1. 1 Provincial Budgets and Expenditure as at 30 September 2007 2007/08 Financial Year NCOP Hearings Presented by: Intergovernmental Relations National Treasury November 2007

2. 2 National adjustments to PES

3. 3 Provincial Social Services (2)

4. 4 Health (1) Spending at R28.4bn or 47.9% against R59.3bn budget –Seven provinces projecting to overspend by R1.7bn (KZN, LP, GP, WC, FS, NC) while MP projecting to underspend by R214.6m –Increase of R3.4bn or 13.7% compared to the previous year –Low rate of health spending in NW (43.7%) and MP (44.0%) –KZN (51.4%) and NC (51.0%) reflects the highest rate of spending in health Health personnel spending at R15.8bn or 48.1% (R32.9bn budget) –Seven provinces projecting to overspend by R846.2m (GP, KZN, LP, EC) –Two provinces projecting to underspend by R150.3m NPNC spending at R10.3bn or 49.1% of R20.9bn budget Capital spending at R2.3bn or 42.1% –Increase of 20.9% compared to spending for the same period last year –Five provinces projecting to overspend by R232.5m while the remaining provinces projecting under expenditure of R214.2m –Low rate of capital spending in MP (29.5%) and NC (34.5%) –FS (69.0%) and KZN (49.9%) reflects the highest rate of capital spending in health

5. 5 Health (2)

6. 6 Health (3) Programme Analyses Prog 2: Provincial District Health Services –Spending at R11.6bn or 47.7% of R24.3bn budget –Lowest rate of spending in GP (41.5%) and NW (41.7%) and highest in KZN (52.6%) and FS (49.7%) Prog 4: Provincial Hospital Services –Spending at R6.9bn or 48.9% of R14.0bn budget –Lowest rate of spending in MP (41.9%) and EC (44.5%) and highest in NC (52.8%) and LP (52.3%) Prog 5: Central Hospital Services –Spending at R4.5bn or 52.0% of R8.6bn budget –Lowest rate of spending in NW (37.0%) and MP (49.3%) and highest in FS (54.3%) and KZN (52.9%)

7. 7 Health (4) District health services

8. 8 Health (5) Hospital services

9. 9 Health (6) Central hospital services

10. 10 Health (7) Personnel

11. 11 Health (8) Capital

12. 12 Health (8) Non-Personnel, Non-Capital

13. 13 Payments for Capital Assets (3) Education & Health Education capital spending low at R1.5bn or 38.0% –However. increase of R326.1m or 28.7% compared to spending last year –Low rate of education capital spending in EC (18.2%) and NW (22.4%) –LP (63.6%) and WC (51.9%) reflects the highest rate of capital spending in education Health capital spending at R2.3bn or 42.1% –Increase of 20.9% compared to spending for the same period last year –Five provinces projecting to overspend by R232.5m while the remaining provinces projecting under expenditure of R214.2m –Low rate of health capital spending in MP (29.5%) and NC (34.5%) –FS (69.0%) and KZN (49.9%) reflects the highest rate of capital spending in health

14. 14 Payments for Capital Assets (5) Health

15. 15 Conditional grants

16. 16 Conditional Grants (1) Flow of Information

17. 17 Important dates and submissions

18. 18 Publication Dates for Provincial S32 Reports 2007/08 Financial Year: –2nd Quarter (as at 30 September 2007) 30 October 2007 –3rd Quarter (as at 31 December 2007) 30 January 2008 –4th Quarter (as at 31 March 2008) 30 April 2008

19. 19 Detail on Conditional Grants by Grant Type

20. 20 Health Grants (1) Comprehensive HIV and Aids Grant Objective (Schedule 5 Grant): –To enable the health sector to develop an effective response to HIV and Aids –Support implementation of the National Operational Plan for Comprehensive HIV and Aids Treatment and Care

21. 21 Health Grants (1) Comprehensive HIV and Aids Grant First Six Months Expenditure: –Health spent R885.2m or 45.5% of the R1.9bn allocation –Transfers received amounted to 50.0% of national allocation –Highest spending: NC 58.6% and MP 50.3% –Lowest spending: EC 41.3% and FS 41.7% Service Delivery Outcome : –Department / Sector to respond

22. 22 Health Grants (2) Forensic Pathology Services Grant Objective (Schedule 5 Grant): –To provide for the transitional activities required to transfer the Medico-Legal Mortuaries from SAPS to Health –To initiate the development and provision of a comprehensive Forensic Pathology Service to ensure impartial professional evidence for the criminal justice system concerning death due to unnatural causes

23. 23 Health Grants (2) Forensic Pathology Services Grant First Six Months Expenditure: –Health spent R272.7m or 49.5% of the R551.4m allocation –Transfers received amounted to 50.0% of national allocation –Highest spending: NC 193.5% and FS 79.2% –Lowest spending: MP 27.4% and KN 31.4% Service Delivery Outcome: –Department / Sector to respond

24. 24 Health Grants (3) Health Professions Training and Development Grant Objective (Schedule 4 Grant): –Support provinces to fund costs associated with training of health professionals –Development and recruitment of medical specialists in under-served provinces –Support and strengthen undergraduate and post graduate teaching and training processes in health facilities –Enable shifting of teaching activities from central hospital to regional and district hospitals

25. 25 Health Grants (3) Health Professions Training and Development Grant First Six Months Expenditure: –Spending of this grants is subsumed in the spending of a range of programmes and therefore no reporting is required –However, spent R767.8m or 48.1% of the R1.6bn allocation –Transfers received amounted to 50.0% of national allocation –Highest spending: NW 66.5% and FS 63.7% –Lowest spending: NC 0.3% and MP 28.7% Service Delivery Outcome: –Department / Sector to respond

26. 26 Health Grants (4) Hospital Revitalisation Grant Objective (Schedule 5 Grant): –To provide funding to enable provinces to plan, manage, modernise, rationalise and transform the infrastructure, health technology, monitoring and evaluation of hospitals in line with national policy objectives –To transform hospital management and improve quality of care in line with national policy

27. 27 Health Grants (4) Hospital Revitalisation Grant First Six Months Expenditure: –Health spent R782.1m or 41.0% of the R1.9bn allocation –Transfers received amounted to 50.0% of national allocation –Highest spending: WC 58.0% and FS 45.8% –Lowest spending: MP 15.7% and EC 37.7% Service Delivery Outcome: –Department / Sector to respond

28. 28 Health Grants (5) National Tertiary Services Grant Objective (Schedule 4 Grant): –To compensate provinces for the supra-provincial nature of tertiary services provision and spill over effects –To provide strategic funding to enable provinces to plan. modernise. rationalise and transform the tertiary hospital service delivery platform in line with national policy objectives including improving access and equity

29. 29 Health Grants (5) National Tertiary Services Grant First Six Months Expenditure: –Spending of this grants is subsumed in the spending of a range of programmes and therefore no reporting is required –However, spent R2.5bn or 47.9% of the R5.3bn allocation –Transfers received amounted to 50.0% of national allocation –Highest spending: KN 52.1% and FS 51.9% –Lowest spending: NC 0.7% and MP 31.6% Service Delivery Outcome: –Department / Sector to respond

30. 30 THANK YOU THANK YOU