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

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

3. 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)

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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)

13. 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

14. Staff Profile as at 31 March 2005
Management
Employees below Management

15. Estimate of Expenditure
Operational Budget
Programme VOTED BUDGET Increase/
Decrease
2004/ /06
R’ R’ %
1. Administration
2. Economic planning and budget
management
3. Asset and Liability Management
4. Financial management and
systems
5. Financial accounting and reporting
TOTAL OPERATIONAL BUDGET

16. Estimates of Expenditure
Transfers
VOTED BUDGET Increase/
Decrease
2004/ /06
R’ R’ %
Operational budget
6. Provincial and local government
transfers
7. Civil and Military Pensions,
Contributions to Funds and
Other benefits
8. Fiscal transfers
TOTAL BUDGET

17. Fiscal Transfers Programme 8 Voted Budget MTEF MTEF
2004/ / / /08
R’ R’ R’ R’000
International transfers
Common Monetary Area
Compensation (CMA)
Contribution to HIPC
African Development Bank
SA Revenue Service
Development Bank of SA
World Bank Group 1
Financial and Fiscal
Commission
Secret Services
Financial Intelligence Centre
Commonwealth Fund
TOTAL FISCAL TRANSFERS
National Treasury

18. THANK YOU