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Appropriation Bill 2009

National Treasury. Appropriation Bill 2009. 2009 Appropriation Bill. Appropriation Bill 2009 initially tabled in Parliament at the time of the budget – 11 February 2009

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Appropriation Bill 2009

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  1. National Treasury Appropriation Bill 2009

  2. 2009 Appropriation Bill • Appropriation Bill 2009 initially tabled in Parliament at the time of the budget – 11 February 2009 • Bill provides for the appropriation of money from the National Revenue Fund in terms of section 213 of the Constitution and section 15 of the PFMA • Spending is subject to the PFMA and provisions of the Appropriation Bill

  3. 2009 Appropriation Bill cont. • Bill is divided by Vote and by main division within a vote (programmes) • An aim is set out for each vote and a purpose is set out for each programme • Allocations are divided into: • Current payments • Transfers and subsidies • Payments for capital assets • Headings group some listed items • Allocations marked with an * refers to specifically and exclusively appropriated • Conditional grants are specifically and exclusively appropriated and are also listed in the Division of Revenue Bill

  4. 2009 Appropriation Bill cont. • Appropriation Bill lapsed on last day of sitting of the National Assembly • The Appropriation Bill was revived by the National Assembly on 26 May 2009. The Chief Whip of the Majority Party moved: That the House resumes proceedings on the Appropriation Bill [B 5 – 2009] (National Assembly – sec 77) from the stage it reached on 24 March 2009, the last sitting day of the House during the sixth session of the Third Parliament, taking into account the provisions of the Money Bills Amendment Procedure and Related Matters Act (Act No 9 of 2009). Agreed to.

  5. 2009 Appropriation Bill cont. • Parliament is asked to pass the bill as soon as it is feasible so that the President can assent to it and the Act can be promulgated before the end of July. • This is necessary as the financial year has already commenced and departments are incurring expenditure in terms of section 29 of the PFMA which makes provision for spending before the annual budget is passed, not exceeding 45% of the 2008/09 financial year budget • Departmental activities may soon be severely constrained should an Appropriation Act not come into effect

  6. Revised cabinet structure • On 10 May 2009, President announced appointment of Ministers and Deputy Ministers in terms of sections 91(2) and 93(1) of the constitution • Portfolios of these ministers necessitate a reorganisation of departments, including the renaming of national departments and the establishment of new departments • An extensive process has been put in place by DPSA to give administrative effect to President’s new cabinet portfolios and administrative structures in support of ministers responsible for such portfolios • Process is expected to take a minimum of six months or so to complete

  7. Revised cabinet structure cont. • It has been proposed that the President in terms of section 7(5)(a) of the Public Service Act amend by proclamation the national departments listed in schedule 1 to that Act to accord with the new portfolios of Ministers, including renaming departments and establishing new departments • To ensure continuity, national departments that were in existence before 10 May 2009 will continue to exist until such time as the functions of the affected departments that are either spilt or transferred as a whole; are effectively separated and transferred • Appropriation Bill tabled at the time of the Budget is based on the government structure that prevailed at that time

  8. Technical corrections • Technical corrections to the Appropriation Bill originally tabled will be proposed in terms of section 14 of the Money Bills Amendment Procedure and Related Matters Act, 2009 • New budget votes need to be created so that there are budget votes which accurately reflect all of the new, restructured and renamed departments • This is only a technical correction, as no funding will be allocated to those ‘new’ votes at this stage • Only once new departments are fully established and become operational and functions have been effectively transferred will it be possible to calculate accurate allocations in terms of the new vote structure

  9. Technical corrections cont. • Overall funding and funding allocated for each of the existing votes in the Bill will not be altered • Amendment of titles of some of the existing budget votes due to changes in some of the names of the departments • Votes are being created so as to enable funds to be transferred to new departments from existing budget votes, as functions are fully transferred to departments, and the departmental structures are properly established • In terms of Section 33 of PFMA as functions are transferred between departments so are the associated funds

  10. Explanatory memorandum • In addition an explanatory memorandum will be tabled depicting in broad terms how the new vote structure links to the existing vote structure • This memo is compiled with information communicated to the Treasury by 10 June 2009 • Appropriation Bill together with technical corrections to be considered by Parliament on second reading debate on the Appropriation Bill

  11. 2009 Adjustment budget process • Through the process led by the DPSA, national departments / ministries will be given funding as soon as processes are complete and approved so that planning and spending can proceed • Where shifting of functions and establishment of departmental structures have been completely finalised including costing by the end of September 2009, this will be reflected in 2009 Adjustments Budget • Structures which are finalised by November will be able to be appropriately reflected and catered in 2010 Budget

  12. 2009 Adjustment budget process cont. • In the interim, funding for current operational activities of the new departments should be allocated against the budget vote of the department to which the new department has been aligned to for transitional purposes • Any funding shortfall experienced as a consequence will be addressed in the in-year adjustments budget process in terms of section 30(2) of the PFMA • Cost containment guidelines will be issued to departments in an effort to ensure that costs related to restructuring do not escalate to unmanageable levels

  13. 2010 Budget Process • Departments will submit their budget proposals by end of July • New departments can submit additional funding proposals within existing departmental structures, provided the new department’s programme structure and policy priorities are finalised • Where this is not possible, new departments will be able to submit their budget proposals at a later date

  14. Critical Dates*

  15. Critical Dates* cont. * Dates are subject to change. Some meetings, such as the Ministers’ Committee on the Budget and parliamentary hearings, are not yet finalised.

  16. THANK YOU • Questions? • Discussion

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