Intergovernmental Fiscal Review Social Development (6) Presentation to Select Committee on Finance 9 April 2003

Extension of the safety net (income support): Summary Expanding mandate: from social grants and welfare services to poverty and food relief Extension of the safety net (income support): Beneficiary numbers from 2,4 m in 1998 to more than 5.6 million in 2003 Average annual growth of 18,2 per cent Child support grant implementation a major success: 2,5m beneficiaries at end of March 2003

Summary Further expansion of the safety net through phased extension of the CSG to 14 year olds (adding an additional 3.2m children into grant system) Annual adjustment of grant values for inflation Service delivery improvements in grant administration introduction of norms and standards establishment of public entity Expansion of social welfare services and care for those infected and affected by HIV/Aids

Expenditure and Budget Trends Provincial expenditure grew from R19,4b in 1999/00 to R31,2b in 2002/03 An annual average growth of 17,3 per cent 2002/03 expenditure is inflated by R2b special allocation for social grant arrears Accelerated growth over the period from R31,2 in 2002/03 to R51,2 billion in 2005/06 an annual average growth rate of 17,9 per cent

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Expenditure and Budget Trends Social Development grows from 19.4 per cent in 1999/00 to 25.8 per cent in 2005/06 as a share of overall provincial government expenditure Significant proportion of growth in budgets as result of the impact of extension of CSG Conditional grant - R10,9 billion over the MTEF Higher growth in poor provinces -indicative of a trend toward greater equity and equalisation of access to social grants Grants as proportion of Social Development Expenditure stabilising Growth in other programmes Poverty and food relief

Expansion of other social development services Real expenditure growth in welfare services and other developmental support services Welfare services expand by annual average of 13,2 per cent between 2002/03 to 2005/06 Other developmental support services expand by nearly 21 per cent per year Some of the factors behind expansion: diversion programmes for children in conflict with the law support and subsidization to shelters for abused women and children subsidization to homes for older persons, disabled, children and drug treatment centres community and home based care programmes for those infected and affected by HIV/Aids food security relief programme