1. Intergovernmental Fiscal Review
Social Development (6)
Presentation to Select Committee on Finance
9 April 2003

2. Extension of the safety net (income support):
Summary
Expanding mandate: from social grants and welfare services to poverty and food relief
Extension of the safety net (income support):
Beneficiary numbers from 2,4 m in 1998 to more than 5.6 million in 2003
Average annual growth of 18,2 per cent
Child support grant implementation a major success: 2,5m beneficiaries at end of March 2003

4. Summary
Further expansion of the safety net through phased extension of the CSG to 14 year olds (adding an additional 3.2m children into grant system)
Annual adjustment of grant values for inflation
Service delivery improvements in grant administration
introduction of norms and standards
establishment of public entity
Expansion of social welfare services and care for those infected and affected by HIV/Aids

5. Expenditure and Budget Trends
Provincial expenditure grew from R19,4b in 1999/00 to R31,2b in 2002/03
An annual average growth of 17,3 per cent
2002/03 expenditure is inflated by R2b special allocation for social grant arrears
Accelerated growth over the period from R31,2 in 2002/03 to R51,2 billion in 2005/06
an annual average growth rate of 17,9 per cent

6. 1

8. Expenditure and Budget Trends
Social Development grows from 19.4 per cent in 1999/00 to 25.8 per cent in 2005/06 as a share of overall provincial government expenditure
Significant proportion of growth in budgets as result of the impact of extension of CSG
Conditional grant - R10,9 billion over the MTEF
Higher growth in poor provinces -indicative of a trend toward greater equity and equalisation of access to social grants
Grants as proportion of Social Development Expenditure stabilising
Growth in other programmes
Poverty and food relief

9. Expansion of other social development services
Real expenditure growth in welfare services and other developmental support services
Welfare services expand by annual average of 13,2 per cent between 2002/03 to 2005/06
Other developmental support services expand by nearly 21 per cent per year
Some of the factors behind expansion:
diversion programmes for children in conflict with the law
support and subsidization to shelters for abused women and children
subsidization to homes for older persons, disabled, children and drug treatment centres
community and home based care programmes for those infected and affected by HIV/Aids
food security relief programme