1 / 24

Select Committee on Finance National Council of Provinces Presented by: Chris Adams

Outcome of Conditional Grants & Capital Expenditure as at 30 November 2005 [Section 40(4) of PFMA]. Select Committee on Finance National Council of Provinces Presented by: Chris Adams Intergovernmental Relations National Treasury 20 January 2006. National Treasury’s Role.

kipp
Download Presentation

Select Committee on Finance National Council of Provinces Presented by: Chris Adams

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Outcome of Conditional Grants & Capital Expenditure as at 30 November 2005[Section 40(4) of PFMA] Select Committee on Finance National Council of Provinces Presented by: Chris Adams Intergovernmental Relations National Treasury 20 January 2006

  2. National Treasury’s Role National Treasury dev. Culture of publishing information Assessing credibility of prov. Budgets Ensure that each treasury prepares quarterly reports for its cabinet or exco. NT prepares a consolidated quarterly report for all provinces.

  3. Key highlights • Presentation covers provincial spending for the first 8 months (1 April to 30 November 2005) of 2005/06 financial year • Spending is at R136bn (62,1%) of adjusted budget (R219,2bn) • The highest rate of spending is in KZN (63,2%); NC and MPU (63,1%) • Lowest in FS & GT (60,8%)

  4. Provincial Aggregated Expenditure

  5. Overview : Housing and LG Spending is at R4,6bn or 54,3% of an adjusted budget of 8,5bn. Lowest spending is in LIM (40,7%), FS (48,1%) and MP (48,2%) Highest rate of spending is in NC (70%) and NW (63,7%). Sector projects to overspend by R188,3m or 2,2%. GT reflects highest overspending of R189,2m or 10% of adj budget of R1,9bn WC yields lowest rate of underspending at R4,9bn or 0,6% of adj budget of R811,8m followed by EC at R8,9m or 0,8% of adj budget of R1,1bn LIM and NW are the only provinces projecting to break even

  6. Provincial Aggregated Expenditure

  7. Payments for Capital Assets Trends (Capital Expenditure)

  8. Payments for Capital Assets • Provinces on aggregate have spent R6,6bn or 47,2% of R13,9bn adjusted capital budgets • Increase of R1,5bn or 30% to comparative spending during last year • Housing Sector is spending at R56,8m or 24,8% of an adjusted capital budget of R228,9m • However sector is projecting to underspend by R40,6m or 17,7% - Lowest rate of capital spending is in GT (8,3), LIM (11,5%), FS (16,9%) & EC (18,1%) - Highest rate of capital spending reflects in NC (58,8%) & WC (53,5%) - Buildings and other fixed structures is the highest contributor to the underspending at R44,9m or 29% of an adj budget of R153,8m

  9. Payments for Capital Assets

  10. Conditional Grants

  11. Conditional Grants – Flow of Info

  12. Conditional Grants Conditional grant allocations total R74,6bn (2005 DoRA) Reported expenditure excludes Schedule 4 grants such as the NTS Grant and Provincial Infrastructure grant Housing grants show good performance: - Integrated Housing and Human Settlement Grant (62,3%) - Net overspending of R506,2m and y-o-y growth of 2,8% - Human Settlement and Redevelopment (127,4%)

  13. Integrated Housing and Human Settlement Development Grant (TRANSFERS)

  14. Conditional Grants

  15. Conditional Grants - continued

  16. Conditional Grants • 8 provinces have spent more than 50% for the Housing grants: • GT is the only province spending less than 50%, I.e. Human Settlement and Redevelopment Grant • 7 Provinces are spending between 50% and 70% while 2 are above the 70% mark for the Integrated Housing and Human Settlement Development. • 5 Provinces are spending more than 70% on any of the two grants.

  17. Conditional Grants

  18. Important dates and submissions

  19. Publication Dates for Provincial S32 Reports • 2005/06 Financial Year: • 3rd Quarter (as at 31 December 2005) 30 January 2006 • 4th Quarter (as at 31 March 2006) 28 April 2006

  20. Proposed Dates for QPRs • Practice Note 3 of 2005 (issued with effect from 01 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

  21. Detail on Conditional Grants by Grant Type

  22. Housing GrantsIntegrated Housing and Human Settlement Grant • Objective (Schedule 5 Grant): • To finance subsidies, the implementation of National Housing Programmes and to facilitate habitable, stable and sustainable human settlements • 8 month Expenditure: • Housing spent R3 017 m or 62,3% of the R4 843 m allocation • Transfers amounted to 72,6% • Highest: NC 88,3%; NW 81,1% and WC 63,3% • Lowest: LIM 53,5%; MPU 53,7%; and FS 55,3% • Service Delivery Outcome: • Department / Sector to respond

  23. Housing GrantsHuman Settlement and Redevelopment Grant • Objective (Schedule 5 Grant): • To fund projects that aim to improve the quality of the environment by identifying dysfunctionalities in human settlements • 8 month Expenditure: • Housing spent R31,1 m or 127,4% of the R24,4m allocation • Transfers amounted to 80,4% • Highest: LIM 383,6%; WC 131,4% and FS 98% • Lowest: GT 26,4% • Service Delivery Outcome: • Department / Sector to respond

  24. THANK YOUTHANK YOU THANK YOU

More Related