1. JOINT STANDING COMMITTEE ON THE FINANCIAL MANAGEMENT OF PARLIAMENT
28 August 2019

2. Outline Money Bills and Related Matters Act 2018
Parliamentary Budget Office Core Functions
PBO Outputs or product
Stakeholder engagements
Office organisational structure
PBO Workflow process
Current operational processes
Current challenges
Good Afternoon Chairpersons and Colleagues;
Thank you for the opportunity for the PBO to make a contribution in this COC induction process;
As this allows us an opportunity to share with the Chairpersons about the role of PBO
- what is the PBO and how it was established
- our mandate as is indicated in the Money Bills and Related Matters Act
- how we do our work
- about our value add for the Parliament and Committees
More importantly, to bring to the Chairpersons attention that PBO was established to support Parliament in its fiscal oversight process,
So basically, is to say we are as an office, when processing the budget and other money bill and related instrument;
We provide research based technical, objective and independent analysis in support for Parliament fiscal oversight.
This is an outline of the presentation,
Friday, 18 October 2019

3. Legal Mandate
The Money Bills Amendment Procedure and Related Matters Act, as amended in 2018 came into effect in April 2009
It gives Parliament powers to amend the budget and other money bills before it
Each House established a Committee on Finance 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
Any other related matter set out in this Act.

4. Money Bills Amendment Procedure and Related Matters Act 2018
Each house established a Committee on Appropriations to consider and report on:
Spending matters
Amendments to the Division of Revenue Bill, the Appropriation Bill, Supplementary Appropriations Bills and the Adjustments Appropriations Bill
Recommendations of the Financial and Fiscal Commission
Reports on actual expenditure published by the National Treasury
Any other related matter set out in this Act
The Act established a Parliamentary Budget Office (PBO)

5. Money Bills and related matters Act 2018
Established the PBO as a juristic person;
The Director is the Accounting Officer of the PBO, and accountable to Parliament;
The Director, in consultation with the Advisory Board (2 House Chairpersons and 4 Chairs of Finance and Appropriations Committees) determine the structure and conditions of service of the PBO;
The transfer of funds to PBO from Parliament will be in accordance to the Financial Management Act of Parliament;
The PBO may obtain information from any organ of state or person that derives funds from the National Revenue Fund;
Friday, 18 October 2019

6. Money Bills and Related Matters Act 2018 - Core functions
Undertaking research and analysis for the 4 committees (2 Finance and 2 Appropriations)
Annually providing reviews and analysis of the documentation tabled in parliament by the Minister of Finance
Providing advice and analysis on proposed amendments to the Fiscal Framework, Division of Revenue Bill and Money Bills and on policy proposals with budgetary implications
Monitoring and synthesising matters and reports tabled and adopted in a House with budgetary implications, with particular emphasis on reports by other committees
Keeping abreast of policy debates and developments in key expenditure and revenue areas
Monitoring and reporting on potential unfunded mandates arising out of legislative, policy and budgetary proposals
Undertaking any other work deemed necessary by the Director to support the implementation of the act
Friday, 18 October 2019

7. Description of the Output
PBO Outputs
PBO Outputs
Description of the Output
1. Pre-Budget and Pre-MTBPS briefs
Provide analysis to Parliament about the status of the economy and public finance and government performance before the presentation of the National Budget (February) and Medium Term Budge Policy State ( October);
2. Budget and MTBPS analysis
Subsequent to the presentation by the Minister of Finance and before Parliament adopt or amend or reject the budget and MTBPS proposals, the PBO provide analysis on economic and fiscal issues to be take into account;
3. Policy Analysis on National Development Plan-
Several analysis on the implementation of the National Development Plan, vision 2030 (NDP) in terms of content, context and progress made with the implementation.
4. Quarterly Economic and Fiscal Briefs
Quarterly Economic Brief, the PBO provide parliament with an analysis of the economic outlook as the economic performance affects public finances outlook.
Fiscal Brief appraise MPs on the status of the of government’s performance in relation to the budget allocated, and these updates are given within six months (pre-MTBPS) of the financial year and just after the end of a financial year.
5. In-year revenue forecast and Forecast Audits
In-year revenue forecast, within the first six months of the financial year, PBO provide an estimate of whether government revenue targets for that year will be realised. The PBO estimates are based on historic trends and including first five months of the year’s outcomes being forecasted.
Forecast Audits, annually provide an analysis of the government growth estimates. This analysis gives indications of the likelihood of realising forecasted growth given historic performance of the forecasts.
6. Briefs on Taxation and Revenue Matters
On request from finance committees, PBO provide an analysis of taxation proposals made during the budget reviews.
7. Research and Analysis Requests from Committees
During the financial year Committees may request an analysis on a particular issue with public finance implication. E.g., Votes budget analysis, SOEs financial analysis, Electricity generation technology choices: Costs and considerations, Public Sector Wage Bill, Free Fee HE Costing Analysis, Business incentives for development
Friday, 18 October 2019

8. PBO Stakeholder Engagement
Regular engagements with other units in Parliaments, and with civil society during public hearings and other platforms;
Established African Network of Parliamentary Budget Offices (AN-PBO) in 2016;
Annual AN-PBO Conferences, hosted by SA Parliament in Cape Town; to be in Accra, Ghana in September 2019;
Continuous engagements with other PBOs through the Global Network of PBO (GN-PBO) and the OECD Network of PBOs and Independent Fiscal Institutions (IFI)s;
Multilateral Institutions involved in establishing and capacitating PBOs:
International Monetary Fund (IMF)
World Bank
Organisation for Economic Co-operation and Development (OECD)
Collaborative Africa Budget Reform Initiative (CABRI)
Initiate engagements with some of the fellow BRICS countries;
AGSA, FFC, DPME, NT and other stakeholders;
Friday, 18 October 2019

9. PBO: Organisational Structure
Director
Vacant
Deputy Director: Economics
Dr Seeraj Mohamed
Economic Analyst
Mr Rashaad Amra
Ms Fatsani Banda
Deputy Director: Finance
Dr Dumisani Jantjies
Finance Analyst Mr Siphethelo Simelane
Finance Analyst
Ms Gloria Mnguni
Deputy Director: Policy
Ms Nelia Orlandi
Policy Analyst
Dr Mmapula Sekatane
Policy Analyst Vacant
Office Manager
Mr Alfred Monnakgotla
Executive Assistant
Ms Linda Mangwani
Office Co-ordinator
Mr Alan Van Zuydam
Friday, 18 October 2019

10. PBO Workflow
Consideration of money Bills
Committee identify specific analysis and research required for decision making
NA and NCOP Finance and Appropriations or other Committees
Submit formal written request to the Director of the PBO RSA
Committee Chairpersons
Director PBO considers specific requests from Committees
Formal written acknowledgement letter transmitted to Committee Chair
Director PBO
Parliamentary Budget Office
Formulate Terms of Reference
Research & Analyse
Submit findings to Committee
Build capacity
Facilitate discussions
Friday, 18 October 2019

11. PBO Operations
Operated within the Administration of Parliament under Programme 1: Strategic Leadership and Governance
All Parliamentary policies applied to the staff of the PBO
PBO developed an operational plan in terms of the legal requirements of the Money Bills Act
Quarterly feedback meetings with the Advisory Board
End-year performance reflected in the annual report of Parliament
compiled an annual report based on the operational plan annually, which are submitted to the Executive and Advisory Panel/Board
submitted quarterly expenditure and performance information to the relevant structures in Parliament

12. PBO Challenges Current operational uncertainties:
Unapproved 2019/20 Annual operational plan;
Uncertainties related to approvals of procurements and other expenditure;
Human resources related matters (including performance plans and assessments);
Compliance to Money Bills Act 2018;
Operationalisation of the Money Bills Act 2018:
Three year budget
Policies and procedures (sec 35 FMPPL)
Vacant Director
Policy Analyst

13. Thank you PARLIAMENTARY BUDGET OFFICE Tel: +27 403 2360
Fax: and Fax-to-Mail:
Website:
Location
4th Floor, Parliament Towers
Plein Street