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Outcome of Conditional Grants & Capital Expenditure as at 31 March 2005 [Roads]

Outcome of Conditional Grants & Capital Expenditure as at 31 March 2005 [Roads]. Select Committee on Finance National Council of Provinces Presented by: Itumeleng Lesang National Treasury - Intergovernmental Relations 8 June 2005. Provincial Roads – Budgets by Category.

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Outcome of Conditional Grants & Capital Expenditure as at 31 March 2005 [Roads]

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  1. Outcome of Conditional Grants & Capital Expenditure as at 31 March 2005[Roads] Select Committee on Finance National Council of Provinces Presented by: Itumeleng Lesang National Treasury - Intergovernmental Relations 8 June 2005

  2. Provincial Roads – Budgets by Category

  3. Provincial Roads – Budgets by Category Accompanying Notes • Provinces Budgeting more for Maintenance (Average = 60% of total budget (R2,74 Million) • Free State shows 100% of budget for Maintenance • Limpopo Budgeting 60 % for maintenance (R412 million) • North West budgeting 72% for Maintenance (R192 Million) • Construction budget only 38 % of Total Budget for Roads in province (R1.72 million) • R61 million set aside by province for infrastructure delivery enabling services (Other Categories in Slide 1) • Western Cape budgeting more for this category (12%) of total budget of province (R43 million) • North West allocating lowest in this category (0.9%) or R2.5 million

  4. Provincial Roads – Expenditure as @ 31 March 2005

  5. Provincial Roads – Expenditure as @ 31 March 2005 Accompanying Notes • Averge Spending for all province in all categories = 97 Percent or (R4.6 billion) • KZN indicates 100% spending (R1.2 Billion) • Limpopo indicates 92% spending (R575 Milliom) • Underspending in Limpopo = 8% (R43 Million) • North West indicates 80% spending • Underspending in Limpopo = 20% (R52 Million) • Total underspending in all provinces = Average 3% (R135 Million) • Western Cape overspending by 5% (R17 million) • Northen Cape not reporting regrulary (4th Quarter report still not submitted)

  6. Provincial Roads – Budget by Category: 2004/05

  7. Accompanying Notes Provincial Roads – Budget by Category: 2004/05 • Province budgeting average 5% of total Roads budget or R217 Million for New Roads Construction • KZN allocating 12% of Budget or R148m for new roads • Gauteng allocating 8% of Budget or R11m for new roads • Mpumalanga allocating 5% of Budget or R15m for new roads • Limpopo budgeting less that 1% for new Roads (R199 thousand) • North West not busgeting for provision of New Roads • Province budgeting more for Maintenance of Roads • (Routine Maintenance + Rehabilitation = R2.7 Billion (64 Percent of Total Roads Budget) • Free State indicate 100% budget for Routine Maintenance • Limpopo Budgeting 65% for Maintenance (55% or R342m for Routine Maintenance & 11 % or R70 Million for Rehabilitation) • North West Budgeting 70 % for Maintenance (62% or R166m for Routine Maintenance & 10% or R23 Million for Rehabilitation) • KZN indicates 100% spending (R1.2 Billion)

  8. Provincial Roads – Budget by type of Structure: 2004/05

  9. Accompanying Notes Provincial Roads – Budget by type of Structure: 2004/05 • Provinces Budgeting more for Surfaced / Tarred Roads (Average = 71% of total budget (R3,04 billion) – All Categories: Maintenance and Construction • Trend indcates more focus on Tarred Roads than Other Types • Free State highest budget 97 % of Tarred Roads (R315 million) • Limpopo Budgeting 82 % for Tarred Roads (R512 million) • North West budgeting 85% for Tarred Roads (R228 million) • Only 38 % on average of Total Budget set aside for Gravel Roads (Including Earth Roads) in province (R1.04 billion) • KZN Budgeting More for Gravel Roads (46% of Budget) R552 Milliom • Limpopo Budgeting 17% for Gravel Roads – R105 Million • North West Budgeting 14% for Gravel Roads – R36 Million • Some provinces still not classifying their projects • 30% of projects unclassified in WC (R44 Million) • 4% of Projects unclassified in Mpumalanga (R12 Million) • Only 1% of Total Budget set aside for Public Transport in all province– R49 Million • GP, FS and EC budgeting for this category

  10. Provincial Roads – Expenditure By Category: 2004/05

  11. Accompanying Notes Provincial Roads – Budget by type of Structure: 2004/05 • Provincial Roads Budgets (Consolidated) • Provinces Prioritised on the Following • Routine Maintenance Average 45% of budget set aside (R1.7 billion ) • Upgrading of Roads also Prioritised: Average 22% of Budget (R844 Million) • Rehabilitation / Periodic Maintenance 3rd Priority: Avrage 19.3% of Budget (R742 Million) • Average of 2.8% of Total Budget (R107 Million) set aside for new Gravel Roads • Average of 3.1% of Total Budget (R120 Million) set aside for New Tared Roads • Provincial Roads Expenditure (Consolidated) • Average of 46% of budget set aside (R137 Million) for new Tarred Roads Spent • Average of 99 % of budget set aside (R137 Million) for new Gravel Roads Spent • Average Overspending by 26% on budget set aside for Upgrading (R230 Million) • Average Overspending by 30% on budget set aside for Routine Maintenance / Rehabilitaion (R53 Million) • Average Overspending by 140% on budget set aside for Other Categories (R161Thousand)

  12. Infrastructure Reporting Issues • Infrastrucrture reporting expected on a quarterly basis • Compiace of reports with the requirements of the DoRA determining for transfer of funds • Quality of Information still poor in some cases – Leads to witholding of transfers to to province • Some province changing infrastructure budgets in reporting model every quarter (Eg. Gauteng Roads) • Budget in Reporting Model For GP in 3rd Quarter: R633 696 (R’000) • Budget in Reporting Model For GP in 4th Quarter: R144 885 (R’000) • Expenditure for GP in Reporting Model varied from Quarter to Quarter • Provincial Reporting improving • Regular Training provided by NT to Provincial Treasuries and Departments on the use of the Infrastructure Reporting Model to improve reporting efficiency

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