1. 1 Presentation on the Expenditure of Department of Public Works to Joint Budget Committee, Parliament by Director- General, DPW 12 August 2008

2. 2 Agenda Part 1: Presentation by Public Works Part 2: Questions & Deliberations

3. 3 Part 1: Presentation by Public Works

4. 4 Budget allocation 2008/09 Budget per economic classification2008/09 R `000 Current Payments1 580 315 Transfers and subsidies1 512 706 Payments for Capital Assets1 048 381 Total4 141 402

5. 5 1. Spending Review – 1 st Quarter 08/09 1.1 Total Spending 1.2 Spending according to Economic Classification of Expenditure 1.2.1 Review of Current Payments 1.2.2 Review of Transfer & Subsidies 1.2.3 Review of Capital Expenditure (CAPEX)

6. 6 1.1. Review of Total Expenditure The expenditure below is arranged according to the quarters and total expenditure for the first quarter is 17%. This is reflected in the graph below:

7. 7 1.2. Review of Total Expenditure

8. 8 1.2 Spending according to Economic Classification of Expenditure 1.2.1 Review Current Payments 1.2.2 Review of Transfer & Subsidies 1.2.3 Review of Capital Expenditure (CAPEX)

9. 9 1.2.1 Review of Current Payments Current expenditure is a fiscal provision on compensation of employees, goods and services. Expenditure for current payments is 27%. Current payments expenditure for 2007/08 first quarter was 22%. Expenditure trend for 2008/09 is reflected in the graph below:

10. 10 1.2.1 Review of Current Payments

11. 11 1.2.2 Review of Transfer & Subsidies Transfers and subsidies include all unrequited payments made by the department. A payment is unrequited if the department does not receive anything directly, financial or otherwise, in return from the recipient party. Total of R 139 million was paid in a form of transfers and subsidies, and the bulk of the spending being made for Augmentation of Property Management Trading Entity. Transfer payment for 2007/08 first quarter was 35%.

12. 12 1.2.2 Review of Transfer & Subsidies

13. 13 1.2.3 Review of Capital Expenditure (CAPEX ) CAPEX is comprised of five main categories, namely buildings and other fixed assets, machinery and equipment, cultivated assets, software and other intangible assets and sub-soil assets. Expenditure on equipment less than five thousand are not included capital expenditure, but classified as goods and services.

14. 14 1.2.3 Review of Capital Expenditure (CAPEX ) Capital expenditure for the first quarter is R 120 million which is equal to 11% of the total allocation. Total expenditure for Infrastructure in the first quarter is R 111 million and the balance is for Machinery and Equipment. Infrastructure expenditure for 2007/08 for the first quarter was 5%

15. 15 1.2.3 Review of Capital Expenditure (CAPEX )

16. 16 Part 2: Questions & Deliberations

17. 17 THE END