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 2006, covers spending for the first six months of the 2006/07 financial year, which ended 30 September 2006 and is available on the treasury website www.treasury.gov.za.
The information is based on the Section 40(4) PFMA reports signed by each head of provincial department to their provincial treasury, and submitted to the National Treasury by 20 October 2006. 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.
This report also includes a comparative spending analysis for the same period over the 2005/06 financial year. It should be noted that the 2005/06 financial year figures have been adjusted to exclude Programme 2: Social assistance grants of provincial social development departments, which were transferred to national government with effect from 01 April 2006. This makes the 2006/07 figures and the 2005/06 figures comparable.
4.1 In aggregate, provinces have spent 45,2 per cent or R82,7 billion of their combined budgets of R183,0 billion for the six months period ended 30 September 2006. This represents a spending increase year-on-year of 11,4 per cent or R8,4 billion higher than for the same period last year when provinces had spent R74,3 billion.
4.2 Education expenditure totalled R36,8 billion or 46,6 per cent of the R79,1 billion total budget for education, and remains the largest item on provincial budgets (43,2 per cent). The spending pattern reflects a R2,3 billion or 6,8 per cent increase over the same period last year.
4.3 Health expenditure totalled R25,0 billion or 48,3 per cent of the R51,7 billion total budget for health and with the shifting of social security it becomes the second largest item after education on provincial budgets (28,2 per cent). The spending pattern reflects a 15,4 per cent or R3,3 billion increase compared with the same period in 2005/06.
4.4 Provincial social welfare services departments have spent 41,2 per cent or R2,2 billion of their budgets of R5,3 billion for the six months ended 30 September 2006.
4.5 Total personnel expenditure in aggregate is at 48,3 per cent or R50,6 billion of the R104,9 billion personnel budget which includes the salary increases effected from 01 July 2006.
4.6 In aggregate, provinces spent 38,2 per cent or R5,6 billion of their R14,7 billion combined capital budgets between the various sectors. This is a significant improvement of 21,8 per cent or R1,0 billion more than the R4,6 billion spent over the same period last year.
4.7 At R1,1 billion (of the R3,6 billion budget) or 31,7 per cent after 6 months of the financial year, provincial education departments' spending on capital is relatively low.
4.8 Health provincial departments, year-on-year, significantly improved on spending on capital by spending 44,3 per cent or R1,9 billion against their R4,3 billion health capital budgets, which is 55,3 per cent or R681,5 million more than the same period for 2005/06.
4.9 The highest share of provincial capital budgets is for public works, roads and transport departments at 35 per cent. The sector spent 38,6 per cent or R2,0 billion against its combined capital budgets of R5,1 billion.
4.10 Provincial own revenue collected thus far is at 55,4 per cent or R3,6 billion of the total own revenue budget of R6,6 billion. National government has transferred R78,4 billion of the equitable share, and R10,8 billion in conditional grants to provinces, during the six months of the 2006/07 financial year.
To complement the press release, tables on provincial spending for selective sectors are contained in Annexure A.
The 2005/06 financial year excludes Programme 2: Social assistance grants of provincial social development departments, which were transferred to the SA Social Security Agency (SASSA) with effect from 01 April 2006.
Education 79 050 799 36 840 346 46.6% 44.5% 34 505 038 6.
Health 51 685 947 24 989 328 48.3% 30.2% 21 658 990 15.
Social Development 5 288 973 2 178 745 41.2% 2.6% 1 854 843 17.
Total 136 025 719 64 008 419 47.1% 77.4% 58 018 871 10.
Eastern Cape 13 065 022 6 026 646 46.1% 49.4% 5 527 108 9.
Free State 5 272 241 2 544 309 48.3% 46.4% 2 390 268 6.
Northern Cape 1 644 424 828 582 50.4% 38.7% 795 703 4.
North West 6 305 386 3 046 477 48.3% 46.3% 2 807 632 8.
Western Cape 6 988 131 3 215 017 46.0% 37.6% 3 063 699 4.
Total 79 050 799 36 840 346 46.6% 44.5% 34 505 038 6.
Eastern Cape 733 690 246 797 33.6% 34.1% 139 553 76.
Free State 54 430 13 506 24.8% 5.2% 19 024 -29.
Northern Cape 25 273 11 246 44.5% 5.7% 8 856 27.
North West 205 025 155 832 76.0% 29.1% 116 429 33.
Western Cape 218 945 69 567 31.8% 12.3% 136 666 -49.
Total 3 578 165 1 134 634 31.7% 20.2% 978 790 15.
Total 4 315 221 1 913 205 44.3% 34.1% 1 231 661 55.
Eastern Cape 1 250 606 399 145 31.9% 3.3% 414 473 -3.
North West 1 079 675 536 053 49.6% 8.2% 346 251 54.
Western Cape 1 616 771 564 912 34.9% 6.6% 551 507 2.
Agriculture 344 500 134 871 15 371 34.
Education 1 712 507 856 262 823 238 48.
Housing 6 349 949 3 362 381 2 573 891 40.
Integrated Housing and Human Settlement Developme 6 349 949 3 362 381 2 573 891 40.
Sport and Recreation South Africa 119 000 73 936 28 780 24.
Transport 3 241 000 - - 0.
Total 25 926 441 10 847 782 4 897 815 32.
Western Cape 1 435 680 732 796 51.0% 7.9% 727 296 0.
Total 6 551 818 3 631 569 55.4% 3.9% 3 453 379 5.