PROVINCIAL BUDGETS AND EXPENDITURE REVIEW

PROVINCIAL BUDGETS AND EXPENDITURE REVIEW

NATIONAL COUNCIL OF PROVINCES

19 OCTOBER 2005

ACCESS TO EDUCATION

• Construction of schools within walking distance – not attainable

• The province demographics• Influx of communities to urban areas – economic

factors• Departmental strategies to improve access:

• Introduction of mobile classrooms• A more comprehensive study of learner mobility with

intension to introduction of scholar transport• Comprehensive schools - (efficient transport system/hostel

facilities)

ACCESS TO EDUCATION

• The department, through FET colleges offers access to learners who wish to follow practical careers, hence it accommodates learners from the age of 16 into FET colleges. These FET colleges and their satellite campuses are spread throughout the province to reach as many prospective students as possible. Currently enrolment in these colleges is over 30 000, and there are 9359.45 Full Time Equivalents in these institutions.

ACCESS TO EDUCATION

• Adult Basic Education and Training offers courses from ABET level 1-4 in the province, and currently with expansion of ABET, skills programmes are also offered to adults in these centers. There are 239 adult learning centres, which have enrolled over 23000 adults. The department is working hard to accommodate five-year old children in public ordinary primary schools for Grade R. While this has not yet been achieved, there are over 200 ECD community centres throughout the province, which accommodate Grade R learners and children under the age of 5.

YEAR LEARNERS SCHOOLS CLASSES L/ED/

RATIO

L/SCHOOL RATIO

1997 970040 2357 14522 35 : 1

1998 469092 2331 18878 35 : 1

1999 468792 2326 17098 35 : 1

2000 453374 2330 22886 35 : 1

2001 446061 2313 18162 35 : 1

2002 450148 2292 21783 35 : 1

2003 449175 2253 22745 35 : 1

2004 433096 2247 31483 40 : 1

2005 815100 2237   40 : 1

ENROLMENT STATISTICS

3. EFFICIENCY

• Education output as it relates to efficiency is partly measured by the quality of matric results. This is by no means the only way to measure efficiency of the system, but the commonly used indicator.

Fig 1. North West Matric Pass rates from 1995 to 2004

North West Pass Rate Trend from 1995-2004 (%)

0

10

20

30

40

50

60

70

80

Y1995 Y1996 Y1997 Y1998 Y1999 Y2000 Y2001 Y2002 Y2003 Y2004

Year

Per

cen

tag

e

• The provincial pass rates of the senior certificate examination dropped sharply in 1997 before increasing steadily over the subsequent years. Except for 2004 results, the net increase since 1997 is 20.5%. The introduction of international tests and systemic evaluation however, reflects that despite the increasing level of expenditure, the quality of results remains an area of concern. It s important to note however, that the numbers of learners writing senior certificate examination has increased over the years, and this could mean some degree of efficiency in the FET phase. The percentage of learners who obtain university exemption in the province is lower than the national and this area needs to be addressed.

4. THE NORTH WEST LANDSCAPE

The Education System• The North West Education Department is located in one of

the most rural provinces of South Africa. The department receives the largest portion of the provincial budget, and it has over 42000 employees. In line with the National Education Ministry, the department offers basic education and training in three phases, viz., General Education and Training (grades 1-9), Adult Basic Education and Training (levels 1-4) and Further Education and Training (grades 10-12). Further Education and Training offers training from NQF level 2-4 national technical certificates levels 1-3. Enrolments in the above-mentioned institutions are reflected in section 1 for public ordinary schools and in section 2 for ABET, and FET.

4. THE NORTH WEST LANDSCAPE

Public ordinary schools• Public ordinary schools are divided into section 20 and

section 21 schools in terns of the funding norms policy, and the province has 1450 “section 21” schools, which is about two thirds of all public ordinary schools in the province. Basic infrastructure in public ordinary schools has improved over the years, the number of schools without water on site, sanitation facilities, electricity and telecommunication has been declining over the last few years. Most schools however, still lack specialised rooms e.g. libraries and science laboratories, and the department is moving at a fast pace to close the infrastructure backlogs, including maintenance.

4. THE NORTH WEST LANDSCAPE

ABET• Adult literacy rate according to the North West

Barometer 2003 was ranked no. 9, which means the lowest literacy rate in the country in 1996. In 2002, functional literacy was at 65.7% and the province was ranked no.5 in the country, hence Adult Basic Education and Training had to be strengthened to improve on these figures.

YEAR LEARNERS SCHOOLS CLASSES L/ED/

RATIO

L/SCHOOL RATIO

1997 11810 36 266 35 : 1

1998 12096 38 326 35 : 1

1999 11575 35 321 35 : 1

2000 12545 41 482 35 : 1

2001 14220 46 430 35 : 1

2002 14990 52 580 35 : 1

2003 15448 50 143 35 : 1

2004 12690 39 167 40 : 1

2005 11670 49   40 : 1

ENROLMENT IN INDEPENDENT SCHOOLS

DEPARTMENT 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Premier 104 966 132 206 146 848 153 270 196 648 213 121

Legislature 35 988 40 215 55 142 77 463 103 255 102 435

Health 1 698 992 2 012 396 2 263 131 2 664 340 2 893 904 3 197 688

Sports, Arts 82 650 73 422 100 407 201 071 255 341 267 854

Safety & Liaison 7 087 9 675 18 245 19 862 25 316 28 850

Finance 258 623 218 848 311 841 298 375 316 679 327 614

Education 3 972 100 4 377 385 4 840 389 5 179 111 5 833 090 6 198 367

Local Government 476 338 509 225 420 040 583 377 613 560 737 421

Transport 710 685 906 814 1 008 304 1 074 770 1 342 869 1 413 321

Public Works 272 513 294 271 368 008 361 215 464 455 520 293

Social Development 1 975 646 2 615 643 3 456 354 4 043 407 4 949 198 5 556 363

Agriculture 305 561 344 652 392 545 469 677 494 677 522 315

Contingency 4 650 5 700 23 57 527 24 040 99 678

TOTALS 9 905 829 11 540 452 13 368 461 15 232 605 17 458 762 19 172 807

PROVINCIAL EXPENDITURE TRENDS AND INPUTS

DEPARTMENT 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Premier 100 125,95 139,90 146,01 187,34 203,03

Legislature 100 111,74 153,22 215,24 286,91 284,63

Health 100 118,44 133,20 156,81 170,33 188,21

Sports, Arts 100 88,23 121,48 243,28 308,94 324,08

Safety & Liaison 100 136,51 257, 44 280,25 327,21 407,08

Finance 100 84,62 120,57 115,37 122,44 126,67

Education 100 110,20 121,85 130,38 146,85 156,04

Local Government 100 106,90 88,18 122,47 128,80 154,81

Transport 100 127,59 141,87 151,23 188,95 198,86

Public Works 100 107,98 135,04 132,54 170,43 190,92

Social Development 100 132,39 174,94 204,66 250,51 281,24

Agriculture 100 112,79 128,46 153,70 161,89 170,93

Contingency 100 122,58 0,49 1237,13 516,98 214, 61

TOTALS 100 116,50 134 95 153,77 176,24 193, 55

PERCENTAGE GROWTH

DEPARTMENT

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Premier 59 978 67 628 85 767 97 592 110 245 116 831

Legislature 25 072 26 686 30 807 36 301 40 269 45 026

Health 1 158 856 1 276 204 1 405 937 1 605 622 1 648 697 1 774 582

Sports, Arts 31 888 28 289 22 799 50 922 62 490 84 424

Safety & Liaison

4 989 5 957 9 475 14 651 16 149 17 217

Finance 52 123 66 478 76 309 106 830 80 071 70 522

Education 3 609 316 3 924 156 4 236 967 4 474 032 4 856 578 5 242 737

Local Government

52 205 52 610 56 687 69 416 55 427 58 211

Transport 274 884 257 712 303 529 354 311 386 332 418 872

Public Works 155 609 173 208 237 499 216 448 239 460 253 094

Social Development

84 226 116 404 151 760 134 384 192 536 239 629

Agriculture 192 164 213 124 233 055 244 277 245 353 260 777

Contingency            

TOTALS 5 701 310 6 208 456 6 850 591 7 404 786 7 933 607 8 8581 922

PERSONNEL EXPENDITURE (PROVINCE)

DEPARTMENT 2001/02 2002/03 2003/04 2004/05 2004/05 2005/06 2006/07

Premier 57,14 51,15 58,41 63,67 97 592 56.06 54,82

Legislature 69,67 66,36 55,87 4686 36 301 1,237.14 4,39

Health 68,21 63,42 62,12 60,26 1 605 622 56.97 55,50

Sports, Arts 38,58 38,53 22,71 25,33 50 922 24.47 31,52

Safety & Liaison 70,40 61,57 51,93 73,76 14 651 63.79 59,68

Finance 20,15 30,38 24,47 35,80 106 830 25.28 21,53

Education 90,87 89,65 87,53 86,39 4 474 032 83.26 84,58

Local Government

10,96 10,33 13,50 11,90 69 416 9.03 78,9

Transport 38,68 28,42 30,10 32,97 354 311 28.77 29,64

Public Works 57,10 58,86 64,54 5992 216 448 51.56 48,64

Social Development

4,26 4,45 4,39 3,32 134 384 3.89 4,31

Agriculture 62,89 61,84 59,37 52,01 244 277 49.60 49,93

Contingency - - - -   - -

TOTALS 57,56 53,80 51,20 48,77 7 404 786 45.56 42,68

As percentage of total budget

 GROWTH

DEPARTMENT 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Premier 100 112,75 142,99 162,71 183,80 194,78

Legislature 100 106,43 122,87 144,78 160,61 179,58

Health 100 110,12 121,32 138,55 142,26 153,13

Sports, Arts 100 88,71 71,49 159,69 195,96 264,75

Safety & Liaison 100 119,40 189,91 293,66 323,69 345,09

Finance 100 127,54 146,40 204,95 153,61 135,29

Education 100 108,72 117,38 123,95 134,55 145,25

Local Government 100 100,77 108,58 132,96 106,17 111,50

Transport 100 93,75 110,42 128,89 140,54 152,38

Public Works 100 111,30 152,62 139,09 153,88 162,64

Social Development 100 138,20 180,18 159,55 228,59 284,50

Agriculture 100 110,90 121,27 127,11 127,67 135,70

Contingency 100

TOTALS 100 108,89 120,15 129,87 139,15 150,52

ECONOMIC CLASSIFICATION

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Current Payments

3 847 845 4 160 664 4 590 193 4 881 322 5 492 624 5 878 185

Transfers and Subs

70 996 80 108 110 512 153 538 147 975 127 032

Capital Payment

53 259 136 613 139 684 135 001 192 491 193 150

TOTAL 3 972 100 4 377 385 4 840 389 5 179 111 5 833 090 6 198 367

EXPENDITURE BY ECONOMIC CLASSIFICATION

ECONOMIC CLASSIFICATION

2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Current Payments 96.87 95.04 94.83 94.25 94.16 94.83

Transfers and Subs 1.78 1.84 2.28 2.96 2.53 2.04

Capital Payment 1.35 3.12 2.89 2.59 3.31 3.13

TOTALS 100.0 100.0 100.0 100.0 100.0 100.0

EXPENDITURE BY ECONOMIC CLASSIFICATIONAs percentage of the Budget

ECONOMIC CLASSIFICATION

2001/02

2002/03 2003/04 2004/05 2005/06 2006/07

Current Payments 100,00 108,12 119,29 126,85 142,74 152,76

Transfers and Subs 100,00 112,83 155,65 216,26 208,42 178,92

Capital Payment 100,00 256,50 262,27 253,48 361,42 362,66

TOTALS 100,00 110,20 121,85 130,38 146,85 156,04

EXPENDITURE BY ECONOMIC CLASSIFICATIONGrowth

There has been a steady growth in the provincial equitable share of between 8,8% & 11,37%. The highest recorded is 10,70 in 2006/07, & which is higher provincial Growth of 9,28%

Allocation according to Economic Classification has not been constant over the years and varied according to new budget imperatives and priorities e.g an increase in Transfers and Subsidies as s21 is granted to more schools. The decrease in 2005/06 is due to the incorporation of Grade R into mainstream education and away from Early Childhood Development transfers.

PROGRAMME 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Administration 254 704 297 601 312 301 352 064 353 653 381 714

Public Ord Schools 3 385 073 3 747 094 4 202 591 4 474 684 5 044 155 5 331 399

Independent Schools 3 918 4 426 3 533 4 796 6 000 6 500

Special Schools 65 619 70 497 67 974 86 129 89 626 96 239

FET 57 054 70 705 53 840 66 989 74 005 78 403

ABET 58 138 53 664 54 243 55 313 66 470 82 537

ECD 128 130 107 259 107 033 118 231 126 049 142 609

Auxiliary Serv 19 464 26 365 38 648 76 789 73 132 78 966

TOTALS 3 972 100 4 377 385 4 840 389 5 179 111 5 833 090 6 198 367

EXPENDITURE BY PROGRAMME

PROGRAMME 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Administration 6,41 6,79 6,45 6,79 6,06 6,15

Public Ord Schools

85,22 85,60 86,82 86,39 86,47 86,01

Independent Schools

0,09 0,10 0,07 0,09 0,10 0,10

Special Schools 1,65 1,61 1,40 1,66 1,53 1,55

FET 1,43 1,61 1,11 1,29 1,26 1,26

ABET 1,46 1,22 1,12 0,85 1,13 1,33

ECD 3,22 2,45 2,21 2,28 2,16 2,30

Auxiliary Serv 0,52 0,62 0,82 0,65 1,29 1,30

TOTALS 100,00 100,00 100,00 100,00 100,00 100,00

As percentage of the Budget

I THANK YOU!!