Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694846873262.pdf (South Africa)
Tuesday, 31 May 2022] No 81—2022] FOURTH SESSION, SIXTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA _____________________ ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS _____________________ TUESDAY, 31 MAY 2022 _____________________ TABLE OF CONTENTS ANNOUNCEMENTS National Assembly 1.

Referral to Committees of papers tabled .......................................................................... 2 National Council of Provinces 1.
Transmission of Bills for concurrence ............................................................................. 2 TABLINGS National Assembly and National Council of Provinces 1.

Speaker and Chairperson .................................................................................................. 3 2.

Minister of Finance ........................................................................................................... 3 National Assembly 1 1.
Minister of Finance ........................................................................................................... 3 COMMITTEE REPORTS National Assembly 1.

Mineral Resources and Energy ......................................................................................... 7 Home Affairs .................................................................................................................... 8 2.

National Council of Provinces 1.

2.

3.

4.
Health and Social Services ............................................................................................... 9 Health and Social Services ............................................................................................. 35 Education and Technology, Sports, Arts and Culture .................................................... 62 Education and Technology, Sports, Arts and Culture .................................................... 84 ANNOUNCEMENTS National Assembly The Speaker 1.
Referral to Committees of papers tabled (1) The following paper is referred to the Portfolio Committee on Defence and Military Veterans for consideration: (a) Report on Activities of the Office of the Military Ombud for 2021 – 22.

National Council of Provinces The Chairperson 1.


Bills passed by Assembly and transmitted to Council for concurrence (1) Bill passed by National Assembly and transmitted for concurrence on 31 May 2022: (a) Criminal Law (Forensic Procedures) Amendment Bill [B25-2021] (National Assembly – sec 75).

The Bill has been referred to the Select Committee on Security and Justice of the National Council of Provinces.

2 TABLINGS National Assembly and National Council of Provinces 1.
The Speaker and the Chairperson (a) Submission of the Financial and Fiscal Commission on the Division of Revenue Bill for 2023/24, tabled in terms of section 9(1) of the Intergovernmental Fiscal Relations Act, 1997 (Act No 97 of 1997), as amended.

2.

The Minister of Finance (a) Financial Stability Review, First Edition 2022.

National Assembly 1.


The Minister of Finance (a) Letter dated 31 May 2022 from the Minister of Finance to the Speaker of the National Assembly, informing Members of the Assembly of a temporary reduction in the fuel levy, with effect from 01 June 2022.
3 MINISTER: FINANCE REPUBLIC OF SOUTH AFRICA Private Bag X115, Pretoria, 0001 Tel: +27 12 323 8911 Fax: +27 12 323 3262 P O Box 29, Cape Town 8000 Tel +27 21 464 6100 Fax +27 21 461 2934 Ref: M3/3/1/1(525/2022) Honourable Nosiviwe Mapisa-Nqakula Speaker of the National Assembly Parliament of the Republic of South Africa PO Box 15 CAPE TOWN 8000 Dear Honourable Speaker TABLING OF A TEMPORARY REDUCTION IN THE FUEL LEVY INTRODUCTION AND BACKGROUND The escalation in oil prices due to the current Russia/Ukraine conflict has placed significant upward pressure on domestic fuel prices (and other commodities).
As such, on 31 March 2022, I made an announcement in this House of a temporary reduction of the general fuel levy to assist households and businesses by cushioning the impact of large increases in the prices of petrol and diesel.

The relief included a two-month reduction in the general fuel levy of R1.50 per litre from 6 April 2022, reducing the levy by 40 per cent, at a fiscal cost of around R6 billion.
This amount was to be funded through a sale of strategic oil stocks and would not have an impact on the fiscal framework.

Simultaneously I, together with my colleague Honourable Gwede Mantashe, issued a joint statement in this regard.

After the implementation of the above-mentioned temporary fuel levy relief, oil prices have risen further and the exchange rate has depreciated.
As a result, it is expected that the regulated petrol price will go up by close to R4 per litre on 1 June 2022, which would increase the cost of 95 octane unleaded petrol to over R25 per litre.

This entails an increase of just under 20 per cent for the coming month.

This assumes that the R1.50/l fuel levy relief expires on 1 June 2022 as per the original announcement made on 31 March 2022.
4 TABLING OF THE KEY PROPOSAL The sharp increase in the petrol price would place an additional burden on households and businesses, as transport and food would become more expensive.
In order to mitigate the impact of these escalating fuel prices, I hereby table the following proposal, which will be included in the 2022 Rates and Monetary Amounts and Amendment of Revenue Laws Bill, for consideration by this House: • A one-month extension of the temporary reduction of the general fuel levy by R1.50 per litre from 1 June 2022 to 5 July 2022.

• A phasing out of the relief through a one-month temporary reduction of the general fuel levy by 75c per litre from 6 July 2022 to 2 August 2022.
The temporary relief will be withdrawn from 3 August 2022 onwards.

This measure will assist in smoothing the increase in fuel prices for households and businesses, as they may need to adjust to an environment with higher fuel prices due to global conditions.

REVENUE IMPACT OF PROPOSAL The proposed additional temporary reduction of the general fuel levy will result in an estimated revenue foregone of about R4.5 billion.

Government remains committed to the fiscal framework outlined in the 2022 Budget.
The proposed temporary reduction in the fuel levy will be accommodated in the current fiscal framework in a manner that is consistent with the fiscal strategy outlined in the 2022 Budget.

Any changes, if required, will be announced at the time of the 2022 Medium Term Budget Policy Statement.

I hope the tabling of this letter meets with your favourable consideration.

Yours sincerely ENOCH GODONGWANA MINISTER OF FINANCE DATE: 31/05/2022 COMMITTEE REPORTS 5 National Assembly 6 1.
Report of the Portfolio Committee on Mineral Resources and Energy, on the Revised African Regional Co-operative Agreement for Research, Development and Training Related to Nuclear Science and Technology (AFRA) Agreement, tabled in terms of section 231(2) of the Constitution, 1996, dated 31 May 2022 The Portfolio Committee on Mineral Resources and Energy, having considered the Revised African Regional Co-operative Agreement for Research, Development and Training Related to Nuclear Science and Technology (AFRA) Agreement, tabled in terms of section 231(2) of the Constitution, 1996 on 31 May 2022, recommends that the House approve the revised Agreement.
Report to be considered.

1 7 2.
Report of the Portfolio Committee on Home Affairs on Filling the Vacancy in the Electoral Commission, dated 31 May 2022: The Portfolio Committee on Home Affairs, having considered a request to the National Assembly by the Chief Justice of the Republic of South Africa, Mr Raymond Zondo, to nominate a suitable candidate to fill a vacancy in the Electoral Commission, reports as follows: Following interviews by a panel established in terms of section 6(3) of the Electoral Commission Act, 1996 (No 51 of 1996) and comprising the Chief Justice (chairperson), the Chairperson of the South African Human Rights Commission, the Chairperson of the Commission for Gender Equality and the Public Protector; the Chief Justice submitted a list of candidates and their curricula vitae to the National Assembly for consideration to fill a vacancy in the Electoral Commission.
The matter was referred to the Portfolio Committee on Home Affairs on 14 April 2022 for consideration and report (see Announcements, Tablings and Committee Reports number 53, dated 14 April 2022, page 9).

The committee met on 10, 20 and 31 May 2022 to consider the candidates recommended by the panel.

Following its deliberations, the committee recommends that the House approve the nomination of Mr VG Mashinini for appointment to fill the vacancy in the Electoral Commission.

Report to be considered.


8 National Council of Provinces 1.
REPORT OF THE SELECT COMMITTEE ON HEALTH AND BUDGET VOTE 19, THE ANNUAL SOCIAL SERVICES ON PERFORMANCE PLANS OF THE DEPARTMENT OF SOCIAL DEVELOPMENT AND ITS ENTITIES FOR 2022/23 DATED 03 MAY 2022 The Select Committee on Health and Social Services (henceforth, the Committee) having considered and deliberated on the Budget Vote, the Annual Performance Plans of the Department of Social Development (henceforth, the Department), the South African Social Security Agency (SASSA) and the National Development Agency (NDA) on 26 April 2022 and 03 May 2022, wishes to report as follows: 1.
INTRODUCTION Section 5(2) of the Constitution of South Africa (No.

108 of 1996) and Section 27(4) of the Public Finance Management Act (No.1 of 1999) set out the role of Parliamentary Committees in conducting oversight over government departments and entities.

As part of conducting Parliamentary oversight, Committees have the constitutional mandate to scrutinise and approve the budgets of the Executive.
In this regard, the Committee considered the Annual Performance Plans (APPs) and budget allocation of the Department of Social Development and its entities.

This report summarises a presentation received from the Department and its entities on the Annual Performance Plans and Budget for the 2022/23 financial year and allocations over the Medium-Term Expenditure Framework (MTEF) period.

The report entails the deliberations, observations and recommendations made by the Committee relating to Budget Vote 19.
1 9 2.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL PERFORMANCE PLAN (2022/2023) 2.1 The Mandate, Vision, Mission, of the Department The Department aims to help improve the lives of the poor and vulnerable by fulfilling the following: • Reducing the levels of poverty, inequality, vulnerability and social ills; • Empowering individuals, families and communities; and • Having a functional, efficient and integrated sector.

The Department envisions a “caring and self-reliant society”.
The mission of the Department is to transform society by building conscious and capable citizens through the provision of comprehensive, integrated and sustainable social development services.

2.2 Policy Priorities for 2022/23 Financial Year The policy priorities of the Department are aligned with Section 27(1)(2) of the Constitution of the Republic of South Africa.
The Constitution gives effect to the right of everyone to have access to: (a) health care services, including reproductive health care; (b) sufficient food and water; and (c) social security, including if they are unable to support themselves and their dependents, appropriate social assistance.
In addition, the policy priorities of the Department are in line with the aspirations of the National Development Plan (NDP): Vision 2030, Medium Term Strategic Framework (MTSF), United Nations (UN) Sustainable Development Goals (SDGs), African Union (AU) Agenda 2063, and 2022 State of the Nation Address (SONA).
As shown in Figure 1, these entail the following: Priority 2 – Economic transformation and job creation; Priority 3 - Education, skills and health; Priority 4 – Consolidating the social wage through reliable and quality basic services; and 2 10 Priority 6 – Social cohesion and safe communities.
Figure 1: Selected MTSF 2019-24 priorities related to Social Development sector PRIORITY 2 • Economic Transformation & Job Creation PRIORITY 3 • Education, Skills & Health PRIORITY 4 • Consolidating the Social Wage through reliable & quality basic services PRIORITY 6 • Social Cohesion & Safe Communities The Department has a direct responsibility of realising or ensuring the following: • Implementing the National Strategic Plan to eradicate Gender-Based Violence and Femicide (GBVF).
• Improving the optimisation of social welfare services.

• Optimising the social security legislative framework and develop appropriate norms and standards for service delivery.

• Optimising the non-profit organisations legislative framework to promote good governance and accountability.

• Promoting vibrant and sustainable communities.

• Improving household food security.

3.


BUDGET ANALYSIS FOR 2022/23 The Social Development sector provides social protection services and leads government efforts to forge partnerships through which vulnerable individuals, groups and communities become capable and self-reliant participants.
This mandate is realised through the following five (5) budgeted programmes: Administration (Programme 1); Social Assistance (Programme 2); Social Security Policy and Administration (Programme 3); Welfare Services 3 11 Policy Development and Implementation Support (Programme 4); and Social Policy and Integrated Service Delivery (Programme 5).
The total budget allocation of the Department is R257.0 billion for the 2022/23 financial year, which is a nominal increase of R23.27 billion (or 10 per cent) compared to the R233.7 billion adjusted budget for 2021/22.
Table 1: Overall budget allocation to the Department and its programmes for the 2022/23 financial year PROGRAMME BUDGET NOMINAL ↑ OR ↓ REAL ↑ OR ↓ NOMINAL % CHANGE REAL % CHANGE R million 2021/22 2022/23 2022/23 2022/23 2022/23 2022/23 Programme 1 417,9 423,6 5,7 - 12,5 1,36% Programme 2 224 542,2 248 294,6 23 752,4 13 060,3 10,58% Programme 3 8 077,5 7 614,5 - 463,0 - 790,9 -5,73% Programme 4 304,0 309,1 5,1 - 8,2 1,68% -3,00% 5,82% -9,79% -2,70% Programme 5 385,9 359,6 - 26,3 - 41,8 -6,82% -10,83% TOTAL 233 727,5 257 001,4 23 273,9 12 206,9 10,0% 5,22% Figure 1 illustrates how the Department’s budget allocation is affected by the inflation rate of 4.5% for 2022/23 financial year.
Figure 1: Department’s budget over the medium term in nominal and real (Inflation Rate: 4.5%) 4 12 Figure 2 compares the Department's budget allocation on specific line budget line items according to economic classifications.

As shown in Figure 2, a large proportion of the Departmental budget goes to transfers and subsidies to the value of R232.79 billion (which is 99.6 per cent of the total departmental budget).
This is followed by current payments to the value of R922.3 million (0.36 per cent of the total departmental budget) and payment of capital assets to the value of R12.5 million (0.01 per cent).

Figure 2: Proportion of the Department’s budget spent on specific line items according to economic classification The current payments budget shows a real increase half a million rand between 2021/22 and 2022/23 financial years.
The current payments totals R922.3 million, of which: • Compensation of Employees receives R507.3 million, compared to R516.7 million previously.

It declines with -1.8% from the previous year, whist Goods and Services increase in real terms with 2.4%.

• Goods and Services receives R415.5 million in 2022/23 compared R405.6 million previously.

The payment of capital assets budget shows a nominal increase of R700 thousand (5.60%).
It increases from R12.5 million in 2021/22 to R13.2 million 2022/23 financial year.

Of this amount, R12.5 million (96.2% of the total budget of this line item) is allocated to machinery and equipment, with the remaining allocated to software and other intangible assets.

5 13 There is a notable increase in both nominal and in real rand value for transfers and subsidies line item.

It increases from R232.79 billion in 2021/22 to R256 billion in 2022/23 year.
The budget increases in this line item are driven by the following: • Households: there is a notable real budget increase from an adjusted R224.54 billion in 2021/22, to R248.3 billion in 2022/23.

• Non‐profit institutions: payments to this line item show a real increase from an adjusted R29.7 million in 2021/22, to R44 million in 2022/23.

4.
4.

BUDGET AND ANNUAL PERFORMANCE TARGETS PER PROGRAMME 4.1 Budget allocations per programme The proportional allocations per main programme between the 2021/22 adjusted budget and 2022/23 voted funds are shown in Figure 3.

This excludes Programme 2 (Social Assistance), which is managed by the South African Social Assistance Agency (SASSA) in paying out social grants.
Figure 3: Comparison of budget allocation between the Departmental programmes Programme 1: Administration receives a budget allocation of R423.5 million for 2022/23, which shows nominal increase of R5.7 million compared to the adjusted budget of R417.9 million in 2021/22 financial year.

However, when the inflation is considered, the programme’s budget shows a real decline of R12.5 million (or -3.00 real percent change).

6 14 This programme only consumes 0.2 per cent of the total budget of the Department.
Over the medium term, the programme’s budget shows an average growth rate of 1.6 per cent.

Programme 2: Social Assistance, is the only programme that achieved a positive budget in both nominal and in real rand terns.

The total budget allocation for the programme is R248.2 billion for 2022/23 financial year, up from an adjusted budget of R224.5 billion in 2021/22 financial year.

This programme shows a nominal increase of R23.75billion (10.58%) or a real increase of R13.0 billion (5.82%).
It consumes about 96.2 per cent of the total departmental budget.

Over the medium term, the programme’s budget shows an average growth rate of -0.1 per cent.

Programme 3: Social Security Policy and Administration is the second largest budget of the Department and receives an allocation of R7.6 billion for 2022/23 financial year.

This is a decline compared to the adjusted budget allocation of R8.0 billion in 2021/22 financial year.
The programme’s budget shows a nominal decrease of R463 million and a real decrease of R790.9 million.

The programme consumes about 3.3 per cent of the total departmental budget.

Over the medium term, the programme’s budget shows an average growth rate of 3.3 per cent.

Programme 4: Welfare Service Policy Development and Implementation Support budget increases from R304 million in 2021/22 to R309.1 million in 2022/23 financial year.
This shows a nominal increase of R5.1 million (1.68 per cent) and a real decrease of R8.2 million (-2.70 per cent) between 2021/22 and 2022/23 financial years.

However, over the medium term, the programme’s budget shows an average growth rate of 2.0 per cent.

Programme 5: Social Policy and Integrated Service Delivery experiences significant budget cuts compared to other programmes of the Department, i.e., its budget decreases from R385.9 million, to R359.6 million.
Therefore, the programme’s budget shows a nominal decrease of R26.3 million (-6.82 per cent) and a real decrease of R41.8 million (-10.83 per cent).

The notable decrease in this programme is the transfer to the National Development Agency (NDA) from R246.0 million in 2021/22, to R 219.3 million in 2022/23 financial year.

Over the medium term, the programme’s budget shows an average growth rate of -1.0 per cent.
7 15 4.2 Performance targets per programme 4.2.1 Programme 1: Administration The purpose of this programme is to provide leadership, management and support to the department and the social sector.
The programme budget is allocated across 6 sub- programmes as listed below: Table 2: Budget allocation for the sub-programmes SUB-PROGRAMMES 2021/22 BUDGET ALLOCATION 2022/23 BUDGET ALLOCATION Ministry R42.6 million Department Management R71.7 million Corporate Management R164.1 million Finance Internal Audit R73.5 million R16.5 million Office Accommodation R44.9 million TOTAL R413.2 million R43.7 million R73.5 million R168.2 million R75.4 million R16.6 million R46.6 million R423.5 million Compensation of Employees R210.8 million (51.0%) R210.7 million (49.9%) Goods and Services R196.8 million (47.6%) R206.9 million (48.7%) The Department reports that it will utilise its budget to pilot the Electronic Monitoring and Evaluation (M&E) System for Social Development in three (3) provinces, and obtain an unqualified audit opinion.
It will also implement the National Integrated Social Protection Information System (NISPIS).

Furthermore, the Department is planning to submit a government wide strategy on the employment of social services professionals to the Cabinet during this financial year.

This programme is a strategic partner to the core business of the Department and is regulated by a myriad of legislation.
It is responsible for ensuring effective and efficient governance systems are in place to create an enabling environment to deliver on its mandate.

Thus, during the 2022/23 financial year, the Department is planning to: • Submit the Draft SASSA Amendment Bill.

• Draft Regulations on Children’s Amendment Bill submitted to the Minister for approval.

• Refine and validate the Draft Social Development Bill.

8 16 • Draft Regulations on Older Persons Amendment Bill.
• Submit the Victim Support Services Bill to Cabinet for approval.

• Table the Non-Profit Organisation (NPO) Amendment Bill to Cabinet/Parliament.

• Produce a Draft Amendment NDA Bill.

The realisation of the targets set in this programme will contribute to the achievement of government priorities, particularly, priorities 3 and 6.
4.2.2 Programme 2: Social Assistance The purpose of this programme is to ensure the provision of social assistance to eligible beneficiaries in terms of the Social Assistance Act (No.13 of 2004) and its regulations.
The programme consists of payments made to beneficiaries for the provision of social grants as administered and paid by SASSA on behalf of the Department: Table 3: Payments for provision of social grants SUB-PROGRAMMES/SOCIAL GRANTS 2021/22 PAYMENTS 2022/23 PAYMENTS Old Age War Veterans Disability Foster Care Care Dependency Child Support Grant-in-Aid Social Relief of Distress TOTAL R86.

487 billion R92 .146 billion R1.197 million R23.
579 billion R4.338 billion R3.658 billion R73.318 billion R1.6 billion R31.561 billion R962 thousand R24.704 billion R4.057 billion R3.875 billion R77.224 billion R1.901 billion R44.386 billion R195.516 billion R204.295 billion Households (transfers) R195.516 billion (100%) R204.295 billion (100%) Over the medium-term, the Department will continue to transfer funds to beneficiaries for the provision of social grants for the provision of social grants to the elderly, children, war veterans and persons with disabilities.
Social grants account for an estimated 94.3 per cent (R175.3 billion per year on average) of the Department’s total budget over the MTEF period.

SASSA is mandated to pay social grants to 19.1 million beneficiaries in 2022/2023, up from 18.6 million in 2021/2022 (in line with the National Treasury's final projection).

Spending 9 17 on grants is expected to increase at an average annual rate of 7.5 per cent over the medium term.
This is mostly due to inflationary adjustments to the value of the grants and growth in the number of beneficiaries.

The elderly population, is growing by 3% per year.

As the elderly population grows, the number of beneficiaries who receive the old age grant is expected to increase.

Likewise, as the child population grows, the number of beneficiaries who receive the child support grant is expected to increase.
The high levels of unemployment and poverty in the country, combined with high wage inequality and low labour market participation, contribute to the growth of social grants to children.

Therefore, the social assistance programme will continue to be an important lever in government’s arsenal to tackle poverty and inequality.
4.2.3 Programme 3: Social Security Policy and Administration The purpose of this programme is to provide for social security policy development, administrative justice, the administration of social grants, and the reduction of incorrect benefit payments.
The programme budget is allocated across 5 sub-programmes as listed below: Table 4: Budget allocation for five sub-programmes SUB-PROGRAMMES BUDGET 2021/22 BUDGET 2022/23 Social Security Policy Development R66.0 million Appeals Adjudication Social Grants Administration R40.5 million R7.393 billion Social Grants Fraud Investigations R70.8 million Programme Management TOTAL Current payments R5.4 million R7.576 billion R68.8 million R40.7 million R7.427 billion R72 million R5.5 million R7.615 billion R104.4 million (1.3%) R109.6 million (1.4%) Transfers and subsidies R7.469 billion (98.5%) R7.502 billion (98.5%) Payments for capital assets R2.8 million (0.03%) R2.9 million (0.03%) The programme aims to amend the Social Assistance Act, SASSA Act and the Fund-Raising Act to address existing gaps and inconsistencies in the legislation.
It also plans to develop critical policy documents: a) Draft policy for integrating children’s grants beneficiaries with government services; b) Draft policy on maternal support for vulnerable pregnant women and children; 10 18 c) Draft policy for income support to 18–59-year-old; and 4) draft policy on voluntary cover for retirement and risk benefits for atypical and informal sector workers.
4.2.4 Programme 4: Welfare Services Policy Development and Implementation Support The purpose of this programme is to create an enabling environment for the delivery of equitable developmental welfare services through the formulation of policies, norms and standards and best practices and support to implementing agencies.

The programme budget is allocated across nine sub-programmes as listed in Table 5.
Table 5: Budget allocation for sub-programmes SUB-PROGRAMMES BUDGET 2021/22 BUDGET 2022/23 Service Standards Substance Abuse Older Persons People with Disabilities Children Families R31.7 million R21.9 million R20.2 million R13.7 million R85.4 million R10.8 million Social Crime Prevention and Victim Empowerment R73.4 million HIV and AIDS Youth Social Worker Scholarships Programme Management TOTAL R13.6 million R25.5 million R3.4 million R4.5 million R30.9 million R20.7 million R19.1 million R13.6 million R82.9 million R10.5 million R75.4 million R12.6 million R42.4 million - R4.7 million R304.6 million R313.1 million Compensation of Employees R142.0 million R142.8 million Goods and Services R121.8 million R115.6 million Only three of the 11 sub-programmes under this programme show positive budget increases in nominal terms.
That is, Social Crime Prevention and Victim Empowerment, Youth and Programme Management.
Importantly, this programme aims to do the following: • Train 270 social workers on Adoption Policy Framework and Strategy; • Present the revised White Paper on Families to the Technical Working Group; 11 19 • Monitor the implementation of the Guidelines for Community Based Prevention and Early Intervention Services to vulnerable children; • Monitor the implementation of the Inter-sectoral Protocol on Management of Violence Against Children, Child Abuse and exploitation; • Monitor the implementation of the programme of action on foster care in provinces; • Capacitate 7 public treatment centres on the implementation of the Universal Treatment Curriculum for substance use; • Capacitate (15) GBVF hotspot districts on the provision of psychosocial services policy and Inter-sectoral Policy on Sheltering Services in implementing the NSP; and • Capacitate four provinces on the Guidelines on Respite Care Services for Families of Children and Persons with Disabilities.
4.2.5 Programme 5: Social Policy and Integrated Service Delivery The purpose of this programme is to support community development and promote evidence- based policymaking in the department and the social development sector.

The programme budget is allocated across 8 sub-programmes as listed below.
Table 6: Budget allocation for sub-programmes SUB-PROGRAMMES BUDGET 2021/22 BUDGET 2022/23 Social Policy Research and Development R6.5 million R6.5 million Special Projects and Innovation R12.2 million R12.8 million Population Policy Promotion R38.4 million R38.7 million Registration and Monitoring of Non-Profit Organisations R41.5 million R41.9 million Substance Abuse Advisory Services and Oversight R6.9 million R7.0 million Community Development R30.5 million R29.8 million National Development Agency R246.0 million R219.2 million Programme Management TOTAL Current payments Transfers and Subsidies Payments for capital assets R3.8 million R3.8 million R385.9 million R359.6 million R136.8 million R137.4 million R248.2 million R221.2 million R1.0 million R1.0 million Of the eight (8) sub-programmes in this programme, only two (2) have experienced budget cuts, namely: Community Development and the National Development Agency (NDA).
The notable budget cut is that of the transfer to the NDA to the value of R26.8 million.
12 20 Importantly, under this Programme, the Department plans to do the following: • Create 176 474 Expanded Public Works Programme (EPWP) work opportunities through Social Sector EPWP Programmes; • Capacitate stakeholders to implement the NPO Mentorship Model; • Build capacity of provinces on the implementation of the Department Sector Funding Policy; • Implement NPO sector payment system in all provinces; • Develop an annual report on the implementation of the National Food and Nutrition Security Plan; • Link 20 000 social protection beneficiaries to sustainable livelihood opportunities; and • Train 92 municipalities on the Integrating Migration issues into Integrated Development Planning (IDP).
5.

SOUTH AFRICAN SOCIAL SECURITY AGENCY (SASSA) ANNUAL PERFORMANCE PLAN 2022/2023 5.1 Introduction The mandate for South African Social Security Agency (SASSA) is to ensure the provision of comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.

SASSA’s work for the Medium Term Expenditure Framework (MTEF) period will be streamlined towards achieving the four outcomes as identified and detailed in its strategic plan 2020 – 2025.
These outcomes include: • Reduced poverty levels.

• Economic transformation - empowered individuals and sustainable communities.

• • Improved customer experience.

Improved organisational efficiencies.
In line with the aforementioned, for the 2022/23 financial year, SASSA has set to achieve the following interventions: 13 21 • Business Process Reengineering, • Digitization and automation of business processes to position SASSA within the developing technological topography, • Strengthening the management of SASSA’s payment partnerships in order to ensure that social grants beneficiaries receive their grants at the right time and place, • Building management capacity for efficient and effective organizational environment and improve organizational efficiency and governance.
5.2 Budget Analysis for the 2022/23 Financial Year The overall budget allocation of SASSA for 2022/23 financial year in comparison with the previous financial year is shown in Table 6.
Table 7: SASSA budget allocation for 2022/23 financial year Programme R million 2021/22 2022/23 Budget Nominal Increase / Decrease in 2022/23 Real Increase / Decrease in 2022/23 Nominal Percent change in 2022/23 Real Percent change in 2022/23 Programme 1:Administration Programme 2:Benefits Administration Support 3 295,2 5 243,6 2 929,6 4 575,0 - 365,6 - 668,6 - 491,8 -11,09 per cent - 865,6 -12,75 per cent -14,92 per cent -16,51 per cent TOTAL 8 538,8 7 504,6 - 1 034,2 - 1 357,4 -12,1 per cent -15,90 per cent SASSA has a budget allocation of R7.504 billion for 2022/23 financial year.
This shows a nominal decrease of R1.034 billion (or -12.1 nominal per cent) compared to the adjusted budget allocation of R8.538 billion in 2021/22 financial year.

When the inflation rate of 4.5 per cent is factored in, the budget of the Agency is further reduced by R1.357 billion (or - 15.90 real per cent) between 2021/22 and 2022/23 financial years.
When comparing the two programmes of the Agency, the bulk of the total budget is allocated to Programme 2: Benefits Administration Support to the value of R4.575 billion in 2022/23 financial year.

The budget for this programme shows a nominal decrease of R668.6 million (- 12.75 per cent), from R5.243 billion in 2021/22 financial year.
14 22 5.3 Budget and Annual Performance Targets Per Programme The Agency functions through two main programmes, namely, Programme 1: Administration and Programme 2: Benefits Administration and Support.

Table 8: Number of performance targets for 2022/23 financial year PROGRAMME NO.

OF TARGETS IN THE 2022/2023 APP Programme 1 Programme 2 Total 17 17 34 5.3.1 Programme 1: Administration The purpose of the administration program is to provide leadership, management and support services to SASSA.
This program aims to realize the three SASSA outcomes that are economic transformation, improved customer experience and improved organizational efficiency.

In the year under review, some essential interventions for the program will include: • Linking social grant beneficiaries to developmental opportunities through existing relationship between the Department and the National Student Financial Aid Scheme (NSFAS).
• Modernising business processes to position SASSA within the developing technological topography.

• Utilising SASSA database as a strategic asset to improve decision-making and effective integration with other government institutions.

• Considering various options towards migration from legacy system to modern solutions.

• • Improving organisational efficiency and governance.

Intensifying the fight against fraud and corruption.
The Administration programme plays a crucial role in ensuring that SASSA is capable to deliver efficiently on its mandate of administering, managing and payment of social grants.

15 23 Essential to the identified priorities within the programme are the organizational transformation interventions, which deal with capacity of the Agency to deliver on its mandate.

This includes a skills audit which is aimed at proper placement of staff for optimal utilization.
The modernization of business processes also remains a priority for SASSA in the MTEF period.

The programmes compensation of employees is R1, 114 995 billion in 2022/23.

The increase in compensation of employees to R1,182,686 is expected to accommodate the outcomes of the planned initiatives, for example, the Business Process Reengineering Programme.
To improve the quality of SASSA’s financial reporting, the Agency will invest in a business intelligence solution which will verify that all payments to grant recipient banks accounts were successful and match the claims from the SAPO.

This solution will allow data to be profiled comprehensively and effectively to support transactional, operational and analytical workloads regardless of it source, volume or latency.
5.3.2 Programme 2: Benefits Administration and Administration and Support The purpose of the Administration and Support Programme is to provide a grant administration service, which will ensure that operations within SASSA are integrated.

This programme manages the entire function of grant administration from application to approval and beneficiary maintenance.

The programme also provides income support to South Africans that are unable to provide for themselves and their dependents.
This programme is responsible for the core business of SASSA and it provides an efficient and effective grant administration service for the implementation of the social assistance program across the country.

It also monitors and evaluates improvements, innovations, and service delivery networks.

Strategic guidance and support is also provided to ensure that an effective and efficient social security customer service is provided to beneficiaries in a dignified manner.
Some of the interventions for 2022/23 financial year include: • Increasing the number of grants in payment including grant-in-aid to an estimated 18.8 million at the end of March 2023.

16 24 • Implement the extended Child Support Grant (CSG), which is CSG Top-Up for orphans.

A total of 191 200 applications in payment.

• Process 100% applications for the coronavirus (COVID-19) special grant (or Special Relief of Distress grant).

• Develop the Service Delivery Improvement Plan (SDIP).
• Implement the System Interface with government institutions where Memorandum of Agreements (MOUs) were completed to improve validation of beneficiaries.

• Reduce the turnaround time for processing social grant applications from 10 days to 5 days and gradually to 1 day at the end of the MTSF period.

• Improve time spent in resolving customers’ enquiries and disputes.

• Roll out the queue management system to 18 local offices – 2 offices per region.
• Strengthen the management of SASSA’s payment partnerships in order to ensure that social grants beneficiaries receive their correct grants at the right time and place.

• Explore the possible value that can be added to the SASSA beneficiaries using the economies of scale and the improvements in the payment landscape.

On its resource allocations, the core business of SASSA is placed within the Benefits and Administration Programme.
While the business processes of SASSA have been automated, it can be noted that some of the activities are still manual and labour intensive.

The scanning of beneficiary records takes place at a central place in each region which means that records are physically transported from local offices to the central regional registry on a regular basis.
The planned improvements including the finalisation of the automation process for the grant applications may yield some positive rewards translating into fewer resources propelled into human resources and equipment (vehicles).

The compensation of employees for this programme was R2, 431,509 billion in 2022/23.
The rollout and upgrade of the beneficiaries’ biometric solution that is aimed at reducing fraud by strengthening beneficiary verification mechanisms and authentication is prioritised in the MTEF period.

The planned upgrades will include facial recognition as an additional biometric identifier, and high performance search and matching capabilities to efficiently scan an estimated 220 million beneficiary fingerprints in the database to identify potential duplicates.

17 25 6.
17 25 6.

NATIONAL DEVELOPMENT AGENCY (NDA) ANNUAL PERFORMANCE PLAN 2022/2023 6.1 Introduction The National Development Agency (henceforth the NDA) is an agency of government that reports to Parliament through the Department of Social Development.

The NDA is classified as a public entity under Schedule 3A of the Public Finance Management Act (Act No.

1 of 1999).

The NDA was established in November 1998 as government’s response to the challenge of poverty and its causes in South Africa.
The NDA has a two-fold legislative mandate consisting of a primary mandate and a secondary mandate.

Its primary mandate is to contribute towards the eradication of poverty and its causes by granting funds to civil society organisations (CSOs) for carrying out projects or programmes aimed at meeting development needs of poor communities and strengthening the institutional capacity of CSOs involved in direct service provision to poor communities.
The secondary mandate is to promote consultation, dialogue and sharing of development experience between civil society organisations and relevant organs of state; debate on development policy; and undertake research and publications aimed at providing the basis for development.
In line with the NDP and the MTSF, for the year under review, the NDA has set to achieve the following priorities: • Increase funding to CSOs programmes that are creating job opportunities, skills development and sustainable livelihood.

• Create 3 000 job opportunities.

• Provide capacity-building interventions to CSOs supported by the NDA on organizational management and technical training to improve quality of service and sustainability.
18 26 6.2 Budget Analysis for the 2022/23 Financial Year Table 9: NDA budget allocation for 2022/23 financial year The NDA received a budget allocation of R221.3 million for 2022/23 financial year, down from R247.9 million in 2021/22.

This illustrated a nominal decrease of 10.7 per cent and a real decrease of 14.6 per cent (when inflation is considered).

The real decrease is R36.1 million.


6.3 Budget and Annual Performance Targets Per Programme 6.3.1 Programme 1: Administration The focus of this programme is on promoting and maintaining organisational excellence and sustainability through effective and efficient administration that includes performance, employee wellbeing, cost containment as well as brand enhancement and recognition.

These will be achieved within a sound governance and administration environment.
This programme has an allocation of R107.4 million for 2022/23, up from a revised budget allocation of R105.3 million for 2021/22 financial year.
For the 2022/23 financial year, the NDA is planning to achieve the following four (4) performance targets it set for itself: 19 27 Table 10: Indicators and annual performance targets for Programme 1 OUTPUT INDICATOR ANNUAL TARGET Percentage (%) reduction of non-compliance Reduce by 80% the cumulative balance of IFW expenditure resulting in irregular, fruitless and wasteful reported in prior year annual financial statements.
expenditure (IFW) expenditure reported ICT strategy and architecture aligned to Approve and implement the ICT strategy and architecture to NDA business model approved and be aligned to NDA business model.

implemented New organisational structure aligned to Approval and implementation of new organisational NDA business model approved and structure aligned to NDA business model.
implemented NDA Strategic Partnership Model aligned NDA will be approving the NDA Strategic Partnership to NDA business model approved Model to be aligned to NDA business model .

6.3.2 Programme 2: Civil Society Organisation (CSO) Development The purpose of this programme is to focus on elevating the NDA to become the lead coordinator of development initiatives.
The programme will also focus on creating effective poverty eradication impact through the utilisation of key mechanisms and channels of poverty eradication, including, but not limited to the support of CSOs.

The budget allocation for this programme declines from R132.1 million in 2021/22 to R103.4 million in 2022/23 financial year.

This represents a 21.7 per cent nominal and 25.1 per cent real decrease in the budget for this programme compared to the previous year.
This programme has a total of five (5) performance targets for 2022/23 as opposed to the four (4) targets for the 2021/22 financial year.

SONA 2022, indicated that the Social Employment Fund will create a further 50,000 work opportunities using the capability of organisations beyond government, in areas such as early childhood development, and tackling gender- based violence among others.
In addition to expanding public employment, Government is providing support to young people to prepare them for work and link them to opportunities.

The NDA is planning to align itself with this target by creating jobs because of CSO development interventions.
20 28 Table 11: Indicators and annual performance targets for Programme 2 OUTPUT INDICATOR ANNUAL TARGET Rand value of resources raised from NDA During the year under review, the NDA plans to raise R35 partnerships to fund CSO development million to fund CSOs interventions Number of work opportunities created as a NDA intends to create 3000 work opportunities as a result of result of CSO development interventions CSOs development interventions.
Number of CSOs capacitated to strengthen NDA also plans to capacitate 2000 CSOs during the year their institutional capacity under review.

6.3.3 Programme 3: Research This programme will focus on development policy research and NDA programmes evaluative studies to be used to inform programme planning and policy development and debates in the social, economic and development sectors of the economy.
The outcome is to inform national development policy debates and engagements on issues relating to development and poverty alleviation in general.

It will also produce publications and standards for effective best practice in the development sector to promote sharing of lessons and good practice.

This programme has a total number of three (3) targets for 2022/23, the same as targets set for the previous financial year.
Table 12: Indicators and annual performance targets for Programme 3 OUTPUT INDICATOR ANNUAL TARGET Number of research publications produced to The Agency is planning to release three research provide a basis for development policy.

publications and three evaluation reports for the year under review.

Number of dialogues held with external It is also planning to have five (5) external dialogues to stakeholders to inform development policy.

engage on the NDA research outputs during this period under review.
Number of evaluations conducted to inform NDA will conduct 3 evaluations for the year under review.

programme design and implementation 21 29 7.

COMMITTEE DELIBERATIONS • The Committee wanted to know how the Department will process 80% of NPO Annual Reports and how many it expecting to receive in the current financial year.

The Department stated that in terms of the NPO Act, Sections 1 and 2, all NPOs must report to the Department of Social Development.
There are currently over 250 000 NPOs, not all of them report within a year.

Due to COVID-19 there has been delays, targets have been reviewed (2 years), some reports were submitted online and there were technical issues thus targets were lowered.

Under normal circumstances, 50 000 reports are received.

The expectation is that more than 50 00 reports will be received seeing the situation has normalised.

These reports must be scrutinised to give NPOs compliance certificates.
Therefore, the Department wants to do 80% of these reports.

• The Committee noted with concern that across Provinces there has been a reduction in funding.

The Committee wanted to know how the Department will counter the impact of budget cuts.

An example, was made of the budget cuts in North West and Northern Cape provinces.

The Department indicated that it has been underfunded, historically.

However, it has always managed to do a lot with very little money.
The allocation is not adequate for all the responsibilities the Department has.

However, there are no drastic cuts from National Treasury in this financial year.

The Department that it is important to note that there is better co-operation between itself, SASSA and NDA to assist with this by creating a stronger impact with the small budget.

In addition, the Department has strategies in place to deal with the reduction in funds.
It was also mentioned that the shift of the ECD function to the Department of Basic Education may be partially attributed to the reduction in funding.

• The Committee noted with concern, the discontinuation of the Social Worker grant as well as lack of absorption of qualified social workers.

The Committee wanted to know what the impact of this is, if there is a strategy to absorb social workers in the Department nationally, provincially as well as in the NPO sector.
In addition, the Committee cautioned that not addressing this may be wasteful expenditure and a contributor to youth 22 30 unemployment and rising social ills.

The Committee wanted to know how the Department is planning to address this.

The Department stated that unfortunately it does not have the money to absorb social workers.

However, there is a plan and strategy in place to remedy this.
It was acknowledged that a strategy is needed to combat this, though it should not only be the Department’s responsibility.

The Department agreed with the Committee that social workers are needed in various sectors and institutions including schools and correctional services.

Hence, the Department is looking at an integrated strategy on how best to remedy this.

It is important for other departments (and the private sector) to collaborate with the Department on this aspect.
There is a draft sector strategy, which is broadly addressing the employment of social workers in provinces, in the private sector as well as nationally.

The idea is to work towards a joint bid by the Department and submit this to National Treasury in June.

The intention is to get funding for social workers.

In terms of contracting social workers, provincial departments have been advised to consider continuing with the contracts with what is available in their own budgets in the meantime.
• The Committee asked about the period and process of reapplication for the R350 grant.

In addition, the Committee wanted to know about the impact will it have on poor and vulnerable communities, considering the devastation in KwaZulu-Natal (KZN) and Eastern Cape (EC), Northern Cape (NC) transport issues, and winter.

Further, the Committee noted the increase in the grant to KZN victims, and wanted to know if victims from other Provinces are also eligible for the increase.
SASSA clarified that the new R350 grant application requirement stems from the new legislation.

In addition, it has opened the application process and it is a once-off application that will be scrutinised every 3 months to make sure those eligible are recipients of the grant to rule out any fraudulent behaviour.

SASSA reported that applications for the R350 grant were steadily streaming in.

Besides KZN, other Provinces victims are also eligible for the grant increase.
More details will be communicated to the public directly.

It was reported that long queues will be curbed with reference to this grant, as everything will be done electronically.

23 31 • The Committee wanted to know how the community-based programmes will be rolled out.

An example was cited about the co-operation of departments regarding teenage pregnancy.

The Department acknowledged that teenage pregnancy is a crosscutting issue.

There will be no success on the issue by working in silos.
The Department stated that it has to start where the challenge is - child protection and the need for strengthening families, empowering families and instil values.

Working with the community is very important as to empower communities and take ownership of their own children.

Integration and collaboration is imperative, and an accountability structure.

There are programmes in place – there is a package of services (from the Department of Health, Department of Basic Education etc.)
The implementation of an integration model will assist with the intervention model.

• The Committee was concerned about the delays in finalising investigations on irregular, fruitless and wasteful expenditure, particularly at SASSA and the NDA.

The Committee wanted to know the reasons for the delays.

In addition, the Committee wanted to know if the implicated employees are still working for the Department or the entities; and if so, what the risks of that are.
The Committee asked what the Department is doing in real time to address the delays in investigations on irregular, fruitless and wasteful expenditure and what progress was made on outstanding cases.

Lastly, the Committee wanted to know about the key performance indicators for senior management regarding finalisation of these investigations.
The Department indicated that in all the performance agreements of senior managers, there are aspects on how issues raised by the Auditor-General will be responded to.

With regard to challenges at SASSA, the Department holds regular entity oversight meetings.

Importantly, it is in the process of finalising amendment of the SASSA Act, which will include provisions for the establishment of the Board.
With the NDA, a control committee has been appointed on the 11 contracts that have been identified as being irregular.

Determination tests are underway.

The NDA explained that the irregular and fruitless expenditure dates back from previous financial years and at the time it never applied for condonation.

For it to obtain a 24 32 condonation there should be some requirements that have to be met, such as a determination of financial loss, through the Board and National Treasury.
Some of the cases involved procurement of office space without following proper supply chain management (SCM) prescripts.

At the time, the SCM unit was under-resourced and not well capacitated.

Subsequently, these areas are gradually being addressed.

The Agency is investigating and conducting a determination test, which will to a binding consequence management outcome.

• The Committee raised concern about the (critical) vacancies (at the Department and NDA).
The NDA explained that the process for the filling of the Chief Executive Officer and Board vacancies was underway.

• The Committee raised concern about the NDA budget cuts, and the impact of that set targets and timeframes.

The NDA stated that historically it has been having budget cuts.

The NDA explained that its budget structure is line with the NDA Act.

Section 3(1) of the Act provides that the NDA should raise funds for CSOs funding, which it has been able to fulfil through donors.

8.
8.

RECOMMENDATIONS Having considered the budget and the annual performance plans of the Department and its entities the Committee makes the following recommendations: 8.1 Department of Social Development • The Minister should ensure that the Department within the 2022/23 financial year fills the vacancies of critical positions, particularly that of the Director-General.
• The Minister should ensure that the Department within the 2022/23 financial year puts in place secure information communication and technology management (firewall) systems to protect it from cybercrime, which has proved to be a serious threat globally.

In addition, 25 33 with the advent of the COVID-19 pandemic, the Department and its entities should implement most of their services digitally.
• The Minister should ensure that there is a viable strategy to address the challenge of social work services in the country, that it is tabled in Parliament and implemented.

8.2 South African Social Security Agency (SASSA) • The Minister should also ensure that SASSA implements or strengthens its human resource policies on vetting and academic clearance of its employees as one of the measures to prevent fraud and corruption.
The Minister should also engage with the Minister of Communication and Digital Technologies on the same matter for those employees who work within the social grants payment system.

• The Minister should also ensure that SASSA within the 2022/23 financial year finalises all the appeals on the SRD grant, including those dating back to August 2021.
8.3 National Development Agency (NDA) • The Minister should ensure that the NDA Board is appointed within the 2022/23 financial year and that the position of the Chief Executive Officer is filled.

• The Minister should ensure that the NDA Board conducts and finalises the investigation on the allegations of fraud and corruption against the previous Chief Executive Officer within the 2022/23 financial year.

Report to be considered.

26 34 2.


REPORT OF THE SELECT COMMITTEE ON HEALTH AND SOCIAL SERVICES ON BUDGET VOTE 18: THE ANNUAL PERFORMANCE PLAN OF THE DEPARTMENT OF HEALTH, DATED, 31 MAY 2022 The Select Committee on Health and Social Services (hereafter, the Committee), having considered and deliberated on Budget Vote 18 and the 2022/23 Annual Performance Plan (APP) of the Department of Health (hereafter, the Department) on 17 May 2022, reports as follows: 1.
INTRODUCTION Section 5(2) of the Constitution of South Africa and Section 27(4) of the Public Finance Management Act (No.1 of 1999) set out the role of Parliamentary Committees in conducting oversight over the Executive.

As part of conducting Parliamentary oversight, Committees have the constitutional mandate to scrutinise and approve the budgets of the Executive.

In this regard, the Committee considered the Annual Performance Plan (APP) and budget allocation of the Department.
This report summarises a presentation received from the Department on the APP and Budget for the 2022/23 financial year and allocations over the Medium-Term Expenditure Framework (MTEF) period.

The report entails the deliberations, observations and recommendations made by the Committee relating to Budget Vote 18.

2.

NATIONAL DEPARTMENT OF HEALTH ANNUAL PERFORMANCE AND BUDGET (2022/23) 2.1.
Background The Department aims to improve the health of all South Africans through the provision of services geared at promoting healthy lifestyles and, preventing illness and disease; and by focusing on access, equity, efficiency, quality and sustainability.

35 Over the MTEF, the Department intends to continue tackling the coronavirus (COVID‐ 19) pandemic, by focusing on strengthening the vaccination strategy and, preparing for, and responding to future waves of COVID-19.
Further, the Department intends to focus on preparing for the implementation of the proposed National Health Insurance (NHI), preventing and treating communicable and non‐communicable diseases, investing in health infrastructure, supporting tertiary health care services in provinces, and developing the health workforce.

2.2.

Policy Priorities for 2022/23 Financial Year The policy priorities of the Department are aligned with Section 27(1)(a) of the Constitution of the Republic of South Africa.
The Constitution gives effect to the right of everyone to have access to health care services, including reproductive health care.

In addition, the policy priorities of the Department are in line with the aspirations of the National Development Plan (NDP): Vision 2030, Medium Term Strategic Framework (MTSF), United Nations (UN) Sustainable Development Goals (SDGs), African Union (AU) Agenda 2063, and 2022 State of the Nation Address (SONA).
The strategic priorities, which are spelled out in Table 1, include the following: • Increased average of male and female life expectancy to 70 years; • Significantly reduced prevalence of non-communicable chronic diseases; • Completed health system reforms; and • Achieved universal health coverage.

The planned National Health Commission is aimed at preventing and reducing the burden of communicable diseases.
The Department envisages a number of health system reforms, including improved health facility planning, an improved Health Management Information System, and improved quality of care.

Table 1: Department of Health 5-Year Strategic Goals MTSF PRIORITY 3: EDUCATION, SKILLS AND HEALTH Impact Statements A.

Life expectancy of South Africans improved to 66.6 years by 2024, and 70 years by 2030 Outcomes 1.

Maternal, Child, Infant and neonatal mortalities reduced.

2.

HIV incidence among youth reduced.

3.


90:90:90 targets for HIV AIDS achieved by 2020 and 95:95:95 targets by 2024/25.

2 36 all B.

Universal Health Coverage for Africans South progressively achieved and all citizens protected the catastrophic financial impact of seeking health care by 2030 from 4.

Significant progress made towards ending TB by 2035 through improving treatment/cure.

5.

Premature mortality from non-communicable diseases reduced by 10%.

6.
6.

An equitable budgeting system progressively implemented and fragmentation reduced.

7.

Resources are available to managers and frontline providers, with flexibility to manage it according to their local needs.

8.

Financial management strengthened in the health sector.

9.

Management of medico-legal cases in the health system strengthened.

10.

Package of services available to the population is expanded on the basis of cost-effectiveness and equity.

11.
11.

Integrated services delivered according to the referral policy, at the most appropriate level, to ensure continuity of care.

12.

Quality and safety of care improved.

13.

Staff equitably distributed and have right skills and attitudes.

14.

Community participation promoted responsiveness and effective management of their health needs.

15.

Environmental Health strengthened by contributing to improved quality of water, sanitation, waste management and food services.
16. Financing and Delivery of infrastructure projects improved.

17.

Adaptive learning and decision making is improved through use of strategic information and evidence.

18.

Information systems are responsive to local needs to enhance data use and improve quality of care.

to ensure health system 2.3.

Annual Performance Plan (APP) Key Indicators Some of the key indicators in the Department of Health’s 2022/23 APP are listed by Programme.
2.3.1 Programme 1: Administration The purpose of the Administration programme is to provide support (human resources development and management, labour relations, information communication technology, property management, security services, legal services, supply chain management and financial management) services to the Department.
The key Department plans for the 2022/23 financial year are: • Attain an unqualified audit opinion at national level, and achieve improvements in audit outcomes with no significant matters for six Provincial departments.

• Develop legislation to manage medico-legal claims.

• Use a medico-legal claims case management system in the remaining participating provinces.

3 37 • Place on social media, approximately 100 health promotion messages to reduce premature mortality due to non-communicable diseases.
• Meet equity targets regarding the percentage of women in Senior Management Service, percentage of youth appointed, and percentage of people with disabilities appointed.

2.3.2 Programme 2: National Health Insurance (NHI) The purpose of the NHI programme is to improve access to quality health services through the development and implementation of policies to achieve universal health coverage and health financing reform.
Under Programme 2, the Department plans to achieve the following: • Attend public hearings on the NHI Bill.

• Register 5.5 million patients, for them to receive medicines through the centralised chronic medicine dispensing and distribution (CCMDD).

• Fill 70 % of funded posts in the NHI organogram.


2.3.3 Programme 3: Communicable and Non-Communicable Diseases The purpose of the programme is to develop and support the implementation of national policies, guidelines, norms and standards and the achievement of targets for the national response needed to decrease morbidity and mortality associated with communicable diseases (HIV, TB, malaria, influenza and others) and non-communicable diseases (mental health, cancer, hypertension, diabetes and others).
This programme is also responsible for developing strategies and implementing programmes that reduce maternal and child mortality.
Under Programme 3, the targets for the 2022/23 financial year include the following: • Three indicators deal with reducing the morbidity and mortality due to COVID-19 for different age groups - Percentage of age group vaccinated (at least one dose): o Vaccinate 75 % of adults aged 50 years and older; o Vaccinate 65 % of adults aged 35 - 49 years; and 4 38 o Vaccinate 37.5 % of young people aged 12 – 34 years.

• New indicator: Offer HIV Self-Screening (HIVSS) at 200 facilities.
• New indicator: Pilot men’s health services at 10 facilities.

• Have 2 000 (previous year 1 600) PHC facilities with youth zones.

• Find and treat 221 900 people for TB.

• Schistosomiasis (or Bilharzia) prevention – Mass Drug Implementation Plan in place.

• Admit 75 new State patients into designated psychiatric hospitals.

• Obtain 75% or more on the food service policy assessments at 100 additional hospitals.

• Table a National Mental Health Policy Framework at the National Health Committee (NHC).
• Develop and publish an updated Strategy for the prevention and control of obesity.

• Develop and publish progress reports on the implementation of each provincial plan on the National Strategic Plan (NSP) for non-communicable diseases.
2.3.4 Programme 4: Primary Health Care (PHC) The purpose of the PHC service programme is to develop and oversee the implementation of legislation, policies, systems, and norms and standards for a uniform well-functioning district health system, including emergency and environmental health services.

The targets for Programme 4 for the 2022/23 financial year include the following: • Release the evaluation report on the review of the District Health System Policy framework for 2014 – 2019.
• Test District Health Management Offices (DHMOs) Guidelines in 18 districts.

• Have 2 700 PHC facilities with Ward Based Outreach teams.

• Ensure that 25 ports of entry are compliant with international health regulations (IHR) based on self-assessments.

• Assess 26 metropolitan and district municipalities for adherence to environmental norms and standards.

• Trace 350 000 clients lost to follow-up for treatment.
2.3.5 Programme 5: Hospital Systems 5 39 The purpose of this programme is to develop national policy on hospital services and responsibilities by level of care; provide clear guidelines for referral and improved communication; develop detailed hospital plans; facilitate quality improvement for hospitals; and ensure that planning of health infrastructure meets the health needs of the country.
The targets for 2022/23 under Programme 5 include the following: • Review and publish for comments, regulations relating to designation/classification of hospitals.

• Construct or revitalise 40 facilities.

• Construct or revitalise 21 hospitals.

• Maintain, repair and /or refurbish 120 public health facilities.
2.3.6 Programme 6: Health Systems Governance and Human Resources The purpose of this programme is threefold, namely: a) To achieve integrated health systems planning, monitoring and evaluation and research.

b) To develop and monitor the implementation of health workforce policies and ensure effective health workforce planning, development and management in the national health system, as well as alignment of academic medical centres with health workforce programmes and training of health professionals.
c) To conduct oversight over public entities and statutory health professional councils, and ensure compliance through applicable legislative prescripts.
Targets under Programme 6 for the 2022/23 financial year include the following: • New indicator: Make two entity (South African Medical Research Council (SAMRC) and Office of Health Standards and Compliance (OHSC)) Board appointment recommendations prior to the expiry of the term of office • New indicator: Produce the Statutory Health Professionals Councils and Public Entities governance report bi-annually.
• New indicator: Support nine nursing colleges to develop training plans for nurse/ midwife specialists.

6 40 • Produce a revised set of health research priorities.

• New indicator: Develop performance dashboards for national, provincial and district levels.

• New indicator: Finalise and present the community service policy review report with recommendations to the Technical NHC.
• Extend the utilisation and functionality of Human Resource Information System (HRIS) for Human Resources for Health (HRH) planning.

2.4.

Budget Analysis (2022/23) 2.4.1.

Consolidated Health Budget 2022/23 The public health budget spans across the national department, its entities and the provincial departments of health.

The consolidated budget for 2022/23 totals R259.0 billion, up from R248.8 billion in the previous financial year.
Table 2 provides a breakdown of the 2020/21 budget, by functional and economical classification.
Table 2: Consolidated Spending by Functional and Economic Classification, 2022/23 Compensation of Employees Goods and Services Capital spending and transfers Current transfers and subsidies Interest Payments Total R billion R % R % R % R % R % R Consolidated 159.6 61.6 78.9 30.5 14.1 5.4 6.4 2.5 0.0 0.0 259.0 Health SA Total Expenditure 682.5 31.6 284.4 13.2 183.8 8.5 658.2 30.5 310.8 14.4 2 157.3 • A significant segment of the consolidated health expenditure, 61.6%, is dedicated to Compensation of Employees (CoE), which totals R159.6 billion, up from R150.7 billion.
• Consolidated health expenditure on Goods and Services totals R78.9 billion, down from R80.1 billion, which constitutes 30.5% of overall health expenditure.

• Consolidated health expenditure also makes provision for R14.1 billion (5.4%) allocated to Capital spending and transfers, and R6.4 billion (up from 5.8 billion in the previous year) for Current transfers and subsidies (2.5%).

7 41 • There is no allocation for Interest Payments.
However, given that provinces are known to run high levels of accruals, this is likely not accurate and suppliers are probably charging interest for late payment.

Figure 1: Consolidated Health Budget Expenditure As can be seen in Figure 1, District Health Services receives R115.7 billion (44.7%), the largest proportion of the consolidated health budget.
This is followed by Central Hospital Services, which receives R49.4 billion (19.1%), Other Health Services R42.4 billion (16.4%) and Provincial Hospital Services receives R40.4 billion (15.6%).

Facilities Management and Maintenance Receives R11.1 billion (4.3%).

2.4.2.

National Department of Health Budget 2022/23 The Department receives R64.5 billion in 2022/23, a decrease from R65.4 billion in 2021/22.

This represents a decrease of 1.3% in nominal terms (5.6% in real terms).
This reduction is the result of the once‐off allocations for the COVID‐19 response in 2021/22 and baseline reductions effected over the 2021 MTEF period.
8 42 Table 3: NDoH Budget Summary Table 3: NDoH Budget Summary Budget Programme R million 2021/22 2022/23 Nominal Increase / Decrease in 2022/23 Real Increase / Decrease in 2022/23 Nominal Percent change in 2022/23 Real Percent change in 2022/23 Programme 1: Administration Programme 2: National Health Insurance Programme 3: Communicable and Non- communicable Diseases Programme 4: Primary Health Care Programme 5: Hospital Systems Programme 6: Health System Governance and Human Resources 828,7 1 032,1 781,7 1 527,4 - 47,0 495,3 - 80,7 429,5 -5,7 per cent 48,0 per cent -9,7 per cent 41,6 per cent 35 750,6 250,1 21 114,1 26 913,1 5 150,2 22 639,1 - 8 837,5 4 900,1 1 525,0 - 9 996,4 4 678,3 550,1 -24,7 per cent 1959,3 per cent 7,2 per cent -28,0 per cent 1870,6 per cent 2,6 per cent 6 433,1 7 519,4 1 086,3 762,5 16,9 per cent 11,9 per cent TOTAL 65 408,8 64 531,0 - 877,8 - 3 656,6 -1,3 per cent -5,6 per cent The two largest programmes, namely Programme 3: Communicable and Non- Communicable Diseases (R26.9 billion) and Programme 5: Hospital Systems (R22.6 billion), jointly constitute 76.8% (down from 86.3%) of the total budget allocation.
It is important to note that Programme 3: Communicable and non-communicable Diseases funded the COVID-19 response, its budget declines from 54.7% (R35.8 billion) to 41.7% (R26.9 billion).

Programme 4: Primary Health Care Services, increases dramatically growing from being the smallest budget programme, constituting less than half a percent (0.38%) in the previous financial year to being allocated an additional almost R5 billion to now being allocated R5.2 billion (8% of the budget).
The smallest budget item is now Programme 1: Administration, which declines from R828.7 million to R781.7 million to constitute 1.2% of the total budget.

Economic classification In terms of economic classification, the bulk of the Department’s budget (R58.3 billion or 90.4%) consists of transfers and subsidies.

This figure includes R56.3 billion to provinces and municipalities, R189.0 million to Non-Profit Organisations (NPOs), and R1.9 billion to departmental agencies and accounts.
9 43 • Current payments constitute a total value of R4.8 billion, which represents 8.2% of the total budget allocation.

• Compensation of employees declines from R898.8 million, to R787.3 million, representing a 12.4% decrease.

• Most of the current expenditure (R4.0 billion) is allocated to Goods and Services, constituting approximately 83.5% of the total current payments.

• The largest share of expenditure goes to Inventory: Medicine R4.1 billion.
• Expenditure items that also receive a large share of the Goods and Services budget are Contractors at R590.1 million; Consultants: Business and advisory services at R300.1 million; Operating leases at R127.2 million and Travel and subsistence at R133.9 million.

• Capital assets is allocated R1.4 billion.

Buildings and other fixed structures are allocated R1.1 billion, and Machinery and Equipment is allocated R345.5 million.
Programme Analysis Programme 1 (Administration): The programme’s budget decreases by 5.7% in nominal terms (and decreases by 9.7% in real terms) from R828.7 million in 2021/22 to R781.7 million in 2022/23.

The largest sub-programme is Corporate Services, of which the allocation decreases by 8.1% in nominal terms and by 12.0% in real terms.
Financial Management is the only sub-programme allocation that increases, from R161.3 million to R174.7 million, representing a 8.3% increase in nominal terms and 3.6% increase in real terms.

In terms of economic classification, 97.7% of the budget is allocated to Current payments.

Compensation of employees amounts to R245.7 million, down from R250.1 million in the previous financial year (a 1.8% decline in nominal terms).

R518.2 million is allocated to Goods and services.


This includes R123.8 million for Operating leases, R52.4 for Property payments and R47.5 million for Travel and Subsistence (S&T).

Programme 2 (National Health Insurance): The Programme’s budget increases by 48.0% in nominal terms (i.e.

41.6% in real terms), due to the shift of mental health and oncology 10 44 conditional grant allocations from the Communicable and Non-Communicable Diseases programme to this sub-programme.
R779.3 million is allocated for Current payments, of which R734.0 million is for Goods and Services.

R547.3 million or 70.2% of this budget is spent on Contractors.

In terms of Transfers and Subsidies, R693.7 million is transferred to Provinces and Municipalities.

R54.4 million is allocated to payments for Capital Assets.
Programme 3 (Communicable and Non-communicable Diseases): This programme experiences a decrease due to the shifting of mental health and oncology component of the conditional grant allocations to Programme 2.

The bulk of Programme 3’s budget, that is, 91.3%, is allocated to the HIV, AIDS and STIs sub-programme, amounting to R24.6 billion in 2022/23.

This represents a nominal decrease of 12.8% (a decline of 16.5% in real terms).
The HIV programme is a major priority of the Department, and it is concerning to see a decline in real terms in this programme.

The Communicable Diseases sub-programme allocation decreases by 70.9% (72.1% in real terms) compared to the previous financial year, but experiences an increase compared to prior years, due to COVID-19 interventions and represent 8 % of this programmes budget.

It declines from R7.4 billion to R2.2 billion in nominal terms.
The remaining six sub-programmes combined receive less than 1% of the programme’s budget.

This includes the Tuberculosis Management; Women’s Maternal and Reproductive Health; Child, Youth and School Health; Non- communicable Diseases (NCDs) and the Health Promotion and Nutrition sub-programmes.

Programme 4 (Primary Health Care): This Programme’s budget increases nearly 20-fold in nominal terms from R250.1 million to R5.2 billion.
The District Health Services sub- programme increases dramatically from R19 million in the previous year, to R4.9 billion in 2022/23.

This is due to the shift of the district health component of the district health programmes grant to this sub-programme from the Programme 3: Communicable and Non‐communicable Diseases.

Emergency Medical Services and Trauma increases by 6.3% in nominal terms (or 1.8% in real terms) from R7.9 million in 2021/22 to R8.4 million in 2022/23.
11 45 Programme 5 (Hospital Systems): The total budget for Programme 5 grows from R21.1 billion in the 2021/22 financial year to R22.7 billion in 2022/23.

The budget for this programme increases by 7.1% in nominal terms and by 2.5% in real terms.

The 2022/23 allocation to the Health Facilities Infrastructure Management sub- programme increases by 12.6% in nominal terms from R7.4 billion in 2021/22 to R8.3 billion in 2022/23, which is an increase of 7.7% in real terms.
The Hospital Systems sub- programme increases by R595.6 million from R13.7 billion in 2021/22 to R14.3 billion in 2022/23, representing nominal increase of 4.3% and a 0.2% decline in real terms.

93.2% of programme funding is transferred to provinces via the NTSG and HFRG.

Programme 6 (Health Systems Governance and Human Resources): The programme increases by 16.9% in nominal terms and by 11.9% in real terms, from R6.4 billion to R7.5 billion in 2022/23.
Two sub-programmes dominate expenditure under Programme 6.

The Human Resources for Health sub-programme which receives R5.5 billion, which is an increase of 26.6% in nominal terms from the previous financial year’s total of R4.3 billion.

This represents a real increase of 21.1%.

The Public Entities Management sub-programme, receives R1.95 billion, decreasing by 3.4% in nominal terms (i.e.

7.5% decrease in real terms) from the previous year’s allocation of R2.02 billion.
The Nursing Services sub-programme increases by 3.2% in nominal terms from R9.4 million to R9.7 million in 2021/22, a decline of 1.3% in real terms.

3.

PROVINCIAL DEPARTMENTS OF HEALTH PLANS (2022/23) 3.1 Background Provincial departments receive their budget allocations, which comprises of an Equitable Share (ES) and Conditional Grants (CGs) from the National Treasury.

They are expected to supplement the national transfers with the collection of provincial own receipt.
Provincial equitable share is an unconditional transfer designed to assist in delivery of 12 46 basic services and assigned functions.

Conditional grants are additional transfers from national government with conditions to address national priorities, programmes or policy imperatives.

Provinces and municipalities are responsible for the provision of services such as education, health, social development, housing, roads, electricity and water, and municipal infrastructure services.
Thus, the division of revenue provides equitable shares to provinces and local government to enable them to meet their basic service obligations and conditional grants are provided to enable them to improve and expand services.

3.2 Equitable Share and Conditional Grants to Provinces Sections 214 and 227 of the Constitution require that an equitable share of nationally raised revenue be allocated to provincial government to provide basic services and perform its allocated functions.
The equitable share is an unconditional transfer to provinces and constitutes their main source of revenue.

Due to their limited revenue- raising abilities, provinces receive 41.2% of nationally raised revenue over the medium term.

In addition, they receive conditional grants to help them fulfil their mandates.

Transfers to provinces account for over 95% of provincial revenue.
Table 4 shows the national transfers to provinces for the 2022 MTEF period announced in the 2021 MTBPS and changes that were effected after it was tabled, both to the equitable share and conditional grants1.

Table 6 outlines the equitable share and conditional grants to provinces for 2022/23.

It should be noted that the focus is on provinces hence the exclusion of allocations to municipalities.
Table 4: Total transfers to provinces in the form of equitable share and conditional grants, 2022/23 and estimates for 2023/24 and 2024/25 PROVINCE Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape 1 DoRA (2022) 2022/23 72 230 31 107 120 041 114 509 64 055 45 961 14 942 R’ 000 2023/24 69 779 30 108 116 263 110 785 62 073 44 595 14 434 2024/25 71 841 31 108 120 759 114 372 64 127 46 220 14 894 13 47 North West Western Cape Total (Equitable share) Conditional grants Total (including conditional grants) Source: DoRA According to the DoRA 2022, national transfers to provinces increased from R661 billion in 2021/222 to R682.5 billion in 2022/233.
Over the MTEF period, provincial transfers will grow at an average annual rate of 1.4 per cent to R690.2 billion in 2024/254.

Of this amount, a total of R560.8 billion is allocated to the provincial equitable share and R121.8 billion to conditional grants5, which includes an unallocated amount of R471 million for the provincial disaster response grant and the provincial emergency housing grant6.

It should be noted that the 2023/24 and 2024/25 financial years do not have the unallocated budget.
That is why the total allocation in 2022/23 financial year is a bit higher than the 2023/24 financial year.

As can be seen in Table 4, the revenue allocation differs among the nine (9) provinces.

Gauteng, the smallest province in size by far, yet the most densely populated, receives the largest proportion of the Provincial Equitable Share to the value of R120.0 billion, followed by KwaZulu-Natal, province with the largest population, to the value of R114.5 billion for 2022/23 financial year.
The Northern Cape receives the smallest, as it has the smallest number of people living in the Province, receives a share of only R14.9 billion for 2022/23 financial year.

The Eastern Cape Province, which has been consistently receiving the third largest share of revenue, receives an allocation of R72.2 billion.
Provinces that receive a minimal amount of resources are the Free State, North West and Mpumalanga to the value of R31.1 billion, R39.5, and R45.9 billion for the 2022/23 financial year, respectively.

Whereas the Western Cape Province receives a share of R58.3 billion for the 2022/23 financial year.
2 DoRA (2021) 3 DoRA (2022) 4 Ibid 5 Ibid 6 Ibid 14 48 3.3 Provincial Health Departments Budget Allocations Provincial Departments of Health are responsible for the management of the provincial health budget and delivering all provincial health services.

They are also able to adapt national policy to the needs of that province.

Figure 2 provides budget allocations for the Provincial Health Departments for the 2022/23 financial year.
Figure 2: Appropriations for Health provincial departments 2022/23 Source: Estimate of Provincial Revenue and Expenditure (2022), Adapted from each province EPRE 2022.

As Figure 2 indicates, Gauteng Department of Health receives the largest share of budget to the value of R59.426 billion, followed by the KwaZulu-Natal Department of Health to the value of R49.607 billion for 2022/23 financial year.
The Western Cape Department of Health receives an allocation of R29.094 billion and the Eastern Cape Department of Health receives an allocation of R27.362 billion for 2022/23 financial year.

The Limpopo Department of Health receives a budget share of R22.725 billion.

The Mpumalanga, North West, Free State, and Northern Cape received budget shares of R16.824 billion, 15 49 R15.186 billion, R12.711 billion, and R5.893 billion for 2022/23 financial year, respectively.
3.4 Conditional Grants Direct Allocations Table 5 provides a breakdown of the Conditional Grants, Direct allocations.

In terms of direct grants, the Department administers R56.3 billion in 2022/23.
Table 5: Conditional Grants Direct Allocations 2022/23 DIRECT CONDITIONAL GRANTS TO PROVINCES R MILLION Schedule 4, Part A National Tertiary Services Grant 14 306.1 Schedule 5, Part A District Health Programmes Grant Health Facility Revitalisation Grant Human Resources and Training Grant National Health Insurance Total 29 023.1 6 779.6 5 449.1 693.8 56 251.7 Source: Treasury (2022c) Division of Revenue pp.

42, 46 & 51, adapted.


Discrepancies may arise due to rounding The largest grant is the District Health Programmes Grant, which receives R29.1 billion, followed by the National Tertiary Services Grant (NTSG) with R14.3 billion, and the Health Facility Revitalisation Grant with R6.8 billion.
3.4.1 National Tertiary Services Grant The purpose of the National Tertiary Service Grant is to ensure the provision of tertiary health services in South Africa; to compensate tertiary facilities for the additional costs associated with the provision of these services.

16 50 The National Tertiary Service Grant receives an allocation of R14.306 billion for 2022/23 financial year.

Figure 3: National Tertiary Service Grant 2022/23 Source: Treasury (2022).
Division of Revenue Bill [B6-2022], Adapted Of the total budget allocated to this Grant, Gauteng receives the largest share of R5.083 billion, followed by the Western Cape at R3.401 billion for the 2022/23 financial year.

KwaZulu-Natal receives the third largest share to the value of R2.045 billion.

Free State and Eastern Cape receive a share of R1.225 billion and R1.148 billion in 2022/23 financial year, respectively.
The smallest share is received by Mpumalanga to the value of only R145.3 million for the same period.

3.4.2 District Health Programme Grant The purpose of the District Health Programme Grant is to enable the health sector to develop and implement an effective response to HIV and AIDS and tuberculosis (TB).
In addition, it is to do the following: • Ensure provision of quality community outreach services through Ward Based Primary Health Care Outreach Teams; • Ensure improvement of efficiencies of the Ward Based Primary Health Care Outreach Teams programme by harmonising and standardising services and strengthening performance monitoring; 17 51 • Enable the health sector to develop and implement an effective response to support the effective implementation of the National Strategic Plan on Malaria Elimination 2019 – 2023; • Enable the health sector to prevent cervical cancer by making available Human Papillomavirus vaccinations for grade seven school girls in all public and special schools and progressive integration of Human Papillomavirus into the integrated school health programme; and • Enable the health sector to rollout COVID-19 vaccine.
The District Health Programme Grant receives a budget of R29.023 billion for the 2022/23 financial year.

Figure 4 outlines budget allocations per Provincial Health Departments.

Figure 4: District Health Programme Grant Source: Treasury (2022).

Division of Revenue Bill [B6-2022], Adapted Of the total budget of R29.023 billion allocated to this Grant for 2022/23 financial year, the largest share is allocated to KwaZulu-Natal to the tune of R7.547 billion.
Followed by Gauteng and Eastern Cape to the value of R6.295 billion and R3.221 billion, respectively.

Mpumalanga and Western Cape receive a share that is just above R2 billion each.

Whereas Northern Cape and North West received a share below R2 billion.

The 18 52 smallest share goes to the Northern Cape to the value of just R767 million for the 2022/23 financial year.
3.4.3 Health Revitalisation Grant The purpose of the Health Revitalisation Grant is to help accelerate construction, maintenance, upgrading and rehabilitation of new and existing infrastructure in health including, health technology, organisational development systems and quality assurance; to enhance capacity to deliver health infrastructure; and to accelerate the fulfilment of the requirements of occupational health and safety.
This Grant receives an allocation of R6.779 billion for the 2022/23 financial year.

Figure 5 illustrates the budget share per Provincial Health Department.

Figure 5: Health Revitalisation Grant Source: Treasury (2022).

Division of Revenue Bill [B6-2022], Adapted As Figure 5 illustrates, KwaZulu-Natal receives the largest share of the Health Revitalisation Grant to the value of R1.389 billion or 20 per cent of the total budget.
Gauteng receives the second largest share to the value of R1.058 billion or 16 per cent of 19 53 the total budget allocated to this Grant.

Northern Cape receives the smallest share of R444 million or 6 per cent of the total budget.
3.4.4 Human Resources and Training Grant The purpose of this Grant is to appoint statutory positions in the health sector for systematic realisation of the human resources for health strategy and the phase-in of National Health Insurance; support provinces to fund service costs associated with clinical training and supervision of health science trainees on the public service platform.

The Human Resources and Training Grant receives an allocation of R5.444 billion for the 2022/23 financial year.
Figure 6: Human Resources and Training Grant Source: Treasury (2022).

Division of Revenue Bill [B6-2022], Adapted As illustrated by Figure 6, Gauteng consumes 34 per cent or R1.872 billion for the 2022/23 financial year.

Western Cape receives the second largest share of 16 per cent or 20 54 R899 million for the 2022/23 financial year.

The smallest share of 3 per cent of the total budget is allocated to the Northern Cape, which is only R277 million.
3.4.5 National Health Insurance Grant The purpose of the National Health Insurance Grant is to expand the healthcare service benefits through the strategic purchasing of services from healthcare providers.
In addition, the Grant is meant to: • Expand the alternative models for the dispensing and distribution of chronic medication; • Develop and roll-out new health information systems in preparation for the NHI; • Enable the health sector to address the deficiencies in the primary health care facilities systematically to yield fast results through the implementation of the Ideal Clinic programme; and • Eexpand the healthcare service benefits through the strategic purchasing of services from healthcare providers.
The National Health Insurance Grant receives a budget allocation of R693.7 million for the 2022/23 financial year.

Figure 7: National Health Insurance n o i l l i m 140 120 100 80 60 40 20 0 Series1 National Health Insurance Grant 2022/23 EC; 128 GP; 90 KZN; 84 LIM; 83 NC; 84 NW; 80 MP; 69 WC; 43 FS; 28 EC 128 FS 28 GP 90 KZN 84 LIM 83 MP 69 NC 84 NW 80 WC 43 Source: Treasury (2022).
Division of Revenue Bill [B6-2022], Adapted 21 55 As illustrated by Figure 7, the largest share of the total budget is allocated to Eastern Cape to the value of R128.4 million during the 2022/23 financial year.

The second largest share of R90.3 million is allocated to Gauteng.

The smallest share of the total budget is allocated to the Free State to the tune of only R28 million for the 2022/23 financial year.
3.4.6 National Health Insurance Indirect Grant The National Health Insurance Indirect Grant is allocated R2.2 billion for the 2022/23 financial year (as shown in Table 6).

Table 6: Conditional Grants Indirect Allocations 2022/23 Conditional Grants Indirect Allocations R million Schedule 6, Part A National Health Insurance Indirect Grant Total 4.
COMMITTEE OBSERVATIONS Mental health care: 2 209.1 2 209.1 • The Committee noted with concern the increase in mental health cases, while the capacity of institutions remained low.

• The Committee observed that the performance estimate for the Mental Health Policy Framework was reported as not applicable and asked whether the Department had finalised the framework or it was still under review.
• The Committee enquired about the number of new hospitals being planned for over the medium-term, considering the backlog of forensic and psychiatric evaluations for state patients in detention centres waiting on hospital admissions.
Communicable and non-communicable diseases: • The Committee noted with concern that vital programmes such as the HIV and TB programmes were not given the attention that they deserve which might result in a regression in their control and prevention as the Department was focusing on 22 56 COVID-19.

Further, the Committee asked about the Department’s cancer campaign and how it had been affected by the COVID-19 pandemic.
• The Committee was concerned about the scourge of TB in the country and wanted to know whether the Department had explored inter-sectoral collaborations with the Department of Mineral Resources (in the mining sector) and the Department of Correctional Services (in correctional centres) to address this challenge.

• The Committee asked about the number of patients on TB and HIV treatment that were lost to follow-up and how the causal factors could be addressed beyond community participation.
COVID-19 interventions: • The Committee enquired about the interventions in place to realise the 60% target for COVID-19 vaccination of people in the 12 to 34-year age group, considering the low up-take by young people.

• The Committee questioned whether there was a long-term strategy in place to invest in vaccine development and how the Department was supporting vaccine development in the African continent.
Health infrastructure: • The Committee noted with concern the infrastructure backlogs within the health sector and wanted to know how these will be addressed.

• The Committee was concerned about the closure of Charlotte Maxeke Academic Hospital and wanted to know what the Department was doing to mitigate the impact of its closure on other healthcare facilities and the restoration of oncology services.
Medico-legal cases: • The Committee expressed concern about the significant increase in medico-legal claims, especially in the Eastern Cape, as reported by the AGSA and wanted to know what the Department was doing to address this, as these costs depletes provincial departments’ budgets.

• The Committee wanted more information about the state of the medico-legal case management system.
23 57 • The Committee sought clarity on the development of a legislation for the management of medico-legal cases, and whether there was a regulatory framework in place for the appointment of legal teams to deal with these claims.

Funding for policy priorities: • The Committee noted with concern that there was no costing of the NHI and further indicated that even the Minister of Finance did not indicate any NHI allocation in his budget speech.
• The Committee asked the Department to share information about the 70% funded filled posts on the NHI programme and its spending of the NHI grant.

• The Committee observed that the budget for primary health care had increased and questioned whether the programme had been adequately capacitated in terms of human resources to deliver services.

• The Committee was concerned about the allocation for mental health and oncology services.
• The Committee wanted to know the implication of the allocation for CoE.

Human resources for health: • The Committee noted with concern the high vacancy rates for health professionals – (10 800) nurses and (1 339) doctors – and wanted to know the Department’s plans to eradicate these vacant posts.

In addition, the Committee wanted to know how the Department plans to retain critical skills in the public health sector.
• The Committee asked how the Department was supporting the Nelson Mandela/ Fidel Castro Cuban programme and what the impact of the programme was on health skills development in the country.

• The Committee was concerned about the time it takes to place medical interns and registrars, and wanted to know what the Department intends to do to remedy this.

• The Committee asked the Department to intervene by absorbing community health workers into the system and their recruitment for nursing training.
Health system strengthening: • The Committee wanted to know the lessons learnt from the COVID-19 pandemic to improve the public health care system.

24 58 • The Committee enquired about the impact of health care treatment of undocumented immigrants on the planning and budgeting of the Department.

• The Committee was concerned about the devastation caused by recent disasters (in KwaZulu-Natal in particular) and wanted to know how the Department is assisting in that regard.
• The Committee raised concern about recent reports of security breaches at health facilities, and wanted to know what the Departments intends to do to strengthen safety and security of health personnel and patients.

• The Committee wanted to know more about the rollout of the health patients registration system.
Child and maternal health: • The Committee was also concerned about the increase in severe malnutrition and wanted to know the strategies in place to combat malnutrition and whether a collaborative approach was being followed – working with the Department of Social Development and the Department of Basic Education.

The Committee enquired about the plans put in place to change the trajectory of the increase in maternal mortality rates.
Sexual and reproductive health: • The Committee was concerned that termination of pregnancies was not accessible in some provinces, including the Eastern Cape and wanted to know what the Department was doing to resolve the matter.

• The Committee asked for a progress report on the victims of forced sterilisation and whether the Department had contacted those affected and services offered to them.

The Committee was concerned about the Department’s slow pace in addressing this issue.

5.
5.

COMMITTEE RECOMMENDATIONS The Committee recommends that the Minister of Health should consider the following: • Mental health services: The Department should prioritise mental health services.

Further, the Department should provide the Committee with an update on the review 25 59 of the Mental Health Policy Framework (2013-2020), to ensure that mental health care services are optimally rendered and monitored.
• Severe malnutrition: The Department should consider a collaborative approach (working with the Department of Social Development and Department of Basic Education) to address severe malnutrition.

• Response to COVID-19: The Department should furnish the Committee with its plan to realise the 60% target for COVID-19 vaccination of young people in the age group 12 to 34 years.
• Community health workers: The Department should provide the Committee with a progress report on the implementation of the National Community Health Care Worker Policy in ensuring the integration of community health workers.

• Improving the quality of health care: The Department should increase emphasis on other vital programmes such as HIV, TB and cancer, to prevent a regression in their control and prevention, and present the catch-up plan to the Committee.
• Health infrastructure: The Department should furnish the Committee with an action plan aimed at addressing infrastructure backlogs and existing gaps.

• Medico-legal claims: The Department should provide the Committee with a detailed report on the management of medico-legal claims and how it is assisting provincial departments in this regard.
• Primary health care: In view of the increased budget for primary health care, the Department should ensure that the programme is fully capacitated to ensure improved delivery of quality health care services.

• Conditional grants: The Department should submit a report to the Committee on conditional grant spending, particularly the NHI grant.
26 60 • Human Resources for Health: The Department should provide a progress report to the Committee on the implementation of the Human Resources for Health Strategy and Plan 2019-2024.

In addition, the Department should ensure that vacancies are filled timeously.

Further, the Department should provide a progress report on the training of nurses and the reopening of nursing colleges to the Committee.
• Health care services delivery: The Department should furnish the Committee with a detailed report on the issue of forced sterilisation.

6.

CONCLUSION The Department of Health should respond to the Committee recommendations as soon as possible or on the day the report is adopted by the House.

Report to be considered.

27 61 3.
Report of the Select Committee on Education and Technology, Sports, Arts and Culture on Budget Vote 17: Higher Education and Training, dated 31 May 2022 The Select Committee on Education and Technology, Sports, Arts and Culture (hereinafter referred to as the Committee), having considered the 2022/23 Annual Performance Plans (APPs) and budgets of the Department of Higher Education and Training (hereinafter referred to as the Department) and the National Student Financial Aid Scheme (hereinafter referred to as the NSFAS), reports as follows: 1.
Introduction The purpose of this report is to account for work done by the Committee in considering the Revised Strategic Plan: 2020 – 2025 and Annual Performance Plan (APP): 2022/23 and budget of the Department and that of the NSFAS, in accordance with Section 27(1) of the Public Finance Management Act, 1999 (Act.

No 29 of 1999), and as referred by the Chairperson of the National Council of Provinces (NCOP) to the Committee in terms of Rule 338 for consideration and reporting.
The Bill of Rights, states that all South Africans have the right to basic education, including adult basic education and access to further education.

It further indicates that the state has an obligation, through reasonable measures, to progressively make education available and accessible.
The Department derives its mandate from section 29 of the Constitution of the Republic of South Africa and the following legislation: • Higher Education Act, 1997 (Act No.101 of 1997); • National Student Financial Scheme Act, 1999 (Act No.

56 of 1999); • Continuing Education and Training Act, 2006 (Act No.

16 of 2006); • National Qualifications Framework Act, 2008 (Act No.

67 of 2008); • Skills Development Act, 1998 (Act No.

97 of 1998); • Skills Development Levies Act, 1999 (Act No.
9 of 1999); and • General and Further Education and Training Quality Assurance Act, 2001 (Act No.

58 of 2001).

The Select Committee on Education and Technology, Sports, Arts and Culture (the Committee) considered the Budget and the 2022/23 APP of the Department and that of NSFAS on Wednesday, 18 May 2022.

The Page 1 62 budget review briefing served to acquaint the 6th Parliament Select Committee with the mandate, programmes and priorities of the Department and NSFAS.
This report gives a brief summary of the presentations made by the Department and NSFAS to the Committee, focusing mainly on the 2022/23 Annual Performance Plans and the 2020 Medium Term Expenditure Framework (MTEF) allocations.

The report also provides the Committee’s key deliberations and recommendations relating to Vote 17.

2.

2022/23 Medium-Term Expenditure Framework (MTEF) Budget 2.1.
Overview and assessment of the Department’s 2022/23 MTEF Budget Table 1 below summarizes the 2022/23 overall budget allocation and expenditure estimates of the Department.
Table1: Programme Budget Nominal Increase / Decrease Real Increase / Decrease Nominal Percent change in Real Percent change in R million 2021/22 2022/23 2023/24 2024/25 2021/22- 2022/23 2021/22- 2022/23 Programme 1: Administration 463,6 493,7 30,1 8,8 6.49% 1.91% Programme 2: Planning, Policy and Strategy Programme 3: University Education Programme 4: Technical and Vocational Education and Training Programme 5: Skills Development Programme 6: Community Education and Training 2 221,9 4 912,9 2 691,0 2 497,4 121.11% 111.59% 80 161,4 88 581,7 8 420., 4 605,8 10.50% 5.75% 12 226,3 12 623,1 396,8 -146,8 3.25% -1.20% 450,0 421,6 -28,4 -46,6 -6.31% -10.35% 2 365,8 2 481,9 116,1 9,2 4.91% 0.39% Sub-total 97 889,0 109 514,9 11 625,9 6 909,9 11.88% Direct Charges against National Revenue Fund 18 932,8 20 619,3 1 686,5 798,6 8.91% 7.06% 4.22% Total 116 821,8 130 134,2 13 312,4 7 708,5 11.40% 6.60% 2 63 Over the MTEF period, the Department’s allocation amounts to R409,445 billion, including direct charges against the National Revenue Fund.
For the 2022/23 financial year, the Department received a budget of R130,134 billion, which comprises R109,514 billion of voted funds and R20,619 billion of direct charges.

The total budget increased by R13,312 billion or 11.40% in nominal terms.

When considering inflation- adjusted, the allocation increased by R7,708 billion or 6.60% the budget is projected to grow at an average growth rate of 7.2% between 2021/22 and 2024/25.
The voted funds, excluding direct charges, increased with inflation-adjusted by R6,909 billion or 7.06%.

Programmes 2: Planning, Policy and Strategy and 3: University Education received the highest budget increases at 121.11% and 10.50%, respectively in 2022/23.
The increase is attributed to the additional allocation towards NSFAS to address the budget shortfall, new funding amounting to R600 million towards infrastructure for student housing and additional allocation for the Presidential Youth Employment Intervention.

The Department’s budget is dominated by transfers and subsidies, which accounts for 91,18% of the total budget, including direct charges against the National Revenue Fund.
For the 2022/23 financial year, the allocation for transfers and subsidies amounts to R118,657 billion, of which R65,403 billion is towards Departmental agencies as follows: R47,354 billion to NSFAS for student bursaries and administration, R21,338 million to Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA); R81 million to SAQA; R74,486 million to the CHE; R28,506 million to the QCTO; R123,972 million for Public Service Sector Education and Training Authority (PSETA); R4,223 billion for the National Skills Fund (NSF) and R16,495 billion for the SETAs.
An amount of R48,310 billion is toward Higher Education institutions, universities, TVET and CET colleges.

The Allocation for spending on compensation of employees amounts to R10,775 billion.

The bulk of the budget for the compensation of employees is allocated to TVET colleges, followed by the CET colleges.

The goods and services allocation amounts to R678,0 million.

goods and services budget is projected to decrease slightly to R672,817 million in 2023/24.
2.1.1 Overview and assessment of the 2022/23 MTEF budget allocation per programme This section explores budget allocations per programme for the 2022/23 financial year.

3 64 2.1.1.1 Programme 1: Administration The programme provides strategic leadership, management and support services for the Department.

The Programme has five budget sub-programmes, namely: Department Management, Corporate Management Services, Office of the Chief Financial Officer, Internal Audit and Office Accommodation.
The total budget over the medium-term allocation to Programme 1 amounts to R1.5 billion, of which R493.7 million is set aside for the 2022/23 financial year.

The programme’s budget accounts for 0,45% of the Department’s total voted funds.

The budget increased by R9,0 million or 1.95% from the previous financial year’s adjusted appropriation allocation of R463 million when considering inflation-adjusted.

The allocation is projected to decrease to R489,7 million in 2023/24.
Sub-programme 2: Corporate Management Services receives 49.96% or R246,7 million of the programme’s total budget.

The second highest allocation at 23.33% or R115,2 million is in sub-programme 3: Office of the Chief Financial Officer, followed by sub-programme 6: Office Accommodation at 16.85% or R83,2 million.

the budget for the Office Accommodation sub-programme decreased nominally by R9,2 million from R88,8 million in 2021/22.
The allocation for spending on compensation of employees and goods and services for the 2022/23 financial year amounts to R268,3 million and R217,9 million, respectively.

Both the allocations for compensation of employees and goods and services are projected to decrease marginally to R265,8 million and R215,9 million in 2023/24, respectively.
In terms of spending on goods and services per line item, allocation for computer services has increased significantly from R37,3 million in 2021/22 to R62,0 million in 2022/23.

The allocation for computer services is projected to decrease in the outer two years of the MTEF period to R52,9 million and R54,9 million, respectively.

Notably, allocation for spending on consultants: Business and Advisory services decreased significantly by R20 million from R30,8 million in 2021/22.
2.1.1.2 Programme 2: Planning, Policy and Strategy This programme provides strategic direction in the development, implementation and monitoring of Departmental policies and the Human Resource Development Strategy for South Africa.

The programme has six budget sub-programmes, namely, namely, Programme Management; Human Resource Development Council of South Africa; Policy, Planning, Monitoring and Evaluation; International Relations; Legal and Legislative Services and Social Inclusion and Quality.
4 65 Over the MTEF period, the programme’s allocation amounts to R13,684 billion, and for the 2022/23 financial year, the allocation amounts to R4,912 billion.

The programme’s budget increased due to the shift in infrastructure development functions and budget allocations from University Education and Technical and Vocational Educational and Training (TVET) programmes to programme 2: Planning, Policy and Strategy.

The programme’s budget accounts for 4.49% of the Department’s total voted funds.
The budget is projected to decrease in the outer two years of the MTEF period to R4,442 billion and R4,328 billion, respectively.

The bulk of the programme’s budget at 95.68% (R4,700 billion) is allocated to sub-programme 3: Policy, Planning, Monitoring and Evaluation.

This sub-programme monitors and evaluates the policy outputs of the department; coordinates research in the fields of higher education and training; and ensures that education policies, plans and legislation are developed into systems.
The budget allocation for sub-programme 6: Social Inclusion and Quality decreased by R12,2 million from R162,8 million in 2021/22 to R150,6 million in 2022/23.
It is concerning that the sub-programme that is responsible for promoting access to open and e-learning opportunities, providing career development services, promoting and monitoring social inclusion and equity in the post-school education and training system and advancing the implementation of the national qualifications framework received budget cuts for the 2022/23 financial year.
Similarly, there is a budget reduction from R9,1 million in 2021/22 to R8,6 million in 2022/23 in sub- programme 1: Programme Management: Planning, Policy and Strategy, which manages delegated administrative and financial responsibilities, and coordinates all monitoring and evaluation functions in the programme.
The allocation for spending on current payments in 2022/23 amounts to R141,8 million, of which R108,5 million is allocated for spending on compensation of employees and R33,3 million on goods and services.

The allocation for compensation of employees is projected to decrease slightly to R107,9 million in 2023/24.

This is a concern given that the Department has planned to establish an Infrastructure Development Coordination Unit.
The Department reported that R10,569 million and R21,783 million were reprioritised from Goods and Services, respectively.

The reprioritisation was to cater for the South African Qualifications 5 66 Authority (SAQA)’s automation and digitisation of its manual processes and to Higher Health to cater for addressing preventative activities on Gender-Based Violence in the CET sector.

An amount of R4,767 billion is allocated for transfers and subsidies.
The allocation for transfers and subsidies is projected to decrease in the outer two years of the MTEF period to R4,295 billion and R4,174 billion.
Of the allocation for transfers and subsidies for the 2022/23 financial year, R81,2 million is allocated to the Departmental agencies: South African Qualifications Authority, and R4,3 million to foreign governments and international organisations (R0,7 million: India-Brazil- South African trilateral and R3,6 million to the Commonwealth of Learning and R20,6 million is allocated to Higher Health.
For the 2022/23 financial year, an amount of R4,661 billion has been allocated for spending on capital expenditure.
Of the R4,661 billion allocations, R1,105 billion is for the University of Mpumalanga: R663,0 million and Sol Plaatje University: R442,0 million; University infrastructure and efficiency grant: R2,245 billion; TVET infrastructure and efficiency grant: R710,5 million and R600 million for infrastructure for student housing at the Tshwane University of Technology, the University of KwaZulu-Natal, Gert Sibande and Majuba TVET colleges.
Notably, the TVET infrastructure and efficiency grant is projected to decrease in the outer two years of the 2022/23 MTEF period from R710,5 million to R541,9 million and R566,3 million in 2023/24 and 2024/25, respectively.

Similarly, the University infrastructure and efficiency grants are also projected to decrease marginally from R2,245 million in 2022/23 to R2,179 million in 2023/24.
2.1.1.3 Programme 3: University Education The programme develops and coordinates policy and regulatory frameworks for an effective and efficient university education system and provides financial and other support to universities, the National Student Financial Aid Scheme, the Council on Higher Education and national institutes for higher education.
The programme has six budget sub-programmes, namely, Programme Management, University Planning and Institutional Funding, University Governance and Management Support, Higher Education Policy Development and Research, Teaching, Learning and Research Development and Universities Subsidies.

Over the medium term, the programme’s budget allocation amounts to R279,779 billion.

For the 2022/23 financial year the allocation amounts to R88,581 billion.
The budget increased by R8,420 billion (10.5% nominal percentage change or 5.75% real percentage change) from R80,161 billion allocated in 2021/22.

The significant increase is due to additional funds allocated toward the National Student Financial Aid Scheme to cater for the budget shortfall to fund students from poor and working-class families.
The Minister 6 67 of Finance, Mr E Godongwana, announced during the budget speech on 22 February 2022, that the Government will make an additional allocation of R36,6 billion for financial support to current bursary holders and first-year students under NSFAS.
Sub-programmes 3: Institutional Governance and Management Support, which is responsible for monitoring and supporting institutional governance management and provides sector liaison services and sub- programme 6: University Subsidies received the bulk of the increase at R44,493 billion and R44,012 billion, respectively.

The allocation for spending on compensation of employees for the 2022/23 financial year amounts to R90,6 million and 8,8 million for goods and services.
The bulk of the programme’s budget, R88,481 billion or 99,8% is for transfers and subsidies, of which R44,429 billion is transferred to Departmental agencies and accounts as follows: R44,042 billion to NSFAS, R312,6 million to NSFAS: Administration and R74,5 million to the Council on Higher Education.

Notably, the allocation to the NSFAS Administration decreased from an adjusted budget of R367,8 million in 2021/22 to R312,6 million in 2022/23.
The allocation for spending on Administration is projected to increase marginally to R313,8 million and R327,9 million in 2023/24 and 2024/25 financial years.

For the 2022/23 financial year, subsidies to higher education institutions amount to R44,010 billion.

2.1.1.4 Programme 4: Technical and Vocational Education and Training The programme aims to plan, develop, implement, monitor, maintain, and evaluate national policy, programme assessment practices and systems for TVET colleges.
It also provides financial and other support to TVET colleges and regional offices.

The programme has six budget sub-programmes, namely, Programme Management: TVET, TVET System Planning and Institutional Support, Programmes and Qualifications, National Examinations and Assessment, Technical and Vocational Education and Training Financial Planning and Regional Offices.

The programme’s budget over the medium term amounts to R38,520 billion.
For the 2022/23 financial year, the programme is allocated a budget of R12,623 billion.

The allocation increased nominally by R396,9 million from the adjusted budget of R12,226 million in 2021/22.

When factoring in inflation, the programme budget has decreased by 1.20%.

The programme budget is projected to grow at an average growth rate of 7 68 2.5% between 2021/22 and 2024/25.

The programme’s budget accounts for 11.53% of the Department’s total voted funds.
Sub-programme 2: TVET System Planning and Institutional Support are apportioned the largest budget amounting to R11,663 billion.
This sub-programme provides support to management and councils, monitors and evaluates the performance of the TVET system against set indicators, develops regulatory frameworks for the system, manages and monitors the procurement and distribution of learning and teaching support materials, provides leadership for TVET colleges to enter into partnerships for the use of infrastructure and funding resources, and maps out the institutional landscape for the rollout of the TVET college system.
The sub-programme’s budget increased nominally by 2.43% from R11,387 billion in 2021/22.

An amount of R644,2 million, which is the second-highest allocation, is apportioned to sub-programme 4: National Examinations and Assessment, followed by sub-programme 6: Regional Offices at R266,5 million.

The current payments are allocated a budget of R8,296 billion, of which R7,902 billion is for compensation of employees and R393,3 million for goods and services.
The allocation for compensation is projected to grow to R8,003 billion and R8,361 billion in 2023/24 and 2024/24, respectively, whilst allocation for goods and services is projected to decrease slightly to R389,9 million in 2023/24 and increase to R408,4 million in 2024/25.
The bulk of the goods and services allocation amounting to R96,7 million is apportioned to subsistence and travel, followed by R84,4 million for computer services and R65,7 million for consumables: Stationery, printing and office supplies.
The allocation amounting to R4,318 billion is allocated for transfers and subsidies, of which R18,1 million is allocated to Departmental agencies and accounts: Education, Training and Development Practices Sector Education and Training Authority (ETDP SETA) and R4,300 billion, of which R3,877 billion is subsidies to TVET colleges and R423,4 million for the operationalisation of new TVET college campuses.
Notably, the allocation for subsidies to TVET colleges is projected to decrease slightly to R3,819 billion in 2023/24.

2.1.1.5 Programme 5: Skills Development This programme promotes and monitors the National Skills Development Strategy (NSDS).

It develops skills development policies and regulatory frameworks for an effective skills development system.
The programme has five budget sub-programme, namely, Programme Management: Skills Development, National Artisan 8 69 Development, Sector Education and Training Authority Coordination, National Skills Authority Secretariat and Quality Development and Promotion.

Over the medium-term, the programme’s budget amounts to R1,178 billion.

For the 2022/23 financial year, the allocation amounts to R421,6 million, which accounts for 0.38% of the Department’s total voted funds.
The allocation decreased by R28,4 million or 6.3% in nominal terms from the R450,0 million in 2021/22.

The budget allocation is projected to increase to R427,5 million in 2023/24 and to decrease significantly to R328,9 million in 2024/25.

Overall, the allocation is projected to decrease by 9.9% between 2021/22 and 2024/25.

Sub-programme 2: Sector Education and Training Authority Coordination receives the bulk of the programme’s budget at 61.97% (R261,2 million).
The sub-programme supports, monitors and reports on the implementation of the national skills development strategy at the sectoral level by establishing and managing the performance of service-level agreements with SETAs and conducting trade tests at the Institute for the National Development of Learnerships, Employment Skills and Labour Assessments (INDLELA).
The second highest allocation of R108,7 million, which accounts for 25.79% of the programme’s total budget, is apportioned to sub-programme 5: National Artisan Development.

This sub-programme manages and monitors the development of artisans.

Notably, this sub-programme got a huge budget decrease amounting to R45,6 million or 29.55% in nominal terms from R154,3 million in 2021/22 adjusted appropriation.
The budget cuts are very concerning given that the Department will implement the National Skills Development Strategy to support the Economic Reconstruction and Recovery Plan (ERRP) through producing relevant skills.

The allocation for current payments amounts to R166,9 million, of which R149,4 million is allocated to the compensation of employees and R17,5 million for goods and services.
Notably, the allocation for compensation for employees is projected to decrease to R146,8 million in 2023/24 and to increase marginally to R150,5 million in 2024/25.

The allocation for goods and services decreased significantly from an adjusted appropriation of R55,2 million in 2021/22 to R17,5 million in 2022/23 and it is projected to grow marginally to R18,1 million and R18,9 million in 2023/24 and 2024/25, respectively.
The allocation for spending on transfers and subsidies amounts to R252,5 million, which increased slightly by R3,3 million from an adjusted appropriation of R249,2 million.

The allocation is projected to increase to R260,2 million in 2023/24 and decrease to R157,0 million in 2024/25.
An amount of R28,5 million is 9 70 allocated to the Quality Council for Trades and Occupations (QCTO) and R124,0 million is allocated to the Public Service Sector Education and Training Authority (PSETA) and R100 million to the National Skills Fund.

2.1.1.6 Programme 6: Community Education and Training (CET) The programme aims to plan, develop, implement, monitor, maintain and evaluate national policy, programme assessment practices and systems for community education and training.
Provide financial and other support to community education and training colleges.

The programme has four budget sub- programmes, namely, Programme Management: Community Education and Training; Community Education and Training Systems, Planning, Institutional Development and Support; Community Educating and Training College Financial Planning and Management; and Education, Training and Development Assessment.

The CET programme’s budget over the MTEF period amounts to R7,735 billion.
For the 2022/23 financial year, the programme’s budget amounts to R2,481 billion, which constitutes 2.27% of the Department’s total voted funds.

The budget increased by R9,3 million, or 0.39% when considering inflation-adjusted, from an adjusted appropriation of R2,365 billion in 2021/22.

The budget is projected to grow at an average growth rate of 4.3% between 2021/22 and 2024/25.
Sub-programme 2: Community Education and Training System Planning, Institutional Development and Support is apportioned the bulk of the budget at 89.96% (R2,232 billion).
The sub-programme is responsible provides support to management and councils, monitors and evaluates the performance of the CET system, develops regulatory frameworks for the system, manages and monitors the procurement and distribution of learning and teaching support materials, provides leadership for CET colleges to enter into partnerships for the use of infrastructure for college site-hosting centres and the funding of these partnerships, maps an institutional landscape for the rollout of the CET system, and is responsible for the planning and development of CET infrastructure.
The sub-programme budget is projected to grow at an average growth rate of 4.6% between 2021/22 and 2024/25.

Sub-programme 3: Community Education and Training Colleges Financial Planning and Management receives the second highest allocation, amounting to R228,8 million or 9.22% of the programme’s total budget.
This sub-programme sets up financial management systems; develops the financial management 10 71 capacity of CET colleges; manages and determines the fair distribution of funding to CET colleges in accordance with funding norms and standards; monitors compliance with supply chain management policy; and ensures the timely submission of audited performance information, annual financial statements, and quarterly and annual reports.
The allocation for spending on current payments for the 2022/23 financial year amounts to R2,263 billion, of which R2,256 billion is for the compensation of employees and R7,2 million for goods and services.

The allocation for spending on compensation of employees accounts for 90.89% of the CET programme’s total budget.
The budget allocation for compensation of employees is projected to increase in the outer two years of the MTEF period to R2,349 billion and R2,454 billion in 2023/24 and 2024/25, respectively.

Notably, the budget allocation for goods and services is projected to decrease in the outer two years of the MTEF period to R4,6 million and R4,8 million in 2023/24 and 2024/25, respectively.
The decrease in the allocation for goods and services is due to the reprioritisation of funds to Higher Health to cater for addressing preventative activities on Gender-Based Violence (GBV) in the CET sector.

An amount of R218,4 million is allocated for transfers and subsidies, of which R215,2 million is for CET colleges and R3.2 million is for Departmental agencies and accounts: ETDP SETA.

The Department reported that an amount of R2,548 million was reprioritised toward the CET funding model.

2.2.
2.2.

The National Student Financial Aid Scheme (NSFAS) The Committee also considered and assessed the 2022/23 Annual Performance Plan and the MTEF Budget allocation of the NSFAS.

The mandate of the NSFAS is informed by the Constitution of the Republic of South Africa, 1996, section 29(1) (b) of the Bill of Rights of the Constitution, the National Student Financial Act, 1999 (Act No.

56 of 1999 as amended), the Higher Education Act, 1997 (Act No.
101 of 1997 as amended), the Continuing Education and Training Act, 2006 (Act No.

16 of 2006), Public Finance Management Act, 1999 (Act NO.

1 of 1999), Treasury Regulations, 2005, Public Audit Act, 2004 (Act No.

25 of 2004), and the National Credit Act, 2005 (Act No 34 of 2006).

In addition to the core legislative mandate, the work of the Entity is informed by key government policies; namely, the NDP, the White-Paper for PSET, and the MTSF 2019 – 2024.
11 72 The NSFAS’s main responsibility is to administer loans and bursaries and allocate these to eligible students, developing criteria and conditions for the granting of loans and bursaries to eligible students in consultation with the Minister of Higher Education (the Minister), raising funds, recovering loans, maintaining and analysing a database, undertaking research aimed at better utilisation of financial resources and for advising the Minister on matters relating to student financial aid.
The NDP commits the NSFAS to provide all students who qualify for the NSFAS with access to full funding through loans and bursaries to cover the costs of tuition, books, accommodation and other living expenses.

In terms of loan recoveries, the NDP enjoins the NSFAS to recover through an arrangement with the South African Revenue Service.

Furthermore, MSTF has identified Seven Apex Priorities, including Priority 3: Education, Skills and Health.
There are four outcomes; namely, expanded access to PSET opportunities, improved success and efficiency of the PSET system, improved quality of the PSET provisioning and a responsive PSET system.

The NSFAS directly contributes to Outcome 1: Expanded access to PSET opportunities.

The MTSF commits the NSFAS to fund 420 000 and 400 000 University students and of TVET college students by 2024, respectively.

NSFAS has two budget programmes, namely: Administration and Student-Centred Model.
For the 2022/23 financial year, the two programmes have a combined 17 targets.

The Administration programme aims to conduct the overall management, administration, and governance of the entity and to provide efficient and effective support services to sustain the student-centred operating model.
The Student-Centred Model programme aims to increase access to funding for eligible students by raising funds, maximising loan recoveries and creating student-centred loans and bursaries through improved communication support for students and the central application process.

The programme further aims to improve the provision of financial aid to an increasing number of eligible students and to improve the efficiency of the application and funding of students.

2.2.1.
2.2.1.

Overview and assessment of the NSFAS 2022/23 MTEF budget allocation NSFAS is funded through parliamentary grants (voted funds) and also generates other revenue from loan recoveries from previous beneficiaries and management fees from managing funds from other funders.

The NSFAS budget for the 2022/23 financial year amounts to R48,968 billion (the budget includes approved use of recovered funds for debt collection and administration fees from other funders).
The budget comprises the Entity’s revenue of R1,436 billion or 2,9%, R45,854 billion or 93.64% from DHET Grant and R1,677 billion or 3.42% from other grants.

The overall budget increased significantly by R6,983 billion from 12 73 R41,985 billion in 2021/22.

The increase is due to additional allocated to cater for the shortfall in the NSFAS budget.

Similarly, the DHET Grant allocation to the NSFAS increased from R38,561 billion in 2021/22 to R45,854 billion in 2022/23.
The DHET grant allocation to the NSFAS is projected to grow in the two outer years of the MTEF period to R47,942 billion and R51,954 billion in 2023/24 and 2024/25, respectively.

Notably, the allocation from other grants decreased marginally from R1,964 billion in 2021/22 to R1,677 billion in 2022/23.
In terms of projected expenditure for the 2022/23 financial year, the bulk of the projected expenditure of the NSFAS, R49,252 billion is apportioned to programme 2: Student-Centred Model, which is the core mandate of the NSFAS and has 10 targets for the 2022/23 financial year.

The Administration programme is allocated R309,408 million and R1.461 million for capital assets.

The NSFAS projected expenditure is dominated by transfers to institutions (universities and TVET colleges) for student bursaries.
for university and TVET college students, at 96.42% or R47,219 billion.

Compensation for employees is allocated R246,567 million and goods and services R165,472 million.

Accounting expenditure is allocated R1,307 billion.

3.

Committee Observations The Committee, having considered and deliberated on the Annual Performance Plans 2022/23 of the Department of Basic Education made the following key observations and findings: 3.1.
The Department • Members wanted to know how many international agreements for international scholarships the Department had in place and how many countries they would sign agreements with.

Also, how the international agreements that the Department had signed with other universities assisted the students stuck in Russia and Ukraine in returning home to South Africa and how the International Relations Office’s mandate has facilitated this process.
Furthermore, they asked what the mandate of the International Relations Office entailed, who benefitted from the international scholarships, and what values do the beneficiaries of the international scholarships bring back to the institutions.

• Members pointed out their serious concern regarding the incident that occurred at the University of Stellenbosch and appreciated the Minister’s reassurance that the Department was busy addressing the matter.
They indicated that they were shocked at the whole incident, adding that it was not the first time that such a racial discrimination incident had occurred, especially at that 13 74 University.

They emphasized the fact that racial issues were something that needed to be addressed seriously by the Department.

• Members further raised their grave concern over some of the university policies, especially the policy on accommodation.
They indicated that they had received many complaints at the start of the first semester from first-year university students who had no accommodation at student residences.

They highlighted that traditional residences only allocated accommodation rights to certain racial groups, especially at the University of Stellenbosch.

They, therefore wanted to know how the Department planned to address this issue.
• Members were concerned that a high percentage of the Departmental budget was allocated to universities as compared to TVET Colleges.

• They were further concerned that the Department was funding the University of Stellenbosch University, yet there had been little or no transformation at all at that institution.

• Members argued that the Department had made little progress in ensuring that students have access to tertiary education institutions.
Many institutions lacked the necessary infrastructural development, such as Taung and Potchefstroom Agricultural Colleges in the North West Province.

They questioned how much of the budget has been set aside for those universities.

• Members raised their concern regarding high unemployment rate in the country.

They noted with concern the slight increase in the budget for the CET programme in community colleges.
The budget increased from R2.3 billion in the 2021/2022 financial year to R2.4 billion in the 2022/23 financial year.

They felt that the country’s youth unemployment could be tackled through community colleges.

• Members were gravely concerned that CETs in most provinces did not have permanent premises.

They enquired when will these provinces get permanent premises, as some programmes were still being held in schools after hours.
They asked whether the budget that has been allocated for CETs would be adequate to ensure that unemployed youth get access to the facilities so that they could have the opportunity to be employed.

• Members also questioned the status of the 54 Pilot centres across the country.

• They requested more information on the CET programmes and wanted to know whether they were doing what they are expected to do.

• Members observed that there had been articles in the newspapers about ongoing protests at UNISA.
They asked what the cause of the protests was and requested progress on the matter.

They also 14 75 wanted to find out whether the Department had tried to determine what was happening for purposes of coming up with possible solutions.

• Regarding the issue of student placements, Members felt that for several years, TVET Colleges struggled to form networks and engage with workplaces where students could be placed after graduating to gain work experience.
They commended the Minister for holding principals accountable for forming the necessary networks and engaging with workplaces as this is essential.

Students went out of colleges and wanted to apply for jobs but they did not always have access to the necessary tools to do so.

A question was, therefore, whether principals will receive any form of training on how to network and engage with workplaces.
• The Minister mentioned that 94% of learners who start grade one ended up not going to university, and this remained a concern and only highlighted the systemic problems in basic education.

Many learners are not receiving a quality basic education and, in turn, they are not equipped with the basic skills and attributes to be able to go to any higher education institutions.
Members enquired how the Department planned to collaborate with the Department of Basic Education for purposes of finding solutions to lower the statistics and get learners from grade 10 up to matric into higher education institutions and training.

• Members requested the Department to provide feedback on the pass rates at universities and TVET Colleges and enquired plans in place to increase the pass rates.
They mentioned that they had received complaints from students in TVET Colleges who had completed their NCV courses and had been unable to go and do their trade tests.

• Members wanted to know if the Department have been engaging with the new ICT system or if they have decided to continue using the current system.

3.2.

NSFAS • Members requested NSFAS to provide the Committee with details of the budget cut and what effect would these have on eligible students.
Members indicated that they had been receiving various letters from students who did not receive their grants and their devices and these were forwarded to NSFAS.

They were, therefore interested in knowing whether there were any possible increases in the budget and whether National Treasury would be willing to provide the entity with the extra funds they needed.
• Members queried how NSFAS planned to monitor the money allocated to the institutions to ensure that the beneficiaries receive adequate accommodation.

15 76 • Members wanted to know when NSFAS would be establishing a national centre to deal with applications and the dispersal of students' allowances.

• Members requested feedback on the distribution process of devices, whether laptops were sent out, and how many were still pending.
• Members pointed out that there were no targets on the number of complaints or queries from the NSFAS students and asked the rationale behind the decision not to include these as targets for the 2022/23 financial year.

• Members queried how NSFAS was dealing with the debt that tertiary institutions owe, whether the entity have any mechanisms in place.

Also, whether NSFAS had informed the Department about the institutions in debt to them and what the Department's response was on this matter.
• NSFAS has indicated that they dispersed upfront payments to institutions at the beginning of the academic year to enable eligible students to register and to be able to receive allowances, as the financial year commenced in April.

However, this was done without any registration data from the institutions to confirm the number of eligible students to receive financial aid.

It was then possible that some institutions could have received more money than they needed.
The Committee has previously raised the delays from the institutions in submitting registration data to NSFAS.

A question raised was, therefore, whether the delays in submitting registration data and transferring the money back to NSFAS were intentional and used as a strategy for institutions to generate revenue from interest while the money is in their bank accounts.
• Members indicated that students of the Ingwe Colleges protested because they did not receive any funds from NSFAS and requested an update on the matter.

• A question was also raised on what happens to the interest accrued on the money that NSFAS pays out to the universities as the funds stayed in their accounts for over three months.

Members felt that universities were doing this intentionally in order to accumulate more money to serve other interests where they do not have the available funds.

4.
4.

Responses The Department and NSFAS gave the following responses: 4.1.

NSFAS • Just like all the other departments, NSFAS received a budget cut, which started in the previous financial year.

However, since then, they have been able to deal with the budget cuts with the help 16 77 of National Treasury and the Department.

This has enabled them to cover all student funding for the past two years and they are adequately covered as far as student funding goes.
• The projections of the current trends determined the amount of the budget that National Treasury covered.

• On the matter of the laptops and devices that have been distributed to students, NSFAS distributed devices to students, and they followed two methods before the NSFAS tendered the process.

One process was where institutions within themselves were asked to distribute laptops to students, and most of the institutions did so.
When the process was completed, NSFAS ordered 175 000 devices, mainly for TVET students and university students, and then distributed them to the colleges and universities.

NSFAS followed the process as to how many devices were to be distributed to TVET colleges and universities.

It was a once-off intervention for TVET students, responding to the lockdown in 2020 due to the COVID-19 pandemic.

Of all the devices that were ordered, 165 000 of them were reserved for TVET College students.
Of the 165 000 devices, NFAS had been able to distribute 155 000 of them to eligible students.

For university students, they followed a different process.

The students could log on onto a portal and indicate whether or not they needed a laptop.

NSFAS would then place an order for a laptop, and then the laptop was distributed to the student who applied for a device.

NSFAS has delivered approximately 6 000 devices, through this method, to university students.
The portal has been opened again to allow the current cohort of students to access devices again.

Therefore, NSFAS is on track with this.

• On the issue of student accommodation, NSFAS provided allowances for accommodation and relied on the institutions to accredit the accommodation that was conducive to study.
Through engagements they had with students and visits they have had to the institutions, they have realised that they cannot just provide the necessary funds anymore, but rather that they need to be involved with the entire accommodation process.

NSFAS had spent approximately R12 billion on student accommodation and therefore needed to be part of the process to ensure that students have access to accommodation.
NSFAS will be involved with the student accommodation processes at institutions from this point onwards.

They are already creating a portal that will allow landlords who want to provide accommodation to NSFAS beneficiaries to be accredited.

NSFAS will ensure that the accommodation is suitable before assigning a grading and a cost to the accommodations.

NSFAS will have some degree of power over the total amount that they will be spending on student accommodation.
Thereafter, they will assign students accommodation based on where they are from and where they will be studying.

They would want tertiary institutions to also sign up on the 17 78 portal to follow the same processes when assigning NSFAS beneficiaries to institution-owned accommodation.
In this way, issues of racism will be eliminated and in doing so, NSFAS will be able to monitor student accommodation placements, and they will be able to assess the impact of student accommodation that is not conducive to students.

They agreed that some institutions' accommodations are not conducive to NSFAS students.

• On the issue of the NSFAS establishing a central system for dealing with applications, placements and disbursements, NSFAS is already a centralised scheme.
The issue is more about the systems that have aged and they are working on developing and updating the systems.

They are improving the portal to enhance real-time funding decisions for all students.

For example, when students submit their applications to NSFAS, they will be informed immediately if they are eligible for funding or not.

The issue could also be resolved when their IT systems are updated.
The budget to update all their systems was estimated at approximately R322 million, including support systems and student funding systems.

The Department funded NSFAS with R65 million at the beginning of this year to improve its systems; the entity has started to improve some of the systems with the money that was allocated to it.

The entity is currently busy with the application portal and other systems still require funding, which is why there is a standstill.
They are engaging with the public sector to acquire funds outside the state.

• On why there were no targets set on complaints from students, targets are normally set at a strategic level, and it does not necessarily mean that complaints are not a part of NSFAS's operational plans.

It may not have been stated as one of their APP targets, but it is part of their operational plans to improve students' call waiting time when they call the NSFAS call centre.
They have recently completed a feasibility study to see how they operate their call centre, and they are busy with improvements of that.

• The main issue that will reduce complaints would be when they can deploy the systems improvements.

Many of the students' queries are about being unable to see when they have been funded or when there are delays in processing the funding appeals.

All these issues will be dealt with when the system improvements have been implemented.
• On the issue of collecting money that institutions owe, there is a project called the Close-Up Project that NSFAS has developed to deal with this matter; they have almost concluded the reconciliation.

It is quite a process as there are instances where they owe institutions money and institutions owe them money.

The project was created to aid in reconciling the amounts owed between the 18 79 institutions, and its first phase was completed.
Some information is still missing, but they hope to conclude the process in June 2022.

• On the upfront payments, NSFAS is no longer able to provide any upfront payments to institutions as they do not have the available funds to do so.
The process of using upfront payments was used in the past to manage the time difference in the registration data from institutions, for NSFAS to have a rough estimate of the number of students who required funding, and to allow the students that were in need to have their funds paid to them on time.

There will be no need for upfront payments through the systems improvement project.
They aim to develop a system that will allow NSFAS to determine the number of students who need funding long before the start of the academic year.

They are engaging in integrated systems with other institutions and departments to avoid transferring data from one institution to the next.

• The registration data delays are because there is a lack of capacity in the financial aid offices of TVET Colleges compared to the established financial aid offices of universities.
NSFAS has tried to enhance the capacities of the TVET financial aid offices through various interventions to provide some forms of support.

They are looking at placing interns in the TVET Colleges to help process registration data.

NSFAS contacts the TVET institutions through their service agents when they observe a delay in their registration data.

In certain instances, NSFAS would send out teams to help TVET Colleges to submit their registration data on time.
Data submitted is not always compliant, which hinders NSFAS from making any payments.

• There were delays at the beginning of the year and the incident at Ingwe College happened because there was a delay in paying students' allowances, and NSFAS did not have the necessary funds available at that time.

However, they have the money now to be able to pay student allowances, although there are still outstanding payments.
The outstanding payments are only because they do not have the necessary compliant data available, but they work closely with the institutions to resolve this problem.

• On the interest that is accrued through interest by universities, NSFAS has no empirical data to suggest that that is the case, but they are in the process of appointing service providers who will assist them in paying out the allowances to the students directly.
This process will be concluded at the end of this month, and then the pilot period will be rolled out for three months.

19 80 4.2.

The Department • On the Pilot Centres' status, these have been very useful to the Department because they have been able to drive the city colleges.

They have 54 pilot centres, and 17 of them have been accredited to offer skills and occupational programmes.

They are aiming to have 35 additional centres this year.
They have used the Pilot Centres to establish key partnerships with municipalities and other government departments.

They were in contact with Microsoft to form a partnership also targeting the pilot centres.

• On questions about the work placements of TVET Colleges, the Department had signed a performance agreement with all the college principals and regional managers and they will be having a TVET Summit.
They will be following up with the training band regarding capacitation of the TVET principals to ensure that they are well equipped to build and strengthen industry partnerships to place as many of their students into workplaces.

They would be working closely with SETAs, hoping that they would have access to other industry partners through them.
• Regarding the issue of improving the pass rates of TVET colleges, the Department had been working with the Department of Basic Education on the input side – entry into the system.

There are ongoing engagements with a specific focus on vocational and occupational programmes.

The Department provides career guidance through one of its programmes, which provides career guidance to certain students.
• Regarding the issue of the students in Ukraine, the Minister indicated that they had a meeting with Universities South Africa (USAF), where a programme was set up to deal with this matter.

He did not have all the details with him at that point in time.

He confirmed that there are agreements between some South African universities and Ukrainian universities, and the Department would make use of those agreements.
The Minister said that they were trying to rescue some of the students, however, it was rather difficult in other cases, as their systems do not align with South African systems.

• On the issue of the incident that occurred at Stellenbosch University, the Department was addressing the matter and they will go through a deeper process if necessary.
The Minister said that the issue of racism remained a huge challenge in South Africa as a whole; and as government, they needed to re-evaluate the issues surrounding it.

Racism is not just an issue in universities but in workplaces as well, and dealing with it required a societal intervention.

20 81 • The Department would be providing the Committee with the report of the Summit where Members will receive a lot of information on what the Department did and how much progress was made.
The Department needed to look at the entire education system, and not just higher education.

• The Minister conclude by indicating that the Department needed an integrated system with NSFAS, other departments, and relevant institutions to work together to provide the necessary services.

5.
5.

Committee recommendations The Committee, having considered Budget Vote 17: Higher Education and Training, together with the Annual Performance Plan of the Department of Higher Education and Training as well as that of the National Student Financial Aid Scheme, recommends the following: 5.1.

The Department • The Committee acknowledges that the Department is under resourced, however attempts should be made to prioritise monitoring of governance related issues across the sector i.e.
monitoring and evaluation of institutional statutes to ensure effective and sound governance and management standards.

• The Department should provide necessary oversight and support to curb yearly student uprising related to admissions and registration.

• The Department should provide necessary support to ensure capacity in the TVET and CET sector so they can move swiftly as recognised programmes.
• Funding for the entire PSET sector is insufficient and needs attention to ensure that the NDP targets are not compromised due to unequal funding distribution between programmes.

For instance, skills and artisan development is at the top of government agenda however the funding for the CET and FET sector is a drop in the ocean.

• Programmes offered across the sector should be monitored and ensure that they remain responsive and accredited to avoid the WSU qualification saga as per media headlines.

5.2.
5.2.

NSFAS • Allowance discrepancy between TVET and University students is a course of concern.

There is a need to ensure that the funding model affords equally all eligible NSFAS recipients.

• The entire PSET sector funding model need to be reviewed as the NSFAS budget is not sustainable going forward.

Conversations should be held and look at funding model and the missing middle 21 82 challenges to ensure that the provision is made between the poor and the middle class.
The COVID pandemic exposed that even the missing middle are struggling to make ends meet and government should look at that to ensure that all benefit.

6.

Conclusion Having satisfied itself in its engagement with the Department of Higher Education and Training on their Annual Performance Plan and the Budget, the Select Committee on Education and Technology, Sport, Arts and Culture recommends that Budget Vote 17: Higher Education and Training be adopted and that the House approves Budget Vote 17.
Report to be considered.

22 83 4.

Report of the Select Committee on Education and Technology, Sports, Arts and Culture on Budget Vote 16: Basic Education, dated 31 May 2022 The Select Committee on Education and Technology, Sports, Arts and Culture, having considered Budget Vote 16: Basic Education, reports as follows: 1.
Introduction The Department of Basic Education (the Department) derives its mandate from Sustainable Development Goal Number Four, National Development Plan, Action Plan to 2024 for Schooling 2030, and the Medium Term Strategic Framework, to shape its plans such as the Strategic Plan and the Annual Performance Plans.

The Bill of Rights, states that all South Africans have the right to basic education, including adult basic education and access to further education.
It further indicates that the state has an obligation, through reasonable measures, to progressively make education available and accessible.

The Select Committee on Education and Technology, Sports, Arts and Culture (the Committee) considered the Budget and the 2022/23 Annual Performance Plan (APP) of the Department of Basic Education (the Department) on Wednesday, 20 April 2022.
The budget review briefing served to acquaint the 6th Parliament Select Committee with the mandate, programmes and priorities of the Department.

This report gives a brief summary of the presentation made by the Department to the Committee, focusing mainly on the 2022/23 Annual Performance Plan and the 2020 Medium Term Expenditure Framework (MTEF) allocations.

The report also provides the Committee’s key deliberations and recommendations relating to Vote 16.

2.
2.

Summary of the 2022/23 Annual Performance Plan The Department, in the five years (2019 to 2024) had planned to implement the following set of priorities, which are expressed as Medium Term Strategic Framework Outcomes: • Outcome 1: Improved school-readiness of children.

• Outcome 2: 10-year-old learners enrolled in publicly funded schools read for meaning.

• Outcome 3: Youths better prepared for further studies and the world of work beyond Grade 9.
• Outcome 4: Youths leaving the schooling system more prepared to contribute towards a prosperous and equitable South Africa.

Page 1 84 • Outcome 5: School physical infrastructure and environment that inspires learners to learn and teachers to teach.

The 2022/23 Annual Performance Plan (APP) represents the third year towards the achievements of objectives contained in the Department’s 2019 – 2024 Strategic Plan.
The presentation by the Department to the Committee outlined the Department's approach to the government-wide National Development Plan (NDP) and education sector priorities.

The intention was to ensure programme activities in the sector were aligned with medium and long- term goals.

The annual performance plan (APP) set out what the Department intended doing in the 2022/23 financial year and during the medium-term expenditure framework (MTEF) period, to implement its strategic plan.
Table 1 below is the summary of Programme Performance Indicators for the 2022/23 financial year.

Table 1: Programme No.
of Annual Quarterly Bi-Annual Biennially/ indicators Targets Targets Targets Targets per programme Administration 6 - 1 Curriculum Policy, Support 31 2 29 and Monitoring - 2 Teachers, Education Human 11 10 Resources and Institutional Development - 3 Planning, Information and 16 15 Assessment - 4 Educational Enrichment 6 2 Services 4 1 1 - 4 - 1 - - - - - - 1 - 2 85 - 5 Total distribution 70 58 10 Percentage distribution 100% 84% 12% 1 1% 1 1% The sector plan for basic education had been reviewed and strengthened for the 2020-24 planning cycle.
The action plan was based on 27 national goals intended to improve basic education.

Thirteen of these goals were output goals, dealing with better school results and better enrolment of learners in schools.

The remaining 14 goals dealt with initiatives that must be implemented to realise the output goals.
In the State of the Nation Address (SONA), the Presidential pronouncements had set the key government priorities and deliverables for the year, which, in turn, determined the priorities of the Department and the basic education sector as a whole.

The pronouncements committed the Department in public to key activities and outcomes.

Alignment of its current plans to those key areas had tangible implications for the Department and the sector as a whole.
The Department became responsible for the Early Childhood Development (ECD) function as on 1 April 2022, through the proclamation signed by the President on 27 June 2021.

3.
Budget of the Department The budget of the Department is summarized as follows: Table 2: 2022/23 R’000 2023/24 R’000 2024/25 R’000 2022 Indicative Allocation 29 372 764 30 052792 31 402 447 Departmental baseline 6 532 266 6 227 774 6 507 461 Conditional Grants to provinces 22 840 498 23 825 018 24 894 986 Learners with Profound Intellectual Disability 249 430 260 424 272 120 Grant Early Childhood Development 1 191 918 1 242 487 1 298 286 Maths, Science and Technology grant 424 528 433 079 452 528 Education Infrastructure Grant 12 229 436 12 768 433 13 341 856 National School Nutrition Programme grant 8 504 132 8 878 942 9 277 690 3 86 HIV and AIDS( life skills education) grant 241 054 241 653 252 506 BASELINE INCREASES Compensation of employees 11 185 - - Departmental agencies and 20 000 20 000 20 000 accounts(UMALUSI) Foreign government and International 836 836 836 organisations (ADEA) Goods and Services Ntataise (ECD function) 32 745 1 083 Presidential Employment Stimulus: Oversight 5 000 South African Congress for Early Childhood 826 Development (ECD function) 32 745 1 083 5 400 829 32 745 1 132 - 866 Uhambo foundation (ECD function) 2 130 2 143 2 239 BASELINE REDUCTION Departmental Agencies and Accounts (53 581) (3 000) Goods and Services (Departmental Operations) (24 421) Households (Funza Lushaka) (26 160) (53 581) (3 000) (24 124) (26 160) (53 (53 581) (3000) (24 124) (26 160) ADJUSTMENTS TO CONDITIONAL GRANTS Conditional Grants to provinces 167 179 325 762 Learners with Profound Intellectual Disability 6 091 Grant Early Childhood Development Maths, Science and Technology grant 764 265 -- - - Education Infrastructure Grant 154 649 325 762 HIV and AIDS( life skills education) grant National School Nutrition Programme grant 1 221 4 189 - - - - - - - - - 4 87 3.1.
Programmes Allocations over the 2022 MTEF Table 3: PROGRAMME Administration BUDGETS 2022/23 R’000 535 184 2023/24 R’000 538 464 2024/25 R’000 562 869 Curriculum Policy, Support and Monitoring 3 280 768 3 337 074 3 486 938 Teachers, Education Human Resource and 1 501 105 1 505 673 1 567 649 Institutional Development Planning, Information and Assessment 15 416 997 15 810 760 16 180 197 Educational Enrichment Services 8 826 113 9 196 038 9 609 031 Total 29 560 167 30 388 009 31 406 684 3.2.
Economic Classifications Allocations over the 2022 MTEF Table 4: PROGRAMME Compensation of Employees BUDGETS 2022/23 R’000 549 328 2023/24 R’000 541 065 2024/25 R’000 565 363 Goods and services 2 246 887 2 256 959 2 352 418 Interest and Rent on Land 40 553 40 709 42 537 Transfers and subsidies 24 662 313 25 812 492 26 631 697 Payments of capital assets 2 061 086 1 736 784 1 814 669 Total 29 560 167 30 388 009 31 406 684 3.3.
Details of Earmarked Allocations (R’000) over the 2022 MTEF Table 5: 5 88 Earmarked Funds 2022/23 R’000 Learners with Profound Intellectual Disabilities 3 320 Grant - Nat Matric Second Chance 58 162 National School Nutrition Programme Grant- 19 655 Nat 2023/24 R’000 3 468 58 057 19 643 2024/25 R’000 3 624 60 665 20 526 Oversight of Maths, Science and Technology 6 779 6 767 7 071 Grant-Nat Presidential Employment Stimulus: Oversight 5 000 5 400 - Workbooks Total 1 207 033 1 204 870 1 299 949 1 298 205 1 258 978 1 350 864 3.4.
Details of Conditional Grants Allocations/Transfers (R’000) over the 2022 MTEF Table 6: Conditional Grants 2022/23 R’000 Learner with Profound Intellectual Disabilities 255 521 2023/24 R’000 260 424 2024/25 R’000 272 120 Early Childhood Development Grant 1 192 682 1 242 487 1 298 286 Maths, Science and Technology Grant 424 793 433 079 452 528 Education Infrastructure Grant 12 384 085 13 094 195 13 341 856 HIV and AIDS(life skill education) Grant 242 275 241 653 252 506 National School Nutrition Programme Grant 8 508 321 8 878 942 9 277 690 Total 23 007 677 24 150 780 24 894 986 3.5.
Details of Other Transfers Allocations (R’000) over the 2022 MTEF Table 7: Other Transfers 2022/23 R’000 2023/24 R’000 2024/25 R’000 UNESCO Membership Fees 17 773 1 7 841 18 642 6 89 ADEA 1 000 Guidance Counselling and Youth 204 Development Centre: Malawi 1 001 205 1 008 214 Childline South Africa 82 86 90 National Education Collaboration Trust 120 738 121 515 126 972 Southern and Eastern Africa Consortium for 3 816 3 831 4 003 Monitoring Educational Quality NSFAS: Funza Lushaka 1 328 953 1 334 160 1 395 251 South African Congress for Early Childhood 826 829 866 Development (ECD function) Uhambo foundation (ECD function) Ntataise (ECD function) 2 130 1 083 2 143 1 083 2 239 1 132 Total 1 476 605 1 482 694 1 550 417 3.6.
Details of Other Transfers Allocations (R’000) over the 2022 MTEF Table 8: Other Transfers Transfers to Public Entities Umalusi ETDP SETA South African Council for Educators 2022/23 R’000 178 031 162 031 472 15 528 2023/24 R’000 179 010 162 945 474 15 599 2024/25 R’000 186 294 169 365 495 16 434 Total Transfers 1 654 636 1 661 704 1 736 711 4.
Committee Observations The Committee, having considered and deliberated on the Annual Performance Plans 2022/23 of the Department of Basic Education made the following key observations and findings: 7 90 • Members raised a concern regarding the impact of the KZN disaster on the affected schools and appreciated the amount of work that the Minister and the Department had done to deal with the situation.
They commended the President for coming forward and declaring a state of disaster over the devastating floods.

• Members were much concerned that most of the schools affected were in the rural areas, where there was no infrastructure such as Wi-Fi and Technology.

They, however, trusted that something positive would come out of this situation.
• They asked whether the Department had short and long-term plans that had been put in place to ensure a quick return of children to schools while the necessary steps were taken to remedy the situation.

• As per floods damage to more than 500 schools amounting to R400 million, a question was raised as to what were the immediate plans to assist the schools that were affected.
• Members requested the Department to provide the Committee with the exact percentages, per province, of teachers needed throughout the country and what had been done so far.

• With regard to teacher recruitment, Members enquired the subjects needed for placements.

• Members further asked whether the numbers of teachers were adequate for the implementation of ECDs.
• Members wanted to know the criteria used to identify the effectiveness of the SGBs for the targeted schools, the one used to elect the members and the training provided so that they were well capacitated.

• They also wanted to know how the schools were supported financially to assist with the payment of SGBs.

• Members noted with concern the shortage of mathematics and science teachers and enquired the subjects the Department was targeting for Funza Lushaka funding awarded to learners.
• Members also questioned the date set for the complete eradication of pit toilets.

• Members asked if it was true that Assistant Teachers were not allowed to do training or further their qualifications and what their long-term plan was.

• Members questioned challenges the Department was experiencing when replacing the previous Newly Qualified Teacher (NQT) term with Early Career Teacher (ECT) in basic education.
• Members expressed their concern regarding parents who lived in townships and farms because they are far from the enrolment centres.

They, therefore, pleaded with the Department to consider placing enrolment centres near communities.

Responses from the Department The Department gave the following responses: 8 91 • On the issue of financial assistance for flood-affected schools, the situation was currently being assessed, with the Minister of Basic Education being in KZN to look at the situation.
At the provincial and national level, the whole Department, as led by Mr Kwazi Mshengu, the MEC for Education in KZN, worked together to assess the situation for possible solutions.

Only after this assessment was done would it be known what the needs were and the assistance that could be given to remedy the situation.
• The Department stood a good chance of recovery from lost time due to the lessons learnt through the Covid-19 pandemic, when the whole world had to cancel a full year of school and had later recovered from it.

Covid-19 had affected the whole country, but this incident occurred in one province.

Based on lessons learnt from the pandemic in 2020, the Department should manage to work through this situation and save the school year for the KZN Province.
• The Department noted the concern regarding Wi-fi and Technology and indicated that, on 28 January 2022, the Cabinet approved a plan to provide schools with connectivity and all the schools affected by floods in KZN and Eastern Cape would be prioritised.

Furthermore, Statistics SA was in the process of donating +- 165 00 tablets that were used during Census 2022 to the Basic Education Sector.
• The Department mentioned that it would work with the EC and KZN provinces to provide the damaged schools with ICT resources.

In the interim, the Department would engage with the KZN Education Department to provide temporary solution to the affected schools.

• The Department indicated that Provincial Education Departments (PEDs) declare post establishments for schools on an annual basis based on balancing the need and funds available.

All PEDs allocated posts to schools for 2022 in September 2021.
In terms of the post provisioning policy/norms, once a school is allocated posts, such posts are regarded as adequate for that school and such posts must be filled accordingly.

However, due to natural attrition, posts become vacant for some period while the administrative process to fill such posts is undertaken.

The Department continuously monitors the filling of posts in schools through receiving reports from PEDs and verifying such reports with PERSAL data on a quarterly basis.
The report below shows the vacancy rate per province as at the end of March 2022: 9 92 • The Department mentioned that it has identified certain subjects/phases as scarce hence the establishment of the Funza Lushaka Bursary Scheme as a targeted source of supply for educators qualified in identified areas.

Mathematics, Science, Technology and African Languages at Foundation Phase have featured on the list since the inception of the scheme.
Subjects such as Braille and South African Sign Language have been added to the list recently.

• The Department indicated that the results of the recent ECD Census the Department carried out indicated that there are about 3,9 ECD practitioners per ECD Centre, who support about 39 children in the centre.

This number excludes other support staff members in the centre and it allows for meaningful implementation of ECD programmes.
• The Department said that it has a monitoring tool which is used to determine the effectiveness of SGBs.

The tool comprises major aspects of the role expected of SGBs and evaluate how the SGB performs each of the role and allocate a score.

The scores are interpreted to indicate the functionality of the governing body.

There is no criteria used for electing members to the SGB as it is a democratic process used by parents of learners in a school to elect representatives.
The Department provides provinces with guidelines which contain topics to be covered during the training of SGB and the provinces prioritise and customise the training of SGBs in terms of the need assessed.

• The Department provided that it planned to complete the eradication of pit toilets on the original list of schools which were identified at inception of the SAFE initiative during the 2022/2023 financial year.
• The Department said that there were 5 062 students for mathematics, 1 848 for physical sciences, 2 874 for technical subjects, and 2 804 for indigenous South African languages.

• The Department said that the Presidential Youth Employment Initiative (PYEI), implemented as the Basic Education Employment Initiative (BEEI) sought to provide employment opportunities for unemployed youth, between the ages of 18 and 35.

It further targeted youth who are not in employment, education, or training (NEET).
This was meant to expand access to opportunities for this group of young people, who are the most affected by unemployment and lack of access to 10 93 economic opportunities.

The Initiative is part of the Presidential Employment Stimulus (PES).

The PES is implemented by 15 Departments, others addressing the other categories of youth, categories such as graduates, youth studying, people interested in agriculture, etc.
In phase I of the initiative, since many students were studying online due to COVID-19 restrictions, some principals appointed youth who were studying.

Some would take leave of up to three weeks to complete portfolio of evidence, or write exams, and came on the fourth week to receive full stipends.

Principals and SGBs complained that the assistant who were brought in to support teachers were now always absent from work.
During the audit of 2020/21, the AGSA issued a finding that there was no value for money paying full stipends to youth that were on leave for long periods as they were studying.

Reports from provinces have indicated that most of the youth that exited the initiative in February 2022 left due to them going for full time studies, others that exited the initiative found other employment or other opportunities.
The Department would continue to encourage youth to further their studies and also to focus so that they may receive good results.

A fact sheet produced by the Department of Higher Education and Training (DHET) provides information on the NEET and their vulnerabilities.

• The Department indicated that the matter regarding the NQT and CET did not fall under them but rather resided with the DHET.
• The Department noted the concern regarding the placement of enrolment centres closure to communities and indicated that it has engaged provincial departments to plan how they would assist parents in ensuring that centres are accessible or brought closure to communities.

The Western Cape, for an example has been using shopping malls over weekends as enrolment centres and some schools were identified as centres to assist parents in completing forms.
The Gauteng Department of Education will create centres when the admission process starts in July.

5.

Committee recommendations The Committee, having considered Budget Vote 16: Basic Education, together with the Annual Performance Plan of the Department of Basic Education recommends the following: • The Department should ensure that all provinces align its plans to the national priorities and capacity be provided to those that fall short.
• The Departments should ensure that the Provinces do report on the expenditure and progress related to the conditional grants and the Committee be provided with such information to enhance its oversight mandate.

11 94 • In light of the infrastructure grants, the Committee recommends that the Department and Provinces do assess whether the model of implementing agents is a better model and do a comparative analysis whether its value for money, cost effective and delivery is on time.
This is based on the fact that infrastructure development and replacement of non-viable infrastructure is happening at a slow pace and some Provinces like the Eastern Cape return part of the grant due to slow expenditure back to the National Treasury while the number of inappropriate schools remains high.
• The Department should speed up the readiness for e-learning as the COVID pandemic showed that some learners were left behind while their counterparts in the affluent schools were progressing with curriculum.

Even though the curriculum was adjusted but meant that learner development would suffer going forward.

6.
6.

Conclusion Having satisfied itself in its engagement with the Department of Basic Education on their Annual Performance Plan and Budget, the Select Committee on Education and Technology, Sports, Arts and Culture recommends that Budget Vote 16: Basic Education be adopted and that the House approves Budget.

Report to be considered.

12 95