02 APRIL 2002

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BUDGET PREVIEW PRESENTATIONTO THE SELECT
COMMITTEE ON PUBLIC SERVICES

• 02 APRIL 2002

JAMES MASEKO DIRECTOR-GENERAL
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VISION
To be a leader in Africa and the developing world
in the provision and management of State property
and implementation of Public Works Programmes.
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KEY FOCAL AREAS

• Issues for the next Budget Year
• In general it is apparent that the Departments
  budgetary allocation is far inadequate to fund
  the Departments critical programmes as would be
  demonstrated in slides 16 - 19.
• The Department has demonstrated capacity to spend
  its allocated budget, as evidenced by the
  R34million over-expenditure in the 2001/02
  financial year as well as the current expenditure
  trends that indicate a potential over-expenditure
  of R40 million
• The serious negative implications of
  under-funding are in the next forthcoming slides

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PROGRAMME 1 ADMINISTRATION

• O Conducting the overall management of
• the Department
• O Formulates policy issues relating to the
• Departments mandate
• O Provides centralised leadership support
• of the Ministry and the Senior
• Management
• O Transformation Programme

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PROGRAMME 2 PROVISION OF LAND AND ACCOMMODATION

• Custodian of fixed State Assets
• Design and Construction of Buildings and Support
  Infrastructure
• Repair and Maintenance of State Facilities
• Leasing
• Municipal Services (Water and Electricity)
• Rates and Taxes
• Acquisition of Property
• Property and Facilities Management

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PROGRAMME 3 NATIONAL PUBLIC WORKS PROGRAMME
MISSION

• To implement the National Public Works Programme
  by
• Delivering assets, jobs and capacity building
  through the Community Based Public Works
  Programme (CBPWP) as a basis for sustainable
  rural development.
• Promoting construction industry growth,
  development and transformation for enhanced
  infrastructure delivery through the
  Construction Industry Development Programme (CIDP)

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COMPARISON OF REQUESTED BUDGET WITH PROPOSED
ALLOCATION AT PROGRAMME LEVEL
  AMOUNT REQUESTED R millions PROPOSED ALLOCATION R millions DIFFERENCE R millions
1 Programme 1 Administration 304 277 27
2 Programme 2 Provision of Land and Accommodation 4,321 3,851 470
3 Programme 3 National Public Works Programme 420 322 98
4 Programme 4 Auxiliary and Associated 12 12 0
TOTAL 5,057 4,465 592
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COMPARISON OF REQUESTED BUDGET WITH PROPOSED
ALLOCATION AT STANDARD ITEM LEVEL
  AMOUNTS REQUESTED R millions PROPOSED ALLOCATION R millions DIFFERENCE R millions
Personnel expenditure 611 611 0
Administrative Expenditure 73 73 0
Inventories 57 42 15
Equipment 100 66 34
Leases 1,041 861 180
Rates Taxes, Municipal Services and Maintenance 2 800 2505 295
Transfer payments 374 306 68
Miscellaneous expenditure 1 1 0
TOTAL 5,057 4,465 592
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IMPLICATIONS

• The implications of underfunding as they
  relate to the main cost Items are
• Leasing The failure to honour lease commitments
  will result in the affected client departments
  being evicted from the offices they occupy.
• Rates Taxes The municipal Services will be
  terminated with catastrophic results to public
  facilities like hospitals etc. In addition, this
  sphere of Governments service delivery efforts
  will be greatly compromised

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IMPLICATIONS (continued)

• Maintenance May result to non compliance with
  Occupational Health and Safety Act as some
  buildings are already in dilapidated state.
• Transfer Payments The shortfall in the main is
  in CBPWP. The department will therefore be
  unable to provide as many public assets as it had
  wished to provide. A number of potential
  temporary jobs opportunities have therefore been
  lost.

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COURSE OF ACTION

• In view of the underfunding, service
  delivery by the
• department will be compromised. There
  however
• exists a window of opportunity in that
  additional funding may still be found around
  October during the consideration of Adjustment
  Estimates Appropriation Bill.
• To this end, the department appeals to the
• Committee to provide whatever support it has
  to ensure that additional funding is received as
  indeed, the cut back on expenditure is not a
  realistic solution to the problem.

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CONCLUDING REMARKS

• In conclusion, the department wishes to highlight
  the
• positive impact and achievements that its
  programmes
• continue to contribute to governments overall
  objectives
• and priorities in areas of
• Employment creation
• Black economic empowerment
• Infrastructure investment
• Land reform initiatives and
• Poverty alleviation.
• The department requests the Committee to
  assist the department in its endeavours to
  solicit additional funding in future
  appropriations as the service delivery will be
  severely compromised due to inadequate funding.