North West Provincial mid-term adjustment by Finance MEC Paul Sebegoe

Hon Speaker,
Hon Deputy Speaker,
Hon Premier, Mme Thandi Modise,
Hon Members of the Executive Council,
Hon Members of the Provincial Legislature,
Chairperson of Chairpersons,
Chairpersons of Legislature Committees,
Hon Executive Mayors, Mayors, Speakers of Municipalities,
Chairpersons of the National and of the Provincial House of Traditional Leaders Kgosi, Maubane and Kgosi Mabe,
Maapara-nkwe a gaetsho,
Leaders of the Progressive Labour Movements,
All members of the business, civic and religious societies,
All senior officials of departments,
Esteemed guests.  

Introduction

Honourabe Speaker, it is an honour to present to this August House the 2012/13 Adjustment budget Estimates, as required in terms section 30 subsection (1) of the constitution.

Honourabe Speaker, Mid Term Budget Review is an important juncture in the MTEF Budget Cycle, as it provides us with ample opportunity to reflect on expenditure performance and patterns by government departments and institutions over the last six”(6) months and accordingly, make necessary budget expenditure projections for the remaining period of the financial year, to strength and consolidate our efforts towards effective ‘Planning and Reprioritization’ in order to meet the service delivery needs of our people.

However, Honourable Speaker, the tabling of the adjustment budget estimates takes place under unfavourable conditions and indeed, this is a litmus test for us as we are called to provide leadership and preside over such, complex economic issues which borders on the plight of our people. Undoubtedly, this cumbersome task, demand of us collective wisdom and commitment, if we are to deliver on the mandates bestowed upon us by the electorates.

We cannot be oblivious about the global economic situation; neither the fact that we are swimming against the tide, and the reality of the matter is that, economic restraints in the “developed world’’ have spiraling effects in the “developing nations”, and South Africa is not been immune from such global economic influences.

The Minister Mr Pravin Gordon has, in his recent Medium Term Budget Policy Statement delivered on the 25^th of October, pointed out to All South Africans that the current global economic situation is not favourable, as a result, most developing countries will be in difficulty for some time.

The Minister’s contention about the current economic negations faced by developing countries resonates with the findings of recent studies and surveys.

In his Medium Term Budget Policy Statement, The Minister also highlights some of the underlying causal factors, recently discussed by Cabinet, in which he states that:

• The global economy is slowing down; recovery after deep recessions takes several years. The European situation does not inspire confidence.
• The economic growth in South Africa has slowed to just 2.5 per cent this year, held back by both global uncertainty and disruptions to domestic production.
• Revenue collection is expected to be R5 billion less this year than the February estimate. The budget deficit is projected to be 4.8 per cent of the GDP in the current year as a consequence.
• For the MTEF period ahead, public expenditure will remain at the level set for 2012 Budget. In keeping with sound medium term fiscal guidelines, there will be no additions to the overall spending level.

Therefore, Honourable Speaker, understanding of the economic imperatives within the global context is pivotal, to the extent that it sharpens and broadens our understanding to grapple with these complex issues in order find urgent solutions.

Medium term expenditure framework (MTEF) Strategic Integrated Programmes (SIP) of the national government

Honourable Speaker, let me seize this moment to briefly outline on the government’s development perspective within National Scale context, as it relates to the North West Province.

The Strategic Infrastructure Programmes that the President of the Republic, Mister President Zuma announced during his state of the Nation Address earlier this year, remain important catalyst in unlocking economic opportunities for the province.

Most specifically, these strategic interventions will facilitate further economic growth in the North West Province through the acceleration of the roll out of water, road, and rail and electricity infrastructure.

The acceleration of identified investments in roads, rail, broadband, digital migration, bulk water, sanitation, irrigation and water treatment and transmission infrastructure will result in reliable supply, meet basic social needs such as schools, clinics and hospitals and facilitate the further development of mining, agricultural activities and tourism opportunities and open up beneficiation opportunities in the North West Province and the region.

These Strategic Infrastructure Programmes (SIP), will in the long run, promote agriculture, tourism and mining activities and more importantly, increase potential for linkages with SADC through transport/road as well as agro-processing.

The bulk-water supply, driven at national level under the department of water affairs, will have far-reaching effects in improving the lives of ordinary people and particularly in our province, which is predominantly rural and the provision of basic services still remains poor.

According to information at our disposal, planning phases in terms of the feasibility studies and other related process have been completed so far in the following places, which have been identified for the purpose of the BULK Water Supply, Infrastructure Integrated Programme:

• Madibeng
• Taung/Naledi
• Greater Mamusa
• Ratlou
• Ventersdorp
• Bojanala  
• Ngaka Modiri Molema
• Wolmaranstad
• Leeudoringstad
• Potchefstroom

Furthermore, the Eskom’s Transmission 5 year Capital Investment Plan in North West, which aims to increase transfer of power to Rustenburg, Brits, Carletonville and Vryburg areas, is but one project underway that will contribute significantly towards unlocking economic opportunities in the province.

This is also coupled by the Network System Integration and in particular, the Integration of Medupi PS into the 400kV system to Establish new Transmission 400 kV integration into the Distribution system at Vryburg.

All of these key government development priorities point out to the strategic direction and the developmental path of the state during the MTEF Period and should sharpen our understanding in the bigger scheme of things to start thinking outside the Box and to begin to understand where we are going as a province.

Honourable Speaker, tabling of adjustment budget estimates is always underpinned by lots of questions, however, be that as it may, the wisdom of the question remains, whether allocations speak to the provincial administration’s key priorities to meet the service delivery needs of ordinary people?

Key elements we have taken into account as the basis for the projections of the adjustment budget estimates is amongst others:

• The Expenditure Performance of various departments,  over the past six (6) months against the set out expenditure targets thereto;
• The projected expenditure performance over the remaining period of the 2012/13 financial year.
• Some of the variables arising from the quarterly performance of various departments’ expenditure performance as well as non-financial information which remains key to service delivery impact assessment.
• Reprioritization and Review of departmental plans, moreover, impact to service delivery
• New, unfunded policy mandates and programmes in the Provincial Administration
• Key Strategic Interventions and Priorities that requires funding and implementation during the current financial year.

Honourable Speaker, in any consideration we have made in dealing with this matter, we have put more focus on service delivery impact and thus most programmes allocated additional funding, has been as a result of service delivery related needs.

The constitution of the Republic enjoins us to commit ourselves to “improve the quality of life of all citizens and free the potential of each person”.

Honourable Speaker, this is the premise we would want to depart from, hence the emphasis on service delivery impact more than anything else’s. we have a mandate to deliver to the electorates and ordinary people are becoming impatient with the pace of service delivery, that is why we must at all material times, put service delivery at the centre of the agenda of government and this adjustment budget estimates, are geared towards ensuring that we give, concrete and practical expression to service delivery.

In this particular instance, we are further guided by the ANC election manifesto and the overwhelming confidence the people of this country have bestowed upon us, when they put us into office, and we dare fail them.

Honourable Speaker, it is therefore not the figures necessarily that are allocated to various departments that matters most, but whether we shall be able to translate them into tangible actions and achieve the key priorities government has set for itself, and at the heart of it all, it is about the service delivery impact the 2012/13 Reprioritized Plans, will have on ordinary people.

As we contend with all of these issues, we must also take into account that ours is a province, predominantly rural and most of its inhabitants are unemployed and still entrapped in the bondages of poverty, and continue to suffer from social-ills, such as, HIV-AIDS, Family disintegrations, and generally, still live in appalling conditions and this remains a key challenge to all of us.

The success or failure of this province depends on all of us, and our shared vision as the people of this province, across political lines, must be embedded in our quest to create an environment underpinned by ‘Economic sustainability and Prosperity’, in order to meet the increasing service delivery demands and change the lives of ordinary people for the better.

Honourable Speaker, this is the most difficult times of our lives but there is hope, and the future is not that bleak, only to the prophets of doom, however, we must remain firm and resolute in our commitment to instill fiscal discipline, accountability in spending of public funds and derive value for money in all we do.

Finding new solutions to the increasing, emerging economic challenges that has come to characterized our lives in the 21^st Century, is not an option, but as Public Representatives, we have the moral and political obligation to lead society in the right direction and at times, our political consciousness must prevail and supersede our own personal interests and ambitions.  

Honourable Speaker, all said and done, the fact remains, there will be no short cuts, and the journey ahead is not going to be easy, but we are more than determined to face the future with vigour and courage, and the journey has begun.

Economic outlook

It is stated in the 2012 Medium Term Budget Policy Statement, that the global economy is adjusting to a prolonged period of weaker growth and higher volatility lead by the financial crisis that began in 2008.

In this challenging economic environment, the Gross Domestic Product (GDP) growth is expected to improve over the medium term period. The real GDP growth is projected at 2.5 per cent in 2012 and 3 per cent in 2013, rising to 4.1 per cent in 2015.

In terms of SARS projections  the revenue collection is expected to be R5 billion less this year than the February estimates which further put strain on the ability to fund additional budget requests.  On the other hand, the budget deficit is projected to be 4.8 per cent of the GDP in the current year as a consequence. The implication is that the additional resources to support the economy will be generated from efficiency gains, savings and reprioritization.

It should be pointed out that, the government is faced with a huge debt and interest accrued that needs to be paid over a longer period of time and therefore composition of expenditure should be shifted towards infrastructure investments, economic competitiveness, education and health care.

Overall, the recently released Censors statistics highlights youth unemployment as one of the key challenges we are still facing as a country and this has serious economic deficit, due to the fact that the energetic, young people, who are supposed to be economically actively, are not part of the mainstream economy.

Honourable Speaker, my contention is that much as we make efforts to create jobs, we would not achieve sustainability and growth if these jobs are seasonal and not empowering to many young people, and as a province, we must work hard to find better ways to deal with this matter in a much more, progressive manner, as opposed to adhoc, seasonal programmes that are not sustainable.

Provincial expendtiture for the second quarter of the 2012/13 financial year which ended 30 September 2012

Honourable Speaker, overall, the expenditure performance of the Provincial Administration is reassuring and instills hopes that with time, under-spending will be a thing of the past. The Actual Provincial Expenditure as at the 30 September 2012 is at 44 per cent or R11.6 billion against an approved budget of R26.3 billion.

The expenditure patterns and trends for the over the past six months of the current financial year suggest that the province recorded consolidated expenditure which is 6 per cent below the expected target of 50 per cent.

Effectively, the provincial average spending of 44 per cent is a 1 per cent decrease when compared to last year September 2011 where expenditure was at 45 per cent and thus comparatively, there is neither radical shift nor decline of expenditure patterns and performance.

There are important variable and cost-drivers that have direct influence in shaping expenditure patterns of departments during the course of any financial year. The impact of seasonal spending due to nature of service delivery projects that departments implement, particularly, Infrastructure Development Departments, cannot be overlooked.

It is therefore important, that we acknowledge and appreciate all these elements in the value chain that influence the execution of budget and expenditure performance of certain department, in line their mandates whenever we conduct budget analysis and spending trends and performance.

We must, for all practical intent and purpose, understand and interpret expenditure patterns and trends in that dichotomy, if we are to make informed decisions around these complex issues and not run a risk of being guided by insinuations or incorrect assumptions.

Honourable speaker, when we make projections for the remaining period of the financial year, we always consider all these important variables at play within the execution plan of budgets, and indeed, I personally, wish to assure this house that the allocations to departments as outlined in this budget policy speech, is as a result of a robust, critical and fair assessment of budget expenditure performance of various departments, which we do on a monthly and quarterly basis.

I am therefore pleased to announce the expenditure performance of all departments as at the 30^th of September 2012. Almost all departments at this stage are below the estimated 50 per cent, and the actual spending performance is as follows:

• Office of the Premier; 41%
• Provincial Legislature; 51.48%
• Departments of Public Works, Roads and Transport; 32% Agriculture & Rural Development; 34%
• Department of Finance; 45%
• Social Development, Children and People with Disabilities; 40%
• Department of Health; 46%
• Economic Development, Environment and Conservation; 41.4%
• Local Government and Traditional Affair; 43%
• Human Settlement Safety and Liaison (Human Settlement Branch; 50.34%
• Human Settlement Safety and Liaison (Public Safety Branch; 50.34%

Honourable Speaker, much as I have pointed out that certain expenditure performance by departments can be justified at this stage, even though the Mid-Year expenditure targets have not been met, I must caution departments that we will not tolerate under-spending and we will not hesitate to use the ‘No use Lose it principle’ such that we can redirect funds to other perfuming departments to better service delivery.

We are also wary of fiscal dumping tendencies and we will closely monitor if departments are spending in accordance to their Annual Performance Plans or whether it is just sheer malicious compliance and again, we will not hesitate to act on such malpractices which do not yield any impact on service delivery.

Honourable Speaker, the average provincial spending on Compensation of Employees (CoE) is 49 per cent or R7.5 billion of the allocated budget of R15.2 billion, with the highest spending in the Provincial Legislature with 54 per cent and the Department of Finance spent the lowest at 34 per cent.

The provincial overspending on Compensation of Employees is projected at R317 million. This is despite the fact that the provincial departments were requested to adequately budget for Compensation of Employees over the 2012/13 MTEF.

The main contributors to the projected overspending Compensation of Employees are the departments of Education & Training of R169 million, Health of R95 million, Social Development, Women, Children & Person with Disabilities of R27 million, Agriculture & Rural Development with R15 million, Human Settlements, Safety & Liaison (Human Settlements Branch) with R12 million, Provincial Legislature with R4 million and Economic Development, Environment, Conservation and Tourism with R1.4 million.

Honourable Speaker, the average provincial spending on Compensation of Employees is 49 per cent or R7 billion of the allocated budget, with the highest spending in the Departments of Health and Agriculture & Rural Development with 52 per cent and 50 per cent respectively. This average spending of 49 per cent as at 30 September 2011 is the same when compared to the same period last year, 2010/11, where expenditure was also at 49 per cent or R5.9 billion of the allocated budget of R12.038 billion.

Honourable Speaker, I must tell Members of the Executive and Heads of Departments present here today, that the growing personnel budget vis-à-vis other non-interest spending item has not gone unnoticed and stands in diametric opposition to fiscal discipline and it is self-defeating to say the least. This unbecoming malpractice must end now, for it is counterproductive, stands to undermine the gains we have made and cannot be left unabated.

If we can’t spend the limited resources we have in a sound, efficient and meaningful manner, we leave treasury with no option but re-direct funding to other efforts that are intended to create jobs, infrastructure investments, economic competitiveness, education and health care.

Furthermore, I must also emphasize that continued overspending on personnel constitute an “unauthorized expenditure” contrary to the provisions of the Public Finance Management Act and this remain serious cause for cause.

Of significance, is the fact that there are no signals for change or improvement in this area and unless drastic actions are put into place, it will remain business as usual?

It is high time that departments account fully for spending in line with what is budgeted for, and as a department, we will continue to execute our functions and responsibilities to closely monitor spending by departments. At the same, we have trust and confidence, that the Legislature, through its committees, as the ‘constitutional body’ that approve budget for departments will put this matter high on its agenda.

The actual spending on conditional grants amounts to R1.9 billion or 38 per cent against the budget of R4.939 billion, highest spending on conditional grants is under the Departments of Human Settlement, Public Safety & Liaison (Human Settlements Branch) 50 per cent, followed by Education & Training with 43 per cent and Health with 40 per cent. However, extreme low spending of 18 per cent is in the department of Agriculture & Rural Development and the department of Public Works, Roads & Transport at 23 per cent.

Honourable Speaker, it should be noted by the Legislature and Executive that the low spending on the Conditional Grants creates a risk of withholding or stopping of funds in terms of section 17 and 18 of the Division of Revenue Act, Act No. 5 of 2012 and the possible loss of conditional grants funds to other provinces.

Honourable Speaker, it is worrisome that over the past four financial years under spending on conditional grants has increased year-on-year from R46.659 million in 2008/09 to R53.453 million in 2009/10 to R263 million in 2010/11 and finally to R432.9 million in the 2011/12 financial year.

The provincial departments were urged to put remedial actions in place during the current financial year which will improve planning, implementation and the rendering of the essential services as funded by these grants.

The provincial infrastructure budget (excluding conditional grants) equals R961 million with expenditure of R127 million or 13 per cent spending as at 30 September 2012. The provincial spending on infrastructure averages 13 per cent, which is a decrease of 12 per cent when compared to the same period last year where expenditure was registered at 25 per cent. With the exception of the department of Social Development, Women, Children and Person with Disabilities, all other departments spent below 20 per cent at this stage and this trend would result in under-spending if precautionary measures are not implemented or the re-allocation of funds are not considered.

The low spending of merely 13 per cent, clearly indicate the lack of capacity in planning, implementation and to deliver projects given the need for service delivery and to address the high poverty and unemployment levels in the province.

Honourable Speaker, of a great cause for concern is the growing trend in terms of under-spending on infrastructure funds (excluding conditional grants) registered over the past  four years, in 2008/09 it was at R19 million, in 2009/10 at R58 million, R216 million in 2010/11 and R198 million registered in 2011/12.

We work tirelessly and endlessly to find permanent and ever-lasting solutions to this scourge of underspending on infrastructure fund, that are key towards unlocking economic opportunities for the province and its people.

Infrastructure is the life-wire of economic development and unless, we begin to double our efforts and employment radical improvement measures, as a province we are doomed. 

As we grapple with all these issue, we also wish to seize this moment to applaud the National Treasury for its interventions it has made by seconding skilled personnel in the provincial department of public works, roads and transport to assist with technical capacity which is pivotal for infrastructure spending.

In the same vein, we commend the MEC for Public Works, Roads and Transport, for his decisive actions in uprooting corruption in his department. It is the right thing to do MEC, despite the risk of being unpopular, for your department operated in a system wherein corruption was highly entrenched and most of Senior Managers are indebted to the protagonists.

As a province, we cannot afford to see corruption entrenching itself with no consequences to its proponents and we will do our part in heeding to the call by the honourable Premier, Mme Thandi Modise to root-out out corruption in all government institutions.

The end results of corruption is poor service delivery and suffering of ordinary people who are at the receiving end, and this cruelty meted out against our people must be confronted with great vigour, courage and firmness, for if we are not careful, corruption will eat our society like cancer and with time, we will seize to exits and only chaos shall prevail.

Key priorities and strategic interventions of the provincial administration

Honourable Speaker, key to the unfunded mandate within the department of local government and traditional affairs, is the functions of the Commission on Resolutions of Traditional Leadership Disputes, which has since been devolved to Provinces through the establishment of Provincial Committee on dispute resolution.

The strengthening of institutions of the traditional leadership, whose existence is enshrined in the constitution, is very critical in the context of the democratic system of governance and anything to the contrary, would be a serious indictment to the democratic government.

The payment of members of traditional house of leadership, who has completed their term of office, i.e. ex gratia payments and the reconstitution of traditional council was prioritized during the mid-term adjustment allocations.

We have also allocated to the very department, additional funding for the purpose of cleaning the D-Account, which has overtime been plunged by controversies and allegations of fraud and corruption.

I have no doubt that auditing this account will enable all of us to move from informed positions in order to put into place strategic and redress measures to ensure that also Tribal Trust subscribes to good governance and administration, in the best interest of our tribal communities.

Municipal support is one of the key programmes of the department of local government and traditional affairs, to turn around municipalities and have received funding as it speaks directly to service delivery improvement and the objectives of the 2014 Clean Audit Project on good governance and administration of state institutions.

Similarly, the department of finance has received additional funding in relation to its municipal financial support improvement programme, to intensify its support for good financial management in municipal council to meet the 2014 Clean Audit Outcomes as well.

Honourable Speaker, the department of health is facing service demands in addressing the scourge of HIV/AIDS, particularly in terms of provision of medicine to HIV/AIDS Patient and its allocated budget is not adequate to meet the demand.

In the main, this is based on eligibility criteria of CD count moving from 200-350 and this has put more pressure on the available budget for medicines and  HIV/AIDS drugs meaning that more people will be placed on treatment once identified.

Added to that, there has been a directive that all pregnant mothers should be tested and therefore to support this national directive an amount of R21 million has been availed.

Honourable Speaker, on the other hand, the Bop Recording Studio, is but one of the greater commercial assets that provide a highly unique, creative and professional recording environment for both international and national recording artists and labels and in its construct, it is world class resort facility and must always be preserved, as such, funding has been provided to the department of economic development, environment, conservation and tourism:

Honourable Speakers, whilst this document provides details of specific programmes or activities that received funding, we have also made additional funding available for the hosting of AFCON 2013, following the Premier’s announcement that we will as a Province be hosting these Africa Games.

Hon Speaker, I must say that through savings from other programmes, we have to a very large degree met the demand of the provincial administration for additional funding.

Furthermore, the adjustment budget proposals for 2012/2013 reflects an increase of R636 million, which increase the Main budget of the province from R26 272 billion to R26 907 billion, mainly due to unspent conditional grants rollovers amounting to R264 million and R90 million for equitable share rollovers, R256 364 million for ICS allocation from National Treasury, R3 million for Health “AFCON” (grant) and R4 556 million for Further Education and Training College grant (ICS).

Honourable Speaker, to support the national treasury’s initiatives and directives on reprioritization, cost savings measures and waste reductions, the Provincial Treasury did request all provincial departments to assess the programmes that are no longer active as well as the spending patterns of non–core items in order to raise some savings with the intention to alleviate certain budgetary pressures registered by some departments. Most unfortunately this exercise was never performed by the departments and the Provincial Treasury made some hard choices to reduce funding on non- core items of the provincial departments.

Furthermore, we have instituted cost-effective measures through The Cost Containment Policy which has been approved by EXCO to ensure that there is sound and prudent spending by departments.

An amount of R85.304 million was raised from the reduction of non-core items and amount of R3.534 million has been surrendered by the Office of the Premier, due to the implementation of austerity measures. These amounts were allocated to other departments’ address budget pressures.

Office of the Premier

Office of the Premier’s budget has a net increase of R2.586 million. The department has surrendered an amount of R3.534 million. An amount of R5.800 million is added as a rollover and R320 thousands has been added to the department’s budget following the decision to decentralize CCP function from the Department of Finance to the departments. Resultantly, the department adjusted budget has increased by 1.1 per cent to the adjusted budget of R238.592 million.

Provincial Legislature

The Provincial Legislature budget is increasing by 11.4 per cent as result of the additional funding of R3 million being the 2 per cent shortfall for ICS and an amount of R3 million for parliamentary operations, resulting an upwards adjustment of R6 million to the revised estimate of R146, 451 million.

Department of Finance has supported the Provincial Legislature to utilize an unspent amount of R10million in 2011/12, in order to address its budgetary pressures in 2012/13.

Health

The department budget has been adjusted upwards by R124.383 million to R7.084 billion. The adjusted figure of R124.383 million is comprised of R34.254 million in respect rollover for conditional grants, R3 million for 2013 African Cup of Nations for Medical Services Grant, R2.928 million for the CCP function shift from Finance, R70 million to deal with personnel budget pressures including but not limited to Improvement of Conditions of Services.

An amount of R21.459million was made available to address budget pressures under pharmaceutical.

Sports, Arts and Culture

The allocated budget for this department was R447.106 million and increased to R498.272 million as a result of an amount of R33.992 million for rolled overs on unspent conditional grants and unspent equitable share as follows:

• Community Library Services Grant of R19 761 million.
• Learnerships of R376 thousands.
• An amount of R9. 438 million for construction of Multi-Purpose sports fields.
• R4.417 million for Construction of 3 Libraries in Lomanyaneng, Letsopa and Pudumoe.

Furthermore the department received an amount of R20 million for the Archives IT equipment and software. An amount of R794 thousand has been transferred to this department as a result of CCP function shift. An amount of R20 million was added into the budget of this department in order to operationalise the archive project.

Public Safety and Liaison (branch)

The department receives an allocation of R4 million in respect of Radio Communication System for Law enforcement and R2 million for 2013 AFCON tournament, resulting in an adjusted budget of R381.740 million. An amount of R373 thousand has been transferred to this department as a result of CCP function shift.

 

Economic Development, Environment, Conservation and Tourism

The allocated budget for this department was R426. 944 million and increased to R443.293 million as a result of an amount of R5.8 million for Bop Recording Loan, R4.5 million for 2013 AFCON Tournament on Beautification and Protocol Routes and R2.7 million for VIP hospitality and R1.8 million on personnel budget pressures including but not limited to Improvement of Conditions of Services mainly for North West Parks Boards.

The Department of Finance has approved an accumulated surplus of R7.150 million from previous financial years in favour of Gambling Board to be utilized in 2012/13 to manage their budgetary pressures. An amount of R502 thousand has been transferred to this department as a result of CCP function shift.

Finance

The departmental budget has been adjusted upwards from R371.924 million to R388.544 million, this is mainly due to rollovers of R9.774 million, R4.5 million for Professional Fees for BAS Consultation and Financial Management, R5.5 million for Microsoft License, R10 million for Phase 2 of the Municipal Financial Management Programme and R5 million for the Provincial Departments Turn-Around strategy on clean audit (PFMA Support).

The Department of Finance has through CCP function shift lost an amount of R13. 841 million which was distributed to various departments.

Education and Training

The allocated budget for this department was R10.872 billion and increased to R10.968 billion as a result of an amount of R33.304 million for roll overs on unspent conditional grants and equitable share as follows;

• Technical Secondary Schools Recapitalization Grant with an amount of    R10.455 million
• FET Colleges Conditional Grant allocated an amount R4.101 million.
• Learner and Teacher Support Material an amount of R17.847 million.
• Dinaledi School Grant with an amount of R719 thousand
• EPWP Grant with an amount of R182 thousand

In addition, the department receives other additional funding to the tune of R92.299 million and the said funding is apportioned as follows:

• An amount of R86 million was allocated for salaries and related costs
• An amount was R4.556 million was allocated towards salaries (ICS) of FET Colleges.
• An amount of R1.743 million was added as the result of the CCP function shift from Finance.

Local Government and Traditional Affairs

The allocated budget for this department was R332.164 million which has been  increased to R365.121 million as a result of an amount of R1.923 million of  roll overs on unspent equitable share and increase is reflected as follows:

 

• Traditional Affairs - Salary Increments- received an amount of R1.469 million.
• For Learnership an amount of R454 thousand.

Apart from that, the department received other additional funding to the tune of R4 million for the Investigation on tribal accounts, R7.5 million for the Provincial Committee on dispute Resolution, R8 million for the Reconstitution of Traditional Councils, R4.8 million for the  Ex-gratia payment for traditional leaders, R6 million for the  Municipal Support and R2.5 million for the Marikana Tragedy.

An amount of R291 thousand has been transferred to this department as a result of decentralization of CCP functions.

Public Works, Roads and Transport

The department budget has been adjusted upwards by R194.795 million to R3.277 billion adjusted budget. The adjusted figure of R194.795 million is comprised of rolled overs on unspent conditional grants and unspent equitable share as follows:

• An amount of R162.929 million is allocated for Provincial Roads Maintenance.
• For Public Transport Operations Grant an amount of R2 219 million is provided.
• Devolution of Property Rates Grants of R1.569 million.
• For Commuter Bus Subsidies an amount of R36.400 million is received as a roll over.

Furthermore, an amount of R3.356 million is received as the result of the CCP function shift from Finance and R1.761 million for the Procurement of the vehicle for the MEC’s for Economic Development, Environment and Conversation and Local Government and Traditional Affairs.

Social Development, Women, Children and People with Disabilities.

The main budget increase by R13.625 million to the adjusted budget of R963.326 million, as a result of an additional amount of R20 million in order to address the budget pressures associated with compensation of employees including bringing finality to the funding shortfall for the implementation of OSD and the rollover amount of R4.040 million for Mafikeng Child and Youth care center, Reamogetswe including two secure centers in Mafikeng and Matlosana respectively.

An amount of R976 thousand has been transferred to this department as a result of decentralization of CCP functions.

Agriculture and Rural Development

An amount of R13.286 million and R1.320 has been rolled over for the conditional grants of Comprehensive Agriculture Support Programme and Land Care respectively. Furthermore, an additional amount of R2.134 million as the result of the CCP function shifts from Finance. An additional R15 million has also been allocated for higher personnel remuneration increases, OSD implementation and other salary related costs. In total the department budget has been adjusted upwards by R8.321 million to R859.314 million.

An amount of R20 million was reduced from the budget of this department and transferred to Department of Sport, Arts and Culture in order to support operationalisation of the Archives Project, which remains strategic programme of the Provincial Administration.

Human Settlements

The Human Settlement Branch is benefiting from the following roll-overs to bring the adjusted budget to R1.260 billion inclusive of the CCP function shift from Finance of R469 thousand:

• Housing Disaster Relief Grant of R13.472 million.

The adjusted estimates included R12 million allocated for higher personnel remuneration increases and other salary related costs, R27 million for Litigation and R8 million for the winding down of North West Housing Development Corporation.

Conclusion

Honourable Speaker, It is my political conviction that a true revolutionary test, lies in the ability to close to a narrow extent, the gap between reality and desire, inspire confidence over despair, and that leadership itself is a challenge.

I am truly humbled by the support of members of this house and indeed, honourable, speaker, the role of parliament in holding the Executive accountable and playing an oversight role over institutions of governance, is the pillar of our democracy.

To the Chairperson of Portfolio Committees, both that of Finance and PPAC, thanks very much for your support in ensuring that there is accountability and transparency in the use of public funds.

To the Premier, special thanks for your visionary leadership, I really appreciate the support you are giving us. My colleagues in the Executive, we share collective responsibilities and your continued support is very much appreciated.

The Acting HOD and Senior Managers, thank you very much for your commitment and dedication, I really appreciate.

Honourable Speaker, when all is said and done, history shall affirm us, and we shall leave behind a legacy that shall make the posterity and future generations proud, if we fail, history will judge us harshly.

Mogolo o buile mo malobeng fa ane are: ‘Mogala Nko Ya Kgomo tshwara ka thata, e sere o utlwa sebodu, wa kgaoga.

I thank you!