1. Status on the implementation of the National Development Plan

2. Outline Introduction Overview PBO analysis and assessments undertaken
Methodology
Performance per outcome
Analysis of the MTSFs
Analysis of the Programme of Action Report
Analysis of the integration of budgets with plans
Analysis of the alignment of the budget with the MTSF
Reporting system for monitoring performance and expenditure
Overview of the rate of integration
Analysis of the incorporation of the MTSF into Annual Performance Plans
In summary

3. Introduction
The Parliamentary Budget Office (PBO) offers independent and objective advice and analysis to the Finance and Appropriations committees
The PBO assists other committees depending on availability
Part of the PBO’s mandate is policy analysis
Currently policy analysis work focuses on the National Development Plan (NDP)

4. Overview
The NDP provides proposals and actions from which 14 outcomes were derived
The Medium Term Strategic Framework (MTSF) provides detailed 5- year implementation plans structured around the 14 NDP outcomes
The MTSF is the mechanism through which all plans of government institutions should align to
The Programme of Action report provides the progress on the implementation of the MTSF
The NDP requires the incorporation of its proposals into the existing activities of departments

5. PBO analysis and assessments undertaken
Analysis of the progress on the performance
Assessment of the alignment of the MTSF with the actions and objectives of the NDP
Assessment of the alignment of the budget with the MTSF
Assessment of the reporting systems for performance, monitoring and evaluation in government
Analysis of the integration of the MTSF into Annual Performance Plans

6. Methodology
Compared targets achieved in the POA report with the total number of targets set
Matching actions of the MTSF with the actions and targets proposed by the NDP
Compared the departments categorised within the budget function groups with the departments contributing to the MTSF outcomes
Matching the MTSF performance indicators with the Annual Performance Plan programme performance indicators
The objectives of the MTSF sub-outcomes were assessed for alignment with the “purposes” of budget programmes.

7. Methodology The source documents used for the analysis include:
The Executive Summary - NDP Our future - make it work, Chapters 3 to 15
The POA reports for the outcomes
MTSF of the 14 outcomes
The Medium Term Expenditure (MTEF) Technical Guideline for the preparation of expenditure estimates for the 2017 MTEF, National Treasury
2016/17 and 2017/18 Annual Performance Plans
2016/17 and 2017/18 Quarterly Performance Reports

8. Performance per outcome: 2014 - 2019
% achieved 2014/15
Number of Targets
Targets achieved
% achieved 2015/16
Outcome 1: Quality Basic Education
37% 59 15
25%
Outcome 2: A Long and Healthy Life for All South Africans
45% 55 23
42%
Outcome 3: All people in South Africa are and feel safe
29% 76 19
Outcome 4: Decent employment through inclusive economic growth 96 33
34%
Outcome 5: A skilled and capable workforce to support an inclusive growth path
52% 61
38%
Outcome 6: An efficient, competitive and responsive economic infrastructure network
46% 28 5
18%
Outcome 7: Comprehensive rural development and land reform 0% 39
49%
Outcome 8: Human Settlements
13% 26 13
50%
Outcome 9: Responsive, accountable, effective and efficient developmental local government system
64% 16
62%
Outcome 10: Protect and Enhance Our Environmental Assets and Natural Resources 62 32
Outcome 11: Create a better South Africa, contribute to a better and safer Africa in a better world
44% 40 29
73%
Outcome 12: An efficient, effective and development- oriented public service
39% 46 27
59%
Outcome 13: An inclusive and responsive social protection system
40% 7 2
Outcome 14: Nation Building and Social Cohesion Alignment and Progress 22

9. Analysis of the Programme of Action Report
Is this a true reflection of progress on the implementation of the NDP?
Technical challenges
Quality of the performance indicators and targets
Quality of the performance reporting on targets
Incomplete reporting
High number of performance indicators and targets
Management challenges
Change in strategic direction
Lack of funding
Reflects progress on the targets set for the entire MTSF
Technical challenges have a negative impact on the results

10. Analysis of the MTSFs
Does the MTSF of government reflects the actions and objectives/targets outlined in the NDP?
A comparison of the actions and targets, identified in the NDP with the key actions in the 2014 – 2019 MTSF showed a degree of alignment
Shortcomings were identified
Specific objectives/targets not reflected in the MTSF were identified for inclusion in the next or following 5- year implementation plans
If we want to monitor the implementation of the NDP the implementation plans should address the requirements of the NDP

11. Analysis of the alignment of the budget with the MTSF
A comparison of the departments within a budget function group with those responsible for the outputs of the14 outcomes showed that:
The budget function groups and the outcomes implementation groups are not always comprised of the same departments
Concern is that departmental budgets are categorised within a budget function group without contributing to an outcome
Changes have been made to the budget function groups since the analysis

12. Analysis of the alignment of budgets with plans - 2016/17

13. Reporting system for monitoring performance and expenditure
National Development Plan (NDP)
Medium Term Strategic Framework (MTSF)
MTSF 14 Outcomes
Clusters (14): Min MeCs and MinTechs
Programme of Action
Estimates of National Expenditure per Vote (National Budget)
Technical Groups (18)
Functional groups (9)
Budget Programmes per Vote
Funded by: Equitable Share and Conditional Grants
In-year monitoring Reports including Conditional Grants
Strategic and Annual Perfomance Plans of Votes per Programme
Quartely Performance Reports
Conditional grant reports on business plans

14. Overview of the rate of integration
Outcome
Responsible/Coordinating Department
MTSF Indicator
APP Indicator
Percentage integrated
Outcome 1: Quality Basic Education
Department of Basic Education 40 10
25%
Outcome 2: A Long and Healthy Life for All South Africans
Department of Health 77 36
47%
Outcome 3: All people in South Africa are and feel safe
Justice, Crime Prevention and Security (JCPS) Cluster 93 58
62%
Outcome 4: Decent employment through inclusive economic growth
Department of Trade and Industry 21
36%
Outcome 5: A skilled and capable workforce to support an inclusive growth path
Department of Higher Education and Training 50 8
16%
Outcome 6: An efficient, competitive and responsive economic infrastructure network
Department of Economic Development
102 34
33%
Outcome 7: Comprehensive rural development and land reform
Department of Rural Development and Land Reform 39 12
31%
Outcome 8: Human Settlements
Department of Human Settlements 63 16
Outcome 9: Responsive, accountable, effective and efficient developmental local government system
Department of Cooperative Governance and Traditional Affairs 72
22%
Outcome 10: Protect and Enhance Our Environmental Assets and Natural Resources
Department of Environmental Affairs 60 22
37%
Outcome 13: An inclusive and responsive social protection system
Department of Social Development
53%
Outcome 14: Nation Building and Social Cohesion
Department of Arts and Culture 66 20
30%

15. Analysis of the incorporation of the MTSF into Annual Performance Plans
A comparison of the performance indicators in the MTSF with those presented in Annual Performance Plans (APPs) shows:
Between 16 and 62 per cent of MTSF performance indicators are included in APPs (preliminary results)
A comparison of the objectives in the MTSF with the purposes of budget programmes shows:
Programme structures that requires revision to allow for the incorporation of the MTSF performance indicators are:
Basic education
Cooperative Governance and Traditional Affairs
Energy
Environmental Affairs
Reporting on SIPs follow a process outside of the standard reporting system in government and the Programme of Action

16. In Summary
The Programme of Action Report shows slow progress on the implementation of the NDP
The MTSF responds to the proposals of the NDP
Challenges with intergovernmental planning and budgeting
Reporting on the NDP is outside of the standard reporting processes in government
Slow integration of the NDP into standard planning and budgeting
Suitability of budget programme structures for the integration of the NDP needs to be reviewed

17. South African PBO: Nelia Orlandi Mmapula Sekatane
Thank You
South African PBO:
Nelia Orlandi
Mmapula Sekatane