Title: Orientation Paper for SCoF Presenter: Simo Mncwango Fundisiwe Cwele Date: July 2014

Presentation outline Introduction Purpose Mandate of Committee - IGFR Role of Provinces and Local Government in the economy Service delivery goals Division of Revenue Calendar Year Term activities Conclusion 2

Introduction Nelson Mandela said: – “It always seems impossible until it’s done” The Select Committee on Finance (SCoF) is established in terms of Section 4 of the Money Bills Amendment Procedure and Related Matters Act 9 of 2009 The functions and the mandate of the finance committees include considering and reporting on: The national macro-economic environment and fiscal policy; Amendments to the fiscal framework, revised fiscal framework and revenue proposals and other money Bills; Actual revenue published by the National Treasury; and Any other related matter set out in Money Bills Act, No.9 of

Purpose To familiarise the Committee with its mandate and to highlight key activities of the Committee To indicate to the Committee a brief summary of research services offered to the Committee’s annual activities. 4

Mandate of Committee - IGFR NCOP through select committees represents the interests of provinces and municipalities SCOF specifically – intergovernmental fiscal relations Stakeholders include the FFC, the AG, and SALGA 5

Roles of Provinces and Local Government in the Economy Provinces provide:  Health services  Education  Human settlements – conditional grants for provision of infrastructure and upgrading of informal settlements in mining towns  Social Development – e.g. gender-based violence  Agriculture Municipalities Provide:  Water  Electricity  Sanitation  Solid waste removal Concurrent functions:  Public road networks  Public transport services – provincial bus lines

Service Delivery Goals Implement measures to improve service delivery capacity – select committees must monitor provinces to ensure that this is achieved Public spending that has not yet reached all South Africans eventually reaches all communities of society Identify and address areas where poor maintenance has resulted in either loss of services and deterioration in the quality of services rendered

Division of Revenue 8

First Term (of the Calendar year) Key Committee Activities – State of the Nation Address(SONA) – Tabling of National budget – Department Strategic Plan – Public Hearings on Fiscal Framework – Local Government Revenue and Expenditure: 2 nd quarter Section 71 report 9

Progress to 10 Research Support

– Fiscal Framework Analysis – Budget Analysis – Strategic Plan Analysis – Local Government Revenue and Expenditure: 2 nd quarter Section 71 report analysis 11 First Term

Key Committee Activities – Provincial Fourth Quarter Expenditure Reports(9 provinces) – Oversight week – Protocols and Agreement – Finance related Bills 12 Second Term

. Research Support – Provincial Fourth Quarter Expenditure Analysis – Pre and Post oversight visits Analysis – Agreement Analysis – Finance related Bills Analysis 13 Second Term

. Key activities for the Committee – Consider Tax Proposals – Section 71 report: Expenditure and revenue for municipalities for the 4 th quarter – Oversight activities 14 Third Term

Key activities for the Committee – Analysis for identified municipalities – Tax proposal analysis – Proactively and/reactive research analysis 15 Third Term

Key activities for the term – Annual reports of departments – Medium Term Budget Policy Statement (MTBPS) – Budget Adjustments – Tabling of Budget Review and Recommendation Report (BRRR) by NA portfolio committees 16 Fourth Term

Research support 17

Some of the services – Analysis of budget vote adjustments – Proposed fiscal framework analysis, and – Other ad-hoc activities of the Committee 18 Research support

Public Finance or Budget related information – Provincial government – Municipal government – Fiscal Framework – Public Debt Economic information and statistics – GDP – Unemployment 19 Ad-hoc request/ activities

. Budget is an ongoing process, enhanced fiscal oversight is vital to ensure service delivery and accountability The Committee has an important role in the budget cycle and its processes in terms of Money Bills Act provisions Continuous engagement with stakeholders will strengthen the Committee in its oversight The research unit is committed to provide research support to the Committee within reasonable time frames Nelson Mandela said: – “When a man has done what he considers to be his duty to his people and his country, he can rest in peace”. 20 Conclusion

Thank you Siyabonga kakhulu 21