BRIEFING TO THE PORTFOLIO COMMITTEE ON DEFENCE DEFENCES 200304 BUDGET FRAMEWORK

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BRIEFING TO THE PORTFOLIO COMMITTEE ON
DEFENCEDEFENCES 2003/04BUDGET FRAMEWORK
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DELEGATION

• Mr J.B. Masilela Sec Def Mr J.L. Gründling
  CFO
• V Adm H.J.M. Trainor CCS Mr B.E. Ramfolo C
  Acq
• R Adm R.A.S. Hauter CDSP Maj Gen F.W.
  Robbertze CD J Sup M
• Mr J.H. April CDBM Mr A. Visser CDSM
• Brig Gen A.L. de Wit D HR Plan Mr B.J.
  Engelbrecht D Bud
• Mr M.B. Khanyile D Plan Prog

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DEPARTMENT OF DEFENCE

• 2003/04 BUDGET PRESENTATION
• Mr J.H. April Chief Director Budget Management
• Mr B.J. Engelbrecht - Director Budgeting

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INTRODUCTION

• State of the Nation address normal
  participation in the economy.
• Min of Fin
• 2003 budget extends and strengthens governments
  growth and development strategy.
• Quality of service delivery, accountability,
  spirit of Batho Pele.
• Defences mandate and objectives supports key
  issues addressed by Min of Fin.

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SCOPE

• Budget Framework.
• Division of Revenue.
• Medium Term Expenditure Proposals.
• Supporting key issues addressed by Min of Fin.
• Questions / comments.

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BUDGET FRAMEWORK
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DOD BUDGET SINCE 1994/95
Year 1994/95 1995/96 1996/97 1997/98 1998/
99 1999/00 2000/01 2001/02 2002/03 2003/04 2
004/05 2005/06
Personnel Number 81 288 100 763 97 990 97
087 96 291 90 334 84 923 79 295 76 520 74
599 72 131 69 967
Personnel Budget 4,007 3,561 4,293 4,796 5,
516 5,318 5,839 6,182 6,341 7,093 7,252 7,5
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Percentage of Budget 37 34 42 50 57
51 42 39 34 35 35 34
Operating Budget 4,499 4,412 4,811 3,658 3,
396 3,610 3,666 4,253 4,686 4,710 4,913 5,2
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Percentage of Budget 41 42 47 38 35
35 26 26 25 23 24 23
SDA Budget 2,401 2,562 1,142 1,125 809 1,4
77 4,405 5,618 7,387 8,247 8,325 9,694
Percentage of Budget 22 24 11 12 8
14 32 35 40 41 41 43
Total Budget 10,907 10,535 10,246 9,579 9
,721 10,405 13,910 16,053 18,414 20,050 20,4
89 22,532
Percentage of GDP 2,5 2,2 1,9 1,6 1,5
1,5 1,6 1,6 1,7 1.6 1.5 1.5
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MTEF ALLOCATION 2003/04 TO 2005/06DEPARTMENT OF
DEFENCE(Nominal Terms)
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DIVISION OF REVENUE
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DEPARTMENT OF DEFENCEALLOCATION PER MAIN
PROGRAMME(Nominal Terms R000)
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DEPARTMENT OF DEFENCEALLOCATION PER MAIN
ITEM(Nominal Terms R000)
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MEDIUM TERM EXPENDITURE PROPOSALSMr B.J.
Engelbrecht D Bud
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Allocation per Sub-Programme
Administration 660 million
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SIGNIFICANT CHANGESAdministration (12,8 growth)

• Rm1 to MoD (HR HoC, etc).
• Rm3,071 to CPP (Servicing of MOU, Military
  Bargaining Council and Military Arbitration
  Board).
• Rm3,2 to CPP (World Veterans Congress 2003
  only)
• Rm2,246 to CPP (Staffing of critical posts).
• Rm1,992 to CD Res for HR.
• Rm7,149 to DFR (Function shift from CDI).
• Rm1,149 to CD EO (Regional staffing).
• Rm4,381 to C HRSC (Legacy payment from SA Army).
• Rm8,186 to C Acq (Function transfer from CAF and
  C Navy Procurement centers).
• Rm4,859 to IG (Directorate Anti Fraud).

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Allocation per Sub-Programme
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SIGNIFICANT CHANGESLandward Defence (4,4
decline)

• Rm2,092 from C Acq (Proj KLOOSTER test Art wpn
  ammo).
• Rm50 (03/04), Rm100 (04/05) Rm120 (05/06) for
  MSDS.
• Rm30 (03/04), Rm32 (04/05) Rm36 (05/06) to
  strengthen conventional Reserve Forces.
• MR funds (Rm344) for military specific equipment
  allocated to SDA to comply with legislation.

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(No Transcript)
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SIGNIFICANT CHANGESAir Defence (4,8 growth)

• Implementation of incentive scheme for
• Air traffic controllers.
• Highly skilled technicians to maintain existing
  and new aircraft reduce outsourcing.

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Allocation per Sub-Programme
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SIGNIFICANT CHANGESMaritime Defence 7,5 growth

• Increased spending due to
• Attending foreign courses prior to delivery of
  new vessels.
• Increased foreign visits for quality assurance,
  weapons acceptance, EW analysis systems.
• Upgrading of infrastructure and equipment for
  acceptance of new vessels.
• Outfitting of first corvette.

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Allocation per Sub-Programme
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SIGNIFICANT CHANGESMilitary Health Support
8,2 growth

• Replacement of clinical wings scheduled for
  05/06.
• Establishment of Thaba Tswane GSB during 03/04.
• Medical inflation stands currently on 23
  depleting discretionary funds currently 3 of
  total allocation.
• 9,3 increase in personnel expenditure to fund
  services of additional health practitioners.

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Allocation per Sub-Programme
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SIGNIFICANT CHANGESDefence Intelligence 7,4
growth

• Increased involvement in peacekeeping operations.
• Replacement of equipment.

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Allocation per Sub-Programme
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SIGNIFICANT CHANGESJoint Support 3,9 growth

• Major increase in CMI due to SITA tariff increase
  (Rm19,8).
• Rm0,777 increased payment to DIDTETA.
• BMATT services end 31 March 2003. Funds required
  for termination cost and funding of planned
  British Peace Support Team.
• Senior Command and Staff course now
  responsibility of Joint Trg and establishment of
  War College (Rm4,688).
• Final payment of Rm3,6 to SAN community.
• High increase in cost of rations and telecom
  spares impact on increased spending on
  inventories.

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Allocation per Sub-Programme
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SIGNIFICANT CHANGESCommand and Control 13,3
growth

• Training of Mil Obs Rm0,987.
• Foreign language training Rm2,617.
• Evaluation of armament acquisition projects
  Rm0,850 PFMA compliance.
• Force Employment funds transferred from SA Army
  Rm135,6 (03/04), Rm162,8 (04/05) and Rm149,2
  (05/06).
• MR operational basis and tactical airfields
  function transfer from J Sup. Rm12,3 (03/04) and
  Rm13 (04/05 and onwards).
• Rm95 (03/04), Rm100 (04/05) and Rm105 (05/06)
  increased support to SAPS.

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SIGNIFICANT CHANGESSpecial Defence Account
13,3 growth

• MR funds for military specific equipment
  allocated to SDA to comply with legislation
  Rm344.
• Procurement of 4 x Maritime helicopters Rm312,5
  (03/04), Rm392 (04/05) and Rm413,7 (05/06).
• SDP decrease
• 03/04 from Rb6,533 to Rb6,120.
• 04/05 from Rb5,933 to Rb5,621.
• 05/06 from Rb7,197 to Rb6,698.

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Allocation per Main Item
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PERSONNEL NUMBERS VS PERSONNEL EXPENDITURE
RM 7,800
RM 7,300
RM 6,800
RM 6,300
RM 5,800
RM 5,300
RM 4,800
RM 4,300
RM 3,800
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Supporting Key Issues

• Health care - outsourcing in rural areas.
• Land restitution
• final payment to SAN community.
• Involvement with project VUSELELA.
• Skills development
• MSDS.
• DIDTETA.
• Language courses.
• Technical training Trg institutes and Service
  Corps.
• Military Academy.
• Foreign representation
• Increased number of Military Attaches in Africa.
• Increased number of foreign students.
• Participation in AU structures .

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DEPARTMENT OF DEFENCE

• QUESTIONS ?????
• COMMENTS !!!!!

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DEPARTMENT OF DEFENCE

• Thank You