1. Projected Provincial Budget Outcome of Conditional Grants as at 31 December 2007
Select Committee on Finance
Presentation by
Free State Provincial Treasury

2. DISCUSSIONS To brief the Select Committee on Finance on
Projected Provincial outcome as at 31 December 2007
Projected Provincial Conditional Grant outcome as at 31 December 2007
Trends in allocations and projected expenditure of conditional grants

3. 2007/2008 Adjusted Budget

4. DEPARTMENTAL PERFORMANCE – December 07

5. 2007/08 PROJECTED PROVINCIAL BUDGET OUTCOME
Provincial Adjusted budget amounts to R13 527,5 billion
Actual expenditure = R9 818,9 billion (72.6%)
Total projected expenditure of R13 350,5 billion (98.77%) against adjusted budget of R13 527,5 billion
Two departments project to overspend: (Health & SAC)
Net projected under expenditure amounts to R177,0 million (1.3%)

6. CAPITAL EXPENDITURE – 2007/08

7. INFRASTRUCTURE EXPENDITURE – 2007/08

8. Expenditure on Conditional Grants
Expenditure of Conditional Grants amounts to R1,503 billion which equals:
67.0% of the Adjusted Conditional Grant budget of R2,243 billion;
90.1% of transferred R1,667 billion from National Treasury;
15.3% of total provincial expenditure of R9,819 billion.
Departments project possible under expenditure of R9,3 million
Education projects to overspend on National School Nutrition Programme grant – R19 million
Agriculture projects under expenditure amounting to R25 million on Disaster Management grant

9. Projected Expenditure on C-grants as at 31 Dec 2007

10. Conditional-grants by Grant Type as at 31 Dec 2007

11. Detail on Conditional Grants per department: Agriculture
Agriculture spent 37.2% or R26,0 million of their adjusted C-grant allocation of R69,9 million.
Projected Budget Outcome per grant
CASP:
Budget = R38,1 million
Expenditure = R23,2 million (60.9%)
Projections = R14,9 million (39.1%)

12. Detail on Conditional Grants per department: Agriculture (continue)
Projected Budget Outcome per grant (continue)
LandCare Grant:
Adj Budget = R3,4 million
Expenditure = R1,9 million (55.4%)
Projections = R1,5 million (44.6%)
Disaster Management Grant:
Adj Budget = R28,4 million
Expenditure = R0,9 million (3.3%)
Projections = R2,4 million (8.7%)
Projected underspending of R25 million (88%) additionally allocated by National – Projected exp include only approved rolled over provincial funds

13. Detail on Conditional Grants per department: Local Government and Housing
Local Gov and Housing spent R325,5 million (49.8%) of the total Housing fund allocation of R653,5 million during the first 3 quarters
Projections indicate possible underspending of R3,2 million or 0.5% by the end of the financial year.

14. Detail on Conditional Grants per department: Education
Education spent R211,5 million or 90.6% of their adjusted Conditional Grant allocation of R233,5 million and they project to overspend the total allocation during the 2007/08 financial year by about R18,9 million (8.1%).
Projected Budget Outcome per grant
Further Education and Training College Sector Recapitalization Grant:
Adj Allocation = R36,6 million
Expenditure = R36 million (98.4%)
Projections = R0,6 million (1.6%)
HIV and Aids Grant:
Allocation = R9,2 million
Expenditure = R7,5 million (81.1%)
Projections = R1,1 million (12.1%)
Projected underspending of R0,6 million (6.8%) – Workshops did not take place as planned due to strikes

15. Detail on Conditional Grants per department: Education (continue)
Projected Budget Outcome per grant (continues)
National School Nutrition Programme Grant:
Allocation = R68,0 million
Expenditure = R68,0 million (100%)
Projections = R19,5 million (28.7%)
Projected overspending of R19,5 million (28.7 %)
Infrastructure Grant to Provinces:
Allocation = R119,7 million
Expenditure = R100,0 million (83.6%)
Projections = R19,7 million (16.4%)

16. Detail on Conditional Grants: Health
Health spent 78.8% or R704,6 million of their adjusted Conditional Grant allocation of R893,9 million and project to spend the remainder by the end of the financial year.
Projected Budget Outcome per grant
HIV and Aids Grant:
Allocation = R153,6 million
Expenditure = R101,6 million (66.1%)
Projections = R52,0 million (33.9%)
Forensic Pathology Services Grant
Adj Allocation = R41,7 million
Expenditure = R35,4 million (84.8%)
Projections = R6,3 million (15.2%)
Health Professions Training and Development Grant
Allocation = R97,1 million
Expenditure = R93,8 million (96.6%)
Projections = R3,3 million (3.4%)

17. Detail on Conditional Grants: Health (continue)
Projected Budget Outcome per grant (continue)
Hospital Revitalisation Grant:
Allocation = R90,4 million
Expenditure = R64,2 million (71.0%)
Projections = R26,2 million (29.0%)
National Tertiary Services Grant:
Allocation = R480,9 million
Expenditure = R393,0 million (81.7%)
Projections = R88,0 million (18.3%)
Infrastructure Grant to Provinces:
Allocation = R30,0 million
Expenditure = R16,5 million (55.0%)
Projections = R13,5 million (45.0%)

18. Detail on Conditional Grants: Sport, Arts and Culture
Sport, Arts and Culture spent R18,1 million (56.8%) of the adjusted 2007/08 Conditional Grant allocation of R31,8 million during the first three quarters.
Projected Budget Outcome per grant
Mass Sport and Recreation Participation Programme grant
Adj Allocation = R15,3 million
Expenditure = R10,0 million (65.5%)
Projections = R5,3 million (34.5%)
Community Library Services grant
Allocation = R16,5 million
Expenditure = R8,0 million (48.7%)
Projections = R8,5 million (51.3%)

19. Detail on Conditional Grants per department: Public Works, Roads and Transport
The total allocation in respect of the Infrastructure Grant to Provinces to Public Works, Roads and Transport amounts to R360,3 million of which R216,8 million (60.2%) was spent during the first three quarters.
The department project to spend the remainder of the allocation by the end of the financial year.

20. National Treasury (Infrastructure Grant to Provinces)
Expenditure at the end of the third quarter recorded against the Infrastructure Grant to Provinces (included in discussions per department) amounts to R333,4 million or 65.4% of the allocation of R510 million from National Treasury.
Three departments benefit from this grant:
Public Works, Roads and Transport
Allocation = R360,3 million (70.6%)
Expenditure = R216,9 million (60.2%)
Projections = R143,4 million (39.8%)
Education
Allocation = R119,7 million (23.5%)
Expenditure = R100,0 million (83.6%)
Projections = R19,7 million (16.4%)
Health
Allocation = R30,0 million (5.9%)
Expenditure = R16,5 million (55.0%)
Projections = R13,5 million (45.0%)

21. Conclusion The Public Finance Unit is fully filled
Infrastructure Unit is up and running in Treasury
Non-financial information currently the main focus point
Quarterly Infrastructure Review Meetings
Regular Infrastructure Site Visits
Provincial initiatives for maintenance of School Infrastructure
All Departments Comply

22. THANK YOU