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2009/10 DIVISION OF REVENUE BILL

Presentation to Select Committee on Finance

24 February 2009

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• Overview of 2009 MTEF baseline allocation and policy options.

• Expenditure/Key Outcomes based on Third Quarterly Report for Conditional Grants.

• Allocations and planned outputs for the 2009 MTEF: Conditional Grants.

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Overview of 2009 MTEF policy optionsNational

Service 2009/10 2010/11 2011/12

  Allocated* Allocated* Allocated*

  R'000 R'000 R'000Baseline Allocation (including inflation)

Higher Education

20 788 047

0

23 846 863

0

25 217 231

700 000

NSNP 489 000 1 200 000 2 000 000

Technical Secondary Schools 4 602 80 000 200 000

NEEDU 5 522 11 031 11 947

TOTAL 21 287 171 25 137 894 28 129 178

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Overview of 2009 MTEF policy optionsSector

Service 2009/10 2010/11 2011/12

  Total Allocated Total AllocatedTotal

Allocated

  R'000 R'000 R'000

Extension of no fee schools to Quintile 3 0 800 000 1 000 000

Grade R Infrastructure 0 100 000 400 000

Other Infrastructure 0 200 000 800 000

Inclusive Education 0 0 300 000

Reduction of Learner: Educator Ratio 0 250 000 1 800 000

TOTAL  0 1 350 000 4 300 000

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Overview of 2009 MTEF baseline allocations

Total education funding amounts to approximately R139,7 billion after effecting the government wide cuts due to the status of the economy

Education consumes approximately 5,7% of GDP over the 2009 MTEF period

Provincial spending equals 86,6% of total education spending Total baseline adjustments at provincial level over the MTEF

period amounts to approximately R18,8 billion Biggest expenditure item remains compensation of employees

at 74,9% of total expenditure (including conditional grants) Conditional grants amounts to 1,8% of total education funding

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Conditional GrantsExpenditure/Key Outcomes based

on Third Quarterly Report

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FET College Recapitalisation

Province Original Approved Revised Transfers Expenditure % Spent

  allocation Roll-over Allocation as at as at of total

        31/01/2009 31/01/2009 allocation

  R'000     R'000 R'000 %

Eastern Cape 115 506 165 115 671 115 671 80 639 69.71%

Free State 52 200   52 200 52 200 40 707 77.98%

Gauteng 167 156   167 156 167 156 123 324 73.78%

KwaZulu-Natal 162 974   162 974 162 974 125 518 77.02%

Limpopo 111 646   111 646 111 646 93 219 83.50%

Mpumalanga 39 099 5 39 104 39 104 31 960 81.73%

Northern Cape 7 620   7 620 7 620 6 879 90.28%

North West 61 494   61 494 61 494 42 105 68.47%

Western Cape 77 305   77 305 77 305 65 619 84.88%

           

Total 795 000 170 795 170 795 170 609 970 76.71%

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Key Outcomes Reported at 31 December 2008FET College Recapitalisation

2 603 lecturers were trained on the delivery of the NC(V) programme

Upgrades of 83 College sites completed: 100 targeted for the year

All planned 19 Student Support Units and Resource Centres have been established

Workshop equipment for NC(V) delivered and installed in all 40 workshops as planned

New facilities built during third quarter:

68 Classrooms 28 Workshops 8 Laboratories 17 Offices

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National School Nutrition Programme

Province Original Adjustments Revised Transfers Expenditure % Spent

  allocation Estimates Allocation as at as at of total

        31/01/2009 31/12/2008 allocation

  R'000 R'000 R'000 R'000 R'000 %

Eastern Cape 339 816 73 842 413 658 413 658 367 474 88.84%

Free State 82 498 17 927 100 425 100 425 78 038 77.71%

Gauteng 172 111 37 399 209 510 209 510 107 074 51.11%

KwaZulu-Natal 376 435 81 798 458 233 458 233 271 132 59.17%

Limpopo 252 901 54 955 307 856 307 856 195 390 63.47%

Mpumalanga 136 606 29 684 166 290 166 290 109 449 65.82%

Northern Cape 48 483 10 536 59 019 59 019 32 581 55.20%

North West 103 144 22 413 125 557 125 557 85 176 67.84%

Western Cape 71 109 15 452 86 561 86 561 50 132 57.92%

           

Total 1 583 103 344 006 1 927 109 1 927 109 1 296 446 67.27%

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Key Outcomes Reported at 31 December 2008NSNP

Feeding days per Province varies – on average feeding takes place for 168 days a year

17 899 Schools are currently targeted 6 million Learners receive feeding 2 031 food gardens have been completed compared to the

target of 2 027 Current allocations provide for average meal cost of R1,75 due

to the inflation adjustment received during the Adjustments Estimates

Additional funds have also been provided to provinces to enable them to prepare for the implementation of the programme in Secondary Quintile 1 schools with effect from 1 April 2009

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HIV/Aids

Province Original Approved Revised Transfers Expenditure % Spent

  allocation Roll-over Allocation as at as at of total

        31/01/2009 31/12/2008 allocation

  R'000 R'000 R'000 R'000 R'000 %

Eastern Cape 28 542   28 542 28 542 23 414 82.03%

Free State 9 800   9 800 9 800 8 937 91.19%

Gauteng 23 886   23 886 23 886 16 559 69.33%

KwaZulu-Natal 37 610 2 300 39 910 39 910 37 667 94.38%

Limpopo 24 495   24 495 18 372 6 622 27.03%

Mpumalanga 13 848 921 14 769 14 769 11 277 76.36%

Northern Cape 3 648   3 648 3 648 2 464 67.54%

North West 12 229   12 229 12 229 10 805 88.36%

Western Cape 13 847   13 847 13 847 8 784 63.44%

           

Total 167 905 3 221 171 126 165 003 126 529 73.94%

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Key Outcomes Reported at 31 December 2008HIV/Aids

Orientation meetings were held with parents and communities to improve awareness and support for the programme

19 216 Educators have been capacitated in teaching Life Skills and to handle learner issues (Target for the year – 30 000)

School based support teams were established in 20 000 schools (Target – 15 000 schools) 8 007 schools have been furnished with age-appropriate

learner material (Target - 5 000)

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Disaster Management Conditional Grant

An amount of R22,002 million was allocated for this conditional grant to the Department during the Adjustments Estimate as once-off allocation

The purpose of the grant is to assist KwaZulu-Natal (R16,696 million) and Mpumalanga (R5,306 million) to repair storm damaged schools

The grant amounts for both provinces have been transferred

Reports are being awaited from both provinces on progress made

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Conditional Grants

Allocations and planned outputs for the 2009 MTEF

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ALLOCATION FOR 2009 MTEFFET Recapitalisation

The FET Recapitalisation grant will come to an end on 31 March 2009 Activities during 2009/10 will be focussed on committed uncompleted

work, if any, as at 31 March 2009 for amounts that will be rolled over The grant will still be subject to the annual evaluation of the 2008/09

activities that will be conducted during April to June 2009 Since the grant is phased out, it was agreed with National Treasury

that the funds are distributed to provinces as part of the equitable share and should remain within the education allocations for the FET Programme – this is being monitored and will be verified as soon as the final provincial budgets for the 2009 MTEF are available

Initial indications from provincial education departments are that the funds have been received through the equitable share allocations and will remain within the FET Sector

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ALLOCATION FOR 2009 MTEFNSNP

Province 2009/10 2010/11 2011/12Eastern Cape 486 695 702 936 845 166Free State 122 306 195 194 244 699Gauteng 251 590 388 884 509 798KwaZulu-Natal 555 917 855 285 1 070 013Limpopo 419 185 659 233 829 669Mpumalanga 229 534 354 341 440 923Northern Cape 55 690 84 536 105 116North West 161 063 249 599 305 935Western Cape 112 548 173 318 227 433TOTAL 2 394 528 3 663 326 4 578 752

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IMPLEMENTATION OF MINIMUM NORMNSNP

Minister of Education approved implementation of revised minimum norm with effect from 1 April 2009 for the 2009/10 financial year

Minimum Norm:- Continue feeding of all learners in Quintiles 1, 2 and 3 primary schools- Programme to be implemented in Quintile 1 secondary schools- Feeding must take place on every school day- Average meal cost for primary learners approximately R1,80 and secondary learners 1,3 times the value of a primary learner (R2,35)

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IMPLEMENTATION OF MINIMUM NORMNSNP

Approved implementation over the two outer years of the 2009 MTEF:- Further implementation in secondary schools:

Quintile 2 (2010/11); andQuintile 3 (2011/12)

- Average meal cost to increase as follows:Primary: 2010/11 (R2,10); 2011/12 (R2,30)Secondary: Increased to 1,75 times that of primary

learner: 2010/11 (R3,80); 2011/12 (R4,10) Funds have also been allocated to provinces to assist with

implementation cost to implement feeding in secondary schools

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ALLOCATION FOR 2009 MTEFHIV/Aids

Province 2009/10 2010/11 2011/12Eastern Cape 30 168 32 156 34 086

Free State 10 341 10 719 11 362

Gauteng 25 253 27 078 28 703

KwaZulu-Natal 39 765 42 686 45 247

Limpopo 25 882 27 454 29 101

Mpumalanga 14 626 15 420 16 345

Northern Cape 3 828 3 573 3 787

North West 12 912 13 539 14 352

Western Cape 14 626 15 420 16 345

Total 177 401 188 045 199 328

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KEY ACTIVITIES FOR HIV/AIDS CONDITIONAL GRANT

The primary focus of the grant is to ensure access to an appropriate and effective integrated system of prevention, care and support for children infected and affected by HIV and Aids

The grant also aims at providing education and training for School Management Teams and educators to develop, implement and manage Life Skills education in line with HIV and AIDS, drug and substance abuse and gender equity policies

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NEW CONDITIONAL GRANT 2009 MTEFTECHNICAL SCHOOLS RECAPITALISATION

The preliminary allocations for the grant are as follows:2009/10: R4,602 million2010/11: R80 million2011/12: R200 million

The amount of R4,602 million allocated in 2009/10 will be used to assist the Department in the preparation phase to implement the grant

The project seeks to recapitalise 100 technical schools over the medium term, which form part of the public school system

The recapitalisation process will provide these 100 schools with infrastructure, installation of new equipment and workshops to support quality technical curriculum delivery