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Adjustment Estimates of Provincial Revenue and Expenditure 2014/15

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Adjustment Estimates of Provincial Revenue and Expenditure 2014/15 NORTH WEST PROVINCIAL GOVERNMENT ADJUSTMENT ESTIMATES OF PROVINCIAL REVENUE AND EXPENDITURE 2014/15 for the year ending 31st March 2015 PR352/2014 ISBN: 978-0-621-43229-9 To obtain additional copies of this document please contact; North West Provincial Treasury Third floor; Ga-Rona Building Private Bag X2060 Mmabatho 2735 Tel: (018) 388 4441 Fax: (018) 388 1748 e-mail: [email protected] ii Foreword The 2014/15 budget adjustment is presented when the country’s economic performance has weakened since the beginning 2014. These require a strong fiscal discipline, which includes a culture of doing more with less collectively. The anticipated over-expenditure remains an area of concern especially given the increase in salary bill amidst the current expenditure ceiling. Compensation of employees should be managed down and savings from this expenditure item must be redirected to key provincial priorities which support the Agriculture, Culture and Tourism (ACT). The current economic challenges, which threaten the growth of government fiscus and the ability to improve and expand service delivery, must be seen as an opportunity to be more effective and efficient. Efforts will be directed towards achieving maximum efficiency by reducing the allocation of none core expenditure items whilst protecting the reasonable growth in items that support both national and provincial priorities. We have in past witnessed the “year-on-year” upwards adjustment to the baseline allocations of departments and we are in a period where wastage, irregular and fruitless expenditure will not be tolerated any more. Consequence management, innovation and creativity will be the organizational culture that would be deepened in the Public Service for better managed of limited resources without compromising the objectives of the National Development Plan. The Department of Finance will continue to closely monitor the provincial spending and performance of departments to ensure value for money. Provincial departments and public entities are expected to reduce inefficiencies, wastage and ensure that funds are directed to programmes that will make an impact to the lives of North West citizens. The 2014/15 Adjustment budget supports reconfiguration of provincial departments and should be used by departments to adequately prepare for the downwards revision of 2015 MTEF allocations. ………………… Wendy Nelson MEC for Finance, Economy and Enterprise Development iii Contents Foreword Introduction.......................................................................................................................................v Budget Adjustment..........................................................................................................................vi Declared unspent funds..................................................................................................................xiii Other Adjustment.............................................................................................................................xiv Summary of Budget Aggregates......................................................................................................xiv Provincial Own Revenue..................................................................................................................xv Conditional Grants..........................................................................................................................xvii Vote 1: Office of the Premier...............................................................................................1-14 Vote 2 : Provincial Legislature............................................................................................15-24 Vote 3: Health....................................................................................................................25-58 Vote 4: Culture, Arts and Traditional Affairs……...............................................................59-78 Vote 5: Community Safety and Transport Management....................................................79-96 Vote 6: Economy and Enterprise Development...............................................................97-110 Vote 7: Finance..............................................................................................................111-122 Vote 8: Education and Sports Development..................................................................123-158 Vote 9: Local Government and Human Settlements.....................................................159-184 Vote 10: Tourism.............................................................................................................185-194 Vote 11: Public Works and Roads…………………………………………………………...195-208 Vote 12: Social Development..........................................................................................209-226 Vote 13: Rural, Environment and Agricultural Development...........................................227-255 iv 1. Introduction The State of the Provincial Address delivered by the Premier on the 27 June 2014 sets out the government policy objectives supported by specific targets on key service delivery areas. Based on these targets a comprehensive programme of action to positively deliver on “Mafikeng Rebranding, Repositioning, and Renewal Programme” was announced. In essence, this concept is a commitment from the North West Province aiming at the reduction of poverty through job creation, boosting the economy, beautification and putting Mafikeng as a capital town on the right map. The Premier pronounced on the twenty three (23) key service delivery activities to uphold His flagship of Mafikeng, Rebranding, Repositioning, Renewal Programmes (MRRRP) of which the top ten include: Tourism Infrastructure Development, Road Network Rehabilitation, Traffic and Safety Control points, Storm Water Drainage, Mmabatho Stadium Redesign, Bop Rhino studio, Mafikeng Airport Development Rail Network Improvement, Bricks Manufacturing Plant, Mafikeng Power Distribution Rights and so forth and so on. Progressively, part of this Programme has found expression in the 2014/15 MTEF budgets and will continue to unfold even in the 2015/16 MTEF moving forward. The North West Province is faced with difficult choices due to the widening gap between the competing budgetary demands and what can be afforded. The remedy to the situation is to tighten the belt in order to do more with less. In an endeavor to stay focus and to achieve some of the targets indicated above, the Premier further pronounced on the three Provincial Pillars namely, Culture, Agriculture and Tourism. These pillars are premised on the broad objectives and thus ensure that economy continue to steam ahead. With regards to the social sector, the North West Government shall continue to allocate resources and to put more effort to provide services to the society and a safety net of the indigent. Notwithstanding the fact that, no additional funds were availed during this adjustment budget, due to unfavorable economic challenges that continue to cripple the country, the success of the Premier’s programmes would need to depend on the promotion of efficiency gains through reprioritization of functions, curtailment of underperforming programmes, reinforcement of the Cost Containment Policy and strengthening the strategy of “use or loose it”. The Provincial Treasury took a stance to reduce the budget of the non-core items that were performing slowly in terms of the expenditure. Through that exercise, an amount of R74 million was raised to address stability towards critical frontline performing areas. Importantly, Treasury shall continue to strengthen its oversight role by ensuring the value for money and limit shifting of funds especially to those departments whose budgets were cut so that they can redirect funds to critical pressure points. It is worth noting to reflect that, the allowed shifting of funds and/or virements should be perceived as a vehicle that is used not to materially amend the main appropriations that was recently tabled in the Legislature in August 2014 but as a process, to accommodate institutional changes and v arrangements that were brought up by the new Administration which had some bearings on the limited fiscus. The adjustments contained in this budget book have some limitations and have brought the following changes to the main appropriation: Appropriation of any funding made available to the province through the national adjustment budget; Unforeseen and unavoidable expenditure; Shifting of funds between and within votes to follow the transfer of functions in terms of Section 42 of the PFMA; Utilization of savings under the main divisions within the vote for the defrayment of excess expenditure under another main division within the same vote in terms of Section 43 of the PFMA, and The roll-over of unspent funds from the preceding financial year. Almost seventy percent of provincial departments have projected to overspend their budgets by R781 million as reflected in the second quarter spending trends. Certain key departmental priorities were not funded during the main appropriation and therefore this adjustment budget provides support to this service deliveryissues: the Extended Public Works Programme (Provincial Labour Intensive) Agriculture, Culture and Tourism; and Property Rates and Taxes in the Department of Public Works and Roads. 2. Budget Adjustments Additional funding that become available for the 2014/15 Adjustment budget includes rollover for both conditional grants
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