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Money Bills Amendment Procedure and Related Matters Bill [B 75–2008]

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Presentation on theme: "Money Bills Amendment Procedure and Related Matters Bill [B 75–2008]"— Presentation transcript:

1 Money Bills Amendment Procedure and Related Matters Bill [B 75–2008]
11 November 2008

2 Background Background Constitutional context
Section 73(2): Only the Cabinet member responsible for national financial matters may introduce a money Bill or a division of revenue Bill. Money Bill defined in section 77(1). Division of Revenue Bill defined in section 214. Section 77(3): Money Bills must be considered in accordance with the procedure established by section 75. An Act of Parliament must provide for a procedure to amend money Bills before Parliament. It follows that the “procedure to amend” must be additional - and not change – the section 75 procedure.

3 Background cont. Parliamentary context
Parliament, through the Joint Rules Committee, established a Task Team on Oversight and Accountability to develop an oversight model for Parliament in line with the Constitution. Three focus groups established (Projects, Budget, Committees) - Budget Processes Focus Group mandated to develop procedure to amend money Bills, including a draft Bill. Report to JRC on 19 March 2008. Assembly mandates PC on Finance – 26 June 2008 Draft Bill and memorandum setting out its objects published in Government Gazette No of 10 July 2008. Money Bills Amendment Procedure and Related Matters Bill [B 75—2008] introduced in National Assembly on 13 October 2008. Passed on 22 October 2008, with amendment to clause 10. Amendment removes paragraph (a) of subclause 10(5).

4 Principles Co-operative government
Legislative authority of Parliament - including amendment of money Bills Maintaining oversight of executive action Executive authority develops and implements national policy. Interpretation must be consistent with oversight and the adopted fiscal framework (clause 2). Any decision in terms of the legislation must be consistent with principles set out in clause 8(5). Public participation

5 Committees Clause 4 establishes two committees in each House, with all the powers and functions conferred by the Constitution, legislation, the standing rules or a resolution of a House Committee on Finance also has the powers to consider and report on: the national macro-economic and fiscal policy; amendments to the fiscal framework, revised fiscal framework and revenue proposals and Bills; actual revenue published by the National Treasury; and any other related matter set out in this Act. Committee on Appropriations also has the powers to consider and report on: spending issues; amendments to the division of revenue Bill, the appropriations Bill, supplementary appropriations Bills and the adjustment appropriations Bill; recommendations of the Financial and Fiscal Commission, including those referred to in the Intergovernmental Fiscal Relations Act, 1997 (Act No. 97 of 1997); reports on actual expenditure published by the National Treasury; and

6 Procedure prior to introduction of the national budget – clause 5
Budget review and recommendation report (BRRR) Annual assessment of national departments by the Assembly, through committee reports Service delivery Effectiveness and efficiency May include recommendations on forward use of resources Submitted to Assembly after adoption of Appropriation Bill and prior to adoption of reports on the MTBPS Submitted also to Minister of Finance and relevant Cabinet member Committee may submit additional BRRR

7 Medium term budget policy statement
Tabled three months prior to tabling of national budget Prescribed content Different parts referred to different committees established by Bill Consultation with other committees may be required 30 days to report to Houses Referred to Minister of Finance 7 days after adoption Reports may recommend changes to fiscal framework and Division of Revenue Bill that is to follow

8 Introduction of the division of revenue Bill, the national budget and the appropriation Bill
National budget tabled ito PFMA (section 27) must contain additional documentation, including the multi-year fiscal framework Division of revenue Bill introduced at the same time Minister of Finance must report to on the recommendations of Parliament contained in the BRRR, reports on the MTBPS

9 Fiscal framework and revenue proposals
Referred to Committees on Finance Joint public hearings Report by Committees and consideration by Houses within16 days after tabling of budget Fiscal responsibility clause built in subclause (5) Addition criteria for revenue proposals (clause 11(3)). Dispute resolution procedure Adopted fiscal framework sets bar for any amendments to the division of revenue Bill, the revenue Bills and the appropriation Bill

10 Division of Revenue Bill
Referred to Committee on Appropriations of Assembly after adoption of fiscal framework and to Council after Assembly passed it. Division of Revenue Bill must be passed within 35 days after adoption of fiscal framework. Specific requirement that standing rules must provide for input from chairs of other committees, public, affected members of Cabinet, provinces, local government, and FFC. Report of respective Committees on Appropriations must at least contain issues prescribed in subclause (6). Before Committees report to the Houses it must allow Minister of Finance to respond to any amendments, which response must be included in the report to the Houses.

11 Appropriation Bill Referred to Committee on Appropriations after adoption of fiscal framework Specific details required from Minister of Finance Any amendments to appropriation Bill may only be considered after passing of division of revenue Bill and must be consistent with adopted fiscal framework and division of revenue Bill. Conditional appropriations Specific and exclusive appropriations Appropriation Bill must be finalised within 4 months of the start of the financial year.

12 Revenue Bills Referred to Committees on Finance
Compliance with revenue collection principles Comments from public and Minister of Finance

13 National Adjustments budget
Tabling in terms of section 30 of the PFMA Revised fiscal framework, division of revenue amendment Bill Joint sitting of Committees on Finance / Appropriations Timeframes (9 days to report) – including time for Minister to respond – for amended fiscal framework and division of revenue amendment Bill Passing of adjustment appropriation Bill after passing of amended fiscal framework and division of revenue amendment Bill Timeframe for adjustment appropriation Bill – 30 days

14 Other money Bills Committees on Appropriations
Consistency with fiscal framework and clause 8(5) Input from Minister of Finance and public

15 Amendments proposed by Minister
Procedure do not apply Only to effect technical corrections

16 Parliamentary Budget Office
Headed by Director Provides independent, objective and professional advice Functions – research and analysis Priority is to support committees established by the Bill Bills provides for the appointment, conditions of service and removal of Director Budget – transfer of funds Deputy Directors and personnel – structure of office Outsourcing


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