1

Preliminary provincial Budget Outcome of

Conditional Grants and CAPEX

As at 31 March 2006

Select Committee on FinancePresentation by

Free State Provincial Treasury2 May 2006

2

OBJECTIVES

To brief the Select Committee on Finance on the preliminary provincial outcomes as at 31 March 2006

Aggregate position Trends in allocations and preliminary

expenditure of conditional grants

3

PROVINCIAL EXPENDITURE ANALYSIS

Total preliminary spending R14,219 billion (94,4%) against adjusted budget of R15,062 billion

Preliminary net under expenditure amounts to R843 million (5,6%)

Legislature overspent budget with R1,7 million Preliminary spending of Conditional Grants:

Expenditure = R5,078 billion equals 89% of the adjusted budget of R5,7 billion and 95,1% of available funds amounting to R5,3 billion

Under-expenditure amounts to R625 million or 11% of the adjusted budget

Preliminary capital expenditure (Cap Transfers plus Payments for Cap Assets): Expenditure = R1,183 billion (82,7%) against adjusted budget of

R1,431 billion Under-expenditure amounts to R247 million or 17,3% of adjusted

budget

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PRELIMINARY AGGREGATE EXPENDITURE AS AT 31 March 06

DEPARTMENT Adj Bud Total exp (Over)/Under Exp

R’m R’m% of Adj

BudR’m % of Adj Bud

(1) (2) (3) (4) (5) (6)

Premier 87 86 98.5 1 99.0

Provincial Legislature 66 68 102.6 (2) (2.6)

Tourism, Environm & Economic Affairs

210 174 82.8 36 17.2

Provincial Treasury 114 98 85.9 16 14.1

Health 3,118 3,098 99.4 20 0.6

Education 5,057 4,944 97.8 113 2.2

Social Development 4,387 3,923 89.4 464 10.6

Local Government & Housing 670 526 78.5 144 21.5

Public Works, Roads & Transport 896 855 95.4 41 4.6

Public Safety, Security & Liaison 30 30 98.7 0 1.3

Agriculture 308 299 97.0 9 3.0

Sport 119 118 99.4 1 0.6

PROVINCIAL TOTAL 15,062 14,219 94.4 843 5.6

Social Assistance Transfers Grant 3,726 3,352 90 374 10

Social Assistance Admin Grant 233 189 81.1 44 18.9

TOTAL EXCL SOCIAL ASSISTANCE 11,103 10,678 96.2 425 3.8

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Conditional-grants by Grant Type as at 31 March 2006

Expenditure on Conditional grants per department by Grant Type - March 2006 - PRELIMINARY

Conditional GrantOriginal budget

Nat Adj Prov AdjAdj

BudgetAmount received

Expenditure Under Exp 

R'm R'm R'm R'm R'm R'mAs % of Adj Bud R'm

As % of Adj Bud  

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)  

Agriculture 23,088 16,000 33,889 72,977 39,088 66,296 90.8 6,681 9.2  

Agricultural Disaster Management Grant 0 16,000 17,000 33,000 16,000 26,328 79.8 6,672 20.2  

Comprehensive Agric Support Programme Grant 21,088 0 15,375 36,463 21,088 36,463 100.0 0 0.0  

LandCare Programme Grant 2,000 0 1,514 3,514 2,000 3,505 99.7 9 0.3  

Local Gov & Housing 408,093 0 99,787 507,880 408,093 385,788 76.0 122,092 24.0

Provincial Project Management Capacity for (MIG) 0 0 1,923 1,923 0 1,793 93.2 130 6.8  

Local Government Capacity Building Fund Grant 0 0 13,813 13,813 0 13,621 98.6 192 1.4  

Housing Subsidy Grant 398,618 0 72,843 471,461 398,618 355,561 75.4 115,900 24.6  

Human Settlement and Redevelopment Grant 9,475 0 11,208 20,683 9,475 14,813 71.6 5,870 28.4  

Education 61,764 11,747 4,143 77,654 73,511 69,326 89.3 8,328 10.7

Early Childhood Development Grant 0 0 737 737 0 737 100.0 0 0.0  

HIV and Aids (Life Skills Education) Grant 7,947 0 455 8,402 7,947 7,961 94.8 441 5.2  

Primary School Nutrition Programme Grant 53,817 11,747 2,951 68,515 65,564 60,628 88.5 7,887 11.5  

 

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Conditional-grants by Grant Type as at 31 March 2006 (continue)

Conditional GrantOriginal budget

Nat Adj Prov Adj Adj BudgetAmount received

Expenditure Under Exp  

R'm R'm R'm R'm R'm R'm

As % of Adj Bud R'm

As % of Adj Bud  

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)  

Health 759,278 10,366 (15,000) 754,644 769,644 722,046 95.7 32,598 4.3

  Health Prof Training and Development 92,517 0 0 92,517 92,517 92,517 100.0 0 0.0  

  Comprehensive HIV and Aids Grant 100,874 15,000 (15,000) 100,874 115,874 96,398 95.6 4,476 4.4  

 Hosp Man and Quality Improvement Grant 13,393 0 0 13,393 13,393 13,097 97.8 296 2.2  

  Hospital Revitalisation Grant 113,082 (7,000) 0 106,082 106,082 85,637 80.7 20,445 19.3  

  Integrated Nutrition Programme Grant 7,296 0 0 7,296 7,296 6,258 85.8 1,038 14.2  

  National Tertiary Services Grant 432,116 0 0 432,116 432,116 427,824 99.0 4,292 1.0  

  Forensic Pathology Services 0 2,366 0 2,366 2,366 315 13.3 2,051 86.7  

Social Development 4,015,444 0 38,662 4,054,106 3,655,010 3,606,706 89.0 447,400 11.0

  Social Assistance Administration Grant 232,876 0 0 232,876 232,876 188,818 81.1 44,058 18.9  

  Social Assistance Transfers Grant 3,725,860 0 0 3,725,860 3,365,426 3,352,343 90.0 373,517 10.0  

 Integrated Social Development Services 37,334 0 37,320 74,654 37,334 45,251 60.6 29,403 39.4  

  HIV and Aids (Community-Based Care) 19,374 0 1,342 20,716 19,374 20,294 98.0 422 2.0  

Sport 2,670 0 0 2,670 2,670 2,488 93.2 182 6.8

 Mass Sport & Recr Participation Progr Grant 2,670 0 0 2,670 2,670 2,488 93.2 182 6.8  

                       

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Conditional-grants by Grant Type as at 31 March 2006 (continue)

Conditional GrantOriginal budget

Nat Adj Prov Adj Adj BudgetAmount received

Expenditure Under Exp 

R'm R'm R'm R'm R'm R'm

As % of Adj Bud R'm

As % of Adj Bud  

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)  

Provincial Infrastructure Grant 220,921 0 12,085 233,006 169,556 225,484 96.8 7,522 3.2  

  Health 46,818 0 0 46,818 0 39,299 83.9 7,519 16.1  

  Education 55,913 0 4,346 60,259 0 60,259 100.0 0 0.0  

 Public Works, Roads & Transport 82,983 0 0 82,983 0 82,983 100.0 0 0.0  

  Agriculture 16,569 0 7,739 24,308 0 24,305 100.0 3 0.0  

  Social Development 18,638 0 0 18,638 0 18,638 100.0 0 0.0  

     

TOTAL PROVINCIAL C-GRANTS 5,491,258 38,113 173,566 5,702,937 5,117,572 5,078,134 89.0 624,803 11.0  

     

TOTAL less Social Assistance Grants 1,532,522 38,113 173,566 1,744,201 1,744,201 1,536,973 88.1 207,228 11.9  

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PROJ BUD OUTCOME EXCL CONDITIONAL GRANTS

NET PROJECTED UNDER- EXPENDITURE LESS CONDITIONAL GRANTS

(Over)/Under exp

DeptR’m

C-GrantsR’m

TOTAL PROVINCIAL UNDER EXPENDITURE 843 843

SOCIAL DEVELOPMENT 464 (447)

AGRICULTURE 9 (7)

HEALTH 20 (40)

EDUCATION 113 (8)

LOCAL GOV AND HOUSING 144 (122)

Other departments’ under expenditure 93 -

NET UNDER- EXPENDITURE - 219

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Aggregate Expenditure on C-grants as at 31 March 2006

Provincial Adjusted Budget amounts to R5, 703 billion

Preliminary expenditure including Social Security grants equals

R5, 078 billion or 89 % of Adjusted Budget

decreases to 87,3 % of Adjusted Budget excluding Social Security grants.

Net under expenditure amounts to R625 million or 11 % of adjusted allocation for conditional grants

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Detail on Conditional Grants per department: Agriculture Agriculture spent 90,8 % or R66,3 m of their

adjusted allocation of R72,977 m. Budget Outcome per grant

Agriculture Disaster Management Grant: Adjusted budget = R33 million Total spent = R26,3 million (79,8%) Under expenditure = R6,7 million (20,2%)

CASP: Adjusted budget = R36,5 million Total spent = R36,5 million (100%)

LandCare Grant: Adjusted budget = R3,5 million Total spent = R3,5 million (99,7%) Under expenditure = R0,009 million(0%)

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Detail on Conditional Grants per department: Agriculture (continue)

Under expenditure amounts to R6,7 m or 9,2% of adj bud

Under expenditure on Agriculture conditional grants as a result of extensive rain during January and February 2006 – delayed delivery of material and construction

12

Detail on Conditional Grants per department: Local Government and

Housing Local Gov and Housing spent 76 % or R385,8 m of their

adjusted allocation of R507,9 m. Budget Outcome per grant

Housing Subsidy Grant: Adjusted budget = R471 million Total spent = R356 million (75,4%) Under expenditure = R116 million (24,6%)

Human Settlement and Redevelopment Grant: Adjusted budget = R20,7 million Total spent = R14,8 million (71,6%) Under expenditure = R5,9 million (28,4%)

Prov Proj Man Capacity for MIG: Adjusted budget = R1,9 million Total spent = R1,8 million (93,2%) Under expenditure = R0,1 million (6,8%)

13

Detail on Conditional Grants per department: Local Government and

Housing (continue)

Budget Outcome per grant (continue) Local Gov Capacity Building Grant:

Adjusted budget = R13,8 million Total spent = R13,6 million (98,6%) Under expenditure = R0,2 million (1,4%)

Under expenditure amounts to R122 m or 24% of adj bud as a result of extensive rain during January and

February 2006 – delayed building process Slow progress on PHP projects (owner

responsible for building) – money not spent

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Detail on Conditional Grants per

department: Education Education spent 89,3 % or R69,3 m of their

adjusted allocation of R77,7 m. Budget Outcome per grant

ECD Grant: Adjusted budget = R0,7 million Total spent = R0,7 million (100%)

HIV and Aids Grant: Adjusted budget = R8,4 million Total spent = R8 million (94,8%) Under expenditure = R0,4 million (5,2%)

Primary School Nutrition Programme Grant: Adjusted budget = R68,5 million Total spent = R60,6 million (88,5%) Under expenditure = R7,9 million (11,5%)

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Detail on Conditional Grants per department: Education (continue)

Under expenditure amounts to R8,3 m or 10,7% of adj bud

16

Detail on Conditional Grants per

department: Health Health spent 95,7 % or R722 m of their adjusted

allocation of R755 m. Under expenditure amounts to R32,6 m or 4,3% Budget Outcome per grant

Health Professions Training and Development Grant: Adjusted budget = R92,5 million Total spent = R92,5 million (100%)

HIV and Aids Grant: Adjusted budget = R100,9 million Total spent = R96,4 million (95,6%) Under expenditure = R4,5 million (4,4%)

Hospital Man and Quality Improvement Grant: Adjusted budget = R13,3 million Total spent = R13, million (97,8%) Under expenditure = R0,3 million (2,2%)

17

Detail on Conditional Grants per department: Health (continue) Budget Outcome per grant (continue)

Hospital Revitalisation Grant: Adjusted budget = R106 million Total spent = R85,6 million (80,7%) Under expenditure = R20,4 million (19,3%)

Integrated Nutrition Programme Grant Adjusted budget = R7,3 million Total spent = R6,3 million (85,8%) Under expenditure = R1 million (14,2%)

National Tertiary Services Grant: Adjusted budget = R432 million Total spent = R427,8 million (99%) Under expenditure = R4,2 million (1%)

Forensic Pathology Services Grant Adjusted budget = R2,4 million Total spent = R0,3 million (13,3%) Under expenditure = R2,1 million (86,7%)

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Detail on Conditional Grants per department: Social Development Social Development spent 89 % or R3, 6 billion of their

adjusted allocation of R4 billion. Budget Outcome per grant

Social Assistance Administration Grant: Adjusted budget = R232,9 million Total spent = R188,8 million (81,1%) Under expenditure = R44,1 million (18,9%)

Social Assistance Transfers Grant: Adjusted budget = R3,7 billion Total spent = R3,4 billion (90%) Under expenditure = R0,3 billion (10%)

HIV and Aids Grant: Adjusted budget = R20,7 million Total spent = R20,3 million (98%) Under expenditure = R0,4 million (2%)

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Detail on Conditional Grants per department: Social Development (continue) Budget Outcome per grant (continue)

Integrated Social Development Services Grant: Adjusted budget = R74,7 million Total spent = R45,3 million (60,6%) Under expenditure = R29,4 million (39,4%)

Of the R464 m under departmental expenditure, Social Assistance grants is R418 million

R360 million or 9,7% of the Social Assistance Transfers Grant budget was not transferred from the National department.

20

Detail on Conditional Grants per department: Sport

Sport, Arts, Culture, Science and Technology spent 93,2 % or R2, 5 million of their adjusted allocation of R2,7 million for the Mass Sport and Recreation Participation Programme grant.

Under expenditure = R0,2 million (6,8%)

21

National Treasury (Provincial Infrastructure grant) - Expenditure per department

The allocation iro of this grant was excluded in the above-mentioned reporting of each department

Of the National Treasury grant adjusted allocation amounting to R233 million, 96,8 % or R225,5 million was spent.

Under expenditure amounts to R7,5 million or 3,2 %

The departments who benefit from this grant are Health (20, 1 %), Education (25, 9 %), Social Development (8 %), Agriculture (10, 4 %), Works, Roads & Transport (35, 6%).

22

National Treasury (Provincial Infrastructure grant) - Expenditure per department (continue) Social Development:

Adjusted budget = R18,6 million Total spent = R18,6 million (100%)

Health: Adjusted budget = R46,8 million Total spent = R39,3 million (83,9%) Under expenditure = R7,5 million (16,1%)

Education: Adjusted budget = R60,3 million Total spent = R60,3 million (100%)

Public Works, Roads and Transport: Adjusted budget = R83 million Total spent = R83 million (100%)

Agriculture: Adjusted budget = R24,3 million Total spent = R24,3 million (100%)

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PRELIMINARY AGGREGATE EXPENDITURE AS

AT 31 March 06: CAPITAL EXPENDITURE

DEPARTMENTSCapital

Transfers

Capital Assets

Total Capital (Over)/Under Exp

Adj BudR’m

Exp

R’m

Adj BudR’m

Exp

R’m

Adj BudR’m

Exp

R’m

Exp as % of Adj Bud

R’m

% of Adj Bud

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Education 219 213 85 63 304 276 90.8 28 9.2

Health - - 255 212 255 212 83.1 43 16.9

Soc Development

- - 22 34 22 34 154.5 (12) (54.5)

Tourism - - 17 8 17 8 47.1 9 52.9

Housing 516 392 6 3 522 395 75.7 127 24.3

Public Works - - 216 165 216 165 76.4 51 23.6

Agriculture - - 59 59 59 59 100 0 0

Sport - - 28 28 28 28 100 0 0

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THANK YOU