Appropriation Bill 2004 Presentation to Select Committee on

Appropriation Bill 2004 Presentation to Select Committee on Finance 28 June 2004

Appropriation Bill Purpose – legislate spending by national departments • 1 April 2004 to 31 March 2005 • Give effect to policy commitments made through legislation and policy • National spending R 150 b n Excludes statutory amounts, e. g. • Members of parliament and judiciary salaries • State debt costs • Provincial equitable share 2 n

Format appropriation Bill n n n Funds appropriated per programme (main division of vote) Funds indicated as current, transfers or capital payments New format based on standardised classification aligned to international reporting requirements GFS & IFAC & SNA – New chart of accounts n New legal status for transfers in 2004 Bill – Greater accountability and transparency n Programme description 3

‘specifically and exclusively’ (1) n Some funds appropriated specifically and exclusively for purpose n May legally not be used for any other purpose n Current expenditure • Parliament - Parmed R 16 m • Arts & Culture – Freedom Day celebrations R 40 m • Defence – peace support operations R 700 m 4

‘specifically and exclusively’ (2) n Transfers - bodies, councils, boards, NGOs that receive government support • Soc dev - transfers to NGOs R 1 b • DPLG – local government equitable share R 7, 6 b n Conditional grants prov & local gov • DPLG – MIG R 4, 5 b • Soc Dev - child support ext grant R 3, 6 b • Housing- housing subsidy R 4, 5 b • Education – primary schools nutrition prg R 800 m 5

Further information n Detailed information of departmental spending in Estimates of National Expenditure “ENE” MTEF framework, allows understanding of outer years allocations Measurable objectives needs to improve – Measurable core functions of dept – Simple to collect data – Stronger accountability 6

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