2021 Appropriation Bill - Standing Committees on Appropriations Presented by: Dr Mampho Modise: National Treasury - Parliamentary ...

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2021 Appropriation Bill - Standing Committees on Appropriations Presented by: Dr Mampho Modise: National Treasury - Parliamentary ...
2021 Appropriation Bill
     Standing Committees on Appropriations
Presented by: Dr Mampho Modise: National Treasury
                                        May 2021
Standing Committee on Appropriations
•   SCOA Committee was established in terms of Section 4(3) of the Money Bills Amendment
    Procedure and Related Matters Act;
•   Section 4(4) of the Act states that the Committee’s powers and functions include
    considering and reporting on:
     ‒ Spending issues
     ‒ Amendments to the Division of Revenue Bill, and all Appropriation Bills (Adjusted,
       Special or Supplementary)
     ‒ Recommendations of the Financial and Fiscal Commission (FFC), including those
       referred to in the Intergovernmental Fiscal Relations Act, 1997 (Act No. 97 of 1997);
     ‒ Reports on actual in-year expenditure published by the National Treasury; and
     ‒ Any other related matters
•   The focus areas centre around the Section 32 Report on the expenditure of national
    departments
     – highlighting high level spending;
     – including a distinction between capital and current expenditure by vote, and
     – that cumulative spending data is included                                    2
The relationship between the SCoA Committee and
other Committees in ensuring service delivery
•   Committees are the places where members of the public can express their opinions
    directly and try to influence the outcome of Parliament's decisions
•   Committees monitor and oversee the work of national government departments and
    hold them accountable
•   The SCoA Committee and other Committees are both used to exercise oversight and
    monitor government actions; by detecting and reporting issues that need to be referred
    to Parliament in order for the Executive to answer to any anomalies on how public
    funds are spent
•   This ensures that government operations are more transparent to enable increased
    public trust in the government
•   In addition the committees support each other:
     ‒ They take care of domestic parliamentary issues
     ‒ They consider bills and amend them, and may initiate bills
     ‒ They consider private members' and provincial legislative proposals and special
       petitions
     ‒ They consider international treaties and agreements                          3
Parliamentary process
•   Money Bills Amendments Procedure and Related Matters Act sets out Parliament's role
    in the budget process and enhances stakeholder participation and coordination
•   The MTBPS, is discussed in Parliament
     – Report issued before Executive finalises the budget
•   The Budget is dealt with by the Standing Committees on Finance and Appropriations
    comprising members of both houses
•   Individual Portfolio Committees dissect the budget and strategic plan for each national
    department
•   Parliament votes first on the Fiscal Framework, then Division of Revenue and then
    Appropriation Bill
•   Public Accounts Committee deals with post-facto issues raised by Auditor General

                                                                                              4
2021 Appropriation Bill
•   The Money Bills Amendment Procedure and Related Matters Amendment Act, 2018 requires
    that after the tabling of a national budget:

       Section 8(3) – Committees on finance must within 16 days or as soon as reasonably
       possible thereafter, submit a report to the National Assembly and the National
       Council of Provinces on the fiscal framework and revenue proposals
                                               Step 1: fiscal framework was approved on
                                               the 10 March 2021

       Section 9(3) – The Division of Revenue Bill (DORA) must be passed within 35 days
       after the adoption of the fiscal framework by Parliament, or a soon as reasonably
       possible thereafter

                                              Step 2: Division of revenue Bill was
                                              adopted 19 March 2021

        Section 10(7) – Parliament must pass the Appropriation Bill with or without
            amendments, within four months after the start of the financial year, namely
            31 July 2021
                                                Step    3:   the      appropriation        bill   5
                                                considerations
2021 Appropriation Bill
•   The Appropriation Bill is the legislation that provides for the appropriation of money by
    Parliament from the National Revenue Fund in terms of section 213 of the Constitution,
    1996 and section 26 of the Public Finance Management Act (PFMA), 1999

•   Spending is subject to the PFMA and the provisions of the Appropriation Bill itself

•   For transfers to sub-national government, the 2021 Division of Revenue Bill also contains
    provisions in terms of which specific spending must take place

•   The committees on appropriations may not consider amendments to the Appropriation Bill
    prior to the passing of the Division of Revenue Bill

•   Any amendment to the Appropriation Bill must be consistent with the adopted fiscal
    framework and Division of Revenue Bill passed by Parliament.

•   The Appropriation Bill was tabled in Parliament at the time of the Budget             – 24
    February 2021

                                                                                          6
2021 Appropriation Bill
•   Prior to the 2021 Appropriation Bill being promulgated, departments will incur expenditure
    in terms of section 29 of the PFMA, which makes provision for spending before an annual
    budget is passed:
    –   Up to end July, expenditure may not exceed 45 per cent of the 2020/21 financial year
        annual budget

•   Promulgation of the 2021 Appropriation Act is necessary:
    –   To allow for monthly expenditure above the transitional provisions contained in the
        PFMA
    –   To ensure expenditure in accordance with the vote and programme purposes as stated
        in the Act

                                                                                          7
2021 Appropriation Bill
A report of the Committee on Appropriations to the House that proposes amendments to the
main Appropriation Bill must, in respect of each amendment—
•   Indicate the reason for such proposed amendment;
•   Demonstrate how the amendment takes into account the broad strategic priorities and
    allocations of the relevant budget;
•   Demonstrate the implications of each proposed amendment for an affected vote and the
    main divisions within that vote;
•   Demonstrate the impact of any proposed amendment on the balance between transfer
    payments, capital and recurrent spending in an affected vote;
•   Set out the impact of any proposed amendment on service delivery; and
•   Set out the manner in which the amendment relates to prevailing departmental strategic
    plans, reports of the Auditor General, committee reports adopted by
•   a House, reports in terms of section 32 of the Public Finance Management Act, annual
    reports and any other information submitted to a House or committee in terms of the
    standing rules or on request.
                                                                                      8
Structure of the Bill
•   The Bill is divided by vote and by main division within a vote (i.e. by programme and / or
    transfer and subsidy to a national department within a vote)
•   A purpose is set out for each vote, programme and transfer and subsidy to a national
    department within a vote
•   Allocations are categorised in terms of:
    –   Current payments
         • Compensation of employees
         • Goods and services
         • Interest and rent on land
    –   Transfers and subsidies
    –   Payments for capital assets
    –   Payments for financial assets

•   Allocations marked with a single asterisk refer to specifically and exclusively appropriated
    allocations, including, but not limited to:
    –   all vote and national departments compensation of employees appropriations; and
    –   conditional grants (also listed in the Division of Revenue Bill, 2020)
                                                                                            9
Estimates of National Expenditure (ENE)
publications
•   The abridged ENE publication is the explanatory memorandum to the Appropriation Bill
•   A set of more detailed e-publications on each vote are also available online at
    www.treasury.gov.za
•   The ENE publications contain information on:
    – what institutions aim to achieve over the MTEF, and why;
    – how institutions plan to spend their budget allocations in support of this; and what
        outputs and outcomes the spending is intended to produce;
    – how institutions have spent their budgets in previous years;
    – performance data and targets;
    – detailed expenditure trends and estimates by programme, subprogramme, significant
        spending item and economic classification for each department and selected entities;
    – the institution’s mandate, purpose (and that of its programmes), together with
        programme-level objectives and descriptions of subprogrammes;
    – infrastructure spending;
    – personnel spending;
    – provincial and municipal conditional grants;

                                                                                       10
Background
2020 MTBPS:
•   Government’s medium‐term policy priorities are economic recovery and fiscal consolidation
•   The social compact agreed to between government, business, labour and civil society
    prioritises short‐term measures to support the economy, alongside crucial structural
    economic reforms
•   The economy is expected to contract by 7.8 per cent in 2020, recovering to real GDP growth
    of 3.3 per cent in 2021. Economic growth is expected to average 2.1 per cent over the
    three‐year forecast period
•   Fiscal measures – primarily reductions to the wage bill – will narrow the budget deficit and
    stabilise debt over the next five years to return the public finances to a sustainable position
     – Relative to the 2020 Budget, main budget non‐interest spending (excluding technical
       adjustments) is reduced by R60 billion in 2021/22, R90 billion in 2022/23 and R150
       billion in 2023/24, with constrained spending growth in the following two years
     – The largest share of reductions falls on compensation. Other non‐interest spending
       items are also reduced, while funding for buildings and other fixed structures, provincial
       and local capital grants, and the Infrastructure Fund is protected
•   The consolidated deficit narrows from 15.7 per cent of GDP in 2020/21 to 7.3 per cent by
    2023/24. Gross national debt is projected to stabilise at 95.3 per cent of GDP by 2025/26.
                                                                                            11
Background
Budget 2021:
• South Africa’s fiscal challenge is to balance the immediate need for support to the
   economy during the pandemic with ongoing efforts to close a large, pre-existing budget
   deficit. In this context, the fiscal strategy aims to:
    – Narrow the deficit and stabilise the debt-to-GDP ratio, primarily by controlling non-
       interest expenditure growth.
     – Provide continued support to the economy and public health services in the short
       term, without adding to long-term spending pressures.
     – Improve the composition of spending, by reducing growth in compensation while
       protecting capital investment.
•   Efforts to reduce growth in the public-service wage bill remain on course, with the
    Labour Appeal Court of South Africa confirming that the National Treasury must certify
    the affordability and sustainability of wage agreements prior to their implementation.
•   Significant risks remain. The global outlook is highly uncertain, with the economic
    recovery largely dependent on responses to COVID-19. Several state-owned companies
    are requesting additional funding. Negotiations on a new public-service wage agreement
    are set to take place this year.

                                                                                         12
Background
     Adjustments to main budget non-interest expenditure since 2020 Budget
      R million                                                                         2021/22
      2020 Budget non-interest expenditure                                             1 592 186
      Less: Contingency reserve                                                              5 000
      Allocated expenditure (2020 Budget)                                             1 587 186
      Ski l l s devel opment l evy a djus tments                                            -2 772
      Baseline reductions                                                               -65 349
      Progra mme ba s el i ne reductions a nd us e of                                   -39 043
      res erves
      Wa ge bi l l reductions                                                           -26 306
      Baseline allocations                                                               22 446
      COVID-19 res pons e                                                                15 345
                          1                                                                 7 101
      Other a l l oca tions
      Provisional allocations                                                            11 000
      Allocated in 2021 Budget                                                        1 552 511
      Plus: Contingency reserve                                                          12 000
      2021 Budget non-interest expenditure                                            1 564 511
      Change in non-interest expenditure since 2020 Budget                              -27 675
     1. Includes the New Development Bank, financial support to state-owned companies and public entities,
      and the rescheduling of some infrastructure reductions introduced in the 2020 MTBPS
                                                                                                             13
     Source: National Treasury
Background
Major underspending for the period between 2012/13-2019/20 (excluding social
development 2019/20 spending)
                                                                 Under/(over) expenditure against the Adjustments budget
                                                  2012/13     2013/14    2014/15 2015/16 2016/17         2017/18 2018/19      2019/20
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS   1 420 813   2 057 335 3 976 101 2 717 940 3 169 676 2 101 854 3 118 627     3 396 204
 as a share of adjusted appropriation                1,3%         1,8%       3,5%     2,4%       2,8%       1,9%      2,8%        3,0%
SOCIAL DEVELOPMENT                               1 027 976   1 426 651    737 184 1 487 967 590 601       961 218 242 316 (15 008 404)
 as a share of adjusted appropriation                0,9%         1,3%       0,7%     1,3%       0,5%       0,9%      0,2%      -13,4%
TRANSPORT                                          319 013   (635 177) (376 429) 294 290 (117 805) 5 128 920 645 064           324 330
 as a share of adjusted appropriation                0,3%        -0,6%      -0,3%     0,3%      -0,1%       4,6%      0,6%        0,3%
BASIC EDUCATION                                  1 318 110     608 161    160 970 490 301 937 397          61 664 284 816      612 968
 as a share of adjusted appropriation                1,2%         0,5%       0,1%     0,4%       0,8%       0,1%      0,3%        0,5%
HEALTH                                             158 321     703 084    745 915 215 100 101 230         220 866 913 789      422 392
 as a share of adjusted appropriation                0,1%         0,6%       0,7%     0,2%       0,1%       0,2%      0,8%        0,4%
WATER AND SANITATION                                     0            0 2 030 719 189 556 (110 841)       501 212 254 298    1 249 693
 as a share of adjusted appropriation                0,0%         0,0%       1,8%     0,2%      -0,1%       0,4%      0,2%        1,1%
JUSTICE AND CONSTITUTIONAL DEVELOPMENT             343 289     752 902    497 236 147 973 166 163         286 621 444 875      757 215
 as a share of adjusted appropriation                0,3%         0,7%       0,4%     0,1%       0,1%       0,3%      0,4%        0,7%
HUMAN SETTLEMENTS                                  674 534     552 468     59 373 508 837 109 125         107 216 260 459      516 361
 as a share of adjusted appropriation                0,6%         0,5%       0,1%     0,5%       0,1%       0,1%      0,2%        0,5%
ENERGY                                              75 494      26 181 1 217 681 125 503       37 719     200 784    73 299    256 329
 as a share of adjusted appropriation                0,1%         0,0%       1,1%     0,1%       0,0%       0,2%      0,1%        0,2%
POLICE                                             232 096           28         18       47         15    156 080 1 255 419    754 044
 as a share of adjusted appropriation                0,2%         0,0%       0,0%     0,0%       0,0%       0,1%      1,1%        0,7%
ENVIRONMENTAL AFFAIRS                              232 660        6 535      5 327    5 377    44 130     258 077 693 561      117 024
 as a share of adjusted appropriation                0,2%         0,0%       0,0%     0,0%       0,0%       0,2%      0,6%        0,1%
PUBLIC WORKS                                       687 323     152 607     99 282    31 075 109 453        57 843    34 777    146 14
                                                                                                                                   831
 as a share of adjusted appropriation                0,6%         0,1%       0,1%     0,0%       0,1%       0,1%      0,0%        0,1%
Appropriation Bill in numbers
Department                     2021 ENE    2020 ENE Difference share of Programmes affected and other reasons for the
                                 2021/22     2021/22           reduction                  decline
                                                              to 2021/22

Planning, Monitoring and           454,0      524,3        -70,3   -15,5% Filling of critical vacant positions
Evaluation
Public Service and                 526,2      606,6        -80,4   -15,3% Filling of critical vacant positions
Administration
Correctional Services           25 218,1    28 565,6    -3 347,5   -13,3% Filling of critical vacant positions
                                                                          The warder to inmate ratio is expected to decline from
                                                                          1:6 to 1:7, which is far from the norm of 1:5

Police                          96 355,5   108 208,8   -11 853,3   -12,3% Filling of critical vacant positions
                                                                          Visible Policing and Detective Services affected
                                                                          limited recruitment of young and physically active
                                                                          police officers
Public Service Commission          282,4      316,3        -33,9   -12,0% Filling of critical vacant positions
Civilian Secretariat for the       149,0      166,3        -17,4   -11,7% Filling of critical vacant positions
Police Service                                                            Intersectoral Coordination and Partnerships;
                                                                          Legislation and Policy Development; and Civilian
                                                                          Oversight, Monitoring and Evaluations will be affected

                                                                                                                          15
Appropriation Bill in numbers
Department                    2021 ENE 2020 ENE      Difference      share of Programmes affected and other reasons for the
                                2021/22  2021/22                   reduction                              decline
                                                                  to 2021/22
Home Affairs                    8 690,5    9 659,9       -969,5       -11,2%Filling of critical vacant positions
                                                                             Goods and services will be affected
Justice and Constitutional     19 119,8   21 168,8     -2 049,0       -10,7%Filling of critical vacant positions
Development                                                                  Court Services and National Prosecuting Authority (NPA)
                                                                             will be affected
                                                                             The aspirant prosecutor training programme will have to
                                                                             be suspended
                                                                             Increased case backlogs
Office of the Chief Justice     1 211,8    1 335,9       -124,1       -10,2%Superior Court Services will be affected leading to more
                                                                             case backlogs.
Employment and Labour           3 505,7    3 857,2       -351,4       -10,0% Filling of critical vacant positions
                                                                             Transfer to the CCMA will be affected
Defence                        46 268,7   50 852,5     -4 583,8        -9,9%Inability to implement the Defence Review 2015,
                                                                             resulting in a decline in SANDF capabilities; their ability
                                                                             to rejuvenate the SANDF and increase its capacity for
                                                                             border safeguarding, compromising the country's
                                                                             territorial integrity due to porous borders.
                                                                             Decline in capabilities for the SA Navy and the SA Air
                                                                             force due to inability to conduct major maintenance on
                                                                             the submarines, frigates and fighter aircrafts

                                                                                                                                 16
Appropriation Bill in numbers
Department                    2021 ENE 2020 ENE     Difference      share of    Programmes affected and other reasons for the
                                2021/22  2021/22                  reduction                       decline
                                                                 to 2021/22
The Presidency                   592,3     648,8         -56,5        -9,5% Impact on project management office which require
                                                                           additional capacity to support the presidential projects

International Relations and     6 452,4   7 038,5       -586,2        -9,1% Filling of critical vacant positions
Cooperation                                                                Impact on the annual increase in fees to international
                                                                           organizations
Parliament                      2 144,1   2 331,5       -187,4        -8,7% Filling of critical vacant positions
                                                                           Impact of ICT infrastructure projects that are under funded

Military Veterans                654,4     711,0         -56,6        -8,6%Inability to deliver benefits to military veterans as
                                                                           mandated by the Military Veterans Act (2011).
Independent Police               348,3     377,7         -29,4        -8,4%The directorate's plans of recruiting and appointing
Investigative Directorate                                                  adequate investigators will be limited
Statistics South Africa         4 474,6   4 843,9       -369,3        -8,3%Filling of critical vacant positions
                                                                           The funding of surveys
                                                                           New surveys and coordination of surveys conducted by
                                                                           other departments will be affected

                                                                                                                                   17
Appropriation Bill in numbers
Department                   2021 ENE 2020 ENE     Difference    share of Programmes affected and other reasons for the
                               2021/22  2021/22                reduction                          decline
                                                              to 2021/22
National School of              210,2     227,3         -17,1      -8,1% Filling of critical vacant positions
Government
Traditional Affairs             171,4     184,7         -13,3     -7,8% Operations of the department will be affected
Women, Youth and Persons        763,5     821,5         -57,9     -7,6% Filling of critical vacant positions
with Disabilities
Environment, Forestry and      8 716,8   9 287,8       -571,0     -6,6% Filling of critical vacant positions
Fisheries                                                              Goods and services
                                                                       Transfers to departmental agencies will be reduced
                                                                       Reduce scale of delivery under the EPWP
                                                                       programme
Tourism                        2 429,6   2 586,2       -156,6     -6,4% Filling of critical vacant positions
                                                                       Transfers to South African Tourism hindering the
                                                                       ability to market South Africa as a tourism destination
                                                                       of choice
                                                                       Transfers to EPWP, tourism incentive scheme,
                                                                       tourism sector support programmes will be reduced
Small Business Development     2 538,3   2 696,1       -157,8     -6,2% Less support to small businesses which will affect
                                                                       recovery from Covid-19 as well contribution to
                                                                       economic growth by small business

                                                                                                                        18
Appropriation Bill in numbers
Department                 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the decline
                             2021/22 2021/22              reduction
                                                         to 2021/22
Communications and           3 692,9   3 918,6    -225,7      -6,1% Operations of department and transfers to entities
Digital Technologies                                                Further reductions on programmes such as SA Connect and
                                                                    digital migration
Agriculture, Land           16 920,4 17 946,9   -1 026,5      -6,1% The affected programmes are land reform and restitution and
Reform and Rural                                                    conditional grants
Development                                                         Slowing down land reform and restitution process, which will
                                                                    impact on social justice
Sports, Arts and Culture     5 693,9   6 035,5    -341,6      -6,0%Community library services grant, transfers to public entities,
                                                                    heritage institutions and performing arts institutions, and Mass
                                                                    Sport Participation Grant will be affected
Higher Education and        97 784,0 102 753,0  -4 969,0      -5,1%Filling of critical vacant positions
Training                                                            Transfer to NSFAS, university subsidies, infrastructure grants
                                                                    and subsidies to TVET colleges will be affected
Science and Innovation       8 933,3   9 377,8    -444,5      -5,0% Filling of critical vacant positions
                                                                    Selected goods and services items such as travel and
                                                                    subsistence, venues and catering, including transfers to public
                                                                    entities will be reduced
Public Works and             8 343,2   8 757,3    -414,1      -5,0% Filling of critical vacant positions
Infrastructure                                                      Funding of the infrastructure function that was added to the
                                                                    portfolio
Mineral Resources and        9 180,8   9 570,0    -389,2      -4,2% Operations of department and transfers to entities
Energy                                                                                                                          19
Appropriation Bill in numbers
Department               2021 ENE    2020 ENE    Difference       share of Programmes affected and other reasons for the
                           2021/22     2021/22                reduction to                         decline
                                                                   2021/22
Trade, Industry and        9 736,6    10 098,3       -361,7          -3,7%Filling of critical vacant positions
Competition                                                                Contractual obligations under goods & services may
                                                                           not be met
                                                                           On the manufacturing incentives, less firms will be
                                                                           supported
Transport                 66 691,8    69 034,6     -2 342,8          -3,5% Largely PRASA capex, and PTNG, with reductions
                                                                           on maintenance budgets on SANRAL and
                                                                           departmental operations
Cooperative Governance   100 875,9   104 262,1     -3 386,2          -3,4%Largely on equitable share, community work
                                                                           programme and operations of the department
Social Development       205 226,9   211 810,9     -6 584,0          -3,2% Social grant increases will be below inflation
Water and Sanitation      16 910,1    17 270,4       -360,3          -2,1% Operations of department and transfers to entities
Government                   749,7       763,2        -13,5          -1,8% Adhoc projects like communication on the vaccine
Communication and                                                          cannot be funded from the baseline due to the small
Information System                                                         budget
                                                                           Funding of special projects and funding of the
                                                                           community newspaper
Basic Education           27 018,1    27 333,0       -314,9          -1,2%Filling of critical vacant positions
                                                                           Goods and services, and Funza Lushaka Bursary
                                                                           Programme will be affected

                                                                                                                       20
Appropriation Bill in numbers
Department           2021 ENE 2020 ENE Difference share of Programmes affected and other reasons
                       2021/22  2021/22            reductio                  for the decline
                                                        n to
                                                    2021/22
Human Settlements     31 658,0 31 788,6     -130,6    -0,4% Reductions on operations of department and
                                                             public entities
Health                62 543,3 60 638,3    1 905,0     3,0% Net increase is due to R6bn allocated to
                                                             COVID-19 vaccine programme. Reductions in
                                                             all other programmes and conditional grants
                                                             (around R4bn in total), with largest (R1.7bn)
                                                             reduction on HIV/AIDS grant component.
National Treasury     41 055,7 35 822,5    5 233,2 12,7% Funding for the Land Bank
Public Enterprises    36 291,8   4 637,4  31 654,4 87,2% Allocations for ESKOM
Total                980 583,9 988 835,6  -8 251,7    -0,8%
Gross reductions                         -47 044,3    -4,8%
Gross additions                           38 792,6     4,0%

                                                                                                   21
Appropriation Bill: summary implications
• Filling of vacant posts and operational budgets will be affected
• Peace and security:
    – worsening custodial staff to inmate ratio to 1:7 (norm is 1:5) and worsening police to
        population ratio to above 1:400 against a norm of 1:220
    – Limited recruitment of young and physically active force
    – Further delays in the implementation of the Defence review
    – Increased case backlog
• Lesser transfers to public entities
• Membership fees to international organisations
• ICT and other infrastructure projects will be affected (infrastructure grants) including road
  maintenance
• Funding for new, old and poverty surveys will be affected
• EPWP, community works programmes and business incentives/support will be lowered
• Compensation of employees, transfer to NSFAS, university subsidies, infrastructure grants
  and subsidies to TVET colleges will be affected
• Below inflation increases in social grants
• Funza Lushaka Bursary Programme will be affected
• Reductions in all other programmes and conditional grants (around R4bn in total), with
  largest (R1.7bn) reduction on HIV/AIDS grant component
                                                                                               22
• Funding for the Land Bank and Eskom
Other issues to consider: Land Bank funding

• The Land Bank, which defaulted on its debt in April 2020, will receive R7 billion in
  recapitalisation over the medium term to put it on a stable and sustainable development
  path
• A recapitalisation of R5 billion in 2021/22, to be funded through reprioritisation, and
  another R2 billion in both 2022/23 and 2023/24 for the Land Bank

                                                                                        23
Other issues to consider: Land Bank funding
                                                                  Funding        Funding             Funding             Funding              Funding              Funding
                                                  2021/22 budget request (1)     request (2)         request (3)         request (1)          request (2)          request (3)
Social Development                                        205 227          1 046                                                       0,5%
Cooperative Governance                                    100 876            514                                                       0,5%
Higher Education and Training                              97 784            499                                                       0,5%
Police                                                     96 356            491                                                       0,5%
Transport                                                  66 692            340                                                       0,5%
Health                                                     62 543            319               756                                     0,5%                 1,2%
Defence                                                    46 269            236               559                                     0,5%                 1,2%
National Treasury                                          41 056            209               496                                     0,5%                 1,2%
Public Enterprises                                         36 292            185               439                                     0,5%                 1,2%
Human Settlements                                          31 658            161               383                                     0,5%                 1,2%
Basic Education                                            27 018            138               327                 690                 0,5%                 1,2%                 2,6%
Correctional Services                                      25 218            129               305                 644                 0,5%                 1,2%                 2,6%
Justice and Constitutional Development                     19 120             97               231                 488                 0,5%                 1,2%                 2,6%
Agriculture, Land Reform and Rural Development             16 920             86               205                 432                 0,5%                 1,2%                 2,6%
Water and Sanitation                                       16 910             86               204                 432                 0,5%                 1,2%                 2,6%
Trade, Industry and Competition                             9 737             50               118                 249                 0,5%                 1,2%                 2,6%
Mineral Resources and Energy                                9 181             47               111                 234                 0,5%                 1,2%                 2,6%
Science and Innovation                                      8 933             46               108                 228                 0,5%                 1,2%                 2,6%
Environment, Forestry and Fisheries                         8 717             44               105                 223                 0,5%                 1,2%                 2,6%
Home Affairs                                                8 690             44               105                 222                 0,5%                 1,2%                 2,6%
Public Works and Infrastructure                             8 343             43               101                 213                 0,5%                 1,2%                 2,6%
International Relations and Cooperation                     6 452             33                78                 165                 0,5%                 1,2%                 2,6%
Sports, Arts and Culture                                    5 694             29                69                 145                 0,5%                 1,2%                 2,6%
Statistics South Africa                                     4 475             23                54                 114                 0,5%                 1,2%                 2,6%
Communications and Digital Technologies                     3 693             19                45                  94                 0,5%                 1,2%                 2,6%
Employment and Labour                                       3 506             18                42                  90                 0,5%                 1,2%                 2,6%
Small Business Development                                  2 538             13                31                  65                 0,5%                 1,2%                 2,6%
Tourism                                                     2 430             12                29                  62                 0,5%                 1,2%                 2,6%
Parliament                                                  2 144             11                26                  55                 0,5%                 1,2%                 2,6%
Office of the Chief Justice                                 1 212              6                15                  31                 0,5%                 1,2%                 2,6%
Women, Youth and Persons with Disabilities                    764              4                 9                  19                 0,5%                 1,2%                 2,6%
Government Communication and Information System               750              4                 9                  19                 0,5%                 1,2%                 2,6%
Military Veterans                                             654              3                 8                  17                 0,5%                 1,2%                 2,6%
The Presidency                                                592              3                 7                  15                 0,5%                 1,2%                 2,6%
Public Service and Administration                            526               3               6                  13                   0,5%                 1,2%                 2,6%
Planning, Monitoring and Evaluation                          454               2               5                  12                   0,5%                 1,2%                 2,6%
Independent Police Investigative Directorate                 348               2               4                   9                   0,5%                 1,2%                 2,6%
Public Service Commission                                    282               1               3                   7                   0,5%                 1,2%                 2,6%
National School of Government                                210               1               3                   5                   0,5%                 1,2%                 2,6%
Traditional Affairs                                          171               1               2                   4                   0,5%                 1,2%                 2,6%   24
Civilian Secretariat for the Police Service                  149               1               2                   4                   0,5%                 1,2%                 2,6%
                                                         980 584           5 000           5 000               5 000                   0,5%                 0,5%                 0,5%
Amendments to the names of certain votes in the
Schedule to the Bill
• The names of votes in the Bill were in accordance with the names of the departments as
  they existed when the Bill was introduced
• Subsequently, the President acting in terms of section 7(5)(a) of the Public Service Act,
  1994, amended Schedule 1 to that Act with effect from 1 April 2021 by Government Notice
  No. 172 of 5 March 2021. Since it is envisaged that the Bill will be passed by Parliament
  after 1 April 2021, these amendments will be timeous and will accurately reflect the names
  of votes to correspond with the names of the relevant departments in Schedule 1 to the
  Public Service Act, as amended.
• It is therefore requested that the Bill be amended in terms of section 14 of the Money Bills
  and Related Matters Act, 2009, to align with Schedule 1 to the Public Service Act, by
  amending the name of—
     • Vote 32 in column 2 of the Schedule, by the substitution for the phrase “Environment,
         Forestry and Fisheries” of the phrase “Forestry, Fisheries and the Environment”; and
     • Vote 37 in column 2 of the Schedule, by the substitution for the phrase “Sports, Arts
         and Culture” of the phrase “Sport, Arts and Culture”.
• The renaming of the vote names would only constitute technical corrections and will have
  no funding implication to the proposed appropriations

                                                                                           25
Special Appropriation Bill
Appropriation of additional amount of money to vote of Health
An amount of R1.250 billion is hereby appropriated out of the National Revenue Fund for
expenditure authorised in terms of section 16(1) of the Public Finance Management Act, 1999
(Act No. 1 of 1999), and attributed to the vote of Health in order to procure COVID-19
vaccines and implement a related COVID-19 vaccine research project, as set out in the
Schedule.
                                                                          Main Division            Current Payments               Transfers and   Payments      Payments
                                                                                                                                     Subsidies    for Capital for Financial
                                                                                          Compensation   Goods and     Interest                       Assets        Assets
                                                                                          of Employees     Services   and Rent
                                                                                                                       on Land

Health                                                                      1 250 000                    1 100 000                    150 000
3 Communicable and Non-Communicable Diseases                                1 100 000                    1 100 000
6 Health System Governance and Human Resources                                150 000                                                 150 000
             Of which
             Departmental agencies and accounts
             – South African Medical Research Council: Covid-19 vaccine                                                               150 000

                                                                                                                                                                26
Special Appropriation Bill
 Appropriation of additional amount of money to vote of Social Development
 An amount of R2.826 billion is hereby appropriated out of the National Revenue Fund for
 expenditure authorised in terms of section 16(1) of the Public Finance Management Act, 1999
 (Act No. 1 of 1999), and attributed to the vote of Social Development in order to fund the
 extension of the Special COVID-19 Social Relief of Distress Grant, as set out in the Schedule.
                                                           Main Division            Current Payments               Transfers and   Payments      Payments
                                                                                                                      Subsidies    for Capital for Financial
                                                                           Compensation   Goods and     Interest                       Assets        Assets
                                                                           of Employees     Services   and Rent
                                                                                                        on Land

Social Development                                           2 825 803                                               2 825 803
2 Social Assistance                                          2 825 803                                               2 825 803
             Of which
             Households
          * – Social Assistance Transfers: Social grants
                – Social Relief of Distress                                                                          2 825 803

                                                                                                                                                  27
Special Appropriation Bill
Adjustment to appropriation of money to vote of Public Enterprises
• Adjustments to an appropriation of money from the National Revenue Fund to the vote of
  Public Enterprises in the 2020/21 financial year, are set out in the Schedule
• The Minister of Finance may, on request of the Minister of Public Enterprises, approve any
  portion of an amount referred to in the Schedule for a subsidiary of South African Airways
  SOC Ltd (SAA) for use by another subsidiary of SAA, referred to in the Schedule, to address
  urgent funding needs
• The approval of the use of funds in terms of subsection (2) must be disclosed in the
  National Treasury’s next quarterly report to the relevant Parliamentary Committees
• Despite the effective date of this Act, the appropriation for the subsidiaries and
  expenditure thereof, must be regarded as an appropriation and expenditure for the
  2020/21 financial year.
                                                                                 Main Division            Current Payments               Transfers and   Payments      Payments
                                                                                                                                            Subsidies    for Capital for Financial
                                                                                                 Compensation   Goods and     Interest                       Assets        Assets
                                                                                                 of Employees     Services   and Rent
                                                                                                                              on Land
                                                                                        R'000           R'000        R'000      R'000           R'000        R'000          R'000

Public Enterprises
         * – South African Airways SOC Ltd: Purchase of equity: Implementation
               of business rescue plan                                                                                                                                (2 700 000)
         * – South African Airways Technical SOC Ltd                                                                                                                   1 663 000
         * – Mango Airlines SOC Ltd                                                                                                                                      819 000
         * – Air Chefs SOC Ltd                                                                                                                                           28 000
                                                                                                                                                                         218
Special Appropriation Bill
Adjustment to appropriation of money to vote of Public Enterprises
• The 2020 Second Adjustments Appropriation Bill provided R10.5 billion for the
  implementation of SAA’s Business Rescue Plan.
• Post the tabling of the 2020 Second Adjustments Appropriation Bill, the Department of
  Public Enterprises requested that a mechanism be found to transfer a portion of the
  business rescue funding to SAA’s subsidiaries.
• It should be noted that the R2.7 billion to be provided to subsidiaries is not in addition to
  the R10.5 billion already allocated to SAA in the 2020 Second Adjustments Appropriation
  Act.
• Of the R10.5 billion provided to SAA in the Second Adjustments Appropriation Act, R7.8
  billion was transferred to the airline in 2020/21 and the balance of R2.7 billion will be
  provided to SAA’s subsidiaries once this Special Appropriation Bill is enacted.

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