The first quarter provincial budget statement of receipts and payments, published by the National Treasury on 30 July 2010, covers spending in provinces for the first quarter of the 2010/11 financial year, which ended 30 June 2010. It is published in terms of Section 32 of the Public Finance Management Act, 1999 (PFMA) and 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 July 2010. 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.
In aggregate, provinces have spent 22.9 per cent or R75.7 billion of their budgets of R329.8 billion for the first quarter.
4.8 per cent, as spending was R3.5 billion higher than for the same period last year.
Education expenditure totalled R33.2 billion or 24.1 per cent of the R137.4 billion combined education budgets.
(41.7 per cent). The spending pattern reflects a 10 per cent or R3 billion increase over the same period last year.
Health expenditure totalled R23.3 billion or 23.7 per cent of the R98.4 billion combined health budgets and is the second largest item on provincial budgets (29.8 per cent). The spending pattern reflects a 11.5 per cent or R2.4 billion increase compared with the same period last year.
Social development spending for the first quarter is 20.2 per cent, or R2.1 billion of the R10.2 billion social development budgets.
Personnel expenditure, in aggregate, is at 24.7 per cent or R45.8 billion of the R185.7 billion personnel budgets.
In aggregate, provinces spent 16.4 per cent or R4.2 billion of their R25.4 billion combined capital budgets. This is a decline of 21.2 per cent when compared to the same period in 2009/10.
Provincial education departments spent 13.7 per cent or R982.9 million of their R7.2 billion education capital budgets. This is 38.4 per cent or R613.4 million less than spending over the same period of the previous financial year.
Provincial health departments improved on capital spending. They have spent 18.5 per cent or R1.6 billion against their R8.8 billion health capital budgets, which is 7.3 per cent or R111.3 million more than the same period for 2009/10.
The second highest share of provincial capital budgets, after health, is for public works, roads and transport departments at 29.2 per cent.
The budgeted figures for provinces are based on the 2010/11 estimates of provincial revenue and expenditure documents (main budgets) tabled in the various provincial legislatures during February and March 2010.
Table 1 indicates that provinces have spent 22.9 per cent or R75.7 billion of budgeted expenditure of R329.8 billion for the first quarter into the current financial year. Spending against budgets for the first quarter is at a lower level in percentage terms when compared to spending against budgets over the same period for the 2009/10 financial year (24.9 per cent).
However, in nominal terms, spending is 4.8 per cent or R3.5 billion more than for the same period last year when provinces had spent R72.2 billion. Between provinces, spending ranges from the lowest share of 20 per cent in North West and 21.2 per cent in Free State, to the highest at 25.3 per cent in Gauteng and 24.8 per cent in Eastern Cape.
Eastern Cape 38 703 055 5 871 753 3 648 987 - 48 223 795 9 961 830 1 269 312 719 607 96 11 950 845 24.
Free State 15 990 595 3 379 994 2 010 425 - 21 381 014 3 542 902 789 135 199 662 758 4 532 457 21.
Gauteng 45 551 221 12 173 767 3 131 658 - 60 856 646 11 057 848 4 022 356 324 210 167 15 404 581 25.
Kw aZulu-Natal 53 728 085 8 409 339 6 607 601 332 338 69 077 363 12 084 868 1 948 628 1 259 083 246 15 292 825 22.
Limpopo 32 007 273 4 943 025 2 702 293 100 39 652 691 7 291 426 1 098 724 232 416 - 8 622 566 21.
Mpumalanga 20 784 225 3 132 785 2 183 575 - 26 100 585 4 768 537 772 965 448 650 - 5 990 152 23.
Northern Cape 7 098 874 1 021 776 1 041 856 - 9 162 506 1 608 986 240 950 176 317 - 2 026 253 22.
North West 16 586 756 3 906 870 1 620 731 21 22 114 378 3 485 282 578 272 348 874 - 4 412 428 20.
Spending on social services is recorded at R58.6 billion or 23.8 per cent of the total provincial social services budgets for the first quarter of 2010/11.
Education budgets of R137.4 billion comprise 41.7 per cent of total provincial budgets. Table 3 indicates that education expenditure is at 24.1 per cent or R33.2 billion of the total education budget, an increase of 10 per cent or R3 billion compared to the R30.2 billion spent over the same period in 2009/10.
21.8 per cent and Free State at 23.2 per cent to the highest in Gauteng at 25.1 per cent and KwaZulu-Natal at 25 per cent. It comprises approximately 10.7 per cent of total provincial education budgets.
The bulk of education expenditure is on personnel (79.3 per cent). Current spending on education personnel amounts to 25.2 per cent or R26.3 billion of the education personnel budgets of R104.6 billion (table 4).
Spending by provinces ranges from the lowest in three provinces, Mpumalanga, Western Cape and Northern Cape all at 23.9 per cent, to the highest in Eastern Cape at 26.2 per cent and both Gauteng and Limpopo at 25.5 per cent.
Education capital expenditure is at 13.7 per cent or R982.9 million of the R7.2 billion budget. This is significantly lower by 38.4 per cent or R613.4 million less than spending over the same period of the previous financial year.
Kw aZulu-Natal 2 229 985 612 121 27.4% 48.6% 8.4% 432 882 41.
Spending by provinces ranges from the lowest in Gauteng at only 3.3 per cent and Limpopo at 5.1 per cent to the highest in KwaZulu-Natal at 27.4 per cent and Northern Cape at 18.4 per cent.
Health budgets totalling R98.4 billion comprise 29.8 per cent of total provincial budgets.
Table 6 indicates that health expenditure is at 23.7 per cent or R23.3 billion of the total health budget, representing an increase of 11.5 per cent or R2.4 billion compared to spending over the same period in 2009/10.
Between provinces, with a varying degree of spending, the lowest rate of health capital spending is in Free State at 7 per cent and Limpopo at 11.6 per cent with the highest in North West and Eastern Cape at 50.9 per cent and 23.5 per cent respectively.
Between provinces, there are varying degrees of spending, with the lowest being in North West at only 16.6 per cent and KwaZulu-Natal at 17.2 per cent while the highest are Limpopo at 26.9 per cent and Free State at 25.1 per cent. This represents a significant decrease of 20.7 per cent or R941 million less than the R4.5 billion spent over the same period last year.
Spending varies between provinces with the lowest being in North West at 12 per cent and Free State at 13.5 per cent while the highest are Northern Cape at 23.7 per cent and Western Cape at 20.9 per cent.
Kw aZulu-Natal 4 173 516 627 943 15.0% 4.1% 47.7% 762 170 -17.
Most of the housing and local government expenditure is on the Human Settlements Development conditional grant. Table 11 indicates that provinces spent 15.7 per cent or R2.4 billion of their R15 billion housing conditional grant. These spending figures are less by 28 per cent or R916.9 million over the same period last year.
Western Cape and both Northern Cape and Mpumalanga recorded the lowest rate of personnel spending at 23.5 per cent and 23.7 per cent respectively while Eastern Cape and Gauteng recorded the highest rates at 25.8 per cent and 25.5 per cent respectively. This is a decline of 21.2 per cent when compared to the same period in 2009/10.
Table 13 provides capital spending information by province, which indicates low rates of spending in Limpopo at 8.6 per cent and Free State at 9.9 per cent and high rates in North West at 21.5 per cent and Mpumalanga at 20.5 per cent. However, in absolute terms, KwaZulu-Natal has spent the most at R1.3 billion followed by Eastern Cape at R719.6 million and Western Cape at R472.7 million.
Kw aZulu-Natal 6 607 601 1 259 083 19.1% 8.2% 30.1% 1 424 687 -11.
Limpopo 2 702 293 232 416 8.6% 2.7% 5.6% 501 536 -53.
The total conditional grant allocation is R61.9 billion (including Schedule 4 and 8 grants) with health making up the bulk at R19.9 billion.
Table 14 (overleaf) reflects spending on conditional grant allocations as at 30 June 2010 for all provinces. It excludes expected conditional grant roll-overs from the 2009/10 financial year and spending on Schedule 4 grants. Schedule 4 grants specify allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets. The Expanded Public Works Programme Incentive grant for the Infrastructure Sector (Schedule 8 grant) specifies incentives to provinces to meet targets with regards to priority government programmes.
Division of Revenue Act, 2010 (Act No.
Total excluding Schedules 4,8 grants & Gautrain 32 038 734 7 938 996 5 407 944 16.
Schedule 4 grants specifying allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets.
Schedule 8 grants specifying incentives to provinces to meet targets with regards to priority government programmes.
Against the total allocation of R32.5 billion, this excludes Schedules 4 and 8 grants, the rate of conditional grants spending amounts to 18 per cent or R5.8 billion. However, when excluding the Gautrain Rapid Rail Link grant, the conditional grant expenditure amounts to R5.4 billion or 16.9 per cent against a total allocation of R32 billion.
(5.6 per cent), HIV and Aids (Life Skills Education) (7.2 per cent), Housing Disaster Relief (7.7 per cent), Land Care Programme (8.4 per cent) and Community Library Services (10.5 per cent).
Table 15 indicates selected conditional grant spending rates as at 30 June 2010. It further indicates that five or more provinces have spent less than 15 per cent of their grants budgets after the first quarter for the following grants: Land Care Programme, Community Library Services, HIV and Aids (Life Skills Education), Hospital Revitalisation and Devolution of Property Rate Funds.
Percentages represent actual expenditure of main budgets as published in the Division of Revenue Act, 2010 (Act No. 1 of 2010).
The collection rate varies from 11.1 per cent in North West and 18 per cent in Mpumalanga, to a high of 30 per cent in Eastern Cape and 26.3 per cent in Northern Cape.
Eastern Cape 634 222 190 083 30.0% 1.6% 9.2% 189 838 0.