1. DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM
PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS
2013 APPROPRIATION BILL
04 June 2013

2. INTRODUCTION PURPOSE:
To brief the Standing Committee on Appropriations on the 2013/14 Appropriation Bill on the state of readiness and strategy to effectively spend the 2013/14 Budget Allocation

3. STRATEGIC THRUST OF THE DEPARTMENT
The Department responds to Government Priority Number Three: Rural Development and Land Reform
As such, all programmes of the Department are organized to give direct effect to this priority and provide support to other priorities such as job creation, education and health etc. This has a particular bias to the rural areas.
The planned interventions of the department have considered the National Development Plan (NDP) particularly Chapter Six and the New Growth Path (NGP).
In 2013, the year which marks the Centenary of the 1913 Natives Act, the department also focuses on implementing measures to reverse the legacy of this legislation. A number of projects have been planned and some have been implemented country-wide to mark the reversal of this Act.

4. VISION, MISSION & STRATEGY
Vibrant, equitable and sustainable rural communities
Mission
To initiate, facilitate, coordinate, catalyse and implement an integrated rural development programme
Strategy
Agrarian transformation

5. STRATEGIC GOALS AND OBJECTIVES
Strategic Outcome Oriented Goal Statement
Strategic Objective Statement
Strategic Goal 1: Corporate governance and service excellence through compliance with the legal framework achieved by 2014
1.1 Compliance with relevant legislation and policies governing the management of the public sector by 2014
Strategic Goal 2: Reformed policy, legislative and institutional environment by 2014
2.1 Rural development and land reform policies and legislation developed by 2014
Strategic Goal 3: Effective land planning and administration that is biased towards rural areas
3.1 An integrated land planning, spatial information and administration system to promote an equitable, sustainable land use and allocation by 2014
Strategic Goal 4: Integrated institutional arrangements for effective cooperative governance and stakeholder participation by 2014
4.1 Integrated service delivery facilitated through the coordination of government and development stakeholders by 2014
Strategic Goal 5: Increased access to and productive use of land by 2014
5.1 Strategically located land acquired and allocated by 2014
5.2 Land rights restituted or alternative forms of equitable redress awarded to claimants by 2014
5.3 Recapitalization and development support provided to land reform beneficiaries and rural communities by 2014
5.4 Tenure security for people living on commercial farms and communal areas provided (New)
Strategic Goal 6: Improved access to affordable and diverse food by 2014
6.1 Profiled rural households enabled to improve their food security by 2014
Strategic Goal 7: Improved rural services to support sustainable livelihoods by 2014
7.1 Socio-economic infrastructure facilitated to improve access to services by 2014
Strategic Goal 8: Improved access to sustainable employment and skills development opportunities by 2014
8.1 Skills development and sustainable economic opportunities created by 2014

6. POLICY & LEGISLATION INITIATIVES FOR 2013/14
While the key legislative mandate of the Department remains the same, the Department will be working on the following policy and legislation initiatives:
Policies
Restitution Policy Framework
Rural Development Policy Framework
Rural Development Agency Policy
Rural Cooperative Financing Facility
Policy Framework on Communal Land Tenure
Legislation
Deeds Registries Amendment Bill
Sectional Titles Amendment Bill
Restitution of Land Rights Amendment Bill
Land Valuation Bill
Land Protection Bill
Land Management Commission Bill
Communal Property Associations Amendment Bill
(Amendment) Extension of Security of Tenure Act

7. KEY PRIORITIES FOR 2013/14 Restitution
Re-opening of the lodgment date for land claims to accommodate those communities or individual who missed the 31 December 1998 cut-off date and to also provide for the exceptions to the 1913 cut-off date to accommodate historical landmarks, heritage sites and descendants of the Khoi and San who lost their land long before 1913.
Settling 230 land claims and finalising 208 backlog land claims
Land Reform
Recapitalisation of 730 land reform farms to improve productivity
Acquisition and allocation of 311, 917 hectares of strategically located land
Tenure reform policy
Rural Development
Continue with the CRDP roll-out in 23 prioritized poorest districts
Increase job creation through infrastructural projects and rural enterprises
Progress with Phases 2 & 3 of CRDP (enterprise and industrial development)

8. DEPARTMENTAL Programmes and sub-programmes

9. DEPARTMENTAL PROGRAMMES
The department is organised in terms of five budget programmes providing the institutional framework to implement its priorities in line with Government Priority Number Three: Rural Development and Land Reform.
The key focus areas of each programme are presented in the following slides

10. PROGRAMME 1: ADMINISTRATION
Focus is promoting good corporate governance and administration
The key results areas include:
Responding to government’s target of ensuring that suppliers are paid within 30 days after having invoiced the department
Promoting good financial governance by spending in line with the PFMA
Institutionalizing mechanisms to improve management controls regarding financial management and non-financial performance information. This is in line with the national target of achieving a clean audit by 2014
Promoting good human resources practices , particularly reducing the department’s vacancy rate in line with DPSA standards. Central to this is to improve the capacity of department to deliver on its goals and objectives
Developing relevant policies and legislation that align with the Rural Development and Land Reform mandate. Central to this is extensive policy consultations

11. PROGRAMME 2: GEOSPATIAL AND CADASTRAL SERVICES
Focus is on the following:
Provision of geo-spatial information in support of spatial equity and sustainable development
Provision of technical support to Municipalities through the development of Spatial Development Frameworks
Provision of training to augment the scarce skills in geomatics
Investment in the development of the e-Cadastre system, which will enable a holistic view of land ownership, and to answer the question of who owns South Africa.

12. PROGRAMME 3: RURAL DEVELOPMENT
Focus is on the following:
Provision of infrastructure to support access to basic services in order to promote rural livelihoods
Implementation of the Veld Management Programme
Revitalisation of irrigation schemes to enhance food production
Promotion of skills development and job creation with a bias to the youth
Support rural enterprise development in the agricultural and non-agricultural value chain

13. PROGRAMME 4: RESTITUTION
Focus is on:
Planning and administration of the re-opening of restitution lodgment process
Settlement of land claims and finalising backlog claims

14. PROGRAMME 5: LAND REFORM
Focus is on:
Provision of support to emerging farmers through the Recapitalisation and Development Programme
Acquisition and allocation of strategically located land
Provision of skills development and training support for emerging farmers and the creation of job opportunities in land reform projects

15. RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF

16. OVERVIEW OF THE 2013/14 BUDGET AND MTEF
The department’s 2013/14 MTEF budget is the financial expression of its 2012/13 APP.
The 2013/14 budget and APP processes ran concurrently to ensure consistency between the two plans – all budget amendments by NT were also incorporated

17. Overview of the 2013/14 Budget and MTEF
Programme
2013/14
Budget
(R’000)
1. Administration
940,652
2. Geo-spatial & Cadastral Services
508,504
3. Rural Development
1,227,423
4. Restitution
3,388,048
5. Land Reform
3,395,113
Total
9,459,740

18. Overview of the 2013/14 Budget and MTEF
Economic Classification
2013/14 Budget
R’000
Compensation of employees
1,676,908
Goods and services
1,375,183
Provincial and local governments
141
Dept agencies and accounts
2,481,290
Foreign governments and international organisations
1,400
Public corporations and private entities
133,639
Non-profit institutions
2,849
Households
3,772,055
Buildings and fixed structures -
Machinery and equipment
14,827
Software and intangible assets
1,448
Total
9,459,740

19. Overview of the 2013/14 Budget and MTEF
Program 1
Sub-programme
2013/14 BUDGET
R’000
Ministry
19,760
Management
65,061
Internal Audit
34,501
Corporate services
258,575
Financial Services
174,615
Provincial Coordination
246,462
Office Accommodation
141,678
Total
940,652

20. Overview of the 2013/14 Budget and MTEF
Administration Per
Economic Classification
2013/14 ENE Budget Allocation
R’000
Compensation of employees
592,602
Goods and services
324,289
Payments for financial assets - 
Provincial and local governments
101
Dept agencies and accounts 1
Public corporations and private entities
15,099
Households
Machinery and equipment
8,560
Total
940,652

21. Overview of the 2013/14 Budget and MTEF
Program 2
Sub-programme
2013/14 Budget
R’000
National Geomatics Management Services
394,806
Spatial Planning and Land Use Management
97,108
Registration of Deeds Trading Account
13,741
South African Council for Planners
2,849
Total
508,504

22. Overview of the 2013/14 Budget and MTEF
Geo Spatial & Cadastral Services per
Economic Classification
2013/14 Budget
R’000
Compensation of employees
402,928
Goods and services
79,859
Interest on rent and land - 
Payments for financial assets
Provincial and local governments 12
Dept agencies and accounts
13,741
Foreign governments and international organisations
1,400
Non-profit institutions
2,849
Households
Machinery and equipment
6,267
Software and intangible assets
1,448
Total
508,504

23. Overview of the 2013/14 Budget and MTEF
Programme 3
Sub-programme
2013/14 BUDGET
R’000
Rural Infrastructure Development
354,571
Social, Technical Rural Livelihood and Institutional Facilitation
363,935
National Rural Youth Services Corps
508,917
Total
1,227,423

24. Overview of the 2013/14 Budget and MTEF
Rural Development per
Economic Classification
2013/14 Budget
R’000
Compensation of employees
231,277
Goods and services
635,846
Dept agencies and accounts
241,761
Public corporations and private entities
118,539
Machinery and equipment - 
Total
1,227,423

25. Overview of the 2013/14 Budget and MTEF
Programme 4
Sub-programme
2013/14 BUDGET
R’000
Restitution National Office
44,229
Restitution Provincial Offices
317,413
Restitution Grants
3,026,406
Total
3,388,048

26. Overview of the 2013/14 Budget and MTEF
Restitution per
Economic Classification
2013/14 Budget
R’000
Compensation of employees
222,265
Goods and services
139,126
Provincial and local governments 11
Households
3,026,646
Machinery and equipment - 
Total
3,388,048

27. Overview of the 2013/14 Budget and MTEF
Programme 5
Sub-programme
2013/14 Budget
R’000
Land Reform National Office
123,820
Land Reform Provincial Offices
300,097
Land Reform Grants
745,409
Kwazulu-Natal Ingonyama Trust Board
7,500
Communal Land Rights Programme -
Agricultural Land Holding Account
2,218,287
Total
3,359,113

28. Overview of the 2013/14 Budget and MTEF
Land Reform per
Economic Classification
2013/14 BUDGET
R’000
Compensation of employees
227,836
Goods and services
196,063
Provincial and local governments 17
Dept agencies and accounts
2,225,787
Public corporations and private entities 1
Households
745,409
Buildings and fixed structures - 
Machinery and equipment
Total
3,395,113

29. STRATEGY FOR EFFECTIVE BUDGET SPENDING
The department has identified the following measures to promote effective budget expenditure and improve service delivery:
Improved Budget & Programme Planning: Extensive Consultation during Target Setting
Focus on Improving Supply Chain Processes
Internal Monthly Expenditure Monitoring as an Early Warning Mechanism
Use of the Available Government Budget Monitoring Instruments
Improving Internal Governance & Planning Structures for Improved Service Delivery
Portfolio Prioritisation Framework
Institutionalisation of a Project Management Framework

30. STRATEGY FOR EFFECTIVE BUDGET SPENDING
a) Improved Budget & Programme Planning: Extensive Consultation during Target Setting
During the planning stages leading to the finalisation of the commitments in the APP, extensive consultation with National Treasury to ensure that the budget is aligned to the targets was conducted. This has given confidence in the allocation of the budget for the deliverables committed to.
b) Internal Monthly Expenditure Monitoring as an Early Warning Mechanism
Monthly budget expenditure analysis in line with progress towards quarterly commitment targets per strategic objective
Monthly monitoring reports on individual project performance in line with expected deliverables

31. STRATEGY FOR EFFECTIVE BUDGET SPENDING
c) Use of the Available Government Budget Monitoring Instruments
Participate in the In-year Monitoring Reporting and implement the corrective actions
d) Improving Internal Governance & Planning Structures for Improved Service Delivery
Institutionalisation of inter – branch service delivery planning to leverage on synergies, integration and collaboration in order to maximise effective budget utilisation and accountability

32. STRATEGY FOR EFFECTIVE BUDGET SPENDING
e) Portfolio Prioritisation Framework
Aligns planned projects to departmental strategic objectives as well as budget allocation
Assist the determination of priority projects for the financial year in line with the strategic focus of the department
Enables forging alignment of the departmental programmes to the APEX priorities of government and the NDP priorities

33. STRATEGY FOR EFFECTIVE BUDGET SPENDING
f) Institutionalisation of a Project Management Framework
Enables the standardisation of project implementation and management for improved financial governance and monitoring of service delivery
Enables the tracking of project implementation against plans and expenditure patterns for early interventions where necessary
Assist in the collection of the requisite portfolio of evidence to support the audit processes (AG regularity audit compliance & accountability)

34. Thank you