Estimates of National Expenditure 2005

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Estimates of National Expenditure2005

• Joint Budget Committee
• 28 February 2005

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Whats covered today

• How ENE gets put together the budget process
• How it relates to other budget documents
• What it contains
• Specific illustrations
• Recent reforms improving information quality
• Using the ENE to improve oversight
• Questions and discussion

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How it gets put together

• Culmination of a year-long process, involving
• Review of policy priorities, fiscal policy and
  DoR
• Guidelines sent to departments in April/May
• MTEF budget proposals submitted by departments in
  August
• Evaluation and budget hearings in Aug/Sep
• Cabinet approves new MTEF in November
• Departments submit first draft of ENE chapter in
  December
• Finalised through a collaborative process Jan/Feb

Happens alongside in-year decisions on rollovers
and other adjustments
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MTEF budget process
MTEC hearings
Table MTBPS
Prepare budget documentation
Cabinet approves new MTEF
National and provincial budgets tabled
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After DoR budget process in each sphere
allocates to
Available Expenditure

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Its relation to

• Appropriation Bill
• How appropriated/voted funds are allocated to
  subprogramme service delivery targets
• Classification of expenditure ito of standard
  items
• Budget Review
• How fiscal and budget policy translates into
  spending programmes of national departments
• Division of Revenue Bill
• Conditional grants transferred from national to
  provincial governments

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• As a reference document it can be used to

show what resources and how priorities have and
will be attained.
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ENE contains

• 926 pages
• Spending plans of 34 national votes(departments
  and agencies)
• Seven-year info on spending and estimates of 187
  departmental programmes
• Similar number of measurable objectives
• 750 outputs with service delivery targets

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Each chapters details

• Programme purpose and measurable objectives
• Strategic overview
• Main policy developments, achievements and future
  plans
• Expenditure estimates trends
• Programme and economic classification
• 2005/06 voted by Parliament
• 2006/07 to 2007/08 form the basis for planning
  the 2005 Budget
• Service delivery objectives and indicators
• Recent outputs
• Brief summary of achievement on output targets in
  2004 ENE
• Medium-term output targets
• Subprogramme outputs, indicators and targets
• Detailed expenditure and budget tables

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ENE 2005Restitution and land reform

• Achievements
• 6 609 claims settled in 2002/03 period
• Total claims settled by end 03/04 56719.
• Distributed 641 995ha through LRAD programme.
• Targets
• Settle another 27889 restitution claims by March
  2006
• Redistribute another 303 569 hectares by March
  2005
• Reform projects owned by women 30

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ENE 2005Introduction of sector policing

• Achievements
• 13 380 firearms confiscated 31 050 firearms
  destroyed
• Sector policing implemented in 307 priority
  presidential stations
• Targets
• Recruit 29 790 personnel over the next 3-yrs
• Sector policing at all 63 high contact crime
  stations in 05/06

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ENE 2005Transport infrastructure - SANRAL

• Achievements, incl.
• 1457 jobs through poverty alleviation projects
• 3600 km of road extensions
• Upgrading of 23 border posts
• 91 km of sidewalks
• 9 bridges

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Also contains

• Consolidated expenditure tables
• According to economic classification
• Disaggregated into current, transfers and capital
  expenditure
• Conditional grants to provinces and
  municipalities
• Training
• ICT
• Infrastructure
• Definition of economic reporting format

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Improving information quality

• New economic reporting format and standard chart
  of accounts in 2004
• Improve accountability and modernise accounts
• Better information for oversight and policy
  decisions
• Accounts of 120 public entities presented in 63
  financial summaries in 2005 ENE
• Precise description of allocation of additional
  resources

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Using ENE to improve oversight
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Using ENE to exercise oversight

• Measurable objectives
• How does the objective support the overall
  mandate of the programme?
• What mechanisms are in place to evaluate its
  achievement?
• Strategic overview
• Are departmental policy developments aligned to
  Governments strategic priorities?
• What are the policy implications for provinces
  and municipalities?

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Using ENE to exercise oversight (cont.)

• Expenditure estimates and trends
• How has expenditure supported the key policy
  priorities
• What is the extent of reprioritisation?
• Are new funds allocated to priority programmes
  and plans?
• Service delivery objectives and indicators
• What mechanisms are in place to monitor the
  achievement of targets and reporting to parliament

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Thank you