2014/15 Budget Allocation: Presentation to the Select Committee on Land and Mineral Resources 11 July 2014

2 Per Programme (All Programmes) 2014/2015 R’000Budget Allocation% budget share 1. Administration % Ministerial Services % Management % Internal Audit % Financial Services % Corporate Services % Provincial Coordination % 2. Geo-spatial and Cadastral Services % National Geomatics Management Services % Spatial Planning and Land Use Management % 3. Rural Development % NARYSEC % RID % REID % 4. Restitution % 5. Land Reform % Land Redistribution and Development % Land Tenure and Administration % Total %

3 Per Economic Classification (All Programmes) 2014/2015 R’000 Final Budget Allocation% budget share Compensation of employees % Goods and services % Provincial and local governments % Departmental agencies and accounts % Foreign governments and international organisations % Public corporations and private entities 10.0% Non-profit institutions % Households % Machinery and equipment % Software and intangible assets % Total %

2014/15 BUDGET ALLOCATION PER PROVINCE (Programmes 3,4,&5) 4

5 Per Programme (3,4&5) 2014/2015 R’000NationalEastern Cape Free State GautengKwazulu Natal LimpopoMpumalangaNorthern Cape North West Western Cape Total 3. Rural Development NARYSEC RID REID Restitution Land Reform Land Redistribution and Development Land Tenure and Administration Total

6 Per Economic Classification( Programmes 3,4&5) 2014/2015 R’000National Office Eastern Cape Free State GautengKwazulu Natal LimpopoMpumalangaNorthern Cape North West Western Cape Total Compensation of employees Goods and services Provincial and local governments Departmental agencies and accounts Public corporations and private entities Households Machinery and equipment Software and intangible assets Total

2014/15 BUDGET ALLOCATION RECAPITILISATION AND DEVELOPMENT PROGRAMME 7

8 Recapitalisation and Development Programme Per Province 2014/2015 R’000Eastern Cape Free State GautengKwazulu Natal LimpopoMpumalangaNorthern Cape North West Western Cape Total Land Reform Planning Recapitalisation and Development Agricultural Land Holding Account Planning Land Purchases Recapitalisation and Development Total

9 2014/15 Budget Reprioritisation During 2009, the South African Government conceptualized the Comprehensive Rural Development Programme (CRDP).The key thrust of the CRDP framework is an integrated programme of rural development, land reform and agrarian change, with a strategic focus on social cohesion, development and the empowerment of rural communities to be active participants in their own development and to provide strategic investments in rural socioeconomic infrastructure.Comprehensive Rural Development Programme The NDP states that since 1994, the main challenge for rural development has been marginalisation of the poor, with many rural areas and households trapped in a vicious cycle of poverty. Rural areas and communities require greater social, economic and political opportunities to overcome the legacy of marginalization and poverty. The policy context for Rural Development includes the establishment of rural business initiatives, agro-industries, co-operatives, cultural initiatives and vibrant local markets in rural settings and the empowerment of rural people and communities (especially women and youth). To respond to the above concept, the department conducted a CRDP service delivery implementation review. The purpose of this process review was to ensure alignment of the department’s budget structure to the CRDP. This review process conclusively demonstrated that the budget structure at the time, in particular the funding, was not reflecting a proper alignment between the Rural Development and the broader Land Reform mandate, hence the reprioritisation within the base line. As a result of the baseline reprioritisation during Medium Term Expenditure Framework (MTEF) period, an amount of R4.5 billion was reprioritised from restitution (R2.4 billion) and Land Reform (R2.1 billion). Over the medium term, R2.6 billion was shifted to Rural Development Programme to provide funds for basic services infrastructure to households. Furthermore R870 million was allocated to drive Spatial Planning and Land use Management Act. The Department will continue to settle Restitution claims within the allocated budget and do so within the CRDP. A more holistic approach to Restitution is being implemented where principles of the CRDP are implemented in claims that lend themselves to such principles. These principles include enterprise development.

KE YA LEBOHA! 10