1

2007/08 Preliminary Expenditure Outcomes

Economic Services

Joint Budget Committee30 May 2008

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SCOPE: ECONOMIC SERVICES• Preliminary expenditure outcome: Summary for

Economic Services– Table Budget available vs. Actual Expenditure– Summary Vacancy rates on critical posts– Summary Virements

• Detail expenditure outcomes per department– Department of Agriculture– Department of Land Affairs– Department of Environmental Affairs & Tourism– Department of Public Enterprises– Department of Science & Technology– Department of Trade & Industry

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Preliminary expenditure outcome Summary per department

DEPARTMENTAVAILABLE BUDGET 2007/08

TOTAL ACTUAL EXPENDITURE

ACTUAL AS % OF BUDGET ALLOCATION

VARIANCE

R'000 R'000 % R'000DoA 3,469,603 3,328,417 95.93% 141,186DEAT 2,790,521 2,788,756 99.94% 1,765DLA 5,928,269 5,897,497 99.48% 30,772DPE 4,605,089 4,603,983 99.98% 1,106DST 3,144,229 3,127,283 99.46% 16,946DTI 5,479,433 5,295,241 96.64% 184,192TOTAL 19,157,020 18,924,004 98.78% 233,016

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Summary: Last quarter spending trends

24%

16%

27%

33%

18%

29%

6%

6%

11%

20%

5%

11%

0% 5% 10% 15% 20% 25% 30% 35%

Agriculture

Environmental Affairsand Tourism

Land Affairs

Public Enterprises

Science and Technology

Trade and Industry

Last Quarter Expenditure Last Month Expenditure

1 Month = 8% 1 Quarter = 25%

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Economic Services underspending

3,469,603

2,788,756

5,928,269

4,605,089

3,144,229

5,479,433

3,328,417

2,788,756

5,897,497

4,603,983

3,127,283

5,295,241

141,186

1,765

30,772

1,106

16,946

184,192

0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000

Agriculture

Environmental Affairs and Tourism

Land Affairs

Public Enterprises

Science and Technology

Trade and Industry

Appropriation Preliminary Expenditure Outcome Deviation

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Summary: Virements on expenditure

Department

Virements before & in Adjustment Estimates

Virement after Adjustment Estimates

Total Virements

% of Total Budget

Number of Virements

approved by NT

R'000 R'000 % R'000DoA 41,854 35,186 77,040 2.22% 14DEAT 17,850 34,035 51,885 1.86% 14DLA 521,294 1,897 523,191 8.83% 2DPE 555 2,027 2,582 0.06% 0DST 29,990 32,594 62,584 1.99% 9DTI 76,523 28,064 104,587 1.91% 15TOTAL 688,066 133,803 821,869 4.29% 54

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Summary: Vacancy rates on Approved Establishment

Approved Establishment Filled Posts Vacant

Posts - SMS

Vacant Posts - Non

SMS

Total Vacant Posts 2007/08

Vacancy rate as % of Total Establishment

DoA 3,096 2,674 11 411 422 13.63%DEAT 1,876 1,525 29 322 351 18.71%DLA 3,481 2,532 32 917 949 27.26%DPE 161 138 16 7 23 14.29%DST 399 326 19 54 73 18.30%DTI 1,219 892 51 276 327 26.83%TOTAL 10,232 8,087 158 1,987 2,145 20.96%

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Detail Expenditure Outcomes and Major Issues Per Department

Per department detail expenditure outcomes and major issues:(1) Major projects(2) Observations and Analysis - Explanations on major current

expenditure virements and major underspending /deviations(3) Details on Actual spending vs. Budget Table 1(4) Last quarter spending Table 2For:• Department of Agriculture - VOTE 23• Department of Land Affairs - VOTE 27• Department of Environmental Affairs & Tourism - VOTE 25• Department of Public Enterprises - VOTE 30• Department of Science & Technology - VOTE 31• Department of Trade & Industry – VOTE 32

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Department of AgricultureTable 1: Actual spending vs. Budget

Available Preliminary Deviation Actual 2007/08 Financial year Funds Expenditure (Available spending

Outcome Funds less as % of R '000 Spending) availableProgrammes: funds1. Administration 265,394 238,814 26,580 90.0%2. Livelihoods, Economics and Business Development1,551,488 1,541,954 9,534 99.4%3. Bio-security and Disaster Management 740,030 641,799 98,231 86.7%4. Production and Resources Management 232,521 226,320 6,201 97.3%5. Sector Services and Partnerships 680,170 679,530 640 99.9%Total 3,469,603 3,328,417 141,186 95.9%Economic Classification:Current expenditure 869,762 821,320 48,442 94.4%Of which:Compensation of employees 447,551 427,843 19,708 95.6%Goods and Services 421,886 393,159 28,727 93.2%Transfers and subsidies 2,523,478 2,418,733 104,745 95.8%Of which:Land Bank Recap 700,000 700,000 - 100.0%Agricultural Research Council 488,499 488,499 - 100.0%Comprehensive Agricultural Support Programme 415,000 415,000 - 100.0%Agricultural Disaster 300,000 300,000 - 100.0%Land Bank Mafisa 250,000 249,881 119 100.0%Classical Swine Fever 213,013 112,748 100,265 52.9%Land bank AgriBEE 50,000 50,000 - 100.0%Land care 46,725 46,725 - 100.0%Payments for capital assets 76,363 88,364 (12,001) 115.7%Total 3,469,603 3,328,417 141,186 95.9%

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Department of AgricultureTable 2: Last quarter spending

Jan 08 Feb 08 March 08 Total Exp Allocation ExpenditureProgramme 3 months

R'000 R'000 R'000 R'000 R'000 %Prog 1: Administration 25 379 20 130 4 261 49 770 274 977 18.1

Prog 2: Livihood, economic and business devl 80 848 44 409 10 521 135 778 1 555 958 8.7Prog 3: Bio-security 40 769 281 571 117 206 439 546 728 173 60.4Prog4: Prodn and Resource Mngt 23 449 11 040 19 452 53 941 238 995 22.6prog5: Sector services 47 097 48 063 46 836 141 996 671 500 21.1Total 217 542 405 213 198 276 821 031 3 469 603 23.7Economic ClassificationCurrent Payments 72 373 61 915 121 900 256 188 871 358 29.4 Compensation of Employees 45 149 36 505 41 156 122 810 448 938 27.4 Goods and Services 27 224 25 322 80 679 133 225 422 420 31.5 Financial Transactions in assets & liabilities 0 88 65 153 0 #DIV/0! Other 0 0 0 0 0 #DIV/0!Transfer and subsidies to Current Transfers } 130 902 332 281 82 784 545 967 2 441 894 22.4Transfers and subsidies to Capital Transfers} 6 665 6 665 0 13 330 79 988 16.7Payments for capital assets 7 602 4 352 -6 408 5 546 76 363 7.3Total 217 542 405 213 198 276 821 031 3 469 603 23.7Economic ClassificationCurrent Payments 72 373 61 915 121 900 256 188 871 358 29.4Transfers and Subsidies (Current & Capital) 137 567 338 946 82 784 559 297 2 521 882 22.2Payments for capital assets 7 602 4 352 -6 408 5 546 76 363 7.3Total 217 542 405 213 198 276 821 031 3 469 603 23.7

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Department of Agriculture Observations and Analysis

• Preliminary Expenditure Outcome:– The Department has spent 95.6% which is an improvement

from 06/07 financial year's expenditure of 93.7%– Expenditure on transfers and subsidies for February increased by 154% from

January’s amount of R130m due to transfers of R250m for Agricultural Disaster.

• Transfers and subsidies:Total Transfers as percentage of available funds: 72.7%

• Virements– R77.04 m was shifted from current expenditure to:

• Transfers and subsidies (R41.854m)• Payment to capital assets (R35.186m)

• Major underspending/deviations– Agriculture Vote underspent by R141.182m or 4.1% of the allocated budget– Prog 3, Bio-Security and Disaster Management: underspent by R98. 231m due to

unprocessed claims for the compensation of farmers whose pigs were culled during Classical Swine Fever Campaign.

– Prog 1, Administration: underspent by R26.580m due to planned project driven by Dept of Public Works that could not be carried out as planned.

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Department of Agriculture Major Projects

• Major Activities/Projects:- Land bank (R700m) – recapitalization - ARC (R488m) – Parliamentary Grant

- CASP ( R415m) - Targeted 80 000 emerging farmers in 9 Provinces.- Agric Disaster(R300m)- Relief to 2 688 farmers: fires, drought, hailstorm, cold spell- MAFISA (R250m)- Micro Loans to 1 990 farmers eg for poultry, farming

inputs, equipment.- AgriBEE (R50m) - 8 projects (empowerment deals)- Land Care (R46.7m) - soil conservation, alien plants control, employing

674 303 people

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Department of Land AffairsTable 1: Actual spending vs. Budget

  Available Preliminary Deviation Actual

2007/08 Financial year Funds Expenditure (Available Spending

    Outcome Funds less as % of

      Spending) Available

R '000       Funds

Programmes:        

1. Administration 426 554 424 993 1 561 99.6%

2. Surveys and Mapping 98 085 97 257 828 99.2%

3. Cadastral Surveys 137 937 137 617 320 99.8%

4. Restitution 3 638 611 3 638 465 146 100.0%

5. Land Reform 1 593 471 1 571 073 22 398 98.6%

6. Spatial Planning and Information 22 018 21 836 182 99.2%

7. Auxiliary and Associated Services 11 593 6 256 5 337 54.0%

Total 5 928 269 5 897 497 30 772 99.5%

Economic Classification:        

Current expenditure 1 151 557 1 145 586 5 971 99.5%

Compensation of employees 479 286 476 092 3 194 99.3%

Goods and Services 672 271 665 661 6 610 99.0%

Transfers and subsidies, Of which: 3 854 936 3 832 849 22 087 99.4%

Restitution Grants 3 246 764 3 333 531 (86 767) 102.7%

Land Reform Grants 504 774 481 693 23 081 95.4%

Payments for capital assets 921 776 919 062 2 714 99.7%

Total 5 928 269 5 897 497 30 772 99.5%

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Department of Land Affairs Table 2: Last quarter spending

Last Quarter Spending Trends

  Jan 08 Feb 08 March 08 Total Exp Allocation Expenditure

Programme         3 months

  R'000 R'000 R'000 R'000 R'000 %

Prog 1: Administration 25 288 49 576 65 134 139 998 439 039 31.9

Prog 2: Surveys and Mapping 4 982 13 931 10 384 29 297 100 621 29.1

Prog 3: Cadastral Surveys 11 832 13 699 17 812 43 343 142 352 30.4

Prog 4: Restitution 226 976 279 257 254 970 761 203 3 643 376 20.9

Prog 5: Land Reform 156 153 194 789 266 935 617 877 1 568 582 39.4

Prog 6: Spatial Planning and Information 2 248 2 342 5 296 9 886 21 706 45.5

Prog 7: Auxillary and Associated Services 53 204 1 414 1 671 12 593 13.3

Special Programme: Thefts and Losses 94 235 1 815 2 144 0 #DIV/0!

Total 427 626 554 033 623 760 1 605 419 5 928 269 27.1

Economic Classification          

Current Payments 84 306 127 924 167 298 379 528 1 151 557 33.0

Compensation of Employees 41 914 41 618 44 584 128 116 479 286 26.7

Goods and Services 42 202 86 103 120 148 248 453 672 271 37.0

Transfer and subsidies to Current Transfers } 2 234 -430 4 801 6 605 16145 40.9

Transfers and subsidies to Capital Transfers} 221 981 298 280 296 129 816 390 3 838 791 21.3

Payments for capital assets 119 105 128 259 155 532 402 896 921 776 43.7

Total 427 626 554 033 623 760 1 605 419 5 928 269 27.1

Economic Classification        

Current Payments 84 306 127 924 167 298 379 528 1 151 557 33.0

Transfers and Subsidies (Current & Capital) 224 215 297 850 300 930 822 995 3 854 936 21.3

Payments for capital assets 119 105 128 259 155 532 402 896 921 776 43.7

Total 427 626 554 033 623 760 1 605 419 5 928 269 27.1

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Department of Land Affairs Observations and Analysis

• Preliminary Expenditure Outcome– Department spent R5.8b or 99.5% of allocated budget– Expenditure improved as a result of increases in Transfers in Restitution

• Transfers and Subsides– Transfers of R3.8b amounted to 64% of Department budget, of which:

• Prog 4: Restitution - Restitution Grants of R3.3b amounted to 56% of department budget

• Prog 5: Land Reform - Land Reform Grants of R481m amounted to 8.1% of Department budget

• Major Current Expenditure Virements– Total Virements of R523m amounted to 8.83% of Department budget, of which:

• Prog 5: Land Reform - Reprioritisation of R505m (50%) in Land Reform Grants shifted to Land Acquisition Capital (PLAS) to accelerate land reform

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Department of Land Affairs Observations and Analysis(2)

• Vacancy rate– Department vacancy rate equals 27.3%, of which:

• SMS vacancy rate 35.6%• Non-SMS vacancy rate 27.2%

• Major underspending/deviations– Department underspent by R30.7m or 0.5% of allocated budget, of which:

• Prog 5: Land Reform - Underspent by R22.3m or 1.4% of Programme budget

– Underspending possibly due to negotiations delays• Prog 7: Auxiliary and Associated Services underspent by R5.3m or 46%

of Programme budget

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Department of Land Affairs Major Projects• Major Activities/Projects

– Prog 4: Restitution - Finalisation of remaining 4 911 complex restitution claims

• Transfers - Restitution Grants of R3.3b amounted to 91% of Programme budget and 56% of Department budget

• Service Delivery - 432 226ha restituted – Prog 5: Land Reform - Land Redistribution – Projects include LRAD and

PLAS• Transfers – Land Reform Grants of R481m amounted to 30% of

Programme budget and 8.1% of Department budget • Land Acquisition Capital - PLAS acquisitions of R843m amounted to

53% of Programme budget and 14% of Department budget• Service Delivery - 340 880ha redistributed and 169 818ha acquired

through PLAS

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Environmental Affairs & Tourism – Table 1: Actual spending vs. Budget

DEAT R'000 Available fundsTotal Expenditure Deviation  

1. Administration 192 957 193 299 (342) 100.2%

2. Environmental Quality and Protection 241 409 241 488 (79) 100.0%

3. Marine and Coastal Management 349 307 349 268 39 100.0%

4. Tourism 612 448 612 451 (3) 100.0%

5. Biodiversity and Conservation 359 908 359 809 99 100.0%

6. Sector Services and International Relations 1 034 492 1 032 441 2 051 99.8%

Total 2 790 521 2 788 756 1 765 99.9%

Economic Classification:        

Current expenditure 665 330 663 917 1 413 99.8%

Of which:        

Compensation of employees 342 114 342 195 (81) 100.0%

Goods and Services 323 007 321 513 1 494 99.5%

Transfers and subsidies 2 114 693 2 114 491 202 100.0%

Of which:        

South African Tourism 516 996 517 556 (560) 100.1%

Expanded Public Works Programme 650 679 650 679 - 100.0%

SA National Parks 364 356 364 356 - 100.0%

SA Weather Services 180 112 180 112 - 100.0%

Marine Living Resources Fund 147 812 147 812 - 100.0%

         

Payments for capital assets 10 498 10 348 150 98.6%

Total 2 790 521 2 788 756 1 765 99.9%

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Environmental Affairs & Tourism Table 2: Last quarter spending

Jan 08 Feb 08 March 08 Total Exp Allocation ExpenditureProgramme 3 months

R'000 R'000 R'000 R'000 R'000 %Administration 12,660 13,348 13,381 39,389 192,957 20.4Environmental Quality and Protection 20,896 -877 30,090 50,109 241,409 20.8Marine and Coastal Management 13,745 25,795 46,575 86,115 349,307 24.7Tourism 47,078 1,952 25,148 74,178 612,448 12.1Biodiversity and Conservation 2,440 23,100 24,448 159,052 359,908 44.2Sector Services and International Relations 115,013 22,548 21,491 126 1,034,492 0.0Special Programme: Thefts and Losses 63 5 58 39 - -Total 211,895 85,871 161,191 458,957 2,790,521 16.4Economic ClassificationCurrent Payments 50,320 49,267 68,601 168,188 665,330 25.3 Compensation of Employees 29,713 27,154 24,481 81,348 342,114 23.8 Goods and Services 20,544 22,108 40,062 82,714 323,007 25.6 Financial Transactions in assets & liabilities 63 5 58 126 209 60.3Transfer and subsidies (Current) 59,230 36,229 67,577 163,036 1,764,612 9.2Transfers and subsidies (Capital) 101,731 - 24,296 126,027 350,081 36.0Payments for capital assets 614 375 717 1,706 10,498 16.3Total 211,895 85,871 161,191 458,957 2,790,521 16.4Economic ClassificationCurrent Payments 50,320 49,267 68,601 168,188 665,330 25.3Transfers and Subsidies (Current & Capital) 160,961 36,229 91,873 289,063 2,114,693 13.7Payments for capital assets 614 375 717 1,706 10,498 16.3Total 211,895 85,871 161,191 458,957 2,790,521 16.4

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Environmental Affairs & Tourism Observations and Analysis

• Preliminary Expenditure Outcome– Department spent R2.79 billion or 99.9% of allocated budget– Saving mainly on goods and services– Since 2006/07 the department has spent 99.9% of its

allocated funds• General Spending trends

– 75.8% of department’s spending on transfers mainly to public entities and EPWP

– 12.3% on compensation of employees– 11.5% on goods and services

• Major Current Expenditure Virements– The department shifted 0.3% of its allocated funds after the

Adjustment Estimate, this was mainly to fund expanded public works programme projects under Programme 6: Social Responsibility and Projects as well as to fund payment for capital assets (mainly equipment for newly appointed staff)

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Environmental Affairs & Tourism Major Projects Major Activities/Projects– EPWP focuses mainly on the following areas; coastal

development, tourism infrastructure and tourism product development, waste management, biodiversity and conservation and Working for Wetlands.

– During the Adjustment Estimate an additional R200 million was rolled over for this programme. R170 million was allocated for transfer payments and R30 million for doing feasibility studies related to projects.

– After the Adjustment Estimate the department shifted a further R8.775 million to pay for projects.

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Department of Public EnterprisesTable 1: Actual spending vs. Budget

  Available Preliminary Deviation Actual

2007/08 Financial year Funds Expenditure (Available Spending

    Outcome Funds less as % of

      Spending) Available

R '000       Funds

Programmes:        

1. Administration 66,332 66,281 51 99.9%

2. Energy, Broadband Infrastructure and Mining Enterprises 85,985 85,984 1 100.0%

3. Legal , Governance and Risk 21,094 21,077 17 99.9%

4. Manufacturing Enterprises 3,664,031 3,662,997 1,034 100.0%

5. Transport Enterprises 752,130 752,128 2 100.0%

6. Joint Project Facility 15,517 15,516 1 100.0%

Total 4,605,089 4,603,983 1,106 100.0%

Economic Classification:        

Current expenditure 126,589 126,565 24 100.0%

Of which:        

Compensation of employees 56,001 55,998 3 100.0%

Goods and Services 70,561 70,541 20 100.0%

Transfers and subsidies 4,474,993 4,473,912 1,081 100.0%

Of which:        

Denel 1,155,000 1,153,968 1,032 99.9%

SAA 744,400 744,400 - 100.0%

Pebble Bed Modular Reactor 2,502,273 2,502,273 - 100.0%

Payments for capital assets 3,507 3,506 1 100.0%

Total 4,605,089 4,603,983 1,106 100.0%

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Department of Public Enterprises Table 2: Last quarter spending

Jan 08 Feb 08 March 08 Total Exp March 08 Allocation Expenditure ExpenditureProgramme 3 months March

R'000 R'000 R'000 R'000 R'000 R'000 % %Prog 1: Administration 3,691 7,286 7,083 18,060 7,083 66,332 27.2 10.68Prog 2: Energy,Broadband Infrastructure and Mining Enterprises 5,686 5,991 38,268 49,945 38,268 85,985 58.1 44.51Prog 3:Legal, Governance and Risk 1,222 1,551 5,682 8,455 5,682 21,094 40.1 26.94Prog 4:Manufacturing Enterprises 207,447 211,300 261,679 680,426 261,679 3,664,031 18.6 7.14Prog 5:Transport Enterprises 279 152,829 595,520 748,628 595,520 752,130 99.5 79.18Prog 6:Joint Project Facility 1,720 4,253 -247 5,726 -247 15,517 36.9 -1.59Special Programme: Thefts and Losses 0 0 0 0 0 0Total 220,045 383,210 907,985 1,511,240 907,985 4,605,089 32.8 19.72Economic ClassificationCurrent Payments 7,771 15,736 19,839 43,346 19,839 126,589 34.2 15.67 Compensation of Employees 4,244 5,489 4,628 14,361 4,628 56,001 25.6 8.26 Goods and Services 3,527 10,247 15,184 28,958 15,184 70,561 41.0 21.52 Financial Transactions in assets & liabilities 0 0 27 27 27 27 100.0 100.00 Other 0 0 0 0 0 0 0.0 0.00Transfer and subsidies to Current Transfers } 212,184 367,046 887,198 1,466,428 887,198 3,541,993 41.4 25.05Transfers and subsidies to Capital Transfers} 0 0 0 0 0 933,000 0.0 0.00Payments for capital assets 90 428 948 1,466 948 3,507 41.8 27.03Total 220,045 383,210 907,985 1,511,240 907,985 4,605,089 32.8 19.72Economic ClassificationCurrent Payments 7,771 15,736 19,839 43,346 19,839 126,589 34.2 15.67Transfers and Subsidies (Current & Capital) 212,184 367,046 887,198 1,466,428 887,198 4,474,993 32.8 19.83Payments for capital assets 90 428 948 1,466 948 3,507 41.8 27.03Total 220,045 383,210 907,985 1,511,240 907,985 4,605,089 32.8 19.72

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Department of Public Enterprises Observations and Analysis

• Preliminary Expenditure Outcome– Department spent R4.6 billion (99,99% or 100%) of allocated budget

• General Spending trends– Transfer payments were the largest expenditure item and amounted to

97.2 % of the total budget.• Major Current Expenditure Virements

– The total virements were mainly effected from compensation of employees to fund over-expenditure under goods and services and payments for capital assets (computer equipment) amounting to R2.5 million.

• Major under spending/deviations– Under spending amounted to R1.106 million or 0.02% of the total budget

due to mainly over provision of the Denel indemnity claim.– Programme 4: Manufacturing Enterprises under spent the most i.e. by

R1.038 million in respect of the transfer payment to Denel (indemnity claim)

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Department of Public Enterprises Major Projects

• Major Activities/Projects– South African Airways: R744 million was allocated as transfer

for restructuring of staff (Labour costs) in line with short term intervention strategy.

– Denel: Support Denel’s turnaround strategy, transfers of R933 million for further capitalisation and R222 million for payment of indemnity guaranteed.

– PBMR: Transfer payments totaling R2.5 billion for Operational expenses as well as major contracts.

26

Department of Science & Technology Table 1: Actual spending vs. Budget

Available Preliminary Deviation Actual2007/08 Financial year Funds Expenditure (Available Spending

Outcome Funds less as % ofSpending) Available

R '000 FundsProgrammes:1. Administration 114,448 113,391 1,057 99.1%2. Research, Development and Innovation 538,001 531,444 6,557 98.8%3. International Co-operation and Resources 99,739 99,435 304 99.7%4. Human Capital and Knowledge Systems 1,275,600 1,272,583 3,017 99.8%5. Socio-Economic Partnerships 1,116,441 1,110,430 6,011 99.5%Total 3,144,229 3,127,283 16,946 99.5%Economic Classification:Current expenditure 214,340 212,412 1,928 99.1%Of which:

Compensation of employees 104,111 104,075 36 100.0%Goods and Services 110,147 108,256 1,891 98.3%

Transfers and subsidies 2,923,363 2,908,359 15,004 99.5%Of which:

National Research Foundation 657,699 657,699 - 100.0%Council for Scientific and Industrial Research 517,352 517,352 - 100.0%Human Resourses Development 196,711 195,910 801 99.6%Biotechnology Strategy 161,763 161,722 41 100.0%South African National Research Network 162,000 162,000 - 100.0%Human Sciences Research Council 155,949 155,949 - 100.0%Innovation Fund 141,818 141,818 - 100.0%Frontier Science and Technology 103,500 103,500 - 100.0%Square Kilometer Array 104,121 105,512 (1,391) 101.3%Advanced Manufacturing Technology Strategy 57,822 57,706 116 99.8%

Payments for capital assets 6,526 6,512 14 99.8%

Total 3,144,229 3,127,283 16,946 99.5%

27

Department of Science & Technology Table 2: Last quarter spending

Programme

Administration 6,906 11,389 25,745 44,040 114,448 38.5Research Development and Innovation 46,274 20,181 30,042 96,497 538,001 17.9International Co-operation and Resources 7,060 7,099 12,469 26,628 99,739 26.7Human Capital and Knowledge Systems 33,602 22,401 40,269 96,272 1,275,600 7.5Socio-Economic Partnership 214,910 36,175 50,134 301,219 1,116,441 27.0Special Programme: Thefts and Losses 0 0 39 39 - -Total 308,752 97,245 158,698 564,695 3,144,229 18.0Economic ClassificationCurrent Payments 15,883 19,033 33,467 68,383 214,340 31.9 Compensation of Employees 8,914 9,075 9,657 27,646 104,111 26.6 Goods and Services 6,969 9,958 23,771 40,698 110,147 36.9 Financial Transactions in assets & liabilities 0 0 39 39 82 47.6Transfer and subsidies (Current) 284,863 75,477 104,756 465,096 2,659,863 17.5Transfers and subsidies (Capital) 7,811 2,600 16,932 27,343 263,500 10.4Payments for capital assets 195 135 3,543 3,873 6,526 59.3Total 308,752 97,245 158,698 564,695 3,144,229 18.0Economic ClassificationCurrent Payments 15,883 19,033 33,467 68,383 214,340 31.9Transfers and Subsidies (Current & Capital) 292,674 78,077 121,688 492,439 2,923,363 16.8Payments for capital assets 195 135 3,543 3,873 6,526 59.3Total 308,752 97,245 158,698 564,695 3,144,229 18.0

% Spending for the quarter

Jan 08R'000

Feb 08R'000

Mar 08R'000

Total ExpR'000

AllocationR'000

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Department of Science & Technology Observations and Analysis

• Preliminary Expenditure Outcome R3.127 billion or 99.5 % of appropriated funds R16.9 million savings mainly on transfers and subsidies

• Spending on major items 93 per cent on transfers and subsidies 6.8 per cent on current expenditure 0.2 per cent on payments for capital assets

• Virements 0.99 per cent shifted from transfers and subsidies to current

payments and payments for capital in the AENE 1 per cent shifted from current expenditure to transfers and

subsidies & payments capital expenditure after the AENE

29

Department of Science & Technology Major Projects• Major activities/projects

Completion of the experimental development model (XDM) a prototype dish - MeerKAT

Launching of the International Centre for Genetic Engineering & Biotechnology

Finalisation of the design of SANReN by Infraco and Neotel at the CSIR

30

Department of Trade & Industry Table 1: Actual spending vs. Budget

2007/08 Financial year Available Preliminary Deviation (Available Actual SpendingProgrammes: Funds Expenditure Funds less as % of

R'000 Outcome Spending) Available Funds1. Administration 328,851 310,836 18,015 94.5%2. International Trade and Economic Development 134,676 133,513 1,163 99.1%3. Enterprise and Industry Development 1,803,572 1,793,200 10,372 99.4%4. Consumer and Corporate Regulation 155,369 148,525 6,844 95.6%5. The Enterprise Organisation 2,703,221 2,563,104 140,117 94.8%6. Trade and Investment South Africa 286,158 284,546 1,612 99.4%7. Marketing 67,586 61,517 6,069 91.0%Total 5,479,433 5,295,241 184,192 96.6%Economic Classification:Current expenditure 777,454 746,900 30,554 96.1%Compensation of employees 330,678 327,488 3,190 99.0%Goods and Services 446,776 393,447 53,329 88.1%Thefts and losses - - (25965)Transfers and subsidies 4,664,899 4,524,212 140,687 97.0%Of which:Business Process Outsourcing 110,000 35,588 74,412 32.4%Staple Food Fortification Programme 35,001 - 35,001 0.0%Co-operatives Incentive Scheme 14,129 - 14,129 0.0%Small Enterprise Development Agency 258,849 258,849 - 100.0%Coega Development Corporation 725,963 725,963 - 100.0%Critical Infrastructure Programme: ALCAN 300,000 300,000 - 100.0%Critical Infrastructure Programme 66,427 60,215 6,212 90.6%Enterprise Development: Small and Medium Enterprise Development Prog 1,040,369 1,040,163 206 100.0%Payments for capital assets 37,080 24,129 12,951 65.1%Total 5,479,433 5,295,241 184,192 96.6%

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Department of Trade & Industry Table 2: Last quarter spending

Jan 08 Feb 08 March 08 Total Exp Allocation Expenditure Expenditure Programme 3 months March

R'000 R'000 R'000 R'000 R'000 % %Prog 1: Administration 26,001 23,873 50,693 100,567 328,851 30.6 15.4%Prog 2: International Trade & Economic Development 4,428 4,623 44,486 53,537 134,676 39.8 33.0%Prog 3: Enterprise & Industry Development 233,150 210,788 100,488 544,426 1,803,572 30.2 5.6%Prog 4: Consumer & Corporate Regulation 5,137 3,343 10,651 19,131 155,369 12.3 6.9%Prog 5: The Enterprise Organisation 161,406 210,605 352,125 724,136 2,703,221 26.8 13.0%Prog 6: Trade and Investment South Africa 28,247 34,204 59,651 122,102 286,158 42.7 20.8%Prog 7: Marketing 6,180 2,734 9,592 18,506 67,586 27.4 14.2%Total 464,549 490,170 627,686 1,582,405 5,479,433 28.9 11.5%Economic ClassificationCurrent Payments 66,613 60,174 117,808 244,595 777,454 31.5 15.2% Compensation of Employees 27,990 24,103 44,804 96,897 330,678 29.3 13.5% Goods and Services 35,358 36,070 69,233 140,661 446,776 31.5 15.5%Transfer and subsidies to Current Transfers } 228,633 247,680 321,551 797,864 2,619,137 30.5 12.3%Transfers and subsidies to Capital Transfers} 168,783 180,954 180,725 530,462 2,045,762 25.9 8.8%Payments for capital assets 520 1,362 7,602 9,484 37,080 25.6 20.5%Total 464,549 490,170 627,686 1,582,405 5,479,433 28.9 11.5%Economic ClassificationCurrent Payments 66,613 60,174 117,808 244,595 777,454 31.5 15.2%Transfers and Subsidies (Current & Capital) 397,416 428,634 502,276 1,328,326 4,664,899 28.5 10.8%Payments for capital assets 520 1,362 7,602 9,484 37,080 25.6 20.5%Total 464,549 490,170 627,686 1,582,405 5,479,433 28.9 11.5%

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Department of Trade & Industry Observations and Analysis

• Major Virements– Virements to a total amount of R104.587 million or 1.9 % were

effected of which 15 were approved by NT – Mainly effected from Goods and Services under various Programmes to fund over expenditure under

1. Transfer payments such as World Trade Organisation, UNIDO, OPCW and Trade and SEDA. 2. Compensation of Employees under Programme 6 (Trade &

Investment South Africa)

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Department of Trade & Industry Observations and Analysis(2)

• Preliminary Expenditure Outcome– Department spent R5.3 billion or 96.6% of allocated funds. – This is mainly as a result of the increased expenditure in respect of - claims paid

out to Small & Medium Enterprise Development Programme (SMEDP), • recapitalisation of the National Empowerment Fund (NEF), • Coega Industrial Development Zone for infrastructure investment, and• Critical Infrastructure Programme (CIP) for the development of infrastructure

in respect of the ALCAN aluminium smelter project.– 4 out of 7 programmes’ expenditure exceeded 95% of their respective allocated

budgets• General Spending trends

– Main spending Programmes were Programme 3 (Enterprise & Industry Development) mainly policy development and 5 (The Enterprise Organisation) mainly incentive schemes. Increased expenditure mainly related to SMEDP, National Empowerment Fund, Coega IDZ and the Critical Infrastructure Programme

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Department of Trade & Industry Observations and Analysis(3)

Major underspending/deviations– Department underspent by R184.2 million or 3.4% of total allocated budget– Programme 1: Administration underspent by R18.0 million or 5.5% due to

Goods & Services (Consultancy Services) and capital assets– Programme 5: The Enterprise Organisation underspent by R140 million or 5.2%

mainly on incentive schemes such as BPO, Staple Food Fortification, Co-operatives and CIP.

– Programme 7: Marketing underspent the most by R6.1 million or 9% mainly on Goods & Services (Advertising campaigns, Publications and Consultancy Services)

– Payments for Capital Assets amounting to R12.9 million or 34.9% underspent due to Computer equipment not delivered and the IT

Disaster Recovery System – project not completed– Goods and Services underspent by R53.3 million or 11.9% under various

programmes which mainly related to Consultancy Services

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Department of Trade & Industry Major Projects

• Major Activities/Projects– Policies presented on the National Industrial Policy Framework

and the Industrial Policy Action Plan– New Enterprise Investment Programme that will replace the

previous Small Medium Enterprise Development Programme which will also be grants mainly to the Manufacturing and Tourism Sectors

– Customised Sector Programmes including the review of the MIDP

– Policies developed for Sector Development Programmes which include the priority sectors such as Clothing & Textiles, Agro-processing, Automotive Assembly, Chemicals, Pharmaceuticals, etc.