Outcome of Conditional Grants

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Outcome of Conditional Grants Capital
Expenditure as at 31 December 2006Section 32
of PFMA

• Select Committee on Finance
• National Council of Provinces
• Presented by
• Intergovernmental Relations
• National Treasury
• February 2007

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Provincial Aggregated Expenditure (1)
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Provincial Aggregated Expenditure (2)
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Provincial forecasting trends 2004/05, 2005/06
2006/07
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Agriculture
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Provincial Monthly Expenditure and Projections
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Conditional Grants
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Conditional Grants (1)

• Adjusted allocations for all grants is
  R28,3 billion (including Schedule 4 grants and
  provincial roll-overs) with health making up the
  bulk at R10,6 billion.
• Excluding Schedule 4 grants, spending against the
  total adjusted allocation of R16,4 billion,
  amounts to 50,5 per cent or R8,3 billion.
• In terms of 2006 Division of Revenue Act (Section
  29(4)(b))
• Specific grants that show low rates of spending
  include
• Agricultural Disaster Management (23,8 per cent)
• Forensic Pathology Services (27,0 per cent)
• Land Care Programme (47,5 per cent)
• Mass Sport and Recreation Participation Programme
  (51,3 per cent)
• Housing conditional grant (60,8)
• Indications are that some provinces not in
  position to fully spend
• Request received from National Health to withhold
  funds
• May prevent fiscal dumping (i.e. transfers to
  municipalities)
• No spending recorded against Gautrain

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Conditional Grants (2)

• Spending on the Further Education and Training
  College Sector Recapitalisation grant is at
  97,0 per cent or R456,0 million and reflects
  actual transfers from the provincial education
  departments to the FET colleges
• FET colleges expenditure is at 41,1 per cent or
  R187,4 million of the R456,0 million transferred
  from the provincial education departments
• Expenditure by college published for the first
  time
• Information provided by national Department of
  Education

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Conditional Grants (3)
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Conditional Grants (4)
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Conditional Grants Spending Rates (1)

• 5 or more provinces have spent less than 60 of
  their grant budget for the following grants
• Land Care Programme
• Forensic Pathology Services and
• Integrated Housing and Human Settlement
  Development.
• Although the rate of spending is encouraging and
  reflects an improvement over previous financial
  years, overall spending still lies below average

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Conditional Grants Spending Rates
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Agriculture GrantsComprehensive Agricultural
Support Programme Grant

• Objective (Schedule 4 Grant)
• To expand the provision of agricultural support
  services, and promote and facilitate agricultural
  development by targeting beneficiaries of the
  Land and Agrarian Reform programmes
• 3rd Quarter Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• However, provinces reported spending of R169,4m
  or 49,6 of R300m adjusted allocation
• Transfers received amounted to 80,0 of national
  allocation
• Highest spending LP (65,6) NW (60,1) and FS
  (55,6)
• Lowest spending KZN (27,9) MP (28,8) and GP
  (34,5)
• Service Delivery Outcome
• Department / Sector to respond

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Agriculture GrantsLand Care Programme Grant
Poverty Relief andInfrastructure Development

• Objective (Schedule 5 Grant)
• To address the degradation problems of
  natural/agricultural resources and to improve the
  socio-economic status and food security of rural
  communities
• 3rd Quarter Expenditure
• Agriculture spent R29,6m or 47,5 of the R62,3m
  Land Care Programme adjusted allocation
  (including provincial roll-overs)
• Transfers received amounted to 63,9 of national
  allocation
• Highest spending LP (75,9) NC (71,8) and FS
  (50,9)
• Lowest spending GP (2,3) KZN (32,5) and NW
  (33,8)
• Service Delivery Outcome
• Department / Sector to respond

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Agriculture GrantsAgricultural Disaster
Management Grant

• Objective (Schedule 5 Grant)
• Flood relief to farmers in identified areas of
  the Western Cape and Eastern Cape provinces
  (unforeseeable and unavoidable expenditure
  allocated for flood disasters).
• 3rd Quarter Expenditure
• Agriculture spent R24,1m or 23,8 of the R101,3m
  Agricultural Disaster Management adjusted
  allocation (including provincial roll-overs)
• Service Delivery Outcome
• Department / Sector to respond