SUPPLEMENTARY ESTIMATES OF EXPENDITURE FROM THE CONSOLIDATED FUND
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1 SUPPLEMENTARY ESTIMATES OF EXPENDITURE FROM THE CONSOLIDATED FUND Financial Paper No. 1 of 2016/2017
2 CONTENTS PAGE Preface v Executive Summary PART I: CONSOLIDATED FUND Summary of Supplementary Requests...1 Financial Statement...2 Organisation 0300 Finance and Development Planning...3 Organisation 0600 Education & Skills Development...4 Explanatory Notes....5
3 SUPPLEMENTARY ESTIMATES NO 1 OF 2016/2017 (July, 2016) SUPPLEMENTARY ESTIMATES BY THE HON. MINISTER OF FINANCE AND DEVELOPMENT PLANNING SHOWING IN PURSUANCE OF SECTION 119 (3) OF THE CONSTITUTION SUMS A. REQUIRED/EXPENDED IN EXCESS OF AMOUNTS APPROPRIATED BY LAW FOR THE FINANCIAL YEAR 2016/2017 B. REQUIRED/EXPENDED FOR PURPOSES FOR WHICH NO AMOUNT WAS APPROPRIATED BY LAW FOR THE FINANCIAL YEAR, 2016/2017 (V)
4 EXECUTIVE SUMMARY Financial Paper No.1 of 2015/2016 contains Supplementary Estimates of Expenditure from the Consolidated Fund. The Supplementary Estimates of Expenditure contained in this Financial Paper were prepared in light of the authority conferred upon the Minister of Finance and Development Planning by the Constitution and the requirements of the Presidential Directives CAB.1/99 and CAB.1/2004 which provide guidance when assessing requests for supplementary estimates as explained below. 2. Section 119(3) (a) of the Constitution provides that if in any Financial Year it is found that the amount appropriated by the Appropriation Act for the purposes included in any head of expenditure is insufficient or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by the Appropriation Act, a Supplementary Estimate showing the sums required shall be laid before the National Assembly 3. Further, Presidential Directive CAB.1/99 stipulates that, Accounting Officers should strengthen their expenditure control measures and restrict Supplementary Estimates requests to cover unforeseen requirements and emergencies only. 4. Part I of the Financial Paper contains proposals for the Consolidated Fund Supplementary Estimates. Two (2) Ministries submitted supplementary budget estimates amounting to P119,284,090 namely Ministry of Finance and Development Planning and Ministry of Education and Skills Development, which is being recommended for approval through this financial paper. Explanatory notes for the supplementary estimates are available on Page 5 of the Financial Paper.
5 PART l SUPPLEMENTARY ESTIMATES OF EXPENDITURE FROM THE CONSOLIDATED FUND Financial Paper No. 1 of 2016/2017
6 SUMMARY OF SUPPLEMENTARY ESTIMATES NO. 1 OF 2016/2017 MINISTRY/DEPARTMENT Original Total Revised Supplementary Approved Authorised Estimates Estimate Provision 2016/ /2017 Required 2016/2017 P P P P 0100 Parliament 117,215, ,215, ,215, State President 1,110,984,910 1,110,984,910 1,110,984, Finance & Dev. Planning 759,101, ,101, ,385, ,284, Labour & Home Affairs 380,500, ,500, ,500, Agriculture 1,088,013,870 1,088,013,870 1,088,013, Education & Skills Development 10,636,328,520 10,636,328,520 10,641,328,520 5,000, Trade & Industry 908,526, ,526, ,526, Local Government 4,989,920,230 4,989,920,230 4,989,920, Minerals, Energy & Water Resources 374,312, ,312, ,312, Health 5,745,875,920 5,745,875,920 5,745,875, Administration Of Justice 254,575, ,575, ,575, Attorney General's Chambers 198,158, ,158, ,158, Auditor General 53,773,370 53,773,370 53,773, Foreign Affairs & Int'l Cooperation 491,639, ,639, ,639, Independent Electoral Commission 55,686,490 55,686,490 55,686, Ombudsman 24,432,580 24,432,580 24,432, Lands & Housing 833,239, ,239, ,239, Environment, Wildlife & Tourism 615,444, ,444, ,444, Industrial Court 42,506,110 42,506,110 42,506, Youth, Sports & Culture 899,822, ,822, ,822, Infrastructure, Science & Technology 433,549, ,549, ,549, Transport & Communications 2,022,398,190 2,022,398,190 2,022,398, Defence, Justice & Security 4,951,166,780 4,951,166,780 4,951,166, Appropriations from Revenue 14,690,580,332 14,690,580,332 14,690,580,332 0 TOTALS 51,677,753,282 51,677,753,282 51,797,037, ,284,090 1
7 FINANCIAL STATEMENT TOTAL SUPPLEMENTARY REQUIRED P119, 284,090 TO BE FINANCED FROM GENERAL REVENUE BALANCE P119, 284,090 2
8 ORGANISATION MINISTRY OF FINANCE AND DEVELOPMENT PLANNING TOTAL AUTHORISED REVISED SUPPLEMENTARY AUTHORISED ESTIMATES ESTIMATES P P P TOTALS 759,101, ,385, ,284,090 DETAILS OF THE FOREGOING PARENT ACCOUNT/ ACCOUNT DETAILS AUTHORISED PROVISION REVISED ESTIMATES SUPPLEMENTARY ESTIMATES NOTES 0301 Headquarters P P P 1700 Grants Subventions and Other Payments Agricultural Credit Guarantee Scheme 0 114,284, ,284,090 Parent Account Total 271,039, ,323, ,284,090 Departmental Total 496,023, ,307, ,284,090 (1) 3
9 ORGANISATION MINISTRY OF EDUCATION AND SKILLS DEVELOPMENT TOTAL AUTHORISED REVISED SUPPLEMENTARY AUTHORISED ESTIMATES ESTIMATES P P P TOTALS 10,636,328,520 10,641,328,520 5,000,000 DETAILS OF THE FOREGOING PARENT ACCOUNT/ ACCOUNT DETAILS AUTHORISED PROVISION REVISED ESTIMATES SUPPLEMENTARY ESTIMATES NOTES 0608 Secondary Education P P P Food Food 244,000, ,000,000 5,000,000 Parent Account Total 387,220, ,220,100 5,000,000 Departmental Total 845,139, ,139,600 5,000,000 (2) 4
10 EXPLANATORY NOTES TO SUPPLEMENTARY ESTIMATES ORGANISATION 0300: FINANCE AND DEVELOPMENT PLANNING 0301: HEADQUARTERS Agricultural Credit Guarantee Scheme The Ministry requests an additional P114, 284,090 to provide for the Agricultural Credit Guarantee Scheme (ACGS) in order to cover the 85% subsidy to dry land farmers who obtained seasonal loans from CEDA and NDB. The subsidy is meant to reduce their debt obligations with these lending institutions by 85% of the instalments that fell due in the 2015/2016 cropping season. The farmers are responsible for the remaining 15% of the instalments, and are only covered subject to payment of their premiums. The amount requested is the difference between what is required and the existing balance in the ACGS Special Fund. ORGANISATION 0600: EDUCATION AND SKILLS DEVELOPMENT 0608: SECONDARY EDUCATION Food Pursuant to Section 32 (2) of the Public Finance Management Act (Act No. 17 of 2011), His excellency the President issued a warrant of Expenditure out of the Contingency Fund amounting to P5,000,000 to cater for expenditure in the Food account under the Department of Secondary Education in the Ministry of Education and Skills Development in March The budget for the Account was exhausted and this had caused food crisis in several schools around the country. The P5,000,000 was required urgently to procure food to mitigate the situation at the affected schools. 5
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