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Presentation to the Select Committee on Appropriations Conditional Grants Expenditure as at 31 December 2009 NATIONAL TREASURY. 20 April 2010. Education – Provinces as at 31 December 2009. Education – Provinces as at 31 December 2009. - PowerPoint PPT Presentation
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1
Presentation to the Select Committee on Appropriations
Conditional Grants Expenditure as at 31 December 2009
NATIONAL TREASURY
20 April 2010
2
Education – Provincesas at 31 December 2009
Provincial Education Expenditure as at 31 December 2009
Eastern Cape 20,529,488 21,169,525 16,533,975 80.5% -640,037 – -3.1% 46.7% 60.6% 13,494,247 22.5%
Free State 7,921,932 7,943,832 5,785,315 73.0% -21,900 – -0.3% 42.8% 58.1% 5,221,107 10.8%
Gauteng 19,981,832 20,178,657 14,957,079 74.9% -196,825 – -1.0% 33.8% 49.7% 12,662,094 18.1%
Kw aZulu-Natal 26,058,854 26,271,374 19,685,170 75.5% -212,520 – -0.8% 41.9% 56.3% 17,640,308 11.6%
Limpopo 17,322,367 17,531,316 13,003,061 75.1% -208,949 – -1.2% 50.1% 64.9% 10,953,349 18.7%
Mpumalanga 10,683,793 11,085,531 8,034,934 75.2% -401,738 – -3.8% 45.8% 62.1% 7,324,676 9.7%
Northern Cape 3,169,930 3,235,273 2,440,820 77.0% -65,343 – -2.1% 40.1% 54.8% 2,176,543 12.1%
North West 8,493,135 8,493,135 6,346,855 74.7% – – 0.0% 41.6% 59.8% 5,319,608 19.3%
Western Cape 10,663,812 10,663,812 7,953,561 74.6% – – 0.0% 36.4% 48.6% 6,919,009 15.0%
Total 124,825,143 126,572,455 94,740,770 75.9% -1,747,312 – -1.4% 41.8% 56.8% 81,710,941 15.9%
Actual payments
as % of adjusted budget
(Over) Under
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 31 December
2009
Year-on-year
growth
% (Over)/ under of adjusted budget
% share of Education
to total provincial
expenditure
% share of Education
to total Social
Services expenditure
2008/09: Outcome as
at 31 December
2008
3
• Spending is at R94.7bn or 75.9% against R124.8bn adjusted budget – Main budget increased by R6.5bn – mainly for ICS and OSD– 41.1% of total provincial adjusted budgets– Increase of R13bn or 15.9% compared to same period of last year
• EC – 22.5%; NW – 19.3%; LP – 18.7%; GP – 18.1%
• Projected overspending of R1.7bn in 7 provinces– Bulk in EC (R640m on Personnel)
• Personnel spending at R72.7bn or 74.5% (R97.6bn adjusted budget)– Projected overspending of R1.7bn in 6 provinces (EC – R559.4m; KZN – R387.4m)– Is this mainly as a result of implementation of OSD Phase 2 or is it a budgeting problem?– EC – Mainly due to the implementation of HROPT
• Goods and services (includes LTSM, Scholar Transport, etc.) at R9.4bn or 73.5% (R12.8bn adjusted budget)
– Projected underspending of R306m in 5 provinces (KZN – R107.4m;GP – R96.2m; LP – R59.3m) – Impact on the quality of education?
– Projected overspending of R120m in MP– Negative/Low y-on-y growth rates in FS (-5%); and MP (-2.9%)
• Capital spending at R4.5bn or 84%– Projected overspending of R211.2m in 7 provinces (MP – R110.7m; EC – R47.8m)– Low rate of capital spending in MP (63.5%) and WC (69.1%)– NC (97.2%) and EC (96.7%) reflects the highest rate of capital spending in education
• Transfers at R8.1bn or 90.5% against R9bn adjusted budgets
Education – Provincesas at 31 December 2009
4
Table : Provincial education projected (over)/under expenditure as at 31 December 2009
Total education Personnel CapitalNon-personnel,
non-capitalof which:
Goods and services
(Over) Under (Over) Under (Over) Under (Over) Under (Over) Under
Eastern Cape -640 037 – -559 452 – -47 764 – -32 821 – – 38 499
Free State -21 900 – – 73 -117 – -21 856 – -15 456 –
Gauteng -196 825 – -267 945 – -4 201 – – 75 321 – 96 232
Kw aZulu-Natal -212 520 – -387 471 – – 4 409 – 170 542 – 107 412
Limpopo -208 949 – -228 396 – -39 809 – – 59 256 – 59 256
Mpumalanga -401 738 – -171 000 – -110 738 – -120 000 – -120 000 –
Northern Cape -65 343 – -59 558 – -8 597 – – 2 812 -258 –
North West – – – 40 -1 – -39 – -39 –
Western Cape – – – 14 374 – – -14 374 – – 4 584
Total -1 747 312 – -1 673 822 14 487 -211 227 4 409 -189 090 307 931 -135 753 305 983
R thousand
Education – Provinces(Over)/Under Expenditure
5
Education – ProvincesProg 2: Public Ordinary Schools
Table XX: Provincial Public Ordinary School Education Expenditure (Programme 2) as at 31 December 2009
Eastern Cape 17 089 030 17 842 304 14 073 165 82.4% -753 274 – -4.4% 39.8% 85.1% 11 279 511 24.8%
Free State 6 164 767 6 164 598 4 470 391 72.5% – 169 0.0% 33.1% 77.3% 3 877 438 15.3%
Gauteng 15 537 548 15 502 298 11 569 523 74.5% – 35 250 0.2% 26.1% 77.4% 9 902 370 16.8%
Kw aZulu-Natal 22 602 926 22 777 964 17 053 929 75.5% -175 038 – -0.8% 36.3% 86.6% 14 893 420 14.5%
Limpopo 14 710 635 14 972 972 11 333 557 77.0% -262 337 – -1.8% 43.7% 87.2% 9 554 066 18.6%
Mpumalanga 8 991 478 9 393 216 6 884 176 76.6% -401 738 – -4.5% 39.3% 85.7% 6 077 366 13.3%
Northern Cape 2 545 162 2 626 952 1 962 987 77.1% -81 790 – -3.2% 32.3% 80.4% 1 679 933 16.8%
North West 7 173 318 7 186 618 5 379 175 75.0% -13 300 – -0.2% 35.3% 84.8% 4 421 868 21.6%
Western Cape 8 653 075 8 653 075 6 441 971 74.4% – – 0.0% 29.5% 81.0% 5 565 113 15.8%
Total 103 467 939 105 119 997 79 168 874 76.5% -1 687 477 35 419 -1.6% 34.9% 83.6% 67 251 085 17.7%
Year-on-year
growth
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 31 December
2009
% share of POSE to
total provincial
expenditure
% share of POSE to
total Education
expenditure
2008/09: Outcome as
at 31 December
2008
Actual payments
as % of adjusted budget
(Over) Under
% (Over)/ under of adjusted budget
6
Education – Provinces“Compensation of Employees”
Table XX: Provincial Personnel Expenditure: Education as at 31 December 2009
Eastern Cape 16 258 191 16 817 643 12 618 481 77.6% -559 452 – -3.4% 59.9% 76.3% 10 201 932 23.7%
Free State 6 209 003 6 208 930 4 486 882 72.3% – 73 0.0% 56.0% 77.6% 4 000 125 12.2%
Gauteng 14 950 277 15 218 222 11 197 550 74.9% -267 945 – -1.8% 54.6% 74.9% 9 462 129 18.3%
Kw aZulu-Natal 20 940 481 21 327 952 15 344 752 73.3% -387 471 – -1.9% 58.5% 78.0% 13 559 238 13.2%
Limpopo 13 638 118 13 866 514 10 204 243 74.8% -228 396 – -1.7% 60.6% 78.5% 8 796 644 16.0%
Mpumalanga 8 257 489 8 428 489 6 159 562 74.6% -171 000 – -2.1% 61.4% 76.7% 5 518 027 11.6%
Northern Cape 2 483 370 2 542 928 1 857 897 74.8% -59 558 – -2.4% 56.3% 76.1% 1 689 554 10.0%
North West 6 623 870 6 623 830 4 796 457 72.4% – 40 0.0% 57.5% 75.6% 4 220 627 13.6%
Western Cape 8 200 780 8 186 406 6 022 468 73.4% – 14 374 0.2% 52.0% 75.7% 5 292 283 13.8%
Total 97 561 579 99 220 914 72 688 292 74.5% -1 673 822 14 487 -1.7% 57.7% 76.7% 62 740 559 15.9%
Year-on-year
growth
% share of Education Personnel
to total personnel
expenditure
% share of Education personnel
to total Education
expenditure
2008/09: Outcome as
at 31 December
2008
Actual payments
as % of adjusted budget
(Over) Under
% (Over)/ under of adjusted budget
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 31 December
2009
7
Education – Provinces“Goods and Services”
Table XX: Provincial Goods and Services Expenditure: Education as at 31 December 2009
Eastern Cape 2 069 642 2 031 143 1 756 842 84.9% – 38 499 1.9% 10.6% 1 682 664 4.4%
Free State 603 826 619 282 389 144 64.4% -15 456 – -2.6% 6.7% 409 566 -5.0%
Gauteng 2 542 381 2 446 149 1 575 874 62.0% – 96 232 3.8% 10.5% 1 374 056 14.7%
Kw aZulu-Natal 2 225 723 2 118 311 1 896 017 85.2% – 107 412 4.8% 9.6% 1 734 931 9.3%
Limpopo 1 768 520 1 709 264 1 065 191 60.2% – 59 256 3.4% 8.2% 736 207 44.7%
Mpumalanga 1 380 680 1 500 680 1 082 849 78.4% -120 000 – -8.7% 13.5% 1 115 756 -2.9%
Northern Cape 289 257 289 515 215 964 74.7% -258 – -0.1% 8.8% 207 297 4.2%
North West 916 223 916 262 707 092 77.2% -39 – 0.0% 11.1% 469 238 50.7%
Western Cape 1 003 438 998 854 717 486 71.5% – 4 584 0.5% 9.0% 588 888 21.8%
Total 12 799 690 12 629 460 9 406 459 73.5% -135 753 305 983 1.3% 9.9% 8 318 603 13.1%
Year-on-year growth
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 31 December
2009
% share of G&S to total
Education expenditure
2008/09: Outcome as
at 31 December
2008
Actual payments
as % of adjusted budget
(Over) Under
% (Over)/ under of adjusted budget
8
Education – Provinces“Non-Personnel, Non-Capital”
Table XX: Provincial Non-Personnel, Non-Capital Expenditure: Education as at 31 December 2009
Eastern Cape 3 403 714 3 436 535 3 076 914 90.4% -32 821 – -1.0% 8.7% 18.6% 2 612 669 17.8%
Free State 1 273 326 1 295 182 925 315 72.7% -21 856 – -1.7% 6.8% 16.0% 929 232 -0.4%
Gauteng 4 187 713 4 112 392 3 107 598 74.2% – 75 321 1.8% 7.0% 20.8% 2 887 452 7.6%
Kw aZulu-Natal 3 879 347 3 708 805 3 293 824 84.9% – 170 542 4.4% 7.0% 16.7% 3 273 851 0.6%
Limpopo 2 753 671 2 694 415 1 974 358 71.7% – 59 256 2.2% 7.6% 15.2% 1 610 138 22.6%
Mpumalanga 2 014 776 2 134 776 1 614 232 80.1% -120 000 – -6.0% 9.2% 20.1% 1 462 367 10.4%
Northern Cape 607 704 604 892 506 267 83.3% – 2 812 0.5% 8.3% 20.7% 442 263 14.5%
North West 1 583 569 1 583 608 1 298 455 82.0% -39 – 0.0% 8.5% 20.5% 932 404 39.3%
Western Cape 2 187 040 2 201 414 1 740 430 79.6% -14 374 – -0.7% 8.0% 21.9% 1 508 902 15.3%
Total 21 890 860 21 772 019 17 537 393 80.1% -189 090 307 931 0.5% 7.7% 18.5% 15 659 278 12.0%
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 31 December
2009
Actual payments
as % of adjusted budget
(Over) Under
% (Over)/ under of adjusted budget
Year-on-year
growth
% share of NPNC to
total provincial
expenditure
% share of NPNC to
total Education
expenditure
2008/09: Outcome as
at 31 December
2008
9
Education – Provinces“Payments for Capital Assets”
Table XX: Provincial Capital Expenditure: Education as at 31 December 2009
Eastern Cape 867 583 915 347 838 580 96.7% -47 764 – -5.5% 32.1% 5.1% 679 646 23.4%
Free State 439 603 439 720 373 118 84.9% -117 – 0.0% 33.3% 6.4% 291 750 27.9%
Gauteng 843 842 848 043 651 931 77.3% -4 201 – -0.5% 38.0% 4.4% 312 513 108.6%
Kw aZulu-Natal 1 239 026 1 234 617 1 046 594 84.5% – 4 409 0.4% 26.9% 5.3% 807 219 29.7%
Limpopo 930 578 970 387 824 460 88.6% -39 809 – -4.3% 49.9% 6.3% 546 567 50.8%
Mpumalanga 411 528 522 266 261 140 63.5% -110 738 – -26.9% 17.7% 3.3% 344 282 -24.1%
Northern Cape 78 856 87 453 76 656 97.2% -8 597 – -10.9% 15.4% 3.1% 44 726 71.4%
North West 285 696 285 697 251 943 88.2% -1 – 0.0% 17.9% 4.0% 166 577 51.2%
Western Cape 275 992 275 992 190 663 69.1% – – 0.0% 10.6% 2.4% 117 824 61.8%
Total 5 372 704 5 579 522 4 515 085 84.0% -211 227 4 409 -3.8% 27.9% 4.8% 3 311 104 36.4%
Year-on-year
growth
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 31 December
2009
% share of Education Capital to
total Capital
expenditure
% share of Capital to
total Education
expenditure
2008/09: Outcome as
at 31 December
2008
Actual payments
as % of adjusted budget
(Over) Under
% (Over)/ under of adjusted budget
10
HIV and Aids(Life Skills Education)
Guideline 75%
• Overall spending has declined BY 10 per cent compared to the same time last year.
• The largest declines are in Eastern Cape, Mpumalanga and North West
Table: HIV and Aids (Lifes Skills Education) Expenditure as at 31 Dec 2009
Eastern Cape 30 168 28 780 17 691 58.6% – 1 388 4.6% 0.0% 15.6% 23 414 -24.4%
Free State 10 341 10 341 7 449 72.0% – – 0.0% 0.1% 6.6% 8 937 -16.6%
Gauteng 25 253 25 253 16 712 66.2% – – 0.0% 0.0% 14.8% 16 559 0.9%
Kw aZulu-Natal 39 765 39 765 34 935 87.9% – – 0.0% 0.1% 30.9% 37 667 -7.3%
Limpopo 29 789 29 789 12 941 43.4% – – 0.0% 0.0% 11.4% 6 622 95.4%
Mpumalanga 14 982 14 982 8 115 54.2% – – 0.0% 0.0% 7.2% 11 277 -28.0%
Northern Cape 3 828 3 588 1 839 48.0% – 240 6.3% 0.0% 1.6% 1 773 3.7%
North West 14 119 14 119 5 759 40.8% – – 0.0% 0.0% 5.1% 10 805 -46.7%
Western Cape 14 626 14 626 7 745 53.0% – – 0.0% 0.0% 6.8% 8 784 -11.8%
Total 182 871 181 243 113 186 61.9% – 1 628 0.9% 0.0% 100.0% 125 838 -10.1%
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 28 February
2010
Actual payments
as % of adjusted budget
(Over) Under
% (Over) / under of adjusted budget
Year-on-year
growth
% share of grant to
total provincial
expenditure
% share of grant to
total grant expenditure
2008/09: Outcome as
at 31 Dec 2008
11
HIV and AidsLife Skills Education (February data)
Guideline 92%
HIV AND AIDS (LIFE SKILLS EDUCATION)
Province
R thousandEastern Cape 30,168 - - 30,168 30,168 21,637 71.7% 22,307 7,861 Free State 10,341 - - 10,341 10,341 9,295 89.9% 9,888 453 Gauteng 25,253 - - 25,253 25,253 19,416 76.9% 25,616 (363) KwaZulu-Natal 39,765 - - 39,765 39,765 41,148 103.5% 43,422 (3,657) Limpopo 25,882 3,474 433 29,789 29,356 15,873 53.3% 29,789 - Mpumalanga 14,626 - 356 14,982 14,626 8,962 59.8% 14,626 356 Northern Cape 3,828 - - 3,828 3,828 2,577 67.3% 4,005 (177) North West 12,912 - 1,207 14,119 12,912 8,358 59.2% 14,119 - Western Cape 14,626 - - 14,626 14,626 9,866 67.5% 14,626 - Total 177,401 3,474 1,996 182,871 180,875 137,132 75.0% 178,398 4,473
% Actual payments
of total available
Projected outcome
for financial year
Projected (over)/under
Received by
province: Year to
date
Provincial actual
payments
Division of Revenue Act, 2009
(Act No. 12 of 2009)
Government Gazette:
Other Gazettes
Provincial roll-overs
Total available
12
National School Nutrition Programme (NSNP)
Guideline – 75%
• Spending has improved significantly for this grant (46 per cent) compared to the same period last year.
• Gauteng (78%), Western Cape (72%), KZN (63%) and Mpumalanga (66%) have the largest improvement.
Table: National School Nutrition Programme Expenditure as at 31 Dec 2009
Eastern Cape 486 695 571 093 435 678 89.5% -84 398 – -17.3% 1.2% 23.0% 367 474 18.6%
Free State 141 824 141 824 100 620 70.9% – – 0.0% 0.7% 5.3% 78 041 28.9%
Gauteng 251 590 251 590 190 382 75.7% – – 0.0% 0.4% 10.1% 107 074 77.8%
Kw aZulu-Natal 594 196 613 271 441 370 74.3% -19 075 – -3.2% 0.9% 23.3% 271 133 62.8%
Limpopo 465 992 465 992 300 103 64.4% – – 0.0% 1.2% 15.9% 195 390 53.6%
Mpumalanga 252 483 252 483 182 170 72.2% – – 0.0% 1.0% 9.6% 109 449 66.4%
Northern Cape 55 690 55 689 36 996 66.4% – 1 0.0% 0.6% 2.0% 31 785 16.4%
North West 169 527 169 527 118 504 69.9% – – 0.0% 0.8% 6.3% 85 175 39.1%
Western Cape 117 743 117 743 86 323 73.3% – – 0.0% 0.4% 4.6% 50 132 72.2%
Total 2 535 740 2 639 212 1 892 146 74.6% -103 473 1 -4.1% 0.8% 100.0% 1 295 653 46.0%
R thousand
Adjusted budget
Projected outcome
Actual payments as
at 28 February
2010
Actual payments
as % of adjusted budget
(Over) Under
% (Over) / under of adjusted budget
Year-on-year
growth
% share of grant to
total provincial
expenditure
% share of grant to
total grant expenditure
2008/09: Outcome as
at 31 Dec 2008
13
National School Nutrition Programme (February data) –
Guideline 92%
NATIONAL SCHOOL NUTRITION PROGRAMME
Province
R thousandEastern Cape 486,695 - 486,695 486,695 474,839 97.6% 489,660 (2,965) Free State 122,306 19,518 141,824 122,306 117,283 82.7% 141,824 - Gauteng 251,590 - 251,590 251,590 240,368 95.5% 252,003 (413) KwaZulu-Natal 555,917 38,279 594,196 555,917 534,428 89.9% 577,032 17,164 Limpopo 419,185 46,807 465,992 419,185 369,265 79.2% 465,992 - Mpumalanga 229,534 22,949 252,483 229,534 202,971 80.4% 229,534 22,949 Northern Cape 55,690 - 55,690 55,690 46,134 82.8% 55,594 96 North West 161,063 8,464 169,527 161,063 154,696 91.3% 169,527 - Western Cape 112,548 5,195 117,743 112,548 107,334 91.2% 117,743 - Total 2,394,528 141,212 2,535,740 2,394,528 2,247,318 88.6% 2,498,909 36,831
% Actual payments
of total available
Projected outcome for financial year
Projected (over)/under
Received by province: Year
to date
Provincial actual
payments
Division of Revenue Act, 2009 (Act No. 12 of 2009)
Provincial roll-overs
Total available
14
• While provinces are projecting to over-spend by over R1bn, Goods and services (such as learner support materials) are projected to under-spend by R700m in 09/10.
• Specifically, Compensation appears to be crowding out other spending items.
• Provincial spending on NSNP has improved significantly.
• At the end of 2008/09 the NSNP grant under-spent by R402m. Current trends indicate that under-spending will not be higher than R40m.
• However, spending on HIV & AIDS Life Skills grant is 10 per cent slower than at the same time in the previous year.
• Eastern Cape (-24%), Mpumalanga (-28%) and North West (-47%) show the biggest declines on this grant.
• Spending on HIV & AIDS Life Skills indicates that provincial and national education need to manage cash flows accurately, as funds are made available to provinces during parts of the year in which they are not needed.
Concluding Comments
