1. Department of Rural Development and Land Reform
Medium Term Budget Policy Statement
Presentation to the Standing Committee on Appropriations
2 November 2009

2. FINANCIAL PERFORMANCE The Department has achieved a record spending of 99.9% (2008/07: 99.5%) against the adjusted appropriation of R6.6 billion for the past Financial year.
2008/09
R’000
2007/08
Budget allocation
6,659,396
5,928,269
Actual Expenditure
6,654,636
5,897,497
Spending as a percentage
99.9%
99.5%
Unspent funds
4,760
30,772
Unspent funds as a percentage
0.1%
0.5%
The Restitution and Land and Tenure Reform Programmes received allocations of R3.1 billion (2007/08: R3.6 billion) and R2.7 billion (2007/08: R1.6 billion) respectively representing 89% of the Departmental adjusted appropriation.

3. SPENDING PER PROGRAMME (For the past two financial years)
2007/08 Financial year
2008/09 Financial year
Final appropriation
Spending 31/03/2008
Spent
Spending 31/03/2009
Variance
R’000 %
Programme 1:
Administration
426,554
424,994
99,6%
453,442
453,316
126
99,9%
Programme 2:
Surveys & Mapping
98,085
97,257
99,1%
72,044
71,875
169
99,8%
Programme 3:
Cadastral Survey Management
137,937
137,616
99,7%
116,384
116,306 78
Programme 4: Restitution
3,638,611
3,638,465
100%
3,124,781
3,122,148
2,633
Programme 5: Land & Tenure Reform
1,593,471
1,571,073
98,6%
2,800,713
2,799,539
1,174
Programme 6: Spatial Planning & Information
22,018
21,836
34,834
34,256
578
98,3%
Programme 7: Deeds Registration
11,593
6,256
53,9%
57,198
57,196 2
Total
5,928,269
5,897,497
99,5%
6,659,396
6,654,636
4,760

4. 2009/10 ADJUSTED ESTIMATES OF NATIONAL EXPENDITURE (AENE) BUDGET
The Department originally requested an additional R4.4 billion but due to the prevailing economic conditions, the Department revised its request to R1.7 billion for unforeseeable and unavoidable expenditure with regard to, amongst others, the new offices of the Minister and Deputy Minister, Rural Development, Restitution and Deeds Trading Account.
The Department received an additional allocation of R292 million for Rural Development (R252 million), Minister and Deputy Minister (R9 million) and General Salary Adjustment (R31 million).
R2,340 million transfer of function Integrated Sustainable Rural Development Programme (ISRDP) from the Department of Co-orperative Governance and Traditional affairs.
R’000
Main Budget
Original Additional Funding
Additional Funding Requested
Additional Allocations
Reprioritisation/shifts/virements
Adjusted Budget
Administration
Surveys and Mapping
Cadastral Survey Management
Restitution
Land & Tenure Reform
Spatial Planning & Information
Auxiliary & Associated Services
R487,457
R96,147
R111,824
R1,904,284
R3,454,928
R33,562
R12,856
R170,910
R32,000
R3,495,427
R709,992
R24,375
R54,672 -
R1,050,000
R430,246
R22,101
R2,000
R6,000
R252,340
R7,592
R181,722
R27,000
R197,151
R-483,847
R31,225
R46,749
R689,280
R140,824
R2,107,435
R3,223,421
R66,787
R67,197
TOTAL
R6,099,058
R4,487,376
R1,762,203
R292,033 R0
R6,391,091

5. ORIGINAL MEDIUM TERM EXPENDITURE FRAMEWORK (MTEF) REQUEST
The Department changed its programmatic budget structure from 7 to 5 programmes, to reflect the new rural development mandate which was approved by National Treasury. The changes will be effected on the 1 April 2009.
The Department submitted its original MTEF submission to National Treasury on 25 July 2009 and requested R18.3 billion over the MTEF.
Rural Development and Restitution together requested R16.5 billion or 90% of the Department’s total request
Restitution requested R10.3 billion or 56% of the Department’s total request.
R’000
2010/11
2011/12
2012/13
TOTAL
Administration
Geo Spatial Cadastral Services
Rural Development
Restitution
Land & Tenure Reform
R163,393
R266,816
R1,925,757
R3,834,739
R40,166
R182,036
R386,583
R2,088,305
R3,657,642
R32,316
R195,563
R418,020
R2,277,999
R2,838,953
R32,985
R540,992
R1,071,419
R6,292,061
R10,331,334
R105,467
R6,230,871
R6,346,882
R5,763,520
R18,341,273

6. REVISED MTEF REQUEST
R’000
2010/11
2011/12
2012/13
TOTAL
Administration
Geospatial and Cadastral Services
Rural Development
Restitution
Land Reform
R163,393
R266,816
R500,000
R1,000,000
R182,036
R386,583
R525,000
R1,050,000
R195,563
R418,020
R551,250
R1,102,500
R540,992
R1,071,419
R1,576,250
R3,152,500
R1,930,209
R2,143,619
R2,267,333
R6,341,161
National Treasury requested a revised MTEF submission due to the prevailing economic conditions which the Department submitted on 12 August 2009
The Department revised the requested amount to R6.3 billion over the MTEF or a 65% reduction from the original request.
Rural Development and Restitution together requested R4.6 billion or 73% of the Department’s total request.
Restitution requested R3.1 billion or 49% of the Department’s total request.

7. PROPOSED MTEF BUDGET
The proposed budget over the MTEF is in terms of the new programmatic budget structure to reflect the new Rural Development mandate which was approved by National Treasury.
Currently, the Rural Development Programme does not have a baseline over the MTEF.
The indicative baseline for Restitution over the MTEF is less than the 2007/08 level.
R’000
2010/11
2011/12
2012/13
Indicative Allocation
Proposed Budget
Administration
Geospatial and Cadastral Services
Rural Development
Restitution
Land Reform
R554,617
R251,248
R1,584,701
R4,099,636
R718,010
R518,064
R500,000
R2,584,701
R576,462
R267,026
R2,086,448
R4,720,970
R758,498
R653,609
R525,000
R3,136,448
R606,664
R280,377
R2,190,770
R4957,019
R802,227
R698,397
R551,250
R3,293,270
R4,957,019
TOTAL
R6,490,202
R8,420,411
R7,650,906
R9,794,525
R8,034,830
R10,302,163

8. 2ND QUARTER SPENDING PER PROGRAMME
Budget
R’000
Available budget after April to Sept spending
Budget Spent from April to Sept %
Spending
June to Sept
Administration
507,457
273,812
46%
132,767
Surveys and Mapping
96,147
58,242
39%
20,591
Cadastral Survey Management
131,824
72,337
45%
29,812
Restitution
1,877,284
166,855
91%
289,052
Land & Tenure Reform
3,434,928
2,009,304
42%
606,663
Spatial Planning and Information
38,562
19,117
50%
7,993
Auxiliary and Associated Services
12,856
10,812
16%
279
TOTAL
6,099,058
2,610,480
57%
1,087,158
Linear target end Sept 2009 was 50% and was exceeded by 7%, as opposed to the first
quarter’s 14% over spending of the linear.
2nd quarter spending represented a 42% under spending of the quarter’s revised drawings,
as opposed to the 7% over spending and deficit cash flow of R152 million end 1st quarter.

9. 2ND QUARTER SPENDING PER ECONOMIC CLASSIFICATION
Budget
R’000
Available budget after April to Sept spending
Budget Spent from April to Sept %
Spending
June to Sept
Compensation
932,580
584,237
37%
177,785
Operational costs
619,075
303,927
51%
187,042
Current transfers to households
16,308
11,408
30%
1,666
Capital transfers to households
3,510,371
1,119,373
68%
602,151
Departmental agencies and accounts
1,020,724
591,534
42%
118,514
TOTAL
6,099,058
2,610,480
57%
1,087,158
Departmental agencies and accounts include Land Acquisition (PLAS) funds of R1,018 billion and the
spending indicated was paid from the suspense account in respect of Land Acquisition.
Linear target end Sept 2009 was 50% and was exceeded by 7%, as apposed to the first quarter’s
14% over spending of the linear.
2nd quarter spending represented a 42% under spending of the quarter’s revised drawings,
as opposed to the 7% over spending and deficit cash flow of R152 million end 1st quarter.

10. MAIN COST DRIVERS
The goal of the Land Redistribution for Agricultural Development (LRAD) Sub-programme is to contribute more significantly to agricultural development and to extend the target group beyond the poor so as to also include emerging black farmers. LRAD is designed to provide grants to black South African citizens to access land specifically for agricultural purposes.
The Pro-active Land Acquisition Strategy (PLAS) allows the Department of Rural Development and Land Reform (DRDLR) to acquire land in terms of the Provision of Land and Assistance Act, 1993 (Act No 126 of 1993) [Section 10(a)].
The Commission on Restitution of Land Rights (CRLR) provides restitution of rights in land in terms of the Restitution of Land Rights Act, 1994 (Act No 22 of 1994) [section 42D, read with section 2], to persons or communities dispossessed of such rights after 19 June 1913 as a result of past racially discriminatory laws or practices. Restitution can take the form of land restoration, financial compensation, or a combination. In claims for restoration of land rights, restoration of the specific land that the community was dispossessed of is recommended where at all feasible, so as to ensure access to land and opportunity by rural communities.
Comprehensive Rural development seeks to achieve vibrant and sustainable rural communities as well as the long terms outcome of social cohesion and development. 10

11. Thank you!