Briefing on the 2003/2004 Budget to the Social Development Portfolio Committee

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• Briefing on the 2003/2004 Budget to the Social
  Development Portfolio Committee
• Department of Social Development
• 5 March 2003

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Presentation Outline

• Vision and Mission Statements
• Measurable Objectives
• Strategic Overview and Policy Developments
• Budget Priorities for the next 3 years
• Changes in the Budget Structure

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Presentation Outline (2)

• Budget Allocation
• 2002/03 allocation
• 2003/04 2005/06 allocation (MTEF)
• Conditional Grants
• Key Challenges

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Vision and Mission

• Vision
• A caring and integrated system of social
  development services that facilitates human
  development and improves the quality of life
• Mission
• To enable the poor, the vulnerable and the
  excluded within South African society to secure a
  better life for themselves, in partnership with
  them and with all those who are committed to
  building a caring society

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Measurable Objectives

• To develop policy strategies for social
  assistance to children, families, disabled and
  older people and to advise on social, economic
  and fiscal implication thereof.
• To provide management, administrative and
  information services in support of timely payment
  of social assistance and disaster relief, and to
  monitor service delivery and compliance
• To develop policies, strategies and programmes to
  empower and support vulnerable individuals,
  households and communities and to facilitate and
  monitor implementation

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Measurable Objectives (2)

• To design, fund and monitor strategies and
  programmes for poverty reduction, community
  development, and counter the impact of HIV/Aids
  and to register and support NPOs
• To research, analyse and interpret population and
  development trends to inform policy making and
  planning, including monitoring and evaluation of
  the population policy and facilitate
  implementation through intergovernmental
  programmes, and develop capacity to integrate
  population issues into development programmes

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Strategic overview policy developments
99/00-02/03

• Key developments in the ff areas
• Extension of the system of social assistance
• Improving service delivery to grant beneficiaries
• Addressing poverty and underdevelopment
• Mitigating the effects of HIV/Aids
• Shift from welfare to sustainable social
  development

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Widening the social safety net

• Means tested grant beneficiaries increased
  significantly from about 2,5 million to over 5
  million in the past 5 years
• Just over 2,5 million children now receive the
  Child Support Grant
• An estimated number of between 500 000 1
  million children under 7 years country-wide are
  still to be registered in the system
• The Committee of Inquiry into Comprehensive
  Social Security System submitted its report to
  Cabinet in July 2002
• Amendments to the Regulations under the social
  assistance act have recently been gazetted
• Grant Beneficiaries now become entitled from
  application date instead of approval date
• Improved access to disability grants

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Widening the safety net (2)

• A new Social Assistance is envisaged in 2003
• Extension of the age limit for Child support
  Grant from below 7 years to below 14 years
• Phased approach
• 7 8 year olds - 2003/04
• 9 10 year olds - 2004/05
• 11 13 year olds - 2005/06
• R1,1 billion increasing to R6,4 billion over the
  medium term made available for this increase
  (Total R10, 9 billion)

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Improving grant delivery

• Comprehensive improvement of grant administration
  programme was launched in July 2001
• Development and implementation of norms and
  standards for-
• Applications
• Customer management and care
• Information technology
• Pay points infrastructure and facilities
• Financial administration
• Upgrading of the current payment system (SOCPEN)
  is ongoing and process of replacing it is
  underway
• Establishment of a compliance and support unit
  was approved towards the end of 2002
• Cabinet approved the establishment of a national
  agency

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Fighting poverty impact of HIV/Aids

• The poverty relief programme focuses on
  sustainable development through income generating
  initiatives, and targets vulnerable groups like
• Women, youth, children, the infirm, disabled and
  people infected and affected with HIV/Aids
• Poverty Relief funding has been allocated to the
  365 projects established through the national and
  provincial offices
• 24 of the projects were in Integrated
  Sustainable Rural Development Programme (ISRDT)
  nodal points
• The Home-Based Care programmes for people with
  HIV/Aids have been accelerated.

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Transformation of welfare services

• Two important pieces of legislation will be
  considered by Parliament this year
• Child Care Legislation
• Child Justice Bill
• Costing of the CJB was completed and the process
  for costing the other legislation is underway
• The Department will prioritise the development of
  norms and standards and costing of welfare
  services during the forthcoming MTEF period.
• The national strategy for child abuse, neglect
  and expoitation will be finalised during 2003

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Transformation of welfare services (2)

• The ff additional work is planned over the medium
  term
• Design of welfare service delivery models and a
  financing policy for welfare services
• Development of a national empowerment strategy
  for families and victims of violence
• Legislation on older persons is planned to be
  tabled towards the end of 2003

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Budget priorities2003/04-2005/06

• Improvement of quality, efficiency better access
  and provision of Social Security
• Strengthen poverty relief programmes including
  the ISRDP and URP
• Strengthen Community and Home Based Care for HIV
  AIDS Programmes
• Accelerate the implementation of the Food
  security and Nutrition Programme
• Strengthen Community Development Programmes
• Accelerate the transformation of Welfare Services
• Consolidate depts communications programme
  including reach out to communities

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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 1 Administration Minister Management Corporate Services Government Motor Transport National Development Agency Minister Deputy Minister Management Corporate Services Government Motor Transport
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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 2 Social Security, Policy and Planning No changes No changes
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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 3 Grant Systems and Administration Grant Admin and Disbursement Management Grant Information Systems Monitoring, Evaluation and Audit (split) Administration Grant Administration and Disbursement Management Grant Information and Payment Service Monitoring and Evaluation Audit and Compliance Support Institutional Reform Administration
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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 4 Welfare Service Transformation Service Standards Rights Advocacy to Children, Youth and Families Rights Advocacy to Other Vulnerable Groups Contributions Administration Service Standards Child Care and Protection Services Families and Victim Empowerment Social Crime Prevention and Youth Development Prevention and Rehabilitation of Substance Abuse
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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 4 Welfare Service Transformation Care and Services to Older Persons Services to People with Disabilities Contributions Administration
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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 5 Development Implementation Support Poverty Eradication HIV/AIDS Community Development Non-Profit Organisations Administration Poverty Eradication HIV/AIDS Community Development Non-Profit Organisations National Development Agency Administration
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CHANGES IN BUDGET STRUCTURESUB PROGRAMME LEVEL
Programme Previous sub programmes New sub programmes
Programme 6 Population and Development Population and Development Strategy Population and Development Research Contributions Administration Population and Development Strategy Population and Development Research Population and Development Support Programmes Contributions Administration
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Allocation 2002/2003

• Amount voted R 409 261 000
• AdjustmentsEstimate R 10 990 000
• Supplementary Amount R 230 000 000
• Total allocation R 650 251 000
• Projected expenditure R 644 038 000
• Projected Under spending
• And/or saving R 6 213 000

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MTEF-National Department

• R000
• 2002/03 650 251
• 2003/04 1 952 502
• 2004/05 4 225 805
• 2005/06 7 269 343
• Increase over the MTEF years reflects the special
  allocations for the Emergency Food Security,
  HIV/AIDS and the CSG Extension

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MTEF Summary
Year Operational allocation R000 Special Allocation R000 Total Allocation R000
2003/04 124,102 1,828 400 1,952 502
2004/05 137,693 4,088 112 4,225 805
2005/06 150,184 7,119 159 7,269 343
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Departmental Budget 2003/04
PROGRAMME 2002/03 R000 2003/04 R000
Administration 50,681 59,268
Social Security, Policy Planning 7,348 7,871
Grant systems Administration 82,033 1,201 293
Welfare Service Transformation 13,061 16,681
Development Implement Support 487,923 657,989
Population Development 9,205 9,400
TOTAL 650,251 1,952 502

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Departmental Budget 2003/04

• Amount voted R1,952 502
• Special Allocations
• Poverty Relief R 71 000
• Improvement of Social
• Security System R 69 000
• Disaster Relief Funds R 10 000
• Emergency Disaster Relief R 5 000
• HIV/AIDS R 65 917
• Child Support Grant Extension R 1 100 000
• Food Relief R 400 000
• National Development Agency R 103 283
• National Councils R 4 200
• Total Special Allocations R 1,828 400

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Conditional Grants to Provinces HIV/AIDS 2003/04
Provinces 2002/03 R000 2003/04 R000 2004/05 R000 2004/05 R000
Eastern Cape 4,798 6,658 7,089 7,514
Free State 6,650 9,228 9,825 10,415
Gauteng 6,983 9,690 10,315 10,934
Kwazulu-Natal 8,644 11,996 12,773 13,540
Limpopo 3,135 4,353 4,634 4,912
Mpumalanga 7,077 9,821 10,456 11,084
Northern Cape 2,660 3,691 3,930 4,165
North West 5,463 7,580 8,070 8,554
Western Cape 2,090 2,900 3,088 3,273
TOTAL 47,500 65,917 70,180 74,391

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Conditional Grant to Provinces Child Support
Extension 2003/04
Provinces 2003/04 R000 2004/05 R000 2004/05 R000
Eastern Cape 272,130 866,885 1,669 903
Free State 72,497 233,242 457,870
Gauteng 66,449 193,815 359,609
Kwazulu-Natal 235,143 723,700 1,367 785
Limpopo 172,969 536,542 1,000 815
Mpumalanga 78,360 239,836 442,010
Northern Cape 19,671 63,540 121,421
North West 125,426 367,979 652,257
Western Cape 57,355 174,461 328,330
TOTAL 1,100 000 3,400 000 6,400 000

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Conditional Grant to Provinces Food Relief
Grant 2003/04
Provinces 2003/04 R000 2004/05 R000 2004/05 R000
Eastern Cape 94,133 94,133 94,133
Free State 37,334 37,334 37,334
Gauteng 27,904 27,904 27,904
Kwazulu-Natal 68,185 68,185 68,185
Limpopo 61,146 61,146 61,146
Mpumalanga 27,651 27,651 27,651
Northern Cape 9,998 9,998 9,998
North West 41,615 41,615 41,615
Western Cape 20,034 20,034 20,034
TOTAL 388,000 388,000 388,000

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Poverty Relief Grant in Kind 2003/04
2002/03 R000 2003/04 R000
Eastern Cape 16 179 10 449
Free State 8 690 5 774
Gauteng 4 386 3 190
Kwazulu-Natal 17 429 11 274
Limpopo 15 633 10 229
Mpumalanga 10 446 6 874
Northern Cape 4 315 2 887
North West 8 646 5 827
Western Cape 3 811 2 942
TOTAL 89 535 59 446

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Key Outputs for 2003/04

• Social Security Policy Planning
• Policy for social benefits to children families
  by December 2003
• Policy on social benefits to disabled and elderly
  by November 2003
• Analysis impact assessment reports on factors
  impacting on social security twice a year

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Key Outputs for 2003/04 (2)

• Grant Systems and Administration
• Effective and efficient grant and relief
  administration targeting
• an application processing time of approx 1,5
  months
• Payments to grant beneficiaries within 4 months
  of application
• Full implementation of norms and standards by all
  provinces by December 2004
• Socpen enhancement to reach 99 up-time and 95
  data integrity by April 2004
• Phase 1 of new grant payment system to replace
  socpen completed by January 2004

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Key Outputs for 2003/04 (2)

• Grant Systems and Administration (cont)
• Monitoring of compliance on a quarterly basis and
  annual impact assessment studies
• Implementation of fraud prevention and detection
  strategy to ensure that each province is audited
  at least once a year
• Report to Cabinet on institutional restructuring
  (agentisation) by July 2003

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Key Outputs for 2003/04 (3)

• Welfare Services Transformation
• Norms and standards for welfare services to be
  approved by March 2004
• Policy programmes to care for children e.g. New
  child care legislation, implementation of
  national child protection register
• Policy and programmes to support families
  developed and implemented by March 2004
• Policy and programmes to protect and support
  persons affected by crime operational by March
  2004
• Youth development strategy developed and approved
  by February 2004

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Key Outputs for 2003/04 (4)

• Welfare Services Transformation cont
• Policy and legislation on older persons by
  September 2003
• Strategy for delivery of social welfare services
  to the disabled by March 2004
• Drug master plan developed and approved by March
  2004
• Prevention and treatment of Drug Dependancy Act
  reviewed and amendments approved by March 2004
• Fully functional Central Drug Authority
  secretariat by June 2003

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Key Outputs for 2003/04 (5)

• Development Implementation Support
• Develop an anti-poverty strategy- draft by March
  2004
• Ensure sustainability of poverty relief project
  through various interventions e.g. provision of
  financial assistance and programme support to
  communities
• Integrated community development strategy-
  concept document canvassed by March 2004
• Develop an integrated strategy on HIV/Aids by
  December 2003

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Key Outputs for 2003/04 (6)

• Development Implementation Support cont
• Targeting to support about 400 home and community
  based care centres by 2004
• Policy on protection of orphans and children
  affected by HIV/Aids
• Minimisation of the risk of HIV/Aids amongst
  youth
• Ongoing registration of NPOs
• Institutionalisation of volunteerism

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Key Outputs for 2003/04 (7)

• Population and Development
• Advise and monitor policy and plans on population
  and development trends- draft State of South
  Africas population Report 2003/04 by March 2004
• Population and development advocacy and
  information, education and communication
  activities
• Research on national population and social
  development policies
• Implementation of intergovernmental programmes
  and information dissemination.

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Key challenges facing Department

• Increased capacity for grant administration and
  payment vis-à-vis the current weak systems
• Need to properly manage the transitional
  arrangements for the establishment of the
  National Agency for social grants administration
• Additional service delivery demands to rollout
  new programmes, e.g. Food Security Programme,
  against limited internal capacity
• Integration of the work of the Department with
  that of provinces and other cluster departments