EEHCStrategy

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PRESENTATION TO PORTFOLIO COMMITTEE ON PROVINCIAL
AND LOCAL GOVERNMENT AT 2004/05 BUDGET HEARING

1- 2 JUNE 2004 by Craig Clerihew Chief
Financial Officer

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Content of Presentation

• 1. Overview of 2003/04 financial year results
• 2. Main Features of the 2004/05 budget
• 3. MTEF 2004/07 Trends

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Overview of 2003/04 financial year results
Economic classification
REVISED ALLOCATION ACTUAL EXPENDITURE UNDER EXPENDITURE
R000 R000 R000
Current
Personnel 59709 51957 7752 12.9
Transfers 6853331 6853331 - -
GoodsServices 135579 124728 10851 8.0
Capital
Transfers 2410253 2403762 6492 0.3
Assets 7359 7496 (137) (1.8)
Total 9466231 9441274 24957 0.3
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OVERVIEW OF 2003/04 (CONT)

• Main Reasons for Under-expenditure
• Personnel-
• Vacant Posts
• Goods Services-
• Travel and Subsistence due to level of vacant
  posts
• Professional Services for capital projects and
  consultancy studies
• Transfer Payments-
• Two MIG pilot projects delayed and funds rolled
  over to 2004/05

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Overview of 2003/04 (Cont)Comparative Spending
(All Programmes)
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Overview of 2003/04 (Cont)Comparative Spending
(Operating Budget)

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MAIN FEATURES OF THE 2004/05 BUDGET

• Change in the Programme Structure
• Programmes are aligned to the departmental
  structure
• All grants to provincial and local government are
  reflected in one programme
• All transfers to other institutions are reflected
  in one programme.

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MAIN FEATURES OF THE 2004/05 BUDGET(Cont).

• Increase in total budget R3,38 billion
  (35,8)
• Increase in Current payments R27,4 million
  (13,8)
• Increase in transfers R3,36 billion (36,26)

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MAIN FEATURES OF THE 2004/05 BUDGET(Cont).

• Transfer Payments
• Provincial Grants
• Decrease from R298 million to R261 million
• Local Government Grants
• Increase from R8,9 billion to R12,3 billion
• Fiscal transfers
• Increase from R62 million to R65 million

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MTEF 2004/07 TRENDS

• Increase from 2003/04 to 2006/07
• Total Budget R6,5 billion (68)
• Current Payments R67,1million (34,5)
• Transfer Payment R6,4 billion (69)
• Capital Assets No real change

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MTEF 2004/07 TRENDS Programme 6

• The 3 Main Grants to Municipalities
• Equitable Share increases by R3,02 billion R3,02
  billion (47,5)
• Municipal Infrastructure Grant increases by R3,58
  billion (148,4)
• Municipal Systems Improvement Grant increases by
  R49 million (32,5)
• OTHER GRANTS
• Local Government Capacity Building Grant is
  incorporated into the Equitable Share
• CMIP project management at provinces changed to
  MIG

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MTEF 2004/07 TRENDS Programme 7

• Grants to Associated institutions
• SALGA drops in 2004/05 and subsequent years
  reflects an inflationary increase
• Municipal Demarcation Board increases in 2004/05
  for the municipal elections and then reverts back
  to inflationary increase
• National House of traditional Leaders reflects an
  increase of 34,4
• An amount of R2 million provided as baseline for
  the new Commission on Claims and Disputes
  Relating to Traditional Leadership
• Other institutions reflect inflationary increases
• THANK YOU

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