1. 1 2008 Estimates of National Expenditure (ENE) 29 November 2007

2. 2 Content 2008 Budget Process and MTEF –Provisional allocation letters –Efficiency savings Critical dates Important new features (departments and entities) –Performance Information –Science and Technology –ODA Database

3. 3 Critical dates Distribution of database - departments16 November 2007 Distribution of public entities database and guidelines16 November 2007 Information session for departments29 November 2007 (morning) Information session for entities29 November 2007 (afternoon) Provisional allocation letters to departments30 November 2007 Submission of first draft database and Appropriation Bill inputs by departments7 December 2007 Submission of completed data files for Public Entities10 December 2007 Submission of first draft chapter - departments and entities (including measurable objectives and indicators) 14 December 2007 Feedback on selected objectives and indicators from NTJanuary 2008 Submission of second draft of database inputs11 January 2008 Submission of second draft chapters – departments and entities (final indicators and objectives) Mid January 2008 Submission of entities text – Social services15 January 2008 Justice and protection services16 January 2008 Central, Finance Administrative services17 January 2008 Economic services and Infrastructure18 January 2008 Final sign-off of chapters by departmentsFirst week February 2008 Budget day20 February 2008

4. 4 Important Features Accountability information –Mirrors Appropriation bill for 2008/09

5. 5 Important features cont. Programme purposes and objectives Strategic overview and key policy developments –1 000 words –Recent achievement 2006/07 and 2007/08 –Key performance indicators table (also entities) Indicators Performance PastCurrentProjected 2004/052005/062006/072007/082008/092009/102010/11 ……………………….…… ……………………….…… ……………………….…… ……………………….……

6. 6 Important features cont Service delivery objectives and indicators –replaced by performance indicator table and strategic overview section Efficiency savings Transfers to public entities and agencies –Do not duplicate under programme information –Applicable to trading entities Number formatting style –Full stop instead of comma –Space to separate thousands

7. 7 Infrastructure Five categories of infrastructure projects/ programmes: –Mega projects (cost more than R300 million per year for minimum 3 years, or R900 million total project cost ), and should be reported as a single line item. –Large projects (cost between R50 million and R300 million per year within a given MTEF); and –Small projects (less than R50 million per year), should be grouped together and reported as a single item.

8. 8 Infrastructure categoris cont. –Infrastructure transfers to other spheres and entities/agencies – the line item should reflect transfers by dept to entities/agencies and other spheres of government. –Infrastructure/fixed installations transferred to households – the line item should reflect transfer of funds to households

9. 9 Contacts Provide details of dedicated ENE contact for department and entity Liaise with NT budget examiners www.treasury.gov.za/publications/ guidelines

10. 10 Performance information in the 2008 ENE

11. 11 ENE Performance Information In the 2008 ENE an effort is underway to improve the substance of non- financial performance information including the meaningfulness of measurable objectives and the usefulness of performance indicators for monitoring Measurable objectives (MO): –In some cases, MOs are vague and do not translate the programme purposes into quantifiable goals reducing clarity concerning what the money is being used for Performance indicators –In general, there are too many indicators with the relevant indicators being crowded-out Resulted in part from the requirement that each subprogramme must have outputs indicators –In general, there are not enough numbers and there are too many words making it difficult to monitor performance Resulted in overly flexible formats whereby reporting of milestones, dates and other qualitative performance information was not indicated separately –The indicators are not broad enough Resulted from the exclusive emphasis on output indicators at the expense of monitoring other important areas such as inputs, activities and outcomes

12. 12 Whats in the instructions? Strategies to address these improvements include: –Measurable objectives New bulleted format for presenting MOs (1-5 per programme) MOs have been moved to the front of the chapter following the programme purpose Requirement that MOs should identify the most important programme areas by providing a snap-shot of the main objectives (outputs and outcomes) of a programme based on its major operational elements MOs are defined as quantifiable results that can be achieved within a foreseeable period We are not reinventing the MOs, we are just trying to improve upon them so that they say more about the how aspect of achieving programme purposes

13. 13 Whats in the instructions? Strategies to address these improvements include (continued): –Key performance indicators Seven year timeframe format Indicators have been moved to the front of the vote so that both cross-cutting or programme-specific indicators may be highlighted Indicators may relate to inputs, activities, outputs, outcomes and may also provide contextual or explanatory information Average of 10 performance indicators recommended per vote or entity Two areas to discuss performance: –Quantitative performance indicators in the key performance table (also see guidelines on using percentages) –Qualitative performance information in the strategic overview section

14. 14 Helpful tips In general, indicators should relate to ongoing functions but may also be project-specific The average of 10 indicators per vote/entity means that the number of indicators may range from 7 to 17 more or less depending on need If an entity does not have a separate section at the back of the chapter, specific indicators may be included in the departments indicator table with a reference in the indicator title (e.g., number of scientific researchers on staff at xxx entity) Ensure that only numerical values are used to reflect past, current and projected performance in the seven year table Ensure that the indicator is clear and obviously relates to the work of the department. (e.g., number of claims processed could be clarified as number of workers compensation claims processed per month) The key indicators do not have to cover all the aspects of the departments work just the most important from an oversight monitoring standpoint Key performance indicators in the ENE represent only a small subset of departmental performance information for auditing purposes

15. 15 Helpful tips Dont forget to include the unit of measure in the indicator title Dont forget to provide a brief definition of each indicator (i.e., enough detail to give a general understanding of the indicators The process of piloting trendable and quantitative output and outcome performance indicators at the subprogramme and programme level with 5 departments continues unaffected by the ENE changes Review the strategic plan Review the subprogrammes and the outputs in the 2007 ENE. There are many meaningful and useful indicators that may be carried-forward. Review the Presidencys Development Indicators Mid-term Review of 72 national indicators Review the current MOs in the 2007 ENE. In some cases, they can be subdivided into separate objectives in other cases they are already written in the form of quantifiable results and can be carried-forward If an indicator is cumulative then use the term total in the title (e.g., Total number of foreign missions in Africa – 06/07=45, 07/08=47 and 08/09=50) In an indicator is non-cumulative then use the term new, additional or per year in the title (e.g., Number new of foreign missions in Africa per year – 06/07=0, 07/08=2 and 08/09=3)

16. 16 Indicators) Performance PastCurrentProjected 2004/052005/062006/072007/082008/092009/102010/11 Average monthly headcount of police officers on active duty80 00090 000100 000110 000120 000130 000 Average monthly headcount of detectives on active duty10 000 Average monthly headcount of army recruits on active duty100 000 Number of universities operated in South Africa23 25 26 Number of FET colleges operated in South Africa23 25 26 Number of claims processed per month1 000 Average monthly headcount of inmates in prison85 000 Number of engineering students graduating annually20 000 Number of taxis scrapped per year--10 000 Percentage of claims (1 000) processed within 30 days500 (50%) Value of textile exports per yearR1 000 000 Number of fatal accidents on the roads per year10 000 Number of applicants per month100 000110 000 130 000 140 000 Number of claimants per month2 000 Average number of buses on the roads per monthn/a 1 000 000

17. 17 Science and Technology expenditure

18. 18 Official development assistance expenditure

19. 19 Completion of ENE database

20. 20 Questions and Answers