Adjustments Appropriation Bill Portfolio Committee on Finance 9 November 2005

Contents Components of the Adjustments Budget Revised National Budget 2005/06 Format appropriation Bill Roll-Overs Unforeseeable and Unavoidable Expenditure Infrastructure Investment Projects Self-Financing Expenditure Conclusion

Components of the Adjustments Budget, PFMA (30) Significant unforeseeable economic and financial events Unforeseeable and unavoidable expenditure, TG (6.6) Emergency Situations, PFMA (16) Expenditure already announced in the Budget Speech, but not appropriated to a vote (Budget Speech, P18) Shifting of funds between Votes, TG (6.5) Virement within Votes, PFMA (43) Roll-over of unspent funds from the preceding financial year, TG (6.4)

Revised National Budget 2005/06

Format appropriation Bill 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 Excludes statutory amounts, e.g. Members of parliament and judiciary salaries State debt costs Provincial equitable share

Roll-Overs Payments for capital assets: Unspent funds on payments for capital assets may only be rolled over to finalise projects or assets acquisitions still in progress. Transfers and subsidies: Savings on transfer payments and subsidies may not be rolled over for purposes other than what was originally voted for. Currents payments: Savings on compensation of employees may not be rolled over. A maximum of five per cent of a department’s payments for good and services (excluding compensation of employees) may be rolled over. Funds for a specific purpose (such as transfer payment) may not be rolled over for more than one financial year unless approved in advance by the National Treasury.

Roll Overs per Cluster Clusters Central Government Administration R thousands Central Government Administration 125 237 Financial and Administrative Services 232 787 Social Services 485 061 Justice and Protective Services 134 652 Economic Services and Infrastructure 468 657 Total 1446 394

Central Government Administration

Financial and Administrative Services

Social Services

Justice and Protective Services

Economic Services and Infrastructure

Economic Service and Infrastructure

Criteria for Assessment of Unforeseeable and Unavoidable Expenditure Expenditure that could not be anticipated at the time of budget preparation The following request would not be considered as being unforeseeable and unavoidable: Expenditure that although known when finalising the estimates of expenditure, could not be accommodated within allocations Tariff adjustments and price increases Extensions of existing services and the creation of new services that are not unforeseeable and unavoidable Approved by cabinet (Treasury Committee)

Unforeseeable and Unavoidable Expenditure Clusters Central Government Administration 392 300 Social Services 32 000 Justice and Protective Services 78 439 Economic Services and Infrastructure 548 620 Total 1051 365

Central Government Administration

Social Services

Justice and Protective Services

Economic Services and Infrastructure

Economic Services and Infrastructure

Infrastructure Investment Projects Unallocated amounts – Announced in Budget 2005 Vote R Millions Trade and Industry Pebble Bed Modular Reactor 580 Transport Public transport planning and capital projects 241 Sport and Recreation Planning and stadium upgrading for the 2010 World Cup 242

Self-Financing Expenditure Expenditure financed from unforeseen revenue that was paid into the National Revenue Fund Public Service Administration Centre for Public Service Innovation (CPSI) was incorporated into the DPSA Correctional Services Monies collected for the hiring of prisoner labour Defence Sale of equipment procured through the General Defence Account Sale of armaments

Self-Financing Expenditure

Self-Financing Expenditure

Conclusion Portfolio Committee on Finance considers the Adjustments Appropriation Bill Total adjustments from national departments amount to R2.9 bn Adjustments are offset against contingency reserve, unallocated amounts, declared savings and projected under-spending Adjustments resulted in a decrease in expenditure from R418 b to R416 b