Compliance by Committees with Money Bills Act: Implications and Timeframes

1. Compliance by Committees with the timeframes provided by the Money Bills Amendment Procedure and Related Matters Act No 9 of 2009 Prepared by Committee Section 11 March 2010

2. Presentation focuses on: • Objectives of the Act • Implications of the Act to Parliament • How Committees should comply with timeframes provided by the Act.

3. Objectives of the Act • Provides Parliament with procedure to amend money Bills, which details step by step in terms of what Parliament should do if it intends to amend money Bills. • Establishes new committees • Appropriation Committees in both Houses • Finance Committees in both Houses • Establish the Budget Office

4. Implications of the Act • Introduces new stages in the Budget Process in Parliament • Review of the Parliamentary Programme as it means more time to be allocated to Committees to be able to meet the deadlines mentioned in the Act. • Coordination of work of committees • Insufficient time is allocated to Parliament to amend Money Bills.

5. Budget Process in Parliament i.t.o the Act • Budgetary Review and Recommendations Report (BRRR) • Medium Term Budget Policy Statement (usually tabled in October) • Fiscal Framework • Division of Revenue Bill • Appropriation Bill

6. Committee Process • The Act states that Committees must: • Report to the House on Budgetary Review & Recommendation Reports (BRRR) before the adoption of the MTBPS • Consider and report on MTBPS (tabled together with Adjustment Appropriation Bill) • Consider and report on: Fiscal Framework, Division of Revenue Bill and Appropriation Bill

7. Budgetary Review & Recommendation Reports (BRRR) • BRRR is the assessment of the performance of department on service delivery taking into account the resources available and how they are used effectively and efficiently • Committees of the National Assembly should report to the NA on BRRR adoption of MTBPS, which is usually tabled in October • Tools available for Committees to prepare for BRRR: • Monthly and quarterly reports published by Treasury on expenditure of the Departments (PFMA) • Annual reports of Departments & public entities using public funds (tabled in Parliament by end September)

8. BRRRContinuation of Tools • Financial & Fiscal Commission Report -recommendations • AG’s reports & SCOPA findings • Findings by Committees during oversight visits • Briefing by Departments and entities • State of the Nation Address (SONA) • Implementation of Legislation etc

9. Proposal on time to be allocated to Committees to compile the BRRR Two weeks in October be allocated to Committees (10 working days, 11 – 22 October is allocated to Committees this year for BRRR. The two weeks is sufficient provided: • No plenaries will be scheduled • Committees be allowed to use Mondays and Thursdays • Committees use Fridays fully (concern of poor attendance of meetings)

10. Motivation for time to be allocated for BRRR • Too much information to be considered by Committees • Facilitation of Public involvement • Conferral with other Committees • Compilation of BRRR and reporting to the House (how) • Referral of the BRRR to the relevant Department & Standing Committee on Appropriation -

11. Motivation for allocation of time for BRRR • If two weeks is not allocated for compilation of BRRR: • Each Committee will have 2 mornings (3 hrs) to compile BRRR • Means that Committees will not be able to consider all the relevant information • Committees may not be able to confer

12. Role of NCOP Committees on BRRR NB!! The Act is silent on role of NCOP Committees on BRRR, but the Rules allow Committees of both Houses to confer

13. Medium Term Budget Policy Statement (MTBPS) • Usually tabled towards the end October each year and passed by Parliament before it adjourns • Parliament to pass it within 30 working days • Referred to the Finance and Appropriations committees for consideration and reporting • The Standing Committee on Appropriation to take into account recommendations made in BRRR, therefore may confer with other committees • Parliament may amend the MTBPS

14. Motivation for time to be allocated to Committees for (MTBPS) • Three weeks (15 working days) be fully allocated to Committees • Joint planning by these committees is essential to be able to: • Consider the MTBPS • Facilitate Public Participation • Consider some of BRRR • Confer with other Committees where necessary • Report to the House • The practice is that the MTBPS is debated by the House before Parliament adjourns in November.

15. Reporting of Committees on MTBPS • Referral by Parliament to the Minister within 7 days after the adoption by the House

16. Tabling of the Budget (Feb every year) The Minister of Finance tables the following documents when tabling Budget: • Fiscal Framework • Division of Revenue Bill • Appropriation Bill

17. FISCAL FRAMEWORK(FF) • Parliament has 16 days to consider and report after tabling of the Framework • Referred to the Standing and Select Committees on Finance which must hold joint public hearings. • If the two Committees propose amendments, they should submit their report to the Minister two days before they report to the House. • Therefore Parliament has 14 days to consider and report on the FF if it intends to amend the FF • Committee report should include the response from Minister on the proposed amendments • Therefore Joint Planning by the above Committees is essential (Programme of Parliament) Proposal for Joint Public participation: Fiscal Framework • 18 – 23 February (4 days) – Invites public input through media (national, local, community newspapers, interviews of Chairpersons in radio stations, distribution of pamphlets)

18. Processing of Fiscal Framework by Committees • Advert to be published a weekend before the tabling of FF • After tabling public has 4 days to submit their views • 2 days Public hearings (oral presentation) • 2 days – Committees deliberate on inputs received from public and relevant stakeholders

19. Processing of Fiscal Framework by Committees • 2 days compilation of a report • 1 day – deliberations on the report • 2 days – Referral of amendments to the Minister if any • 1 day - Consideration of response of the Minister • 1 day - adoption of report and publication in the ATC • Plenary

20. FISCAL FRAMEWORKReporting of the two Committees • The Framework should be passed by Parliament before Committees starts to consider Division of Revenue Bill and the Appropriation Bill

21. BUDGET VOTES • Budget Votes are referred to Committees once Fiscal Framework is passed by Parliament • Departments should table their Strategic Plans after the adoption of the Fiscal Framework • Therefore Committees may start consideration of Budget Votes • Budget Votes are scheduled for Debates from 13 – 23 April, which means committees have less than a month to consider and report on Budget Votes.

22. DIVISION OF REVENUE BILL NB!! Parliament has 35 days to consider and pass the Bill National Assembly process (2 days) • Referred to the Standing Committee on Appropriation for consideration and reporting once Fiscal Framework is adopted

23. DIVISION OF REVENUE BILL • Briefing by the National Treasury consideration and reporting by the Committee (one day) • Plenary in National Assembly • Referral to NCOP

24. DIVISION OF REVENUE BILLNCOP Process: six weeks cycle • Referral to the Select Committee on Appropriations • Briefing of the Select Committee • Briefing in Provinces by permanent delegates (negotiating mandates) • Select Committee discussing negotiating mandates • Provincial Committee, formulating final mandates • Select Committee discussing final mandates • Voting Mandates – Plenary NB!! Should be passed by Parliament by end of March

25. APPROPRIATION BILL National Assembly process • Referral to Standing Committee on Appropriation. • Committee may only report on Appropriation Bill once Division of Revenue is passed by Parliament • May invite public input immediately after the referral of the Bill to the Committee

26. APPROPRIATION BILL National Assembly process: • Briefing by Department • Consideration of information available for the committee (BRRR) • Whether Minister provided reasons on BRRR proposals • Reports on Budget Votes, inputs received from public, advise from Budget Office and conferral with other committees where necessary

27. APPROPRIATION BILL • Report of the Committee to the House • Plenary • Referral to NCOP

28. APPROPRIATION BILL NCOP PROCESS • Consideration and reporting by the Committee on 1, 2 & 3 June • Debate by the NCOP on 4 June

29. THANK YOU