Money Bills Amendment Procedure and Related Matters Act

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Money Bills Amendment Procedure and Related
Matters Act
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IMPLICATIONS OF THE MONEY BILLS AMENDMENT
PROCEDURE AND RELATED MATTERS ACT NO 9 OF 2009 TO
PARLIAMENT\PROVINCESPRESENTATION BY COMMITTEE
SECTION28 August 2009
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Objectives of the Act

• Provides Parliament with procedure to amend money
  Bills.
• Provincial Legislatures may enact Legislation to
  provide for a procedure to amend money Bill
  (Schedule on norms Standards for Provincial
  Legislatures).

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Implications

• Establishes new committees
• Appropriation Committees in both Houses
• Finance Committees in both Houses
• Impact in the Parliamentary Programme
• More time to be allocated to Committees to be
  able to meet the deadlines mentioned in the Act.

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Implications

• Impact in the manner in which Committees are
  functioning.
• - Committees to have coordinated approach when
  doing their work (conferral). This will save
  time.
• Financial implications.
• - establishment of new Committees
• - establishment of the Budget Office

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Crucial dates for Parliament i.r.o the Budget

• Medium Term Budget Policy Statement MTBPS
  tabled in October
• Appropriation Bill Division of Revenue Bill
  (DORA) tabled in February (Provinces)
• Adjustments Appropriation Bill tabled in
  October (together with MTBPS)

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Budgetary Review Recommendations Reports

• Before the adoption of the MTBPS by National
  Assembly (usually at the end November), all
  National Assembly\Portfolio Committees should
  review the performance of Departments they
  oversee and report to the House on their
  findings.
• The review should focus on effectiveness and
  efficiency of a Department on service delivery.

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Implications

• Time be allocated to committees to review the
  performance of the Departments to be able to
  compile the Budgetary Review Recommendation
  Report (BRRR). (2 weeks)
• Tools to do that
• Annual report of Departments tabled at the end of
  September, monthly, quarterly expenditure reports
  published by Treasury, Auditor-Generals report
  SCOPA findings etc.

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Implications

• Committees to table their reports by mid October.
• Will the reports be formally referred to the
  Standing Committee on Appropriation? OR will they
  be informally referred thru the ATC?
• The Act is silent on involvement of NCOP
  Committees in the BRRR process. However the rules
  allows conferral by Committees. Therefore NA
  NCOP Committee can jointly review the performance
  of Departments.

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MTBPS

• Usually tabled at the end of October each year
  and referred to Finance Appropriation
  Committees of both Houses.
• Committees must report after 30 working days
  which excludes Constituency period after the
  tabling of MTBPS. Committees may make
  recommendations to amend.
• Reports of Committees should be referred to the
  Minister within 7 working days after adoption by
  the House.

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Implications

• In reality the process spills over to the second
  week of February. If MTBPS is tabled at the end
  of October
• In November - 16 working days (12 hours per
  committee)
• In January 8 working days (2 last weeks
  allocated to Committees)
• In February 6 working days

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Implications

• Parliament should debate the reports tabled by
  the Committees before referring them to the
  Minister within 7 working days.
• Minister will have a week to consider the
  recommendations made by Parliament before tabling
  the Budget (usually tabled 3rd week of
  February).Is this time sufficient?

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Fiscal Framework Revenue Proposals

• Tabled in February referred to Finance
  Committees of both Houses.
• SC ST on Finance to facilitate public
  participation (public hearings) jointly.
• Committees should report within16 days after the
  tabling of the National Budget to both Houses.
  The report must be clear whether they accept or
  amend.
• If a Committee amends, the relevant Minister
  should be given 2 days to respond on the proposed
  amendments.

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Implications

• In reality Parliament have 14 working days to
  process the Fiscal Framework (2 days is for the
  Ministers response)
• Public Participation? (nature extensive or
  invite the usual stakeholders?)
• Fiscal framework should be adopted around the 3rd
  week of March.

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Division of Revenue Bill (DORA)Section 76(1)

• After adoption of Fiscal Framework, DORA is
  referred to Standing Committee on Appropriations
  (NA).
• Parliament (NA NCOP) should consider report
  within 35 days after adoption of Fiscal
  Framework, which should be adopted during 3rd
  week of March.

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Implications

• If strictly follows the 35 days of the Act,
  without applying the six week cycle of the NCOP,
  DORA will be finalised by the end of June.
• DORA has to follow a Section 76(1) procedure in
  terms of Constitution, therefore it has to follow
  six week cycle in the NCOP, which amounts to 30
  working days.

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Implications

• The six week cycle of NCOP leaves 5 working days
  for NA.
• 35 days includes 3 days to be given to the
  Minister to respond to the report of Committees
  if amendments are proposed. Therefore Parliament
  has 32 days to report.

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Appropriation Bill

• After the adoption of Fiscal Framework, the
  Appropriation Bill must be referred to the ST on
  Appropriation of the NA.
• Should be passed by Parliament within four months
  after the start of the new financial year. This
  means by the end of July it should be passed by
  Parliament.
• Committees should facilitate public
  participation.
• Ministers should be given 10 days to respond to
  proposed amendments

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Implications

• Referral of Appropriation Bill\Budget Votes to
  the relevant Committees should be done by 3rd
  week of March immediately after the adoption of
  Fiscal Framework.
• Time to be allocated to Committees to consider
  the Budget Votes referred (2 weeks in May, no
  plenaries)
• Committees to report to the House around 3rd week
  of May in order to accommodate Ministers
  response before reporting to the House.

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Implications

• If there are proposed amendments there will be
  sufficient time for the Minister to respond to
  proposed amendments.
• Time allocated to NCOP to consider report on
  Appropriation Bill?

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National Adjustments Budgets

• Tabled in October referred to Finance
  Committees of both Houses.
• ST on Finance should report within 9 working days
  on revised Fiscal Framework.
• Minister should be given 2 days to respond to
  proposed amendments on Fiscal Framework.
• ST on Appropriation should report within 9
  working days on revised DORA (NCOP processes,
  Mandating Procedure Act).
• Minister should be given 4 days to respond to
  DORA

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Implications

• In reality, Committees have
• 7 working days to report on the revised Fiscal
  Framework as 2 days is for Ministers response.
• 5 working days to report on revised DORA as 4
  days is for Ministers response.
• Impact to the NCOP six weeks cycle (current
  practice, not following six weeks cycle) for
  DORA.

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Implications

• If following the six week cycle as mandated by
  the Mandating Procedure Act during adjustments,
  in total the NCOP will need 60 working days in a
  Parliamentary programme to consider DORA (initial
  revised format). Does NCOP need six week cycle
  for the revised DORA?

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Any other Revenue Bill

• Is tabled referred to relevant Committee.
• Minister should be given 14 days to respond to
  proposed amendments.

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Implications of clustering the two Committees by
NCOP?

• Workload from the two NA Committees
• Sharing of Membership with other NCOP Committees
  (i.e two Chairpersons of other Committees)
• Programme of Parliament (Provincial Weeks, taking
  Parliament\NCOP to the People)

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Norms and standards for provincial legislatures

• A money Bill sent to the Premier for assent must
  be consistent with
• - Fiscal Framework and DORA adopted by Parliament

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Implementation

• In principle, the Bill can be implemented on the
  basis that
• Parliamentary Programme is reviewed to
  accommodate the deadlines
• Committees review the manner in which they are
  functioning.
• There is healthy relationship between Parliament
  the Executive.
• Availability of the Resources

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Implementation

• BRRR can be implemented immediately without
  delay.
• THANK YOU