The second quarter provincial budget statement of receipts and payments, published by the National Treasury in terms of Section 32 of the Public Finance Management Act, 1999 (PFMA) on 30 October 2009, covers spending for the first six months of the 2009/10 financial year, which ended 30 September 2009. It is available on the treasury website at www.treasury.gov.za.
The information is sourced from the Section 40(4) PFMA reports signed by each head of provincial department to their provincial treasury, and submitted to the National Treasury by 22 October 2009. Queries on spending or budget numbers should therefore, in the first instance, be referred to the relevant head official of the provincial department, and in the second instance to the head official of the provincial treasury. Queries on conditional grants may also be referred to the relevant head official of the administering national department.
Some of the expenditure was not foreseen at the time of tabling the 2009 provincial budgets and the cost thereof is unforeseen and unavoidable as provinces don't have the latitude within their budgets to absorb it.
The wage agreement (Resolution 5 of 2009 of the PSCBC) is 5 percentage points higher than what provinces planned for when they tabled their 2009 Budgets.
The Occupation Specific Dispensation (OSD) for educators concluded in 2009 (ELRC collective agreement 4 of 2009) is also placing additional funding responsibilities on provinces.
The agreement reached in the Public Health and Social Development Sectoral Bargaining Council (PHSDSBC) on 7 August 2009 gave effect to the introduction of an OSD for medical doctors, dentists, medical and dental specialists, pharmacists, pharmacy assistants and emergency medical services personnel (paramedics). The spending pattern reflects an 11.3 per cent or R6 billion increase over the same period last year.
Social development spending for the first six months of the 2009/10 financial year is recorded at 44.5 per cent or R4.1 billion of the R9.3 billion social development budgets.
Personnel expenditure, in aggregate, is at 48.5 per cent or R76.8 billion of the R158.5 billion personnel budgets. This is significantly higher by 57.8 per cent or R1.2 billion more than spending over the same period of the previous financial year.
45.5 per cent or R3.5 billion against their R7.8 billion health capital budgets, which is 26 per cent or R729.5 million more than the same period for 2008/09.
Table 1 indicates that provinces have spent 50 per cent or R145.3 billion of budgeted expenditure of R290.6 billion for the first six months into the current financial year. Spending to date is at a lower level in percentage terms compared to spending against annual budgets over the same period in the 2008/09 financial year (51.8 per cent).
However, in nominal terms, spending is 13 per cent or R16.7 billion more than for the same period last year when provinces had spent R128.6 billion. Between provinces, spending ranges from the lowest share of 46.8 per cent in Limpopo and 46.9 per cent in Western Cape, to the highest at 53.3 per cent in Gauteng and 53.1 per cent in Eastern Cape.
Eastern Cape 33 498 218 5 697 299 3 439 217 42 634 734 17 582 758 3 333 688 1 717 187 22 633 633 53.1% 19 227 940 17.
Free State 13 982 650 2 596 268 1 795 064 18 373 982 6 318 462 1 506 042 824 360 8 648 864 47.1% 8 151 365 6.
Gauteng 39 133 818 13 591 987 2 533 316 55 259 121 20 252 089 8 011 523 1 165 844 29 429 456 53.3% 26 051 750 13.
KwaZulu-Natal 46 331 155 8 516 659 5 615 139 60 462 953 22 420 512 4 598 325 2 902 596 29 921 433 49.5% 27 297 205 9.
Limpopo 27 239 085 4 798 280 2 438 385 34 475 750 12 735 123 2 332 303 1 077 624 16 145 050 46.8% 14 638 257 10.
Mpumalanga 18 212 593 2 187 428 2 145 433 22 545 454 9 087 942 1 282 513 974 135 11 344 590 50.3% 9 801 051 15.
Northern Cape 6 024 382 980 329 936 047 7 940 758 2 988 595 471 678 328 407 3 788 680 47.7% 3 622 068 4.
North West 15 147 071 3 096 741 1 622 398 19 866 210 7 016 677 1 624 594 1 131 783 9 773 054 49.2% 8 222 737 18.
Western Cape 21 243 848 5 397 981 2 392 513 29 034 342 10 034 908 2 409 352 1 185 993 13 630 253 46.9% 11 619 611 17.
Total 220 812 820 46 862 972 22 917 512 290 593 304 108 437 066 25 570 018 11 307 929 145 315 013 50.0% 128 631 984 13.
Provinces have budgeted R210.2 billion for social services, which includes spending on education, health and social development. Spending on social services is recorded at R105.6 billion or 50.2 per cent of the total provincial social services budgets for the first six months of 2009/10.
51.8 per cent and Mpumalanga at 51.5 per cent.
Kw aZulu-Natal 24 810 039 12 379 636 49.9% 41.4% 55.8% 11 651 257 6.
Limpopo 16 362 123 7 839 194 47.9% 48.6% 63.9% 7 203 435 8.
Mpumalanga 10 073 199 5 188 330 51.5% 45.7% 61.8% 4 791 013 8.
Northern Cape 2 979 208 1 505 509 50.5% 39.7% 54.2% 1 512 308 -0.
Spending by provinces ranges from the lowest in North West at 44.9 per cent and Free State at 46.5 per cent, to the highest in Limpopo and Eastern Cape at 50.9 per cent and 49.3 per cent respectively.
Education capital expenditure is at 58.2 per cent or R3.2 billion of the R5.5 billion budget. This is a significant increase of 57.8 per cent or R1.2 billion more than the R2 billion spent on capital over the same period last year.
Spending by provinces ranges from the lowest in Mpumalanga at only 35.1 per cent and KwaZulu-Natal at 50.8 per cent to the highest in Free State at 84.7 per cent and Northern Cape at 81.2 per cent.
Northern Cape 2 213 662 1 096 313 49.5% 28.9% 39.5% 922 200 18. The highest shares are recorded in Eastern Cape at 57.6 per cent and Gauteng at 54.6 per cent.
Table 7 indicates that health personnel expenditure is R22.8 billion or 49.6 per cent of the health personnel budget, an increase of R1.8 billion or 8.5 per cent compared to the R21 billion spent over the same period in 2008/09.
Between provinces, with a varying degree of spending, the lowest rate of health capital spending is in Free State at 30.7 per cent and Limpopo at 37.4 per cent with North West and Mpumalanga recording the highest rate of spending at 65.
59.5 per cent respectively.
Provinces registered spending of 44.5 per cent or R4.1 billion of their R9.3 billion budget. This represents an increase of 7.4 per cent or R285.6 million above the R3.8 billion spent over the same period last year.
Between provinces, there are varying degrees of spending, with the lowest being in Mpumalanga at only 37.4 per cent and North West at 39.4 per cent while the highest are KwaZulu-Natal at 49.9 per cent and Free State at 46.2 per cent.
Housing and local government spending is at the end of the first six months of the 2009/10 financial year 53.2 per cent or R9.4 billion of the R17.7 billion budget (table 10). This represents a significant increase of 43.9 per cent or R2.9 billion more than the R6.5 billion spent over the same period last year.
41.9 per cent and North West at 42.
65.8 per cent and Limpopo at 58.6 per cent.
Eastern Cape 2 133 805 1 166 547 54.7% 5.2% 61.4% 672 099 73.
Gauteng 3 187 086 2 207 937 69.3% 7.5% 31.4% 1 386 277 59.
KwaZulu-Natal 2 180 448 1 177 101 54.0% 3.9% 16.7% 536 013 119.
45.7 per cent and 46.5 per cent respectively while Eastern Cape and Limpopo recorded the highest rates at 51.7 per cent and 50 per cent respectively.
49.3 per cent or R11.3 billion of their R22.9 billion capital budgets ("payments for capital assets"). This is significantly higher by 22.3 per cent or R2.1 billion more than the R9.2 billion spent over the same period last year.
Eastern Cape 3 439 217 1 717 187 49.9% 7.6% 15.2% 1 618 083 6.
Free State 1 795 064 824 360 45.9% 9.5% 7.3% 867 772 -5.
Gauteng 2 533 316 1 165 844 46.0% 4.0% 10.3% 908 307 28.
Total 22 917 512 11 307 929 49.3% 7.8% 100.0% 9 247 361 22.
Table 13 provides capital spending information by province, which indicates low rates of spending in Northern Cape at 35.1 per cent and Limpopo at 44.2 per cent and high rates in North West at 69.8 per cent and KwaZulu-Natal at 51.7 per cent. However, in absolute terms, KwaZulu-Natal has spent the most at R2.9 billion followed by Eastern Cape at R1.7 billion.
The biggest capital budgets in provinces are in public works, roads and transport departments at 32.6 per cent of the total provincial capital budget of R22.9 billion. Spending by these departments is at 50.8 per cent or R3.8 billion against its combined capital budgets of R7.5 billion.
Between provinces, with various degrees of spending, the lowest rate is recorded in Northern Cape at only 5.1 per cent and Limpopo at 17.5 per cent, while North West and Western Cape recorded the highest rates of spending at 84 per cent and 55.8 per cent respectively.
Table 14 (overleaf) reflects spending on conditional grant allocations as at 30 September 2009 for all provinces. It excludes expected conditional grant roll-overs from the 2008/09 financial year and spending on general purpose conditional grants (Schedule 4 grants) like National Tertiary Services, Health Professions Training and Development and the Infrastructure grant to provinces, as reporting against these grants cannot be separated from the provinces' health and capital budgets.
Against the total allocation of R27.2 billion, this excludes Schedules 4 and 8 grants, the rate of conditional grants spending amounts to 55.4 per cent or R15.1 billion. However, when excluding the Gautrain Rapid Rail Link grant, the conditional grant expenditure amounts to R12.4 billion or 50.9 per cent against a total allocation of R24.4 billion.
Specific grants that show low rates of spending include Overload Control (11.1 per cent), Health Disaster Response (Cholera) (19.
(29.1 per cent), HIV and Aids (Life Skills Education) (30 per cent), Mass Sport and Recreation Participation Programme (37.
(37.5 per cent) and Community Library Services (37.8 per cent).
Total excluding Schedules 4 and 8 grants 27 246 268 16 224 604 15 081 861 55.
Total excluding Schedules 4,8 grants & Gautrain 24 413 577 14 022 167 12 438 494 50.
Table 15 indicates selected conditional grant spending rates as at 30 September 2009. It further indicates that five or more provinces have spent less than 40 per cent of their grants budgets after the first six months for the following grants: Community Library Services, HIV and Aids (Life Skills Education), Devolution of Property Rate Funds and Mass Sport and Recreation Participation Programme.
National government transferred 50.5 per cent or R116.7 billion of the equitable share and 55.6 per cent or R27.4 billion in conditional grants, to provinces after the first six months of the current financial year.
After the first six months, provinces have collected 46.4 per cent or R4.4 billion of the budgeted own revenue of R9.6 billion which is 6.5 per cent or R271.9 million more than what was collected by the end of September for the previous financial year.