2014/15 Budget Analysis, Vote 4: Home Affairs

2014/15 BUDGET ANALYSIS, VOTE 4: HOME AFFAIRS 14 May 2014

1. Introduction integrated platform for managing civic and In February of each year, the Finance Minister tables immigration services. the national budget (Estimates of National Expenditure), whereby he announces government’s The Citizen Affairs and Immigration Affairs spending, tax and borrowing.1 The current year’s programmes, spend significantly on compensation of budget is based on a review of the preceding three years as well as a plan for the coming three years employees, stationery and printing, computer (called the Medium Term Expenditure Framework or equipment and services, contractors, and travel and MTEF). The national budget divides money between subsistence.4 national departments, provinces and municipalities. The current fiscal context is within a continuing At the outset of Parliament’s oversight role it is difficult trade-off globally: between spending priorities important to understand the context within which any and the phases of programme implementation. Given government department’s budget falls. Nationally all the national expenditure ceiling, all government individual budgets are guided by the National institutions need to manage cost pressures like Development Plan2 which in turn must fall within the inflation and exchange rates with greater efficiency. requirements of the Public Financial Management Act This means that not everything that it is believed must (Act 1 of 1999). be done, can be done all at once. In the reprioritisation of existing funds, certain outputs will Most directly, the NDP relies on the Department of be delayed, or discontinued.5 Home Affairs (DHA) to:  Facilitate the migration of scarce skills into 2. Budget analysis South Africa to enable rapid growth;  The building of a capable state; The DHA shows an 11% real decrease in its budget  Assisting in the war against crime and allocation (that is after inflation of 6.2%). The total corruption; budget of R6.62 billion for the Department includes  Empowering an active citizenry; and allocations to its related entities; the Electoral Commission (IEC); Government Printing Works  Promoting regional growth and development.3 (GPW) as well as the Film and Publications Board (FPB). In total the budget is reduced by R371 million These priorities translate into three strategic goals for from 2013/14 to 2014/15 (as indicated across the the DHA which largely correspond to the three budget DHA’s three programmes in the graphic above).6 programmes summarised in this document: 1. Administration; National Treasury data on the quarterly expenditure 2. Citizen Affairs; and for the DHA for 2013/14 indicated that total 3. Immigration Affairs. expenditure for the year was 2.7% less than the budget allocated. This is similar to the 2.6% under The spending focus over the medium term will be on spending in 2011/12. Although the DHA is under improving the quality of services the Department spending a similar percentage as the previous financial year, there is less fluctuation or change in offers to South African citizens and foreign nationals. the 2013/14 quarterly expenditure than in 2011/12. This will done by on the one hand by enhancing the The DHA therefore maintained a fairly consistent and management of asylum seekers, facilitating economic low under spending in 2013/14 (of around 3% where migration from the SADC, international migrants with 1% is usually considered acceptable by National critical skills, and residency and citizenship Treasury).7 applications. On the other hand, the DHA is implementing the new national identity system for citizens , which is to be the centre of a single 4 National Treasury (2014a) 1 National Treasury (2014a) 5 National Treasury (2014a) 2 Presidency (2014) 6 National Treasury (2014a) 3 DHA (2013) 7 National Treasury (2014b)

Adam Salmon: Parliament of South Africa, Information Services Section, Research Unit. Tel: 021 403 8304 Mail: [email protected] Table: DHA 2014 Budget Programmes & Sub-programmes in accessible and corruption free.8 The reduction in Millions (+/- Percentage change from 2013 after inflation in brackets) expenditure is concerning given that Corporate Services only managed to fully achieve 4 of its 16 targets (25%) for this important outcome in the most recent 2012/13 Annual Report. The budget does not specify where this real reduction in the Corporate Services budget is going to occur and how service delivery is to be improved.9

2.2 Programme 2: Citizen Affairs

The most significant monetary reduction in budget allocation is to the largest budget programme: Citizen Affairs. This programme aims to provide secure, efficient and accessible services and documents for citizens and lawful residents.10

The primary reason for the R521 million (12%) real decrease in the programme’s allocation is because of a R330 million (79%) decrease in the Status Services sub-programme. This sub-programme regulates all matters relating to the national population register, including maintaining a register of all citizens and permanent residents; registering births, deaths and marriages; providing travel and citizenship documents and determining and granting citizenship. The reductions are mainly due to expenditure related to the issuing of enabling documents being funded from the self-financing funds (which the DHA generates from charging for re-issuing of documents). This can be seen in the large reduction in Goods and Services expenditure mainly reflected as a decrease in consumables, i.e. stationery, printing and office supplies.11 This relates to a recommendation by the Portfolio Committee on Home Affairs 2013 Budget Review and Recommendation Report (BRRR).12 2.1: Programme 1: Administration In contrast, the Access to Services sub-programme The first budget programme of the DHA, receives biggest percentage increase of 38% in real Administration, shows a small nominal increase in terms (R26 million) across all sub-programmes. This allocation which actually means a reduction of 5% or is encouraging since the sub-programme provides for R98 million when considering inflation. The aim of the the optimal placement and use of the department’s programme is to provide leadership, management services by opening new offices, deploying and support services to the department. registration facilities at health facilities, scheduling

The most significant change to the programme is a reduction in the corporate services sup-programme. 8 National Treasury (2014a) This sub-programme largely manages one of the 9 Salmon (2013) DHA’s main objectives - a service that is efficient, 10 DHA (2013) 11 National Treasury (2014a) 12 Parliament (2013)

2014/15 Budget Analysis, Vote 4: Home Affairs 2 mobile office deployment in remote rural areas, and managing customer telephonic enquiries. The most significant reduction is in the Admission Services sub-programme which shows a 41% real Within the Citizen Affairs programme, transfers to the reduction in allocation decreasing from to R396 to three agencies falling within Vote 4 comprise 42% of R247 million in 2014. This sub-programme is the programme’s budget. Most of this (39%) goes to responsible for issuing visas, securely facilitating the the Electoral Commission (IEC) for National and entry and departure of persons to and from South Provincial Elections this year and Municipal elections Africa in line with the Immigration Act (2002) including in 2016. The IEC receives just less (0.08%) than an work, study and business permits. However the inflation related increase. reductions affecting both the Immigration and Admission Services sub-programmes were in non- The next entity, the Government Printing Works, is core areas of operations such as venues and completely self sufficient on its own state printing facilities, catering, and entertainment and it is stated revenue from 2013/14 and no longer needs transfers they will not negatively impact on the delivery of from National Treasury. This will reduce the DHA services.16 Citizen Affairs budget by around R100 million each year (-R130 million from 2013 to 2014). Whilst this is For several years the Immigration Affairs programme encouraging in terms of efficiency it remains to be has been the worst performing programme and/or seen if the GPW will be able to cope with the section of the DHA in terms of the number of strategic significant increase in targeted Smart ID cards targets achieved. Monitoring of performance for this anticipated this year (3 million from only 100 programme is needed particularly given the two NDP thousand in 2012/13) priorities of: a) Facilitating the migration of scarce skills into South Africa to enable rapid growth, as well The last entity, the Film and Publications Board as b) Promoting regional growth and development.17 received a 10% real reduction in expenditure in The 2013 BRRR of the Portfolio Committee on Home 2014which is reflected across all four of its Affairs also mentions a special intervention is programmes.13 The FPB regulates the creation, required by the DHA to ensure that the permanent production, possession, exhibition and distribution of and temporary residence permits and the related films, interactive computer games and certain backlogs are addressed. This has impacted publications in terms of the Films and Publications negatively on the Minister of Home Affairs’ Act (1996). The FPB has shown gradual improvement performance target of 50 000 skilled immigrants per in performance against its targets in the last few annum.18 years and has ambitions in terms of being more involved in protection of children from inappropriate 3. Human resources content.14 In automating the business processes for issuing 2.3 Programme 3: Immigration Services enabling documents and allowing biometric data, photographs, fingerprints and signatures to be The smallest programme in terms of allocation, captured live electronically, the systems Immigration Affairs experiences the largest modernisation programme has allowed the DHA to percentage reduction of 14% (19% after inflation). maintain its funded establishment at 10 369 posts The aim of this programme is to facilitate and regulate over the medium term (three years), made up mainly the secure movement of people through the ports of of frontline and back office staff in service delivery entry into and out of the Republic of South Africa, offices as well as head office staff. Of the funded determine the status of asylum seekers, and regulate establishment, 353 (3%) posts were vacant as at 30 refugee affairs.15 The programme has four sub- November 2013. The DHA does not indicate, programmes.

13 National Treasury (2014a) 16 National Treasury (2014a) 14 DHA (2013) 17 Salmon (2013) 15 DHA (2013) 18 Parliament (2013)

2014/15 Budget Analysis, Vote 4: Home Affairs 3 however, how many posts they require that remain unfunded by National Treasury.

Posts were vacant due to natural attrition and existing vacant posts that were not filled but it is anticipated will be filled over the medium term. The DHA does Sources not employ contract workers and uses consultants on an ad hoc basis, particularly with regard to ICT,  DHA (2013) Annual report of the Department of where the DHA experiences difficulty in attracting Home Affairs for 2012/13 suitably qualified and experienced candidates.  National TreasuryQuestions (2014a) Arising from Estimates DHA 2014 of BudgetNational As would be expected, the main service delivery Expenditure 2013/14. Vote 4 Home Affairs programmes spend significantly on compensation of 71.81.91.61.51.41.31.21.11.1. The department’s budget is stated in terms of employees. This comprises 48% of the Citizen Affairs  National Treasurythe 12 outcomes(2014b) as Statement well as mentioning of the the programme (of 8333 personnel) and 39% of the National Revenue,National Expenditure Development and Plan Borrowing priorities. as What Immigration Affairs programme (of 1024 personnel). at 31 March 2013guidance on the status of these overlapping This is compared to only 22% for the Administration priorities has the department been given? Programme.  Parliament (2013) Portfolio Committee on Home 72.82.92.62.52.42.32.22.12.2. Where in the Corporate Services sub- Affairs Budget Review and Recommendation programme is the significant reduction in The 2013 BRRR for the Committee recommends the Report: 2013 prioritisation of the filling of all vacant funded posts budget allocation going to impact the most? within 12 months of vacancies or new posts arising.  Salmon, A (2013)Will the Department DHA be able of to Home improve Affairs targeted The high vacancy rates in audit services, counter Budget Vote performance and Strategic despite Plan. these Parliament reductions? of corruption and immigration services has been seen to South Africa.73.83.93.63.53.43.33.23.13.3. What form does the self-financing of funds seriously negatively impacting on service delivery. In take related to the issuing of enabling particular, the filling of key management positions  Presidency (2014)documents? National How Planning were issues Commission- related to this such as the Chief Financial Officer, Provincial Plan. [Accessedin past online years addressed? on 15/04/2014 from Managers and the Chief Internal Audit Executive http://www.npconline.co.za/pebble.asp?relid=274.84.94.64.54.44.34.24.14.4. Is the DHA confident that the Government should be finalised as soon as possible.19 Printing Works will be able to finance its own expenditure over the medium the expenditure period? Questions Arising from DHA 2014 Budget 75.85.95.65.55.45.35.25.15.5. How many posts required by the DHA remain unfunded for 2014/15? 1. The department’s budget is stated in terms of the 12 outcomes as well as mentioning the 76.86.96.66.56.46.36.26.16.6. What positive changes were implemented to National Development Plan priorities. What guidance on the status of these overlapping ensure sure more consistent quarterly priorities has the department been given? spending? 2. Where in the Corporate Services sub-programme is the significant reduction in budget 77.87.97.67.57.47.37.27.17.7. What changes are needed to ensure that allocation going to impact the most? Will the DHA be able to improve targeted performance quarterly under spending does not occur? in service delivery despite these reductions? 78.88.98.68.58.48.38.28.18.8. What impact is it anticipated will the reduction 3. What form does the self-financing of funds take related to the issuing of enabling in overall budget have on implementation of documents? How were issues related to this in past years addressed? services in provinces? 4. Is the DHA confident that the Government Printing Works will be able to finance its own 79.89.99.69.59.49.39.29.19.9. To what extent have live capture and expenditure over the medium the expenditure period? biometric scanning been implemented in 5. How many posts required by the DHA remain unfunded for 2014/15? offices around the country and for ports of 6. What positive changes were implemented to ensure sure more consistent quarterly entry? spending? 80.90.100.70.60.50.40.30.20.10. WhatWhat impact impact did did the the budget budget reductionreduction and 7. What changes are needed to ensure that quarterly under spending does not occur? name change have on the IT modernisation 8. What impact is it anticipated will the reduction in overall budget have on implementation of project? services in provinces? 9. To what extent have live capture and biometric scanning been implemented in offices around the country and for ports of entry? 19 Parliament10. What (2013) impact did the budget reduction and name change have on the IT modernisation project?

2014/15 Budget Analysis, Vote 4: Home Affairs 4