1. STANDING COMMITTEE ON FINANCE
NATIONAL TREASURY STRATEGIC PLAN 2015/19 AND ANNUAL PERFORMANCE PLAN 2017/18
STANDING COMMITTEE ON FINANCE
09 May 2017

2. MANDATE OF THE TREASURY
Support economic growth and development, good governance, social progress and rising living standards through the accountable, economical, efficient, equitable and sustainable management of public finances, maintenance of macroeconomic and financial sector stability, and effective financial regulation of the economy.
The department is mandated by law to:
Enforce transparency and effective management in respect of revenue and expenditure, assets and liabilities, public entities, and constitutional institutions.
Manage the budget preparation process.
Coordinate intergovernmental financial and fiscal relations.
Ensure the stability and soundness of the financial system and financial services.
Promote national government’s fiscal policy and the coordination of its macroeconomic policy.

3. THE OVERARCHING POLITICAL AND POLICY FRAMEWORK
NT’s work is underpinned by the 2030 vision as articulated in the NDP.
NT is seeking to achieve:
An economy that grows faster;
A transformed economy that is inclusive and less dependent on debt financed consumption;
Put more South Africans to work; and
Reduce and eliminate poverty and inequality.
NT’s work is aligned to the NDP and MTSF
NT reports into:
Outcome 4. Decent employment through inclusive economic growth;
Outcome 6. An efficient, competitive and responsive economic infrastructure network;
Outcome 8. Sustainable human settlements and improved quality of household life;
Outcome 9. A responsive, accountable, effective local government system;
Outcome 11. Create a better South Africa and contribute to a better and safer Africa and world; and
Outcome 2. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

4. LEGISLATION, POLICIES AND ACTIVITIES
Legislation, instruments and mechanisms – drafting and in-draft
Examining instruments and mechanisms such as Pooled Finance, Tax Increment Finance, Development Charges, Project Finance and Municipal Revenue Bonds to inform the Policy Framework for Municipal Borrowing and Financial Emergencies;
Draft Public Procurement Bill;
Revision of Preferential Procurement Regulations ;
Tax on beverages with high sugar content; and
Implementation of a tyre levy.

5. TREASURY’S STRATEGIC FOCUS
APP Pages 11-15
The department’s strategic focus over the MTEF period will continue to be on:
Managing future spending growth and fiscal risk;
Reviewing tax policy;
Supporting sustainable employment;
Supporting infrastructure development and economically integrated cities and communities;
Making government procurement more efficient;
Strengthening government financial management;
Strengthening the regulation of the financial sector;
Regional and international cooperation and
Managing government’s assets and liabilities.

6. STRUCTURE AND COMPOSITION OF PROGRAMMES
Programme 1: Administration
Corporate Services
Programme 2: Economic Policy, Tax, Financial Regulation & Research
Economic Policy and Tax and Fin Sec. Policy
Programme 3: Public Finance and Budget Management
Public Finance, Budget Office and Intergovernmental Relations
Programme 4 : Asset and Liability Management
Asset and Liability Management
Programme 5: Financial Accounting and Supply Chain Management Systems
OAG and OCPO
Programme 6: International Financial Relations
International and Regional Economic Policy
Programme 7: Civil & Military Pensions, Contributions to Funds & Other Benefits
Programme 8: Technical Support & Development Finance
Programme 9: Revenue Administration
Programme 10: Financial Intelligence and State Security

7. FINANCIAL RESOURCE PLAN 2017/18-2019/20

8. CLASSIFICATION OF FINANCIAL RESOURCE PLAN 2017/18

9. PROGRAMME 1 ADMINISTRATION
SP Page 22
APP Page 25
PROVIDE STRATEGIC LEADERSHIP, MANAGEMENT AND SUPPORT SERVICES TO THE DEPARTMENT.
Provide integrated business solutions in the areas of business continuity, knowledge management, and ICT.
Give further effect to organisational optimisation through cost savings and human resource utilisation and retention.
Ensure good governance and sound control environment by implementing the risk-based IA plan, manage enterprise-wide risks and assist the Ministry with Oversight of Public Entities governance and performance.
Provide support for strategic planning, performance management and reporting across the organisation.

10. PROGRAMME 2: ECONOMIC POLICY, TAX, FINANCIAL REGULATION AND RESEARCH
SP Page 27
APP Page 34 –36
PROVIDE SPECIALIST POLICY RESEARCH AND ANALYSIS IN THE AREAS OF MACROECONOMICS, MICROECONOMICS, TAXATION, THE FINANCIAL SECTOR, AND REGULATORY REFORM.
Conduct relevant micro and macro economic research that contributes to the development of inclusive growth and job creating policies.
Develop and maintain economic forecasting models that provide reliable macro-economic projections  that aid policy making.  
Enact Twin Peaks model legislation.
Implementation of tax-free savings and retirement reforms.
Publish tax and revenue proposals on 2017 Budget and update revenue estimates for MTBPS.
Prepare, publish and table tax legislation in Parliament.

11. PROGRAMME 3: PUBLIC FINANCE AND BUDGET MANAGEMENT
SP Page 31
APP Page 45 – 51
PROVIDE ANALYSIS AND ADVICE ON FISCAL POLICY AND PUBLIC FINANCES, INTERGOVERNMENTAL FINANCIAL RELATIONS, EXPENDITURE PLANNING AND PRIORITIES. MANAGE GOVERNMENT’S ANNUAL BUDGET PROCESS AND PROVIDE PUBLIC FINANCE MANAGEMENT SUPPORT.
Undertake targeted expenditure reviews on specific areas of interest, ranging from personnel spending to government agencies and public entities.
Regular monitoring of the appropriate use of public financial resources.
Provide financial and budgetary analysis of government programmes.
On-going engagement with accounting officers and officials from other departments, public entities and constitutional institutions to promote efficient utilisation of state resources.
Provide budgetary recommendations to the Medium Term Expenditure Committee and the Minister’s Committee on the Budget.
Compilation of the estimates of national expenditure.
Provide public policy support and programme development.

12. PROGRAMME 3: PUBLIC FINANCE AND BUDGET MANAGEMENT
SP Page 31
APP Page 45-51
IMPLEMENT REFORMS AND PROVIDE SUPPORT TO IMPROVE BUDGETING, FINANCIAL MANAGEMENT, REPORTING AND VALUE FOR MONEY IN PROVINCES AND LOCAL GOVERNMENT.
Implement incentives in the financing of infrastructure and provide technical assistance to provincial departments to promote improved planning, implementation and management.
Drive reforms in the fiscal system and provide technical support to cities to strengthen infrastructure planning, delivery capacity and to support spatial transformation and inclusive developments.
Provide support to provincial treasuries to strengthen their oversight and address municipal finance performance failures.
Strengthen monitoring and assessment of credibility of provincial and LG budgets.
Lead interventions in Provinces and Local Governments where there is financial management failure as per Section 100 and 139.

13. PROGRAMME 4: ASSET AND LIABILITY MANAGEMENT
SP Page 37
APP Page 62-65
MANAGE GOVERNMENT’S ANNUAL FUNDING PROGRAMME IN A MANNER THAT ENSURES PRUDENT CASH MANAGEMENT, AN OPTIMAL PORTFOLIO OF DEBT AND OTHER FISCAL OBLIGATIONS. PROMOTE AND ENFORCE THE PRUDENT FINANCIAL MANAGEMENT OF STATE OWNED ENTITIES THROUGH FINANCIAL ANALYSIS AND OVERSIGHT.
Maintain sound investor relations through domestic and international roadshows and dissemination of information.
Contribute to the development of the domestic capital market and introduction of electronic trading platform for bonds.
Continue to Actively manage government’s debt portfolio through buy-back and switch/exchange programme to reduce the refinancing risks.
Ensure sound management of government’s cash resources by meeting government’s liquidity requirement at all times.
Finance government’s gross borrowing requirement over the MTEF.

14. PROGRAMME 4: ASSET AND LIABILITY MANAGEMENT
SP Page 37
APP Page 62-65
MANAGE GOVERNMENT’S ANNUAL FUNDING PROGRAMME IN A MANNER THAT ENSURES PRUDENT CASH MANAGEMENT, AN OPTIMAL PORTFOLIO OF DEBT AND OTHER FISCAL OBLIGATIONS. PROMOTE AND ENFORCE THE PRUDENT FINANCIAL MANAGEMENT OF STATE OWNED ENTITIES THROUGH FINANCIAL ANALYSIS AND OVERSIGHT.
Minimise and mitigate risk emanating from government’s fiscal obligations by measuring performance against risk benchmarks.
Engagements with credit rating agencies.
Exercise oversight over state owned enterprises to enable the achievement of government’s policy objectives, whilst ensuring financial and fiscal sustainability.

15. PROGRAMME 5: FINANCIAL SYSTEMS AND SUPPLY CHAIN MANAGEMENT SYSTEMS
SP Page 40
APP Pages 75-88
FACILITATES ACCOUNTABILITY, GOVERNANCE AND COMPLIANCE, CAPACITY BUILDING AND OVERSIGHT BY PROMOTING TRANSPARENT, ECONOMIC, EFFICIENT AND EFFECTIVE MANAGEMENT IN RESPECT OF REVENUE, EXPENDITURE, ASSETS AND LIABILITIES IN THE PUBLIC SECTOR.
Research , develop and implement interventions that contribute to improved public finance management. Provision of capacity and support to improve risk management maturity.
Develop and implement PFM capacity building interventions in all three spheres of government.
Enhance compliance to the municipal minimum competency level.
Provide support for government entities struggling at lower levels of IA implementation (FMCMM).
Assist in developing well rounded and holistic financial recovery plans for municipalities in collaboration with provinces as per chapter 13 of MFMA (address defaults and bring financial sustainability).
Manage Financial Management Grant (review and align municipal support plans to target and address weaknesses).
Cases referred and advisory services provided to law enforcement agencies/anti-corruption task team for criminal investigation.

16. PROGRAMME 5: FINANCIAL SYSTEMS AND SUPPLY CHAIN MANAGEMENT SYSTEMS
SP Page 40
APP Page 75-88
FACILITATES FAIR, EQUITABLE, TRANSPARENT, COMPETITIVE AND COST-EFFECTIVE PROCUREMENT IN THE PUBLIC SECTOR.
Modernise SCM policies and procedures through:
Revised SCM process and procedures published; and
Issuance of Instructions in line with policy interventions and proposed designated products or categories to enhance SCM Policy.
Monitor and evaluate SCM performance through:
Review of departments/entities quarterly performance information reports;
Publishing of procurement plans on the e-tender portal;
Review of bid specifications as well as bid evaluations and adjudications for alignment as specified;
Percentage of contracts awarded reviewed to verify if contract delivery is in line with the specifications; and
Percentage of projects visited to verify if delivery of the awarded contracts is aligned with the contract conditions.

17. PROGRAMME 5: FINANCIAL SYSTEMS AND SUPPLY CHAIN MANAGEMENT SYSTEMS
SP Page 40
APP Page 75-88
FACILITATES FAIR, EQUITABLE, TRANSPARENT, COMPETITIVE AND COST-EFFECTIVE PROCUREMENT IN THE PUBLIC SECTOR.
Develop and implement strategic procurement through:
Strategy for strategic procurement implemented;
Build and strengthen stakeholder relations;
Identification of sourcing strategies for commodities/procurement categories developed and implemented;
Number of on-boarding, monitoring and benefits tracking on sourcing strategies;
Review of current price referencing system (PRS) model conducted; and
Renewing of transversal term contracts per annum for National Procurement.

18. PROGRAMME 6: INTERNATIONAL FINANCIAL RELATIONS
SP Page 46
APP Pages
MANAGE SOUTH AFRICA’S MULTILATERAL FINANCIAL RELATIONS WITH VARIOUS STAKEHOLDERS THROUGH VARIOUS FORUMS SUCH AS BRICS, G20, IMF, WB, AU, AFDB, SADC, SACU AND OECD.
Conducted 22 initiatives that advance South Africa’s interests specifically, and those of Africa more generally, through regular strategic analysis, engagements and negotiations at regional and global financial and economic forums.
Conduct initiatives to increase Africa’s voice and South Africa’s influence in international institutions and forums including increasing South Africa’s presence within institutions of particular strategic value as well as interventions in pursuit of institutional reform such as motivating for the 3rd Chair for Sub-Sahara Africa in the IMF Board.
Supporting an enabling environment for increased economic activity within Africa through the Africa strategy, conducting initiatives to expand relations with key strategic partners and implementing identified projects and plans to accelerate regional integration.

19. PROGRAMME 7: CIVIL AND MILITARY PENSIONS, CONTRIBUTIONS TO FUNDS AND OTHER BENEFITS
SP Page 50
APP Page 115
PROVIDES FOR NON–CONTRIBUTORY CIVIL PENSIONS, POST RETIREMENT MEDICAL CONTRIBUTION SUBSIDIES AND OTHER BENEFITS FOR PENSIONERS AND THEIR BENEFICIARIES, ADMINISTERED ON BEHALF OF NATIONAL TREASURY THROUGH A SERVICE LEVEL AGREEMENT WITH THE GOVERNMENT PENSIONS ADMINISTRATION AGENCY ( GPAA).
Further implementation of the modernisation and improvement drive.
Improve clients experience by having a consistently accurate and responsive system relating to:
Client interface;
Efficiency gains in improved turnaround times and economic transactions;
Improved data integrity and governance;
Reduced carbon footprint;
Aligning business skills to modernised processes; and
Reduction of Administration cost.

20. PROGRAMME 8: TECHNICAL AND MANAGEMENT SUPPORT & DEVELOPMENT FINANCE
SP Page 54
APP Page 131
PROVIDE ADVISORY SERVICES, PROGRAMME MANAGEMENT AND DEVELOPMENT FINANCE SUPPORT TO IMPROVE PUBLIC FINANCE MANAGEMENT, SUPPORT HIGH-IMPACT GOVERNMENT INITIATIVES, FACILITATE EMPLOYMENT CREATION AND STRENGTHEN INFRASTRUCTURE PLANNING AND DELIVERY.
Establish the Government Technical Advisory Centre (GTAC) as centre of excellence in public sector advisory services, transaction support, project management and public finance management.
Local government financial management improvement:
Financial Management Grant (FMG) to municipalities; and
Municipal Finance Improvement Programme (MFIP II).
Promotion of urban integration and neighbourhood development:
Neighbourhood Development Programme Grant (NDPG); and
Integrated Cities Development Grant.
Facilitation of employment creation and inclusive growth:
Jobs Fund.
Improved infrastructure planning, management and skills development:
Infrastructure Skills Development Grant; and
Infrastructure Delivery Improvement Programme.

21. Medium-term expenditure estimate
HUMAN CAPITAL
Programmes
Number of posts estimated for
31 March 2017
Number and cost2 of personnel posts filled / planned for on funded establishment
Number of
funded
posts
Number of posts
additional
to the
establishment
Actual
Revised estimate
Medium-term expenditure estimate
Average growth
rate
(%)
Average: Salary
level/Total
2015/16
2016/17
2017/18
2018/19
2019/20
2016/ /20
National Treasury
Cost
Unit
Salary level
1 267 68
1 218
732.7
0.6
1 222
797.8
0.7
1 172
799.3
1 124
807.8
1 161
869.3
-1.7%
100.0%
1 – 6 62 3 61
13.8
0.2 63
15.0
14.1 60
14.6
16.1
0.3
-0.5%
5.3%
7 – 10
543 20
532
199.1
0.4
509
204.4
482
205.0
452
202.5
476
226.3
0.5
-2.2%
41.0%
11 – 12
360
338
216.8
332
233.9
319
249.3
0.8
307
254.6
314
275.0
0.9
-1.8%
27.2%
13 – 16
300 25
287
303.1
1.1
318
344.6
310
330.9
305
336.1
309
352.0
-1.0%
26.5%
Other 2 –
Programme
Programme 1
404 6
384
182.4
376
201.0
368
199.5
356
201.8
365
219.3
31.3%
Programme 2
123
105
78.2
104
81.4 98
78.1 92
78.7 93
82.3
-3.7%
8.3%
Programme 3
262 52
277
192.3
286
261
201.9
249
204.2
259
219.2
-3.3%
22.5%
Programme 4
120
111
72.1
77.6
77.5
100
84.6
-2.1%
9.0%
Programme 5
312 10
303
179.5
304
204.3
293
206.1
283
208.3
292
223.7
-1.3%
25.0%
Programme 6 46 38
28.2 41
32.6 47
36.0 44
36.1 48
40.2
5.4%
3.8%
1. Data has been provided by the department and may not necessarily reconcile with official government personnel data.
2. Rand million.

22. STANDING COMMITTEE ON FINANCE
THANK YOU NATIONAL TREASURY STRATEGIC PLAN 2015/19 AND ANNUAL PERFORMANCE PLAN 2017/18
STANDING COMMITTEE ON FINANCE
09 May 2017