1. 1 Briefing on the 2003/2004 Budget to the Social Development Portfolio Committee Department of Social Development 5 March 2003

2. 2 Presentation Outline Vision and Mission Statements Measurable Objectives Strategic Overview and Policy Developments Budget Priorities for the next 3 years Changes in the Budget Structure

3. 3 Presentation Outline (2) Budget Allocation 2002/03 allocation 2003/04 –2005/06 allocation (MTEF) Conditional Grants Key Challenges

4. 4 Vision and Mission Vision A caring and integrated system of social development services that facilitates human development and improves the quality of life Mission To enable the poor, the vulnerable and the excluded within South African society to secure a better life for themselves, in partnership with them and with all those who are committed to building a caring society

5. 5 Measurable Objectives To develop policy & strategies for social assistance to children, families, disabled and older people and to advise on social, economic and fiscal implication thereof. To provide management, administrative and information services in support of timely payment of social assistance and disaster relief, and to monitor service delivery and compliance To develop policies, strategies and programmes to empower and support vulnerable individuals, households and communities and to facilitate and monitor implementation

6. 6 Measurable Objectives (2) To design, fund and monitor strategies and programmes for poverty reduction, community development, and counter the impact of HIV/Aids and to register and support NPOs To research, analyse and interpret population and development trends to inform policy making and planning, including monitoring and evaluation of the population policy and facilitate implementation through intergovernmental programmes, and develop capacity to integrate population issues into development programmes

7. 7 Strategic overview & policy developments: 99/00-02/03 Key developments in the ff areas: Extension of the system of social assistance Improving service delivery to grant beneficiaries Addressing poverty and underdevelopment Mitigating the effects of HIV/Aids Shift from welfare to sustainable social development

8. 8 Widening the social safety net Means tested grant beneficiaries increased significantly from about 2,5 million to over 5 million in the past 5 years Just over 2,5 million children now receive the Child Support Grant An estimated number of between 500 000 & 1 million children under 7 years country-wide are still to be registered in the system The Committee of Inquiry into Comprehensive Social Security System submitted its report to Cabinet in July 2002 Amendments to the Regulations under the social assistance act have recently been gazetted Grant Beneficiaries now become entitled from application date instead of approval date Improved access to disability grants

9. 9 Widening the safety net (2) A new Social Assistance is envisaged in 2003 Extension of the age limit for Child support Grant from below 7 years to below 14 years Phased approach: 7 & 8 year olds- 2003/04 9 & 10 year olds- 2004/05 11 & 13 year olds- 2005/06 R1,1 billion increasing to R6,4 billion over the medium term made available for this increase (TotalR10, 9 billion)

10. 10 Improving grant delivery Comprehensive improvement of grant administration programme was launched in July 2001 Development and implementation of norms and standards for- Applications Customer management and care Information technology Pay points infrastructure and facilities Financial administration Upgrading of the current payment system (SOCPEN) is ongoing and process of replacing it is underway Establishment of a compliance and support unit was approved towards the end of 2002 Cabinet approved the establishment of a national agency

11. 11 Fighting poverty & impact of HIV/Aids The poverty relief programme focuses on sustainable development through income generating initiatives, and targets vulnerable groups like Women, youth, children, the infirm, disabled and people infected and affected with HIV/Aids Poverty Relief funding has been allocated to the 365 projects established through the national and provincial offices 24% of the projects were in Integrated Sustainable Rural Development Programme (ISRDT) nodal points The Home-Based Care programmes for people with HIV/Aids have been accelerated.

12. 12 Transformation of welfare services Two important pieces of legislation will be considered by Parliament this year: Child Care Legislation Child Justice Bill Costing of the CJB was completed and the process for costing the other legislation is underway The Department will prioritise the development of norms and standards and costing of welfare services during the forthcoming MTEF period. The national strategy for child abuse, neglect and expoitation will be finalised during 2003

13. 13 Transformation of welfare services (2) The ff additional work is planned over the medium term: Design of welfare service delivery models and a financing policy for welfare services Development of a national empowerment strategy for families and victims of violence Legislation on older persons is planned to be tabled towards the end of 2003

14. 14 Budget priorities:2003/04- 2005/06 Improvement of quality, efficiency better access and provision of Social Security Strengthen poverty relief programmes including the ISRDP and URP Strengthen Community and Home Based Care for HIV AIDS Programmes Accelerate the implementation of the Food security and Nutrition Programme Strengthen Community Development Programmes Accelerate the transformation of Welfare Services Consolidate dept’s communications programme including reach out to communities

15. 15 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 1 Administration - Minister - Management - Corporate Services - Government Motor Transport - National Development Agency - Minister - Deputy Minister - Management - Corporate Services - Government Motor Transport

16. 16 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 2: Social Security, Policy and Planning No changes

17. 17 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 3: Grant Systems and Administration - Grant Admin and Disbursement Management - Grant Information Systems - Monitoring, Evaluation and Audit (split) - Administration - Grant Administration and Disbursement Management - Grant Information and Payment Service - Monitoring and Evaluation - Audit and Compliance Support - Institutional Reform - Administration

18. 18 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 4: Welfare Service Transformation - Service Standards - Rights Advocacy to Children, Youth and Families - Rights Advocacy to Other Vulnerable Groups - Contributions - Administration - Service Standards - Child Care and Protection Services - Families and Victim Empowerment - Social Crime Prevention and Youth Development - Prevention and Rehabilitation of Substance Abuse

19. 19 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 4: Welfare Service Transformation - Care and Services to Older Persons - Services to People with Disabilities - Contributions - Administration

20. 20 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 5: Development Implementatio n Support - Poverty Eradication - HIV/AIDS - Community Development - Non-Profit Organisations - Administration - Poverty Eradication - HIV/AIDS - Community Development - Non-Profit Organisations - National Development Agency - Administration

21. 21 CHANGES IN BUDGET STRUCTURE: SUB PROGRAMME LEVEL ProgrammePrevious sub programmes New sub programmes Programme 6: Population and Development - Population and Development Strategy - Population and Development Research - Contributions - Administration - Population and Development Strategy - Population and Development Research - Population and Development Support Programmes - Contributions - Administration

22. 22 Allocation 2002/2003 Amount votedR 409 261 000 Adjustments EstimateR 10 990 000 Supplementary AmountR 230 000 000 Total allocationR 650 251 000 Projected expenditureR 644 038 000 Projected Under spending And/or savingR 6 213 000

23. 23 MTEF-National Department R’000 2002/03 650 251 2003/041 952 502 2004/054 225 805 2005/067 269 343 Increase over the MTEF years reflects the special allocations for the Emergency Food Security, HIV/AIDS and the CSG Extension

24. 24 MTEF Summary YearOperationa l allocation R’000 Special Allocation R’000 Total Allocation R’000 2003/04124,1021,828 4001,952 502 2004/05137,6934,088 1124,225 805 2005/06150,1847,119 1597,269 343

25. 25 Departmental Budget 2003/04 PROGRAMME2002/03 R’000 2003/04 R’000 Administration50,68159,268 Social Security, Policy & Planning7,3487,871 Grant systems & Administration82,0331,201 293 Welfare Service Transformation13,06116,681 Development Implement Support 487,923657,989 Population & Development9,2059,400 TOTAL650,2511,952 502

26. 26 Amount voted R1,952 502 Special Allocations Poverty Relief R 71 000 Improvement of Social Security System R 69 000 Disaster Relief Funds R 10 000 Emergency Disaster Relief R 5 000 HIV/AIDS R 65 917 Child Support Grant Extension R 1 100 000 Food Relief R 400 000 National Development Agency R 103 283 National Councils R 4 200 Total Special Allocations R 1,828 400 Departmental Budget 2003/04

27. 27 Conditional Grants to Provinces: HIV/AIDS 2003/04 Provinces2002/03 R’000 2003/04 R’000 2004/05 R’000 2004/05 R’000 Eastern Cape4,7986,6587,0897,514 Free State6,6509,2289,82510,415 Gauteng6,9839,69010,31510,934 Kwazulu-Natal8,64411,99612,77313,540 Limpopo3,1354,3534,6344,912 Mpumalanga7,0779,82110,45611,084 Northern Cape2,6603,6913,9304,165 North West5,4637,5808,0708,554 Western Cape2,0902,9003,0883,273 TOTAL47,50065,91770,18074,391

28. 28 Conditional Grant to Provinces: Child Support Extension 2003/04 Provinces2003/04 R’000 2004/05 R’000 2004/05 R’000 Eastern Cape272,130866,8851,669 903 Free State72,497233,242457,870 Gauteng66,449193,815359,609 Kwazulu-Natal235,143723,7001,367 785 Limpopo172,969536,5421,000 815 Mpumalanga78,360239,836442,010 Northern Cape19,67163,540121,421 North West125,426367,979652,257 Western Cape57,355174,461328,330 TOTAL1,100 0003,400 0006,400 000

29. 29 Conditional Grant to Provinces: Food Relief Grant 2003/04 Provinces2003/04 R’000 2004/05 R’000 2004/05 R’000 Eastern Cape94,133 Free State37,334 Gauteng27,904 Kwazulu-Natal68,185 Limpopo61,146 Mpumalanga27,651 Northern Cape9,998 North West41,615 Western Cape20,034 TOTAL388,000

30. 30 Poverty Relief Grant in Kind 2003/04 2002/03 R’000 2003/04 R’000 Eastern Cape16 17910 449 Free State8 6905 774 Gauteng4 3863 190 Kwazulu-Natal17 42911 274 Limpopo15 63310 229 Mpumalanga10 4466 874 Northern Cape4 3152 887 North West8 6465 827 Western Cape3 8112 942 TOTAL89 53559 446

31. 31 Key Outputs for 2003/04 Social Security Policy & Planning Policy for social benefits to children & families by December 2003 Policy on social benefits to disabled and elderly by November 2003 Analysis & impact assessment reports on factors impacting on social security twice a year

32. 32 Key Outputs for 2003/04 (2) Grant Systems and Administration Effective and efficient grant and relief administration targeting an application processing time of approx 1,5 months Payments to grant beneficiaries within 4 months of application Full implementation of norms and standards by all provinces by December 2004 Socpen enhancement to reach 99% up-time and 95% data integrity by April 2004 Phase 1 of new grant payment system to replace socpen completed by January 2004

33. 33 Key Outputs for 2003/04 (2) Grant Systems and Administration (cont): Monitoring of compliance on a quarterly basis and annual impact assessment studies Implementation of fraud prevention and detection strategy to ensure that each province is audited at least once a year Report to Cabinet on institutional restructuring (agentisation) by July 2003

34. 34 Key Outputs for 2003/04 (3) Welfare Services Transformation Norms and standards for welfare services to be approved by March 2004 Policy & programmes to care for children e.g. New child care legislation, implementation of national child protection register Policy and programmes to support families developed and implemented by March 2004 Policy and programmes to protect and support persons affected by crime operational by March 2004 Youth development strategy developed and approved by February 2004

35. 35 Key Outputs for 2003/04 (4) Welfare Services Transformation – cont: Policy and legislation on older persons by September 2003 Strategy for delivery of social welfare services to the disabled by March 2004 Drug master plan developed and approved by March 2004 Prevention and treatment of Drug Dependancy Act reviewed and amendments approved by March 2004 Fully functional Central Drug Authority secretariat by June 2003

36. 36 Key Outputs for 2003/04 (5) Development Implementation Support Develop an anti-poverty strategy- draft by March 2004 Ensure sustainability of poverty relief project through various interventions e.g. provision of financial assistance and programme support to communities Integrated community development strategy- concept document canvassed by March 2004 Develop an integrated strategy on HIV/Aids by December 2003

37. 37 Key Outputs for 2003/04 (6) Development Implementation Support – cont: Targeting to support about 400 home and community based care centres by 2004 Policy on protection of orphans and children affected by HIV/Aids Minimisation of the risk of HIV/Aids amongst youth Ongoing registration of NPOs Institutionalisation of volunteerism

38. 38 Key Outputs for 2003/04 (7) Population and Development Advise and monitor policy and plans on population and development trends- draft State of South Africa’s population Report 2003/04 by March 2004 Population and development advocacy and information, education and communication activities Research on national population and social development policies Implementation of intergovernmental programmes and information dissemination.

39. 39 Key challenges facing Department Increased capacity for grant administration and payment vis-à-vis the current weak systems Need to properly manage the transitional arrangements for the establishment of the National Agency for social grants administration Additional service delivery demands to rollout new programmes, e.g. Food Security Programme, against limited internal capacity Integration of the work of the Department with that of provinces and other cluster departments