Summary
1. Published by the National Treasury in terms of Section 32 of the Public Finance Management Act (PFMA), this provincial budget statement of receipts and payments covers spending for the first quarter (April to June 2012) of the 2012/13 financial year.
2. The information contained herein is compiled from Section 40(4) PFMA reports submitted by heads of provincial departments to provincial treasuries, who, in turn, submitted it to the National Treasury. Queries on spending or budget numbers should therefore, in the first instance, be referred to the head of the relevant provincial department, and in the second instance to the head of the relevant provincial treasury. Those relating to conditional grants may be referred to the head of the administering national department.
3. The budgeted figures in the first quarter publication take account of the 2012 Estimates of Provincial Revenue and Expenditure, which were presented to the provincial legislatures during March 2012.
Overall expenditure trends – first quarter
4. In aggregate, provinces spent R90.2 billion, or 23.2 percent, of their combined budgets of R388.4 billion. This represents a spending increase of 7.6 percent or R6.3 billion compared with the same period last year when provinces spent R83.8 billion.
5. Education expenditure for the first quarter was R40.4 billion, or 24.7 percent, of the R163.7 billion combined education budgets, an increase of 6.5 percent or R2.5 billion on the first quarter for the previous financial year. It remains the largest item (42.1 percent) on provincial budgets.
6. Health expenditure totalled R28.7 billion, or 24.3 percent, of the R117.8 billion combined health budgets, and is the second largest item (30.3 percent) on provincial budgets. This represents an increase of 14 percent or R3.5 billion on the first quarter for the 2011/12 financial year.
7. Social development expenditure for the first quarter was R2.5 billion, or 20.4 percent, of the R12.2 billion combined social development budgets.
8. Personnel expenditure (compensation of employees) was in aggregate R54.7 billion, or 23.6 percent, of the budgeted R231.9 billion as at 30 June 2012.
9. In aggregate, provinces spent R5.8 billion, or 21.4 per cent, of their R27.2 billion combined capital (payments for capital assets) budgets, an increase of 14.6 percent when compared to the same period of the 2011/12 financial year.
10. Provincial education departments spent R1.7 billion, or 21.8 percent, of the budgeted R7.8 billion for capital expenditure. This is R157.2 million, or 8.5 percent, less than what was spent in the first quarter for the previous financial year.
11. Provincial health departments spent R1.9 billion, or 22.6 percent, of the budgeted
R8.2 billion for capital expenditure, which is 22.3 percent more than the first quarter for
2011/12.
12. The biggest share (33.6 percent) of provincial capital budgets was for the public works, roads and transport departments, which spent R1.9 billion, or 20.3 percent of the combined capital budget of R9.1 billion as at 30 June 2012.
13. Provincial own revenue collected for the first quarter was at R2.9 billion, or 25.7 percent, of the budgeted own revenue of R11.4 billion. National government transferred R77.3 billion of the equitable share and R18.8 billion of conditional grants to provinces during the first quarter of the 2012/13 financial year.
14. A more detailed analysis of the expenditure outcome as at 30 June 2012 is set out in
Annexure A.
Provincial Budgets: 2012/13 Financial Year - First Quarter Provincial Budgets and Expenditure Report
