7m allocated by provinces • Capital – R1.2bn added, however only have capacity to spend close to main budget • Spending against budgets on conditional grants is lower than the total provincial spending average

  3. Challenges addressed through 2007 AENE • NW was impacted more significantly by re-demarcation • the sheer magnitude of the “shock” combined with use of incorrect data (number of schools, learners, educators, etc.) resulting in extreme budgetary pressures on NW education • Once-off conditional allocation of R250 million allocated to NW • Wage agreement is 1.5% higher than what prov budgeted • Costs associated with the higher than anticipated wage settlement was allocated to provinces (R1.2bn)

  4. Provincial Adjustments

  5. Key highlights • Provinces show a slight decrease in the share of Social Services total budget from 73.8% in 2006/07 to 73.2% in 2007/08 • Education remains largest item of budget at 41.9% • Health at 28.3% • Social Welfare Services only 3.0% of budget • Spending in social services sectors: • Education at R66.3bn (73.7%) • Health at R45.3bn (74.4%) • Social Welfare Services at R4.6bn (72.0%) • Spending in non-social services sectors: • Agriculture at R3.9bn (63.4%) • Housing and Local Government at R7.6bn (61.8%) • Public Works, Roads and Transport at R16.3bn (66.6%) • Sport, Arts and Culture at R1.6bn (65.7%) • Personnel spending is at R88.7bn (74.7%) • Capital expenditure is at R11.7bn (61.4%)

  6. Provincial Aggregated Expenditure (1)

  7. Provincial Aggregated Expenditure (2)

  8. Provincial Social Services (2)

  9. Conditional grants

  10. Conditional Grants (3)

  11. Conditional Grants (5)Spending Rates • 5 or more provinces have spent less than 60% of their grant budget for the following grants: • Land Care Programme; • Community Library Services; • HIV and AIDS (Life Skills Education); • Forensic Pathology Services; • Integrated Housing and Human Settlement Development • Although the rate of spending is encouraging and reflects an improvement over previous financial years, overall CG spending (60.4%) still lies below total provincial spending (71.6%)

  12. Sport and Recreation SA GrantMass Sport and Recreation Participation Programme Grant • Objective (Schedule 5 Grant): • Promotion of mass participation within schools through the development of selected number of sport codes. the empowerment of educators. and volunteers to manage and implement in conjunction with provincial departments responsible for Sport and Recreation and Education • Promotion of mass participation within disadvantaged communities through a number of selected activities, the empowerment of communities. and volunteers to manage these activities in conjunction with provincial departments of Sport and Recreation and Sports and Recreation federations • First Nine Months Expenditure: • Sport and Recreation spent R120.0m or 60.6% of the R197.9m adjusted allocation • Transfers received amounted to 84.2% of national allocation • Highest spending: NW 78.8% and KZN 71.5% • Lowest spending: LP 34.8% and NC 49.1% • Service Delivery Outcome: • Department / Sector to respond

  13. Arts and Culture GrantCommunity Library Services • Objective (Schedule 5 Grant): • To enable communities to gain access to knowledge and information that will improve their social, economic and political situation • First Nine Months Expenditure: • Arts and Culture spent R68.9m or 38.3% of the R180.0m community library services allocation • Transfers received amounted to 75.0% of national allocation • Highest spending: KZN 62.9% and GP 50.9% • Lowest spending: LP 14.0% and EC 15.3% • Service Delivery Outcome: • Department / Sector to respond

  14. Conditional Grants (6)Spending Rates

  15. THANK YOUTHANK YOU THANK YOU

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