2003 Intergovernmental Fiscal Review Provincial Budget Trends 15 April 2003
Key trends 3 spheres of govt, all with different functions Biggest budgets at provincial level 2003 budgeted non-interest revenue R280bn in 2003/04 national -R108,9 bn or 38,9 % provinces-R158,9 bn or 56,8 % local government-R12 bn or 4,3% provincial share grows to 57,6 per cent in 2005/06 Provinces draw up their own budgets after national budget they allocate national transfers (96,9%)plus own revenue(3,1) national transfers grows to 97,1% in 2005/06
Key trends Provinces are budgeting for financed deficits of R1,1 bn in 2003/04 and 2005/06 once-off in nature further bolster infrastructure Capital spending growing strong great improvement in delivery mechanisms R13,7bn in 2002/03 R60bn over the next three years Education and health on average R3 bn per year
Provincial spending
Provincial spending
Provincial spending Provinces table expansionary budgets Real growth of 7,5 % in 2003/04 and 5,3% over the MTEF consolidate and expand current programmes improve outreach of social programmes, especially the ones targeting the poor addressing poverty and vulnerability
Social Spending Education Health substantial growth in non-personnel non-capital provision for LSM and other inputs infrastructure Health recruit and retain health professional with scarce skills drugs and medicine bolster the system against the impact of HIV/Aids Infrastructure
Social Spending Social development one of the greatest achievements of government beneficiaries grew from 2,5 mil beneficiaries in 1997 to 5,6 mil in 2003 expect to add a further1 mil beneficiaries over next 3 years growth in budgets protect real value of grants increase its coverage (extension of CSG to children until 14) R1,1bn in 2003/04;R3,4bn in 2004/05; and R6,4bn in 2005/06
Non-Social Services Spending Housing, provincial roads, agriculture, economic affairs, tourism and other admin functions) R40 billion on capital over next three years positive economic spinoffs for provinces improve the quality of provincial infrastructure efficient delivery of other services contribute to economic growth and job creation
Provincial Expenditure
Provincial Expenditure
Provincial Revenue
Provincial Revenue
Provincial Revenue
Provincial personnel:Trends
Provincial personnel:Trends
Personnel overview Personnel management is critical to improving service delivery at all levels of Government At provincial level… Good progress in establishing a framework for personnel management Personnel costs are being managed
Provincial personnel trends Real decline in personnel costs from 1996/97 to 2001/02 Decline in personnel numbers over the same period Moderate increase in unit labour costs over the period Moderate real growth in personnel spending going forward aimed at: Increasing employment in health Provision for pay progression and performance-related pay
Provincial personnel policy issues Poor provinces still spending a lot on surplus staff Resulting in lower capex and poor staffing in education and health Need to increase employment in health and welfare services Especially medical professionals, social workers Revised pay system required Need appropriate performance-related pay systems Need to decentralise personnel management lower down the chain Giving hospital managers real powers Increasing powers of school governing boards
2003 Intergovernmental Review Provincial Budget Trends NCOP 8 April 2003