1. Craig Clerihew: Chief Financial Officer
PRESENTATION TO PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT AT 2004/05 BUDGET HEARING
1- 2 JUNE 2004 by
Craig Clerihew: Chief Financial Officer

2. Content of Presentation
1. Overview of 2003/04 financial year results
2. Main Features of the 2004/05 budget
3. MTEF 2004/07 Trends 2
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3. Overview of 2003/04 financial year results Economic classification
REVISED ALLOCATION
ACTUAL EXPENDITURE
UNDER
EXPENDITURE
R’000 %
Current
Personnel
59709
51957
7752
12.9
Transfers -
Goods&Services
135579
124728
10851
8.0
Capital
6492
0.3
Assets
7359
7496
(137)
(1.8)
Total
24957
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4. OVERVIEW OF 2003/04 (CONT) Main Reasons for Under-expenditure
Personnel-
Vacant Posts
Goods & Services-
Travel and Subsistence due to level of vacant posts
Professional Services for capital projects and consultancy studies
Transfer Payments-
Two MIG pilot projects delayed and funds rolled over to 2004/05 4
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5. Overview of 2003/04 (Cont) Comparative Spending (All Programmes)
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6. Overview of 2003/04 (Cont) Comparative Spending (Operating Budget)
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7. MAIN FEATURES OF THE 2004/05 BUDGET
Change in the Programme Structure
Programmes are aligned to the departmental structure
All grants to provincial and local government are reflected in one programme
All transfers to other institutions are reflected in one programme.
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8. MAIN FEATURES OF THE 2004/05 BUDGET(Cont).
Increase in total budget R3,38 billion (35,8%)
Increase in Current payments R27,4 million (13,8%)
Increase in transfers R3,36 billion (36,26%)
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9. MAIN FEATURES OF THE 2004/05 BUDGET(Cont).
Transfer Payments
Provincial Grants
Decrease from R298 million to R261 million
Local Government Grants
Increase from R8,9 billion to R12,3 billion
Fiscal transfers
Increase from R62 million to R65 million
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10. Total Budget: R6,5 billion (68%)
MTEF 2004/07 TRENDS
Increase from 2003/04 to 2006/07
Total Budget: R6,5 billion (68%)
Current Payments: R67,1million (34,5%)
Transfer Payment: R6,4 billion (69%)
Capital Assets: No real change
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11. Equitable Share R3,02 billion (47,5%) Municipal Infrastructure
MTEF 2004/07 TRENDS (Cont.)
The 2 Main Grants
Equitable Share R3,02 billion (47,5%)
Municipal Infrastructure
Grant R3,58 billion (148,4%)
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12. MTEF 2004/07 TRENDS (Cont.) THANK YOU Fiscal Transfers
Total transfers reflect slight decline
SALGA drops in 2004/05 and subsequent years reflects an inflationary increase
Municipal Demarcation Board increases in 2004/05 for the municipal elections and then reverts back
MIIU operation ceases in March 2006
THANK YOU
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