1. Gauteng Provincial Legislature Money Bills Act Discussion
27 March 2019

2. Outline Introduction Role of Committees Role of the PBO
Outputs of the PBO
Stakeholder Relations
Gauteng Provincial Legislature Money Bills Amendment Procedure and Related Matters Bill
Summary

3. Introduction
The passing of the Money Bills Amendment Procedure and Related Matters Act (No. 9 of 2009), required the re- organisation of some of the committees dealing with finance
Each House had to establish a committee on finance
Each house had to establish a committee on appropriations
It empowers Parliament to make changes to the budget by amending money bills.
It also provides for the implementation of public participation processes and
The establishment of the Parliamentary Budget Office

4. Role of Committees The committees on finance consider and report on:
The national macro-economic and fiscal policy
Amendments to the fiscal framework, revised fiscal framework and revenue proposals and Bills
Actual revenue published by the National Treasury
Any other related matter set out in this Act.
The committees on appropriations consider and report on:
Spending matters
Amendments to the Division of Revenue Bill, the Appropriation Bill, Supplementary Appropriations Bills and the Adjustments Appropriations Bill
Recommendations of the Financial and Fiscal Commission
Reports on actual expenditure published by the National Treasury
Any other related matter set out in this Act

5. Role of the PBO
The Parliamentary Budget Office (PBO) offers independent and objective advice and analysis mainly to the Finance and Appropriations committees in both Houses of Parliament on money bills and other bills with financial implications
Providing reviews on the documentation tabled in parliament
Monitoring and synthesising matters on reports tabled and adopted in a House with budgetary implications
Advice on policy debates and developments in key expenditure and revenue areas
Undertaking any other work deemed necessary by the Director to support Committees

6. Outputs of the PBO Medium Term Budget Policy Statement analysis
Budget analysis
Quarterly Economic and Fiscal Brief
Policy analysis focusing on the monitoring of the implementation of the NDP
In-year revenue forecast
Forecast audits:
Growth estimates
Research
Other depending on capacity
Fiscal Policy: Fiscal consolidation and efficiency measures
The effectiveness of efficiency measures
Risks
Debt
Capital spending
Expenditure trends
Strategic direction: NDP, SONA, mandate paper and Economic stimulus and recovery plan
Policy expenditure priorities
Shift in expenditure per function
Economic performance: The budget depends on the economy to generate the resources to finance these investments
Topical from risks: Credit rating, wage bill, SOEs and contingent liabilities

7. Stakeholder Relations
Stakeholder relations are established for networking, information sharing, learning of best practices and for peer- review purposes. Our stakeholders include:
Research structures (internal and external)
Government departments
Business
Civil society
Academic & research institutions and
International networks

8. Stakeholder Relations
The PBO established relations with international stakeholders in:
Africa
Multinational institutions such as
The OECD Network of Parliamentary Budget Officials
Independent Fiscal Institutions, and
The Global Network of Parliamentary Budget Offices
The networks meet annually to share experiences with respect to:
Mandate
Functions
Knowledge sharing around different types of analysis performed by PBOs
The PBO RSA established the African Network of PBO’s in 2016/17. The aim is to establishing, solidifying and maintaining strategic relations on the African continent
Since establishment, the PBO has managed to establish relations with a number of key international stakeholders on the African continent including relations with established multinational institutions.
The international networks to which the PBO include the OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions, and
The Global Network of Parliamentary Budget Offices.
The networks meet annually to share experiences with respect to the design, mandate and functions of PBOs, enhance knowledge around different types of analysis performed by PBOs and undertake network business and decision making. It is, therefore, essential for the PBO to participate on such platforms. Such exposure ensure the alignment of the PBO to international counterparts.
The PBO RSA established the African Network of PBO’s in 2016/17 . The aim is to establishing, solidifying and maintaining strategic relations on the African continent. This objective is line with the Policy Priorities of the 5th Democratic Parliament, AU Agenda 2063.

9. Gauteng Provincial Legislature Money Bills Amendment Procedure and Related Matters Bill
Discussion of specific sections in the draft bill.
Blue font: Suggestions for consideration

10. Gauteng Provincial Legislature Money Bills Amendment Procedure and Related Matters Bill S.(5) Functions
Establishes a Budget Committee to:
Examine the draft budget policy statement – Medium Term Budget Policy Statement including the Fiscal Framework
Evaluate:
Budget estimates – Actual and Estimated MTEF
Economic policies - Economic review and outlook
Budget policies - Budget Policy Priorities
Function of the Budget Committee is to consider and report on:
Provincial Macro-economic and fiscal policy – Revised macroeconomic outlook and Fiscal Framework
Amendments of the Provincial Appropriation Bill – Revised Appropriations Bill
Actual and estimated Revenue collection and Expenditure
Recommendations from the FFC
The Budget Committee must receive reports on budgets from committees: This is not clear

11. Gauteng Provincial Legislature Money Bills Amendment Procedure and Related Matters Bill
Sec. (7) Budget Review and Recommendation Reports:
Committees to submit prior to the tabling of the MTBPS- Why? Consider after the tabling of the MTBPS to inform the Budget. This will also provide an opportunity to include the most recent Auditor General Reports
Sec. (8) Gauteng MTBPS:
Consider more specific content
Consider more realistic timeframe for revenue and expenditure analysis
Timing of the House resolutions are important to provide enough time for the Provincial Treasury to include it in the following years Budget
Sec. (9)Introduction of the Provincial Annual Budget, Appropriations Bill, Departmental Annual Performance Plans.
(2) (f) Check relevance i.t.o “Borrowing Powers of Provincial Governments Act, 1996 (No.48 of 1996)
Include Contingency Reserve

12. Gauteng Provincial Legislature Money Bills Amendment Procedure and Related Matters Bill
Sec. (11)Amending Revenue Bills and Revenue Proposals
Check relevance of this section
Relevant MECs are responsible for the determination of tariffs and levies and fees for their sectors.
Sec. (13)Provincial Adjusted Budget and Adjustments Appropriation Bill
Also see PFMA Sec. 31 for specific conditions for adjustments to consider for inclusion
Sec. (15)Provincial Legislature Budget Office
Unpack transfer of funds from the Provincial Budget.
Unpack the outputs (main issue as mentioned in the brief is the gap between planned and actual spending) Consider reporting on responsiveness, credibility and implementation.
Unpack structure

13. Summary
Each House established a committee on finance and appropriations
Parliament established a PBO with a specific function to assist Members with the implementation of the Act
Administrative matters are still a challenge for the operation of the PBO
Gauteng legislation requires the legislature to establish a Budget Committee as well as a PBO
Although lessons could be learned from the National Parliament, specific provincial practices need be considered