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Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending. Gauteng Provincial Treasury: Head of Department. Table of Contents. Provincial equitable share and conditional grant receipts and expenditure Cash allocations
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Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending Gauteng Provincial Treasury: Head of Department
Table of Contents • Provincial equitable share and conditional grant receipts and expenditure • Cash allocations • Ring-fenced funds • Summary of funds requested against budget • Summary of GPG Revenue Collections • Summary of GPG Expenditure (Preliminary outcome) • Recommendations • GPT Expenditure estimates (economic classification) • GPT Expenditure estimates (per programme) • GPT Non Financial Performance
ProvincialEquitable Share and Conditional Grants Receipts YTD
Provincial Equitable Share and Conditional Grants Receipts YTD… • At year end, a total of R74.8bn was received by the province. • Of which R70.9bn was transfers from national in the form of equitable share and conditional grants, and • Own revenue collections by the province amounted to R3.95bn. • The preliminary outcome of GPG departments is at R71.7bn against national transfers. This means that without provincial own revenue, the province would have largely overspent. • An amount of R582 000 for Mass Sport and Recreation Grant under GDSACR was not transferred by the National Department of Sport and Recreation due to their internal challenges. • Provincial own revenue plays a significant role in funding the province.
Net Interest payments/receipts on CPD Net Interest Position- Comparative
Summary of Revenue collected Source: IYM March 2013 and Adjusted Estimates of Provincial Revenue & Expenditure 2012 Red Highlighted: Under collection as at end of March 2013
Summary of Collected Revenue • Total own revenue collection as at end of March 2013 amounted to R3.946 billion (This amounts to 104.42%). • The under collection is mostly from non revenue generating departments • The GPG has exceeded its adjusted appropriation by 4.42% and exceeded its targeted collection by R166.981 million. • Most of the GPG departments exceeded their 2012/13 financial year adjusted appropriation except GDE, DID and SACR that have under collected. • Major collectors performed as follows: • DED estimated to collect R663.762 million collected R721.756 million. • GDoH has collected R476.961 million or 101.15% of their estimate of R471.551 million. • DRT adjusted appropriation was R2.406 billion but managed to collect R2.459 billion or 102.20%. • GPT has collected R187.828 million or 125.22% of their adjusted appropriation. The Department adjusted upwards by R95 000 from a main appropriation of R55 000.
Summary of GPG Expenditure • The main budget was adjusted upwards by R5.4 billion, from R69.3bn to R74.7bn. • The increase was mainly for accrual payments in Health and ICS for GPG departments, and decentralisation of functions from Finance to GPG departments. • Preliminary expenditure is at R73.7bn, under spending by R925mil. R500 million of the R925.3 million is commitments and invoices that could not be processed by the end of the financial year. • Gauteng Provincial Treasury received requests for rollovers from GPG departments amounting to R500 million which corresponds to R510.945 million available cash and has assessed the request as part of the established budget processes. • The difference of R425.3 million under-spending is just on paper because it is accounted for by suspense accounts, surrenders and BAS transaction processing rules which causes disjuncture between under-spending and available cash.
Summary of GPG Expenditure… • Almost all GPG departments are showing a slight under-spending which can be explained by commitments and invoices that could not be processed except GDARD which has overspent by R374 thousands • The total provincial wage bill was at R40.3bn, from which the province spent R40 billion, with R280.6mil remaining unspent. • Under goods and services: the province overspent by R528 million, mainly due to funding pressures in education and health;
2012/13 Preliminary Infrastructure Expenditure • Infrastructure budget was adjusted upwards by R 841.8 million to R9.1 billion. • GDE budget adjusted upward by R340 million and DRT adjusted upwards by R439 million. • At the end of the financial year, an expenditure of R8.7 billion (96%) is recorded with an under-expenditure outcome of R370.7 million. • DoH, DRT and DID recorded a notable under-expenditure whilst the GDE, GDARD recorded an over-expenditure outcome
2012/13 Preliminary Infrastructure Expenditure • In 2012/13 financial year, various alternative delivery initiatives were introduced including amongst the others; • utilisation of alternative delivery material and contracting approaches. • At the end of the financial year, an expenditure of R8.7 billion (96%) is recorded with an under-expenditure outcome of R370.7 million which is a marked improvement taking into account commitments and invoices that could not be accommodated by the end of the financial year. • There is a slight improvement on the alignment of planning with the budget cycle, however some projects and programmes have been affected by the long turn-around on SCM. Gauteng Provincial treasury is currently working a way to improve supply chain management processes for all the infrastructure departments.
Preliminary Conditional grants Expenditure • Overall provincial grant funding was increased by R596mil from R15.6bn to R16.2bn. • A total amount of R15.2bn (or 93%) was spent at the end of the year. • The major under-spending was recorded in the department of Education, Health and Transport. • Treasury will conduct a deeper analysis on the performance of grants to also assist in finding ways to improve grant performance during the course of 2013/14.
Conclusions • The overall Q4 financial performance shows a general improvements in the management of finances in the province. • This level of performance shows the benefits from the cost-containment measures implemented. • The management of cash has significantly improved • Provincial Own revenue should furthermore be given priority in order to fund provincial imperatives
