13 -15 MARCH 2006

1

BUDGET PREVIEW PRESENTATIONTO THE PORTFOLIO
COMMITTEE ON PUBLIC WORKS

• 13 -15 MARCH 2006

2
Key Policy Developments Affecting Budgeting

• Devolution of budgets and introduction of
  acccommodation charges
• GIAMA more systematic planning, prioritisation
  of maintenance
• Envisaged devolution of Property Municipal Rates
  to the Provinces concerned has been delayed. It
  is however, envisaged that this process may still
  be finalised in the forthcoming financial year.

3
New funding arrangements after devolution
Treasury
Devolved budgets leases, maintenance, municipal
rates and services
Treasury
Accommodation budget per department
DPW vote
Quarterly invoices, MOU
DPW
Trading entity
Client departments, including DPW
Accommodation charges based on areas occupied
4

• DPW Budget Vote Allocation for 2006/07
• - Vote allocation for the 2006/07 R3 080 181
  000
• - Year-on year decrease as a result of budget
  devolution R 2 879 599 000
• - Breakdown per programme
• Programme 1(Administration) R 593 211 000
• Programme 2 (Land and buildings) R 2 369 024
  000
• Programme 3 (NPWP) R 98 808 000
• Programme 4 (Auxilliary) R 19 138 000

5
Analysis of DPW Vote Allocation by Standard Items
(after devolution) (R000) Personnel Budget
R655
829 Administration
R173 438 Office Rental
R150 401 Accommodation charge
R100 063 Backlog Maintenance
R450 000
Capital Works Budget
R493 450 Municipal Rates on Provincial Prop
R710 131 EPWP
R 33 240 Facilities
Management R231
639 Transfer Payments to CIDB
R 48 012 Transfer Payments to CBE
R 8 000 Transfer Payment to
Agreement Board R 6 840 Auxiliary
Services R
19 138 TOTAL
R3 080 181
Funds to be transferred to Trading Entity
6

Trading entity estimates of revenue 2006/07
DETAILS AMOUNT
RECEIPTS R000
Accommodation Charges (State-owned) 1 434 343
Operating Leases (Private Sector Leases) 1 353 631
Municipal Services 1 187 486
Municipal services management fees 60 000
Transfers Received 450 000
Total Received 4 485 459
7

Trading entity estimates of expenditure 2006/07
DETAILS AMOUNT
PAYMENTS R000
Leasing (Private Sector Landlords) 1 353 631
Maintenance 1 494 272
Municipal Services 1 247 486
Rates on State Property 390 070
Total Payments 4 485 459

8
Improvements in Funding

• Over the MTEF period, there has been a
  significant improvement in the baseline
  allocation for Property Management (including
  funds devolved to client departments)
• The maintenance allocation increased from R927
  million in 2005/06 to R1 494 million in 2006/07
• The following are some of the projects on which
  additional funds received for 2006/07 will be
  spent
• Expanded Pubic Works Programme R10 million
• Re Kgabisa Tshwane R73 million
• Border Control Operational Coordinating Committee
  (BCOCC) R190 million
• Maintenance backlog R450 million
• Prestige projects of R73 million, the bulk of
  funds to be spent on Parliamentary Precinct
  Facilities Management

9
Prioritised Maintenance Budget 2006/07
10
THANK YOU