SUMMARY
1. Published by the National Treasury in terms of Section 32 of the Public Finance
Management Act (PFMA), this provincial budget statement of receipts and payments
covers spending for the first six months (April to September 2011) of the 2011/12
financial year. The statement is available on the treasury website at
www.treasury.gov.za.
2. The information in the statement comes from the Section 40(4) PFMA reports submitted
by heads of provincial departments to provincial treasuries, who, in turn, submitted the
information to the National Treasury. Queries on spending or budget numbers should
therefore, in the first instance, be referred to the head of the relevant provincial
department, and in the second instance to the head of the relevant provincial treasury.
Queries on conditional grants may be referred to the head of the administering national
department.
3. The budgeted figures in the publication take account of the 2011 Estimates of Provincial
Revenue and Expenditure, which were presented to the provincial legislatures during
March 2011.
4. Expenditures not foreseen at the time of tabling the 2011 Estimates of Provincial
Revenue and Expenditure are:
a. Higher than budgeted for personnel remuneration increases.
b. Additional funding through new and existing conditional grants for repair of
infrastructure damaged by floods in January and February 2011.
5. To cover the shortfalls mentioned above, the 2011 Adjusted Estimates of National
Expenditure and the 2011 Medium Term Budget Policy Statement tabled on 25 October
2011, proposed additional adjustments to the allocations made to provinces in the 2011
Budget. Detailed information on the additional adjustments is set out in the 2011 Division
of Revenue Amendment Bill. These documents are available on the treasury website at
www.treasury.gov.za.
6. Provinces will conclude their 2011 adjusted estimates towards the end of November
2011.
7. In aggregate, provinces have spent R177.1 billion, or 48.4 per cent, of their combined
budgets of R365.5 billion for the first half of the 2011/12 financial year. This represents a
Overall Expenditure Trends
spending increase of 16.1 per cent or R24.6 billion compared with the same period last
year when provinces had spent R152.5 billion.
8. Education expenditure for the half-year is R77.7 billion or 50.4 per cent of the
R154.2 billion combined education budgets, an increase of 18.7 per cent or R12.2 billion
on the same period for the previous financial year. It is the largest item on provincial
budgets (42.2 per cent).
9. Health expenditure totalled R53.6 billion, or 48.7 per cent, of the R110 billion combined
health budgets, and is the second largest item on provincial budgets (30.1 per cent). This
represents an increase of 15.8 per cent or R7.3 billion on the same period for the
2010/11 financial year.
10. Social development expenditure for the half-year is R5.5 billion or 46.8 per cent of the
R11.7 billion combined social development budgets.
11. Personnel expenditure (compensation of employees) is in aggregate R107.5 billion or
50.7 per cent of the budgeted (main) R212.2 billion as at 30 September 2011. National
government made available R3.3 billion through the 2011 Adjusted Estimates of National
Expenditure in October to provide for higher than budgeted for wage agreements. This
amount is shared between provinces primarily in proportion to their shares of total
expenditure on education and health personnel and balanced with shares of expenditure
on personnel in other sectors.
12. In aggregate, provinces have spent R11.1 billion or 40.2 per cent of their R27.6 billion
combined capital (payments for capital assets) budgets. This is an increase of 31.7 per
cent when compared to the same period of the 2010/11 financial year.
13. Provincial education departments have spent R3.4 billion or 43.2 per cent of the
budgeted R7.8 billion for capital expenditure. This is R1.2 billion or 58.6 per cent more
than what was spent in the first six months for the previous financial year.
14. Provincial health departments have spent R3.4 billion or 37.1 per cent of the budgeted
R9.2 billion for capital expenditure, which is R442.7 million or 14.9 per cent more than
the same period for 2010/11.
15. After health, the second biggest share of provincial capital budgets is for the public
works, roads and transport departments (30.8 per cent), which have spent R3.6 billion or
42.9 per cent of the combined capital budget of R8.5 billion as at 30 September 2011.
16. Provincial own revenue collected for the half-year is at R5.6 billion or 54.4 per cent of the
budgeted own revenue of R10.3 billion. National government has transferred
R144.2 billion of the equitable share and R35 billion of conditional grants to provinces as
at 30 September 2011.
17. A more detailed analysis of the expenditure outcome as at 30 September 2011 is set out
in Annexure A.
See press release file upload for details
