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National Treasury

National Treasury. Strategic Plan 2006/07 – 2008/09. Presentation to Portfolio Committee on Finance 23 May 2006. Overview of presentation. Budgeting and accountability cycle Planning and budgeting cycle of NT Aim and strategic objectives Preliminary outcome for 2005/06

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National Treasury

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  1. National Treasury Strategic Plan 2006/07 – 2008/09 Presentation to Portfolio Committee on Finance 23 May 2006

  2. Overview of presentation • Budgeting and accountability cycle • Planning and budgeting cycle of NT • Aim and strategic objectives • Preliminary outcome for 2005/06 • Key policy priorities for 2006/07 – 2008/09 • Resources that support policy priorities • Critical revisions to 2005 – 2008 plan • Programme objectives • Outputs • Revised targets • How objectives will be achieved • Personnel strategy

  3. Budgeting and Accountability Cycle • Purpose today is to seek approval from PCOF for current 2006/07 budget and two outer years (2007/08 & 2008/09) • Annual report in Oct will report on past financial year 2005/06 • Note that ENE and strategic plan finalised in Feb 2006 with Budget, 10 months into past 2005/06 financial year • 2006 MTEF based on baseline from 2005 MTEF • Focus on additional allocations to 2005 baseline for 2006/07 • Focus on changes to measurable objectives compared to 2005 strategic plan • Preliminary assessment of 2005/06 financial year • Focus on projects that carry-over to 2006/07

  4. Planning and budgeting cycle National Treasury table revised medium-term plan 2006 MTEF Budget tabled May 06 Feb 06 Jan 06 November April - Aug May 05 NT plan revised and ENE chapter finalised Cabinet approves framework for 2006 Budget Developed budget proposals for 2006 MTEF 05/06 – 07/08 NT strategic plan tabled

  5. Promote economic development, good governance, social progress and rising living standards through the accountable, economical, equitable and sustainable management of public finances Advance economic growth and income redistribution Prepare a sound and sustainable national Budget and equitable division of resources Strive to equitably and efficiently raise fiscal revenue, while enhancing efficiency and competitiveness of the SA economy Sound management of Government’s financial assets and liabilities Promote transparency and enforce effective financial management Aim and strategic objectives

  6. Preliminary Outcome for 2005/06 • Annual Report will provide final report, including audited financial statements • NT spent R13,1bn out of R14,2 bn adjusted budget • R1,1 bn not spent or transferred • R841,6 mil not transferred to provinces/municipalities for failing to adhere to conditions for grants • R69,6 mil saved on medical expenditure of retirees • Non-transfer of R122,3 mil to ADB, CMA and APEX • Core NT budget in 2005/06 is R9,8 bn, of which 9,6 bn spent

  7. Key policy priorities for 2006/07 – 2008/09 • Accelerate economic growth in line with ASGI-SA • Improve monitoring and coordination of capital projects (infrastructure) • ensure efficiency and quality of spending • Reinforce budget reform and financial management at the local level, and increase local government budgets in support of critical services • Modernise financial management system (IFMS) • Achieve accountability through effective management iro REAL • Host the G20 secretariat in 2007 calendar year

  8. Resources that support key priorities New budget R10,4 bn in 2006/07, R10,9 bn in 2007/08, and R11,4 bn in 2008/09

  9. Accelerating Growth in SA • Key role for NT is to provide economic analysis and modelling support for ASGI-SA • Assessing model for internal consistency • Major boost to improve research capacity of SA institutions through link with international economists • Key role in developing growth diagnostic and identifying key binding constraints • NT to re-organise EPIFR division to focus more on growth, employment and macroeconomic stability

  10. Recent achievements 13 Technical Experts employed to assist with infrastructure delivery Spending on CAPEX increased by 24% Underspending reduced to 16% of a bigger budget Medium-term plans Continue support in education Extend technical support to: Public Works in 2006/07 Prepare for extension to health in 2007 Deepen improved infrastructure planning and management Infrastructure Development Programme (IDIP)

  11. Recent achievements Systems Master Plan, prospectus and User Requirement Statements completed Alignment of current systems to IFMS Positioning of SITA for Prime Systems Integrator role Medium-term plans Phase II: Acquiring infrastructure for IFMS applications Hardware Software Commercial operating off-the-shelf system packages Phase III: Full implementation over 5 year period Integrated Financial Management System

  12. Recent achievements CFS published on time for first time Asset management guide rolled out in all departments Internal audit assessments for all departments Risk assessments done in Northern Cape Enacted Auditing Profession Act Medium-term plans Implementation of new GRAP standards Implementing monthly management accounts Increasing support to all stake-holders iro accounting, risk management and internal auditing. Achieve accountability through effective management iro REAL

  13. Critical revisions to outputs and targets

  14. Revisions to 2005 – 2008 plan: Administration

  15. Revisions to 2005 – 2008 plan: Budget Office and Public Finance

  16. Revisions to 2005 – 2008 plan: Intergovernmental Fiscal Relations

  17. Revised targets: Economic Policy

  18. Revised targets: Tax and Financial Sector

  19. Revised targets: Assets and Liability Management Implementation of DFI review, and financial modeling of appropriate dividend policies for GBE’s delayed by 1 year

  20. Revised targets: Financial Accounting and Reporting

  21. How objectives will be achieved • Correct policy decisions, smart planning, disciplined implementation and hard work • Filling of vacancies with best qualified, experienced and skilled staff • Improve internal and external coordination and information flow • Increasing support to departments • Continued professional development of all staff

  22. Personnel plan • Total vacancies decreased from 299 to 152 between 31 March 2005 and 31 March 2006 • Reason for reduction: • Abolishment of non-budgeted positions • Appointed employees additional to the establishment against funded vacancies • Appointed interns into funded vacancies • Reserved positions for Leadership Talent Pool • Tight project management in the filling of positions • Plan to recruit 140 new employees during 2006/07

  23. Thank you

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