Preliminary Provincial Budget Outcome of Conditional Grants as at 31 March 2007 Select Committee on Finance Presentation by Free State Provincial Treasury

DISCUSSIONS To brief the Select Committee on Finance on the preliminary actual and projected Conditional Grant outcomes as at 31 March 2007 Aggregate preliminary expenditure Trends in allocations and preliminary expenditure of conditional grants

2006/2007 Adjusted Budget

2006/07 PRELIMINARY BUDGET OUTCOME Preliminary actual expenditure = R12, 306 billion (103.6%) with an average monthly expenditure of R1,025 billion (8.6%) Expenditure during February accounts for 8.7% and March expenditure for 14.2% Net preliminary over expenditure amounts to R423 million (3.6%) Under expenditure by 8 departments = R 60,0 million (0.5%) Over expenditure by 4 departments = R483,0 million (4.1%) Departments overspending Works, Roads, Transport = R363,6 million (34.1%) Health = R 105,6 million (3.1%) Education = R 11,9 million (0.2%) Premier = R 1,8 million (1.9%)

PRELIM DEPARTMENTAL PERFORMANCE – March 07

Preliminary Conditional Grant expenditure Aggregate Conditional Grant expenditure per department Conditional Grant expenditure per grant type Detail on Conditional Grant expenditure per department

PRELIMINARY EXPENDITURE ON CONDITIONAL GRANTS AS AT 31 MARCH 2007 Expenditure of Conditional Grants amounts to R1,779 billion which equals: 98.4% of the adjusted Conditional Grant budget of R1,807 billion; 14.5% of total provincial expenditure of R12,306 billion. Under expenditure amounts to R28,7 million. Deviations from budgets: Agriculture Disaster Man - R 3,417 million (51.2%) LandCare - R 0,147 million (3.8%) HIV and Aids (Health) - R 3,847 million (2.7%) Forensic Pathology - R11,589 million (24.7%) Integrated Housing - R 0,217 million (0%) Mass Sport & Recreation - R 0,145 million (1.5%) Integrated Soc Dev Services - R 0,025 million (0.1%) PIG: Health - R 8,559 million (16.7%) Education - R 0,758 million (1.3%)

Preliminary Expenditure on C-grants as at 31 March 2007

2006/07 Conditional-grant budgets by Grant Type

Conditional-grants by Grant Type as at 31 March 2007

Detail on Conditional Grants per department: Agriculture Agriculture spent 90.1% or R32,3 million of their adjusted C-grant allocation of R35,9 million. Preliminary Budget Outcome per grant CASP: Adj Budget = R25,3 million Expenditure = R25,3 million (100%) LandCare Grant: Adj Budget = R3,9 million Expenditure = R3,8 million (96.2%) Under expenditure = R0,1 million (3.8%) Disaster Management: Adj Budget = R6,7 million Expenditure = R3,3 million (48.8%) Under expenditure = R3,4 million (51.2%)

Detail on Conditional Grants per department: Local Government and Housing Local Gov and Housing spent the total adjusted Housing fund allocation of R528,6 million apart from an insignificant R0.217 million 16.9% was spent in February 24.0% spent in March

Detail on Conditional Grants per department: Education Preliminary expenditure by Education amounts to R170,0 million or 99.6% of their adjusted Conditional Grant allocation of R170,8 million and they underspent on PIG. Preliminary Budget Outcome per grant Further Education and Training College Sector Recapitalization Grant: Allocation = R30 million Expenditure = R30 million (100%)

Detail on Conditional Grants per department: Education (continue) Preliminary Budget Outcome per grant (continues) HIV and Aids Grant: Adjusted allocation = R8,9 million Expenditure = R8,9 million (100%) National School Nutrition Programme Grant: Adjusted allocation = R72,7 million Expenditure = R72,7 million (100 %) Provincial Infrastructure Grant: Allocation = R59,3 million Expenditure = R58,5 million (98.7%) Under expenditure of R0,8 million (1.3%)

Detail on Conditional Grants: Health Health spent 97.2% or R826,7 million of their adjusted Conditional Grant allocation of R850,7 million and underspent by about R24 million at the end of the financial year on 3 grants. Preliminary Budget Outcome per grant HIV and Aids Grant: Allocation = R142,3 million Expenditure = R138,4 million (97.3%) Under expenditure = R3,9 million (2.7%) Forensic Pathology Services Grant Adjusted allocation = R46,9 million Expenditure = R35,3 million (75.3%) Under expenditure = R11,6 million (24.7%) Health Professions Training and Development Grant: Allocation = R92,5 million Expenditure = R92,5 million (100%)

Detail on Conditional Grants: Health (continue) Preliminary Budget Outcome per grant (continue) Hospital Revitalisation Grant: Adjusted allocation = R59,6 million Expenditure = R59,6 million (100%) National Tertiary Services Grant: Allocation = R458,0 million Expenditure = R458,0 million (100%) Provincial Infrastructure Grant: Allocation = R51,4 million Expenditure = R42,8 million (83.3%) Under expenditure = R8,6 million (16.7%)

Detail on Conditional Grants: Sport, Arts and Culture Sport, Arts and Culture spent 98.5% or R9,8 million of their 2006/07 adjusted allocation of R10,0 million for the Mass Sport and Recreation Participation Programme grant. Under expenditure amounts to R0,1 million (1.5%).

Detail on Conditional Grants per department: Public Works, Roads and Transport The total allocation in respect of the Provincial Infrastructure Grant to Public Works, Roads and Transport amounting to R183,4 million was already fully spent during December 2006.

National Treasury (Provincial Infrastructure grant) Preliminary expenditure of the Provincial Infrastructure grant (included in discussions per department) amounts to R284,7 million or 96.8% of the allocation of R294,0 million from National Treasury. Under expenditure of R9,3 million or 3.2% was recorded by Education and Health Three departments benefit from this grant: Public Works, Roads and Transport Allocation = R183,4 million (62.4%) Preliminary Expenditure = R183,4 million (100.0%) Education Allocation = R59,3 million (20.1%) Preliminary Expenditure = R58,5 million (98.7%) Under expenditure = R0,8 million (1.3%) Health Allocation = R51,4 million (17.5%) Preliminary Expenditure = R42,8 million (16.7%) Under expenditure = R8,6 million (16.7%)

INFRASTRUCTURE EXPENDITURE – March 07

PRELIMINARY CAPITAL EXPENDITURE – 2006/07

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