1. Adjustments Appropriation Bill Portfolio Committee on Finance
9 November 2005

2. Contents Components of the Adjustments Budget
Revised National Budget 2005/06
Format appropriation Bill
Roll-Overs
Unforeseeable and Unavoidable Expenditure
Infrastructure Investment Projects
Self-Financing Expenditure
Conclusion

3. Components of the Adjustments Budget, PFMA (30)
Significant unforeseeable economic and financial events
Unforeseeable and unavoidable expenditure, TG (6.6)
Emergency Situations, PFMA (16)
Expenditure already announced in the Budget Speech, but not appropriated to a vote (Budget Speech, P18)
Shifting of funds between Votes, TG (6.5)
Virement within Votes, PFMA (43)
Roll-over of unspent funds from the preceding financial year, TG (6.4)

4. Revised National Budget 2005/06

5. Format appropriation Bill
Funds appropriated per programme (main division of vote)
Funds indicated as current, transfers or capital payments
New format based on standardised classification aligned to international reporting requirements GFS & IFAC & SNA
New chart of accounts
Excludes statutory amounts, e.g.
Members of parliament and judiciary salaries
State debt costs
Provincial equitable share

6. Roll-Overs
Payments for capital assets: Unspent funds on payments for capital assets may only be rolled over to finalise projects or assets acquisitions still in progress.
Transfers and subsidies: Savings on transfer payments and subsidies may not be rolled over for purposes other than what was originally voted for.
Currents payments: Savings on compensation of employees may not be rolled over. A maximum of five per cent of a department’s payments for good and services (excluding compensation of employees) may be rolled over.
Funds for a specific purpose (such as transfer payment) may not be rolled over for more than one financial year unless approved in advance by the National Treasury.

7. Roll Overs per Cluster Clusters Central Government Administration
R thousands
Central Government Administration
Financial and Administrative Services
Social Services
Justice and Protective Services
Economic Services and Infrastructure
Total

8. Central Government Administration

9. Financial and Administrative Services

10. Social Services

11. Justice and Protective Services

12. Economic Services and Infrastructure

13. Economic Service and Infrastructure

14. Criteria for Assessment of Unforeseeable and Unavoidable Expenditure
Expenditure that could not be anticipated at the time of budget preparation
The following request would not be considered as being unforeseeable and unavoidable:
Expenditure that although known when finalising the estimates of expenditure, could not be accommodated within allocations
Tariff adjustments and price increases
Extensions of existing services and the creation of new services that are not unforeseeable and unavoidable
Approved by cabinet (Treasury Committee)

15. Unforeseeable and Unavoidable Expenditure
Clusters
Central Government Administration
Social Services
32 000
Justice and Protective Services
78 439
Economic Services and Infrastructure
Total

16. Central Government Administration

17. Social Services

18. Justice and Protective Services

19. Economic Services and Infrastructure

20. Economic Services and Infrastructure

21. Infrastructure Investment Projects
Unallocated amounts – Announced in Budget 2005
Vote
R Millions
Trade and Industry
Pebble Bed Modular Reactor
580
Transport
Public transport planning and capital projects
241
Sport and Recreation
Planning and stadium upgrading for the 2010 World Cup
242

22. Self-Financing Expenditure
Expenditure financed from unforeseen revenue that was paid into the National Revenue Fund
Public Service Administration
Centre for Public Service Innovation (CPSI) was incorporated into the DPSA
Correctional Services
Monies collected for the hiring of prisoner labour
Defence
Sale of equipment procured through the General Defence Account
Sale of armaments

23. Self-Financing Expenditure

24. Self-Financing Expenditure

25. Conclusion
Portfolio Committee on Finance considers the Adjustments Appropriation Bill
Total adjustments from national departments amount to R2.9 bn
Adjustments are offset against contingency reserve, unallocated amounts, declared savings and projected under-spending
Adjustments resulted in a decrease in expenditure from R418 b to R416 b