Presentation on theme: "1 DEPARTMENT OF SOCIAL DEVELOPMENT PRESENTATION TO THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL BUDGETS & EXPENDITURE REVIEW 14 NOVEMBER 2006."— Presentation transcript:
1 DEPARTMENT OF SOCIAL DEVELOPMENT PRESENTATION TO THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL BUDGETS & EXPENDITURE REVIEW 14 NOVEMBER 2006
2 SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES 1.Institutional reform of the social security service delivery system: –Establishment of Social Security Agency Head Office fully functional & capacitating regional offices Service delivery improvement & systems integration Implementation of norms & standards Implementation of Fraud Prevention & Eradication Strategy 2.Sector Institutional Reform –Business System Re-engineering –Strengthening the Strategy, Oversight and M&E function
3 SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES 3.Expansion and consolidation of welfare and community development programmes & services: –Welfare programmes Services to older persons and people with disabilities Prevention and Treatment of Substance Abuse Expansion of services to fulfill the rights of children Implementation of new policies including Victim Empowerment Policy, Family Policy & Disability Policy –Community development Community –based care and support programmes Development of norms and standards –Capacity building for our implementation partners NGO funding Compliance with non-profit organizations Act 71 of 1997
4 SOCIAL DEVELOPMENT MEDIUM TERM BUDGET PRIORITIES 4.Human Capital Development. –Social workers –Auxillary social workers –Community development practitioners –Child and youth workers 5.Expanded Public Works Programme –Expansion of services Home/Community Based Care Early Childhood Development –Challenges for DSD as co-ordinating department –M&E 6.Review of Social Assistance Act to address –Social Relief of Distress –Disability – new definition
5 NEW FISCAL ARRANGEMENT The social assistance function shifted to the national sphere of government with effect from the 2005/06 financial year. –The funding for the social assistance function no longer form part of the equitable share allocations to provinces; and –Funding were allocated as two conditional grants: social assistance administration; and social assistance transfers to provinces. With effect from the 2006/07 financial year the budget for social assistance have been Voted to the national Department of Social Development
6 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS [Cont.] A large portion of social welfare services is dependent on social workers. Spending on compensation of employees increased by 12,5% per year from R949 million in 2002/03 to R1,4 billion in 2005/06. Further growth is estimated at an average annual rate of 21,7% per year over the MTEF to R2,4 billion by 2008/09.
7 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS [Cont.] Spending on other social development services has been growing at an annual average rate of 16,4% (R2,3 billion in 2001/02 to R3,6 billion in 2004/05) Historically social welfare services have not been adequately funded due to: –Pressure exerted by growth in social assistance expenditure –Lack of costed norms and standards for welfare services The social welfare service programme makes up the largest share of the total provincial social development spending at 61,3% in 2006/07. Social Welfare services expenditure will grow by 22,0% p.a. from R2,6 billion in 2005/06 to nearly R4,8 billion in 2008/09.
8 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS [Cont.] Excluding Programme 1: Administration, the overall per capita spending on social welfare services grows from R51 per person in 2002/03 to R104 in 2008/09 in real terms. There are still spending inequalities across provinces: -Limpopo spend the lowest at R50 per person in 2005/06 compared to R144 per person in Northern Cape
9 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS [Cont.] Table 4.3 Real per capita expenditure on Welfare services Rand 2002/032003/042004/052005/062006/072007/082008/09 Eastern Cape435743587997127 Free State608073949894100 Gauteng71576668718096 KwaZulu-Natal354344576869 Limpopo2340 50555776 Mpumalanga4344526299104132 Northern Cape96110115144168202234 North West5164516480108116 Western Cape869194111106120137 Total515857697989104 Source: National Treasury provincial database
10 Provincial Expenditure Outcomes:2005/2006 FY Provinces collectively underspent by R416 million or 9% of total budget, excluding social security expenditure. Most underspending was in FS (10,6%); KZN (17,3%); NW (10,8%); LP (10,0%). Underspending is largely on conditional grants, specifically on the integrated social development grant.
11 SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS Table 4.2 Provincial social development preliminary expenditure outcome, 2005/06 R million % Adjusted appropriation Preliminary outcome Under(+) / over(-) expenditure Eastern Cape543513305,6% Free State4283834610,6% Gauteng860816435,0% KwaZulu-Natal90374615717,3% Limpopo3983584010,0% Mpumalanga25525052,1% Northern Cape191175158,0% North West3643243910,8% Western Cape695654415,9% Total4 6364 2204169,0% Source: National Treasury provincial database
12 REASONS FOR UNDERSPENDING Free State Under expenditure on the Integrated Social Development Services Grant, due to delays in the finalisation of business plans. Under expenditure on capital expenditure related to social welfare services due to space limitation. KwaZulu-Natal Non-filling of vacant posts as a result of scarcity of social workers. Underspending on the Food Emergency Relief grant due to a pending court case and the late approval of the business plans for the Integrated Social Development Services Grant. Incomplete research project which will continue during the 2006/07 financial year.
13 REASONS FOR UNDERSPENDING Limpopo Under spending on the Integrated Social Development Grant due to delays in the approval of the business plan for this conditional grant owing to changes within the conditions of grant. Delayed awarding of the tenders for food parcels distribution. North West Underspending on the capital projects for the erection of the secure care centre.
14 MEASURES TO IMPROVE SPENDING & QUALITY OF SERVICE DELIVERY Implementation of the new integrated service delivery model –Development & Implementation of norms and standards –Increase numbers & strengthen capacity of social service professionals Recruitment & retention strategy Improvement of conditions of service –Capacity building for our implementation partners Implementation of new policy on financial awards
15 MEASURES TO IMPROVE SPENDING & QUALITY OF SERVICE DELIVERY Implementation plans to redress disparities in services delivery among provinces, e.g.- –Early Childhood Development will be uniform and the amount of R9 per child per day will be paid in provinces. –Children’s homes will be increased to R1 500.00 per child per month. Disparities in funding social welfare services rendered by NGO’s will also be addressed and statutory services will be fully funded. Implementation of an effective national information management and monitoring system.
16 Measures to improve co-ordination in the sector The national and provincial departments are all undergoing restructuring to re-position themselves towards delivering social development services DSD sector reform DSD Macro plan & Sector Strategy Norms and Standards Integrated Information Management system HR Plan Mobilise resources based on the macro plan and sector strategy Effective and Integrated M&E System Plan for establishment, management and maintenance of sector facilities and institutions