Budget Vote/Strategic Plan Presentation National Treasury Budget Vote/Strategic Plan Presentation 12 April 2005

Our Aim To Promote good governance, social progress and rising living standards through the accountable, economical, efficient, equitable and sustainable management of public finances

Organisational Review Strategic Plan to focus both on external focus areas and internal priorities Align strategic focus areas with Structure Filling of vacancies ( esp. senior posts) Approved posts 852 – 651 Filled Enhance internship programme Improved interaction with parliament (training)

Four Clusters of Operational and Policy Responsibilities Economic Policy and Budget Management & International Financial Relations Assets & Liability Management Financial Management and Systems Financial Accounting and Reporting

Transfers & other Financial Responsibilities Provincial and Local Grants GEPF and other post retirement benefits (prog 7) International Financial Transfers Transfers to entities e.g. SARS, FIC, Secret Services etc. Debt Service Cost PIC

Strategic Priorities 2005-2008 Promoting sustainable economic growth and work opportunities Reducing Poverty Ensuring good governance and accountability Promoting optimal allocation and utilisation of financial resources Maintaining economic stability Internal Strategic priorities include: Attraction and retention of skills Matching resources to workload

Deepen Budget Reform Agenda and Enhance Transparency Continuing the strengthening of political oversight over the annual budget process Enhancing quality of budget documentation e.g. ENE, etc Strengthening fiscal analysis capacity Deepening understanding of fiscal trends Broadening the scope of public finance statistics Improving planning, coordination and monitoring of infrastructure spending and projects of a capital nature

Improve on Financial Management Reforms and Accountability Developing enhanced formats for financial reporting Increasing compliance of the public sector with Asset Management Guide and PFMA implementation Improving audits to highlight delivery of expenditure on government priorities Providing increased user support and training Integration of government financial systems Improving internal audit and risk management frameworks Enhancing implementation strategy of the accrual accounting system

Sustain Rationalisation of Procurement Practices Monitoring implementation of SCM frameworks Providing assistance in regulating and implementing SCM processes Aligning PPPFA with BBBEE Managing general supply contracts on behalf of government Introducing strategic sourcing principles

Prudent Debt and Financial Asset Management Lowering the cost of government debt Diversifying existing debt instruments Consolidating gains on Retail bond Implementing a comprehensive risk management policy Ensuring optimal cash management practices

Inter-governmental Fiscal Relations Co-ordinating fiscal relations between 3 spheres of govt. Fiscal framework for provinces and municipalities (tax, borrowing) Division of Revenue Bill, incl. formulae for allocations Publishing the Intergovernmental Fiscal Review Roll-out of MFMA Improving system of infrastructure delivery (IDIP)

International Programme Collaborating with African countries on budget reform and expenditure management Policy support to NEPAD and AU programmes Promoting economic integration within SADC Supporting Minister’s role in international financial institutions – IMF/World Bank; G20, CFA etc

Staff Profile as at 31 March 2005 Management Employees below Management

Estimate of Expenditure Operational Budget Programme VOTED BUDGET Increase/ Decrease 2004/05 2005/06 R’000 R’000 % 1. Administration 143 598 111 816 -22 2. Economic planning and budget management 150 139 151 761 1 3. Asset and Liability Management 53 876 49 722 -8 4. Financial management and systems 352 455 281 999 -20 5. Financial accounting and reporting 65 180 85 634 31 TOTAL OPERATIONAL BUDGET 765 248 680 932 -11

Estimates of Expenditure Transfers VOTED BUDGET Increase/ Decrease 2004/05 2005/06 R’000 R’000 % Operational budget 765 248 680 932 -11 6. Provincial and local government transfers 3 934 260 4 279 513 9 7. Civil and Military Pensions, Contributions to Funds and Other benefits 2 063 966 2 178 805 6 8. Fiscal transfers 7 258 442 6 851 458 -6 TOTAL BUDGET 14 021 916 13 990 708 0.2

Fiscal Transfers Programme 8 Voted Budget MTEF MTEF 2004/05 2005/06 2006/07 2007/08 R’000 R’000 R’000 R’000 International transfers Common Monetary Area Compensation (CMA) 263 028 276 500 311 804 327 402 Contribution to HIPC 39 505 African Development Bank 154 316 154 316 152 597 169 552 SA Revenue Service 4 602 509 4 254 302 4 509 560 4 735 038 Development Bank of SA 40 001 40 000 40 000 40 000 World Bank Group 1 Financial and Fiscal Commission 17 869 19 660 19 205 20 178 Secret Services 2 117 057 2 080 063 2 223 086 2 334 240 Financial Intelligence Centre 21 866 23 617 31 410 42 480 Commonwealth Fund 2 290 3000 3 000 TOTAL FISCAL TRANSFERS 7 258 442 6 851 458 7 290 662 7 668 890 National Treasury

THANK YOU