1. Estimates of National Expenditure 2003 NATIONAL TREASURY

2. 2National Treasury Contents Welcome09h00 »Overview »Budget process »Recent reforms »Discussion Tea10h30 »ENE outline »Main data sections »Evaluating ENE chapter »Discussion

3. 3National Treasury Overview of the ENE Outcome of administrative and executive process National Government’s medium term service delivery, policy developments and performance – alongside 3 year spending plan Measurable objectives are introduced for each programme Provide Parliament with clear statement of spending aim of programmes.

4. 4National Treasury MTEF budget process AprilMayJuneJulyAugustSep OctNovDecJanFebMarch Prioritisation Preparing budget submissions Macroeconomic framework, fiscal policy & DoR MTBPS MTEF: Approval MTEC: Recommendations Preparation of Budget Documents

5. 5National Treasury Macroeconomic framework, fiscal policy and DoR Expected outcome: Equitable division of national revenue fund between three spheres of government Resource envelope Spending pressures across 3 spheres. (4*4s & 10*10s) Vertical division of revenue between national, provincial and local government. (political outcome) Horizontal division based on spending priorities and departmental plans.

6. 6National Treasury Medium Term Expenditure Committee (MTEC) Evaluate competing demands on the basis of business plans Evaluate new policies and the expansion of existing outputs, and its impact on indicative allocations Negotiate increase to ‘baseline’ Parallel structure at national and provincial Expected outcome: Prepare new MTEF recommendation for Executive consideration and approval

7. 7National Treasury Preparation for Budget Expected outcome: Budget legislation and documentation tabled on Budget Day Cabinet approve new MTEF Departments: Revise Strategic Plans Reprioritise within allocations to programmes Prepare ENE ENE tabled in Parliament at time of Budget speech

8. 8National Treasury Recent reforms Measurable objectives for each programme –Section 27.4 of PFMA –Quantifiable results within MTEF period –Shift focus to outputs and their impact –Health example “Reduce mortality and morbidity, and monitor and evaluate these trends through research and epidemiological surveillance to ensure that national health policies and programmes are having their desired impact”

9. 9National Treasury Recent reforms (cont.) More descriptive output information table –quality, quantity and timeliness measures Reporting on recent outputs More selective reporting on Public Entities New infrastructure expenditure table

10. 10National Treasury ENE outline Accountability information Department Aim Programme purpose and measurable objective Strategic overview Expenditure estimates and trends Departmental receipts

11. 11National Treasury ENE outline (cont.) Programme data –Subprogramme description –Expenditure trends –Service delivery objectives and indicators Recent outputs Medium term output targets Public Entities reporting to the Minister Expenditure tables

12. 12National Treasury Main data sections Programme purpose and measurable objectives –example Strategic overview –Main policy developments, achievements and future plans –example

13. 13National Treasury Main data sections (cont) Expenditure estimates & trends –Programme, economic classification and standard item –2003/04 voted by Parliament –2004/05 to 2005/06 form the basis for planning the 2004 Budget –example

14. 14National Treasury Main data sections (cont) Service delivery objectives and indicators –Recent outputs Brief summary of achievement on output targets in 2002 ENE –Medium-term output targets Subprogramme outputs, indicators and targets Outputs should relate to, and aid in the ahievement of measurable objectives –example

15. 15National Treasury Evaluation of chapters Checklist on main data sectionsChecklist