Select Committee on Finance National Council of Provinces Presented by:

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Pre-audited Outcome of Provincial Budgets and Expenditure

as at 31 March 2008(2007/08 Financial Year)

[Public Works, Roads and Transport]

Select Committee on Finance

National Council of Provinces

Presented by:

Intergovernmental RelationsNational Treasury

13 August 2008

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National Treasury’s Role

• National Treasury (NT) develops culture of publishing information

• Assessing credibility of provincial budgets• Ensure that each provincial treasury prepares

quarterly reports for its Cabinet or Exco• NT prepares a consolidated quarterly report for

all provinces

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Public Works, Roads and Transport

• Spending at R24.7bn or 98.3% against R25.1bn adjusted budget

• Pre-audited underspending of R418.9m in 8 provinces– Increase of R3bn or 13.8% compared to the previous year– Low rate of spending in FS (89.8%)

• FS – due to overexpenditure in 2006/07

– EC (100%) and KZN (100%) reflects the highest rate of spending in PWRT

• PWRT Personnel spending at R4.5bn or 98.1% (R4.6bn adjusted budget)– Pre-audited underspending of R131.2m in 6 provinces– Pre-audited overspending of R45.1m in 3 provinces

• Programme 2: Roads Infrastructure– Spending at R15.5bn or 97.6% of R15.9bn adjusted budget– Lowest rate of spending in FS (81.2%) and GT (96.7%)– Highest in NW (102.1%)

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Public Works, Roads & Transport

Table: Provincial Expenditure: Public Works, Roads and Transport as at 31 March 2008

Eastern Cape 2 955 097 2 953 791 100.0% – 1 306 0.0% 9.8% 2 515 160 17.4%

Free State 1 589 870 1 427 435 89.8% – 162 435 10.2% 10.7% 1 425 150 0.2%

Gauteng 7 271 035 7 125 579 98.0% – 145 456 2.0% 17.2% 6 226 864 14.4%

Kw aZulu-Natal 3 599 590 3 601 094 100.0% -1 504 – 0.0% 8.0% 2 989 454 20.5%

Limpopo 2 830 243 2 799 892 98.9% – 30 351 1.1% 11.3% 2 494 319 12.3%

Mpumalanga 1 842 497 1 822 985 98.9% – 19 512 1.1% 11.2% 1 272 212 43.3%

Northern Cape 551 195 540 627 98.1% – 10 568 1.9% 9.1% 371 715 45.4%

North West 2 058 990 2 051 914 99.7% – 7 076 0.3% 13.4% 2 133 606 -3.8%

Western Cape 2 388 183 2 344 477 98.2% – 43 706 1.8% 10.9% 2 254 031 4.0%

Total 25 086 700 24 667 794 98.3% -1 504 420 410 1.7% 11.6% 21 682 511 13.8%

Net 418 906

% share of PWRT to

total provincial

expenditure

2006/07: Audited

outcome as at 31 March

2007

Year-on-year

growth

Pre-audited outcome as

% of adjusted budget

(Over) Under

% (Over) / under of adjusted budget

R thousand

Adjusted budget

Pre-audited outcome

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Public Works, Roads & Transport: Personnel

Table : Provincial Personnel Expenditure: Public Works, Roads and Transport as at 31 March 2008

Eastern Cape 668 115 673 846 100.9% -5 731 – -0.9% 3.6% 571 345 17.9%

Free State 451 115 405 135 89.8% – 45 980 10.2% 5.0% 366 698 10.5%

Gauteng 410 922 443 538 107.9% -32 616 – -7.9% 2.3% 359 922 23.2%

Kw aZulu-Natal 771 322 744 652 96.5% – 26 670 3.5% 2.9% 637 295 16.8%

Limpopo 865 045 871 762 100.8% -6 717 – -0.8% 5.4% 812 574 7.3%

Mpumalanga 558 289 538 055 96.4% – 20 234 3.6% 5.7% 429 812 25.2%

Northern Cape 72 919 71 765 98.4% – 1 154 1.6% 2.2% 50 605 41.8%

North West 599 697 589 751 98.3% – 9 946 1.7% 7.0% 614 983 -4.1%

Western Cape 238 099 210 835 88.5% – 27 264 11.5% 1.9% 181 113 16.4%

Total 4 635 523 4 549 339 98.1% -45 064 131 248 1.9% 3.8% 4 024 347 13.0%

Net 86 184

R thousand

Adjusted budget

Pre-audited outcome as at 31 March

2008

Pre-audited outcome as

% of adjusted budget

(Over) Under

% (Over) / under of adjusted budget

% share of PWRT

Personnel to total

Personnel expenditure

2006/07: Audited

outcome as at 31 March

2007

Year-on-year

growth

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Programme 2: Roads Infrastructure

Table 14: Provincial Roads Infrastructure Expenditure (Programme 2): PWRT as at 31 March 2008

Eastern Cape 1 615 105 1 615 105 100.0% – – 0.0% 1 491 951 8.3%

Free State 914 872 743 040 81.2% – 171 832 18.8% 801 091 -7.2%

Gauteng 6 170 281 5 968 603 96.7% – 201 678 3.3% 5 234 637 14.0%

Kw aZulu-Natal 2 360 229 2 360 281 100.0% -52 – 0.0% 1 905 714 23.9%

Limpopo 1 466 389 1 444 711 98.5% – 21 678 1.5% 1 138 906 26.9%

Mpumalanga 994 178 993 413 99.9% – 765 0.1% 688 196 44.4%

Northern Cape 371 202 364 988 98.3% – 6 214 1.7% 236 268 54.5%

North West 677 399 691 441 102.1% -14 042 – -2.1% 688 903 0.4%

Western Cape 1 346 582 1 346 388 100.0% – 194 0.0% 1 267 057 6.3%

Total 15 916 237 15 527 970 97.6% -14 094 402 361 2.4% 13 452 723 15.4%

Net 388 267

R thousand

Adjusted budget

Pre-audited outcome

Pre-audited outcome as

% of adjusted budget

(Over) Under

% (Over) / under of adjusted budget

2006/07: Audited

outcome as at 31 March

2007

Year-on-year

growth

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Public Works, Roads & Transport: Capital

• The biggest capital budgets in provinces are in public works, roads and transport departments at 38% or R7.3bn of total adjusted capital budget of R19.1bn

• Spending is at 99% or R7.2bn• Underspending of R219.5m in 4 provinces

– FS at R112.3m, WC - R82.9m• Spending is 25.2% or R1.4bn more than the R5.7bn

spent last year over the same period• The lowest rate of spending is recorded in

FS (84.7%) and LP (85.8%)• EC and GP recorded the highest rates of spending at

104.1% and 111.8% respectively

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Public Works, Roads & Transport: Capital

Table 14: Provincial Capital Expenditure: Public Works, Roads and Transport as at 31 March 2008

Eastern Cape 824 376 857 774 104.1% -33 398 – -4.1% 29.0% 38.4% 710 342 20.8%

Free State 735 658 623 313 84.7% – 112 345 15.3% 43.7% 48.0% 517 497 20.4%

Gauteng 777 737 869 883 111.8% -92 146 – -11.8% 12.2% 30.9% 607 955 43.1%

Kw aZulu-Natal 2 105 756 2 116 148 100.5% -10 392 – -0.5% 58.8% 49.1% 1 557 251 35.9%

Limpopo 133 272 114 313 85.8% – 18 959 14.2% 4.1% 8.2% 174 292 -34.4%

Mpumalanga 767 937 768 170 100.0% -233 – 0.0% 42.1% 56.3% 422 447 81.8%

Northern Cape 301 480 296 187 98.2% – 5 293 1.8% 54.8% 44.0% 158 920 86.4%

North West 533 351 544 548 102.1% -11 197 – -2.1% 26.5% 42.6% 571 756 -4.8%

Western Cape 1 072 302 989 407 92.3% – 82 895 7.7% 42.2% 59.2% 1 016 422 -2.7%

Total 7 251 869 7 179 743 99.0% -147 366 219 492 1.0% 29.1% 42.1% 5 736 882 25.2%

Net 72 126

R thousand

Adjusted budget

Pre-audited outcome as at 31 March

2008

Pre-audited outcome as

% of adjusted budget

(Over) Under

% (Over) / under of adjusted budget

% share of PWRT

Capital to total PWRT expenditure

% share of PWRT

Capital to total

Capital expenditure

2006/07: Audited

outcome as at 31 March

2007

Year-on-year

growth

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Monthly Expenditure: Payments for Capital Assets

MONTHLY EXPENDITURE ON PAYMENTS FOR CAPITAL ASSETS FOR 2007/08

-

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Public Works,Roads andTransport

Health

Education

PRE-AUDITED OUTCOME AS AT 31 MARCH 2008

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Transport Grants Gautrain Rapid Rail Link Grant

• Objective (Schedule 5 Grant):– National government contribution to the Gauteng Provincial

Government for the construction of the Gautrain Rapid Rail network

• 4th Quarter year to date expenditure:– Government has contributed R4.5m towards Gautrain.

R1.5bn is funded through the PES and R3.0bn is allocated towards the conditional grant allocation.

– National Transport has transferred amounts of R3.0bn or 100.0% of national allocation

– GP recorded expenditure of 133.8% or R4.1bn– The reported higher exp for Gautrain is inclusive of provincial

portion– Implies that national funding has been fully spent

• Service Delivery Outcome:– Department / Sector to respond

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Important dates and submissions

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Publication Dates for Provincial S32 Reports

(financial and non-financial data)

• 2008/09 Financial Year:– 2nd Quarter (as at 30 September 2008)

30 October 2008– 3rd Quarter (as at 31 December 2008)

30 January 2009– 4th Quarter (as at 31 March 2009)

30 April 2009

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THANK YOU

THANK YOU

THANK YOU