Fiscal Responsibility in South Africa
|
|
- Myra Little
- 6 years ago
- Views:
Transcription
1 Fiscal Responsibility in South Africa Ismail Momoniat, National Treasury, Republic of South Africa Website:
2 Background
3 Introduction SA is not a federal country, but a unitary country that is highly decentralised administratively and fiscally since 1994 Three spheres of govt, with local govt distinct sphere, not a creature of provinces Focus will be on provinces and not local govt Focus of presentation is on initial lessons after only 11 years of democracy Too early to draw conclusive lessons Lessons apply to SA, and cannot be applied to another country, so no attempt to apply these to a complex and highly populated country like India
4 System of Governance in SA National, 9 Provinces, and 284 Municipalities Provinces School education, health, social grants (Social services) Housing, Provincial Roads, Agriculture Poor fiscal capacity (own revenue 4%, national grants 96%) Local government Water, electricity, refuse removal, housing infrastructure, municipal roads Significant fiscal capacity, but varies between municipalities (Urban metros over 95% own revenue, Rural 30%) National government Over half actual spending on defence, justice (courts), prisons and police Other: higher education, admin, policy, regulatory
5 Fiscal capacity and functions Non-interest R362,6 bn out of R417,8 bn budget for 2005/06 Servicing debt at R53,1 bn, contingency res R2bn Provinces receive R209,3bn (57,7%) 9 provincial budgets aggregate to R215 bn Own Revenue only 4% : Motor car license fees, gambling Local Government receives R17,1bn (4,7%) Only one third of spending on public goods (no revenue) Two thirds spending user charge services (water/electricity) Taxes: Property taxes, regional levies (to be phased out) Own revenue around R90bn National Govt budget is R109bn (37,6%) Revenue-sharing system (Constitution) Size of grant depends on functions & fiscal capacity
6 Division of revenue 2003/ / / / /08 R million Prelim in. outcome Estim ate Medium-term estimates National departm ents Provinces Equitable share Conditional grants Local governm ent Equitable share Conditional grants Non-interest allocations 282, , , , ,513 Percentage increase 15.4% 13.8% 12.9% 9.1% 8.0% State debt cost 46,313 48,901 53,125 56,603 59,381 Contingency reserve 2,000 4,000 8,000 Main budget expenditure 328, , , , ,894 Percentage increase 12.7% 12.6% 12.9% 9.2% 8.4% Percentage shares National departments 38.4% 37.7% 37.6% 37.1% 36.9% Provinces 57.2% 57.7% 57.7% 57.9% 58.1% Local government 4.4% 4.6% 4.7% 5.0% 5.0% Percentage growth National departments 11.7% 12.5% 7.7% 7.5% Provinces 14.8% 12.9% 9.6% 8.3% Local government 19.1% 16.3% 14.9% 8.9%
7 Comparisons with India Vertical imbalance is dealt with through revenue-sharing, with some fiscal powers for provincial and local govts We have a Fiscal and Financial Commission It is permanent but has ADVISORY powers only National govt makes final proposal subject to approval by 2 Houses of Parliament Each govt in each sphere has power to determine its own budget Each govt in each sphere accountable to own elected legislature Greater and compulsory reliance on consultations and co-operative governance
8 Constitution of SA Section 214 requires annual Division of Revenue Act One national law applies to all provinces and municipalities No need for each province or municipality to have separate legislation on fiscal responsibility PFMA applies to all national and provincial govts, and MFMA applies to all municipalities How do we get consistency in fiscal responsibility objectives between states and between national govt? Uniformity and precedence of national economic policy, taxes etc
9 Tax Assignment National govt has 4 biggest taxes Personal Inc Tax, Corporate Tax, VAT, fuel levy Provinces can legally impose a surcharge on PIT and fuel levy, but do not as prefer revenue-sharing arrangement Provinces have motor car license fees Municipalities have property taxes and surcharge on electricity/water National legislation can regulate exercise of taxation powers of sub-national govts, given need for tax harmonisation and national economic policy objectives
10 Borrowing Powers Provinces and municipalities can only borrow for capital beyond a financial year Provinces and municipalities can borrow for bridging purposes within a financial year Provincial borrowing regulated by legislation Provinces have non-revenue generating activities, and minor tax powers Should they really borrow? We are open to giving more tax and borrowing powers in future, but need to ensure expenditure efficiency first
11 Intervention powers Specified and narrow intervention powers where a province or municipality fails to exercise its powers or responsibilities National govt can intervene in a province in terms of section 100 of Constitution Province can intervene over municipality ito section 139 of Constitution
12 Key Fiscal legislation in SA Constitution Chapter 13 of Constitution National Acts of Parliament Intergovernmental Fiscal Relations Act Provincial Tax Regulation Process Act Borrowing Powers of Provincial Govt Act Public Finance Management Act (PFMA) Municipal Finance Management Act (MFMA) Annual Budget Acts of Parliament Annual Division of Revenue explanatory memorandum & extensive tables National and provincial appropriation Act Tax legislation (Taxation and Revenue Laws Amendment Acts)
13 Fiscal Responsibility in SA
14 How do we understand fiscal responsibility in SA? Rules and legislation are necessary but not sufficient Can easily get around (ex-ante or ex-post?) Budget a plan at start of fin year, and actual may be significantly different Co-operation and buy-in are more important Budget preparatory process must be DEEPLY consultative process Between national and sub-national govts Between departments in each government Budget is a POLICY process, driven by policy priorities and spending pressures
15 Transformation in first 5 years of democracy SA in a fiscal mess in 1994, with deficit close to 10% and inflation around 20% First priority of new Mandela govt was to get macroeconomic policy right Achieved with stunning success but low growth Second priority was to make the budget process more transparent and consultative Key budget reform was introduction of 3 year budgeting, debt management reforms Had to transform and modernise a bean-counting treasury with antiquated practices into a SMART treasury with policy assessment capacity
16 Budget Reforms since 1994 Three-year budgeting system National and provinces (1998/99 Budget), Municipalities Budget decentralisation and CERTAINTY Own budgets by provinces and Local Govt, grant certainty Division of Revenue Act and schedule of all national allocations per province, per municipality for each of three coming years Public Finance Mgt Act and Mun Fin Mgt Act modernising financial management in public sector Minister responsible for outcomes and policy, administrative head of dept responsible for implementation and outputs No bail-out/guarantees for provinces/lg Up-front allocation certainty, no ad-hoc in-year allocations Development of provincial/local fiscal framework
17 Low inflation and interest rates Repurchase rate CPI CPIX Per cent
18 Debt service costs as per cent of GDP Debt service costs 6% 5.5% 5.6% 5% 4% 5.3% 5.2% 4.9% 4.9% 4.7% 4.5% 3.9% 3.6% 3.5% 3.5% 3.4% As % of GDP 3.2% 3% 1994/ / / / / / / / / / / / / /08
19 Debt to GDP R billion Per cent GDP Foreign debt Domestic debt Total net loan debt as % of GDP (right axis)
20 Medium term outlook 10 8 GDP growth Current account (% of GDP) CPIX inflation 6 4 Per cent
21 Three year budgeting In 1998 shifted from one-year incremental budgets to three-year rolling budgets Publish 3 year budgets, but appropriate only for one year only Use outer 2 years as baseline for next budget, and allocate only additional funds from contingency reserve and new revenue We ignored nay-sayers who said not possible Lays basis for better planning, more consultative budget processes and better intergovernmental fiscal relations
22 Intergovernmental Budgeting SA has grant certainty Three year allocations per province, per municipality, for EVERY grant Equitable share allocation main allocation to provinces (64%) Clear formula to divide funds Provincial formula linked to key social sectors Local govt formula linked to poor households Conditional grants Social grants (27%, previously from eq share) Infrastructure, tertiary hospital services Different formula for each conditional grant Annexure E in Division of Revenue Bill
23 Budget is a policy process Budgeting is at heart of policy-making, and needs to be consultative Budgets require prioritising of policies, which is essentially a POLITICAL process Minister of Finance requested Cabinet to form- a Ministers Committee on the Budget (sub-com of Cab) Budget Council and Budget Forum, for provinces and municipalities Compulsory consultations for Division of Revenue process and exercise of subnational fiscal powers No outside or independent agency can determine budget or allocations
24 Budgeting harder under decentralised system Need to co-ordinating policy, planning, budgeting processes National depts responsible for policy, prov/lg for implementation Setting up of sectoral Ministerial forums (MinMECs) between Ministers of national and provincial governments for education, health, welfare, housing Challenge of co-ordinating sectoral and budget forums, as each sector wants to maximise its funds Reducing sectoral collusion and allegations of unfunded mandates How do we link Budgets to PERFORMANCE?
25 Performance and Accountability challenges We are still striving to get more performance accountability Budget reforms to facilitate greater performance in public sector as a whole Has 3 year budgeting reached lower down to the level of project or facility? How do we get better customer accountability? How can we get better political accountability through legislatures Does pol failure increase risk of service delivery
26 Budget preparation process: pre-year Independent FFC makes (advisory) proposals Consultations with provinces and LG Budget Council of national/provincial Ministers of Finance Budget Forum incorporates local govt National Cabinet makes final allocations to 3 spheres of govt in October Equitable share formula used to divide funds between provinces and local govt (also conditional grant formulae) Pre-budget in Nov, followed by Budget in Feb Division of Revenue Bill tabled, to be passed by Parliament Contains memo explaining formulae Contains or ensures up-front payment schedule for transfers Provinces table own three year budgets in Feb/March National govt publishes Intergovernmental Fiscal Review in April
27 Key Budget documents Budget Review and Division of Revenue (DoR) Bill all part of National Budget contains memo explaining formula contains/ensure upfront payment schedule for transfers Intergovernmental Fiscal Review 1x month after national and provincial budgets tabled discusses 9 provincial budget trends for 7 years in year (2002/03), three years to follow, three years past covers LG information for current financial year Quarterly and monthly budget info on provinces 30 days after end of each quarter Strategic plans of departments tabled with budgets Annual reports of departments in Sept NT website
28 Initial Lessons from SA
29 First Lesson from SA Budget reform goes with fiscal decentralisation It is even more important for fiscally decentralised Co-ordinating policy and sector interests across tiers of government is really difficult but necessary Ignore the nay-sayers and implement 3 year budgets Budgets should not require line-item political and legislative approval Reserve line-item budgets (to the extent they are even necessary) for internal management purposes only
30 Budget Reforms and Fiscal Decentralisation Budget reforms are even more important for fiscally decentralised countries Are budgets sustainable? Is consolidated tax to GDP stable or declining? Is consolidated borrowing or deficit sustainable (ie consolidated debt to GDP stable or declining) Are provincial budgets comparable with each other? Standard chart of accounts, uniform budget formats etc How quickly can we produce consolidated budget information? How much are we spending on school education? Need to aggregate school budgets from 9 provinces
31 Second Lesson: Intergovernmental Grants Money is fungible, so unconditional grants work better than conditional grants, focusing on broad priorities related to entire budget Resist sectors who prefer conditional grants Cond grants for social grants and infrastructure Horizontal equitable share formula is redistributive between provinces How do we achieve equalisation? Needs versus performance? Data problems is it possible to get comparable usage and cost data for all
32 Third Lesson: Transparency, Information and Accountability It is a continual struggle to get all levels of government to publish information Start with budget implementation information, through monthly reports Opens up possibilities for greater accountability by Parliament, public etc Information delayed is accountability denied! Culture of publishing ALL relevant info on website on same day How quickly do we collect and publish
33 Regular reporting Financial management improves dramatically if we start Publishing of monthly in-year reports on budget implementation Requiring financial statements from all departments and entities to submit for audit within 60 days of end of fin year, and audited and tabled in Parliament within 6 months Many benefits follow from above, including inyear accountability, better management and a further feedback mechanisms to improve budget allocation process
34 Fourth Lesson: Build Treasury capacity Third lesson is to reform all treasuries to play a leadership role in budget process Budgeting is too important to leave to accountants! It is positively dangerous National Treasury must develop its policy assessment capacity to inform budget allocation process National Treasury also needs to create an enabling framework for better governance, management and accountability
35 National Treasury capacity In a decentralised country, National Treasury in SA has dedicated unit for intergovernmental fiscal relations Dedicated unit to work with provinces and municipalities Assessing credibility of provincial budgets (informal and perhaps to publish such assessment) Printing Intergovt Fiscal Review (IGFR) and consolidated budgets Ensure each (nat, prov or mun) treasury prepares quarterly reports for its Cabinet or Exco Ensure that national Treasury do a consolidated quarterly report for all provinces?
36 Key challenge is to ensure Budget Credibility National Treasury assesses provincial budgets as an advisory service to provide an independent perspective, and point out budget risk Is tabled budget credible? Are projections realistic? Is the deficit fully funded? Focus on a balanced budget rather than a deficit target? Continual challenge is to ensure implementation is according to planned budget
37 Fifth lesson: One collection agency Success of one national collecting revenue agency (SARS) for the major taxes You cannot spend or divide revenue that you fail to collect! We divide revenue ANTICIPATED to be collected before the start of the financial year
38 Last lesson: Check relevance of Conventional Assumptions To what extent does conventional theory of fiscal decentralisation really work in a developing country? Does greater tax capacity lead to better accountability? Do developing countries have effective accountability and auditing mechanisms? How can we get better financial or service accountability when we have a shortage of auditors, doctors etc?
39 Theory and practice SA has clear expenditure and tax assignment, and GRANT CERTAINTY Why are provinces fiscally more responsible than municipalities? Provinces have weak tax powers, municipalities have strong tax powers What further taxes do we devolve? Why should be move away from one tax collector? Why should we prioritise tax rate autonomy over other taxation reforms? What need for borrowing if govts struggling to spend on capital?
40 Other factors also impact: Public Service Subnational govts tend to have personnel intensive functions like teachers, nurses, and personnel expenditure a high proportion of their budget (eg in education 80%) Bargaining system for public service centralised or decentralised? Mobility and uniformity in conditions of service between states? Are public servants under one pension fund? Is it a benefit fund? How do you share burden of funding shortages?
41 Local Government We are still implementing our reforms with municipalities, so not as developed as with provinces Have undergone three major transitions (including change in boundaries) since 1993 Provincial govt should do unto municipalities what they want central govt to do unto them! Every govt has a propensity to be gate-keeper over funds they control Need three year grant certainty, predictability etc for local govt as well, and also for projects that you control
42 Conclusion Has decentralisation worked in SA? Don t know, too early to tell Reform process still not completed Short-term assessment vs medium to long-term Has decentralisation led to better delivery? Would delivery have been better if centralised? No, if national depts with delivery responsibilities are taken into account Not clear if provinces or local govt would do better! Mixed story of early successes and failures No easy solutions to complex problems
DIVISION OF REVENUE TO PROVINCES AND LOCAL GOVERNMENT
DIVISION OF REVENUE TO PROVINCES AND LOCAL GOVERNMENT Presentation to Select Committee on Appropriations Presenter: Wendy Fanoe National Treasury 15 July 2014 Outline Outline of the key steps in the national
More informationPresentation to the Egyptian Ministry of Planning, Monitoring, and Administrative Reform (MPMAR) Study Tour: South Africa.
Presentation to the Egyptian Ministry of Planning, Monitoring, and Administrative Reform (MPMAR) Study Tour: South Africa April 13 2016 STRUCTURE OF THE PRESENTATION 1. Background to South Africa s Intergovernmental
More information16 Fiscal decentralization in South Africa
16 Fiscal decentralization in South Africa A practitioner s perspective Ismail Momoniat Introduction This paper focuses on South Africa s implementation of a decentralized fiscal system since 1994, when
More informationSouth Africa s Intergovernmental Fiscal system. 22 June 2007
South Africa s Intergovernmental Fiscal system 22 June 2007 South Africa: Are these really perceptions??? Federal/Central View: Giving money and power to sub-national governments is like giving whiskey
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA. Vol. 478 Cape Town 1 April 2005 No
Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 478 Cape Town 1 April 2005 No. 27443 THE PRESIDENCY No. 291 1 April 2005 It is hereby notified that the President has assented to the following Act, which
More informationEnsuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements
Ensuring The Effective Participation Of Each Sphere Of Government In The Processes And Structures That Determine Intergovernmental Fiscal Arrangements Jackie Manche, Chief Executive Officer, Independent
More informationProvincial Budgeting and Financial Management
Provincial Budgeting and Financial Management Presentation to Select Committee on Appropriations Presenter: Edgar Sishi National Treasury 15 July 2014 INTRODUCTION Provincial functions are assigned by
More informationA Practitioner s Guide to Intergovernmental Fiscal Transfers
A Practitioner s Guide to Intergovernmental Fiscal Transfers Anwar Shah, World Bank ashah@worldbank.org Budgeting and Public Financial Accountability Workshop, Pretoria, South Africa June 18-22, 2007 Perceptions
More informationSubmission on Draft Money Bills Amendment Procedures and Related Matters Bill
Financial and Fiscal Commission Submission on Draft Money Bills Amendment Procedures and Related Matters Bill 2008 For an Equitable Sharing of National Revenue 1. Introduction 1.0.1 The Financial and Fiscal
More informationBUDGET SOUTH AFRICAN BUDGET: THE MACRO PICTURE. Key messages
BUDGET CHILDREN AND THE SOUTH AFRICAN BUDGET: THE MACRO PICTURE UNICEF/Pirozzi Key messages The nearly 2 million children in South Africa account for more than a third of the country s population. South
More informationCLIMATE FINANCE OPPORTUNITIES FOR ENHANCED LOCAL ACTION
CLIMATE FINANCE OPPORTUNITIES FOR ENHANCED LOCAL ACTION V-LED AFRICA WORKSHOP: LOCALISING CLIMATE FINANCE AND ACTION 23-25 APRIL 2018, IRENE, SOUTH AFRICA 1 CC expenditure will absorb ~ 70% of domestic
More informationFinancial and Fiscal Commission
Financial and Fiscal Commission Recommendations and Comments The Allocation of Financial Resources to National, Provincial and Local Governments for the 1998/99 Fiscal Year, Submitted in terms of Section
More informationUnit Standard : Apply the principles of budgeting within a municipality. Karel van der Molen
Unit Standard 116345: Apply the principles of budgeting within a municipality Karel van der Molen Group The full programme 1. Strategic Management; Budgeting Implementation & Performance Management 2.
More informationSouth African Budget Dictionary
South African Budget Dictionary November 2000 Produced by the National Democratic Institute for International Affairs (NDI) and the Budget Information Service of IDASA, under a grant from the United States
More informationComposition of the intergovernmental system Alignment between functional and fiscal assignments
. Disaster Management Amendment Bill: National Treasury inputs National Assembly: Portfolio Committee on Cooperative Governance and Traditional Affairs (CoGTA) x 20 May 2015 Outline Composition of the
More informationSharing the Cake: A Review of Provincial Equitable Share Formula in South Africa
Sharing the Cake: A Review of Provincial Equitable Share Formula in South Africa M. Govinda Rao and Bongani Khumalo The views and opinions expressed in this paper are those of the authors and not the Financial
More informationSubmission on the Function Shift of Further Education and Training (FET)
Submission on the Function Shift of Further Education and Training (FET) For an Equitable Sharing of National Revenue. 3 DECEMBER 2013 Financial and Fiscal Commission Montrose Place (2 nd Floor), Bekker
More informationCURRICULUM VITAE OF JUGAL MAHABIR
CURRICULUM VITAE OF JUGAL MAHABIR PERSONAL DETAILS TITLE : Mr SURNAME : Mahabir FIRST NAME : Jugal AGE : 28 years SEX : Male MARITAL STATUS : Married with two children NATIONALITY : South African DRIVERS
More informationFINANCIAL VIABILITY OF MUNICIPALITIES
FINANCIAL VIABILITY OF MUNICIPALITIES Financial and Fiscal Commission 11th National Municipal Managers Forum: SALGA 31 August 2017 For an Equitable Sharing of National Revenue STRUCTURE OF PRESENTATION
More informationIPSAS WORKSHOP. Key Provisions of the PFM Act 2012 and Mwongozo Code of Governance. Mountain Breeze Hotel - EMBU, 15 th -16 th June 2017
IPSAS WORKSHOP Key Provisions of the PFM Act 2012 and Mwongozo Code of Governance Mountain Breeze Hotel - EMBU, 15 th -16 th June 2017 Uphold. Public. Interest Session Objectives The aims of the Session:
More informationNATIONAL TREASURY STRATEGIC PLAN 2013/17 PRESENTATION TO PARLIAMENTARY FINANCE COMMITTEES
NATIONAL TREASURY STRATEGIC PLAN 2013/17 PRESENTATION TO PARLIAMENTARY FINANCE COMMITTEES 14 May 2013 TREASURY AIMS AND OBJECTIVES Chapter 13 of the Constitution of the Republic of South Africa. According
More informationIMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA
IMPROVING BUDGET TRANSPARENCY IN SOUTH AFRICA FISCAL TRANSPARENCY AND ACCOUNTABILITY MEETING - MOSCOW, RUSSIA Presented by: Dr Kay Brown Chief Director, Expenditure Planning 29 May 2014 Presentation outline
More informationM&E on the cutting edge. Improving the Use of M&E Processes and Findings Experiences from South Africa
M&E on the cutting edge Improving the Use of M&E Processes and Findings Experiences from South Africa Mr Ismail Akhalwaya Programme Manager Institutional Performance Monitoring and Evaluation Department
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA. Vol. 550 CapeTown 28 April 2011 No
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions. This means that this document will only
More informationOrganisation of Asset and Liability Management in South Africa Coordination of Institutions
Organisation of Asset and Liability Management in South Africa Coordination of Institutions Workshop on Asset and Liability Management Presenter: Johan Redelinghuys Chief Director, National Treasury 2
More informationCOMMISSION ON REVENUE ALLOCATION
COMMISSION ON REVENUE ALLOCATION Promoting an equitable society RECOMMENDATION ON THE SHARING OF REVENUE RAISED NATIONALLY BETWEEN THE NATIONAL GOVERNMENT AND THE COUNTY GOVERNMENTS FOR THE FINANCIAL YEAR
More informationIntergovernmental Finance and Fiscal Equalization in Albania
The Fiscal Decentralization Initiative for Central and Eastern Europe Intergovernmental Finance and Fiscal Equalization in Albania by Sherefedin Shehu Table of Contents Executive Summary... 5 Introduction...
More informationREVIEW OF THE LOCAL GOVERNMENT EQUITABLE SHARE FORMULA
T In partnership with: REVIEW OF THE LOCAL GOVERNMENT EQUITABLE SHARE FORMULA Parliament 19 February 2013 INTRODUCING THE NEW FORMULA Structure of the presentation 2 Background to the formula and review
More informationA Background Brief on Kenya s Devolution1
Public Disclosure Authorized Public Disclosure Authorized A Background Brief on Kenya s Devolution1 World Bank Public Disclosure Authorized Public Disclosure Authorized Contents 1. Overview and key points...
More informationA RESILIENT SOUTH AFRICA MAKING HARD CHOICES IN DIFFICULT TIMES
A RESILIENT SOUTH AFRICA MAKING HARD CHOICES IN DIFFICULT TIMES Tough choices in difficult times South Africa faces exceptionally difficult global and domestic economic conditions over the next several
More informationFinancial and Fiscal Commission. Training Workshop
Financial and Fiscal Commission Training Workshop Background Outline Constitutional Imperative Institutional Framework Economic Rationale Historical Background Current Structure The review Current Thinking
More informationFUNDING BASIC EDUCATION CHAPTER 2. Daniel McLaren
CHAPTER 2 FUNDING BASIC EDUCATION Daniel McLaren 36 Basic Education Rights Handbook Education Rights in South Africa Chapter 2: Funding Basic Education Basic Education Rights Handbook Education Rights
More informationEPWP INCENTIVE GRANT MANUAL
EPWP Incentive Grant Manual 2009/10 EPWP INCENTIVE GRANT MANUAL FROM THE NATIONAL DEPARTMENT OF PUBLIC WORKS FOR THE IMPLEMENTATION OF THE EPWP INCENTIVE GRANT BY IMPLEMENTING PUBLIC BODIES Version 1 May
More informationSubmission made in terms of S4(4c) of MBPARMA (Act 9 of 2009) Also made in terms of FFC Act of Submission consists of seven sections
BRIEFING TO THE STANDING AND SELECT COMMITTEES OF FINANCE ON THE 2012 FISCAL THE 2012 F FRAMEWORKS AND REVENUE PROPOSALS 29 February 2012 For an Equitable Sharing of National Revenue BACKGROUND Submission
More informationProcesses for Financing Public Basic Education in South Africa
Processes for Financing Public Basic Education in South Africa Final January 2017 Research commissioned by the International Budget Partnership 1 Table of Contents 1 INTRODUCTION... 3 2 RELEVANT LEGISLATION...
More informationBalancing the NHI funding requirements with the economic capacity of South Africa. NHI Colloquium 1 June 2016 Presenter: Dondo Mogajane
Balancing the NHI funding requirements with the economic capacity of South Africa NHI Colloquium 1 June 2016 Presenter: Dondo Mogajane Tough choices in difficult times South Africa faces exceptionally
More informationPRESENTATION TO SABOA CONFERENCE
PRESENTATION TO SABOA CONFERENCE THE DEVELOPMENT OF PERFORMANCE BASED GROSS NEGOTIATED MODEL CONTRACT DOCUMENT FOR THE ROLL-OUT OF IPTNs 23 FEBRUARY 2012 1 CONTENTS PURPOSE OF THE PRESENTATION CURRENT
More informationPublic Private Partnerships. The South African Experience
Public Private Partnerships The South African Experience Geneva UNECE 18 November 2003 1 Uven Bunsee PPP Unit, South African National Treasury 1 2 General Demographics Population: 44 m Credit rating S&P:
More informationVAT FOR THE GOVERNMENT SECTOR
Contents NATIONAL GOVERNMENT AND VAT... 2 Government and provincial departments as `Public Authority... 2 Ring fencing of trading activities of designated entities... 4 ILLUSTRATIVE EXAMPLE 1... 5 What
More informationThe Government and Fiscal Policy
The Government and Fiscal Policy How does the government affect us? Government provide water, electricity, sewerage, education, health services, police and defence force. Some of these are paid for directly
More informationNational Treasury. Strategic Plan 2008/11 REPUBLIC OF SOUTH AFRICA
National Treasury Strategic Plan 2008/11 REPUBLIC OF SOUTH AFRICA May 2008 The 2008/11 National Treasury Strategic Plan is compiled with the latest available information from departmental and other sources.
More informationFIRST OECD FORUM ON PUBLIC DEBT MANAGEMENT 7 TO 8 DECEMBER 2006, AMSTERDAM
FIRST OECD FORUM ON PUBLIC DEBT MANAGEMENT 7 TO 8 DECEMBER 2006, AMSTERDAM PRESENTATION BY JOHAN KRYNAUW ASSET AND LIABILITY MANAGEMENT DIVISION NATIONAL TREASURY: SOUTH AFRICA (Johan.Krynauw@treasury.gov.za)
More informationMUNICIPAL FISCAL POWERS AND FUNCTIONS BILL
REPUBLIC OF SOUTH AFRICA MUNICIPAL FISCAL POWERS AND FUNCTIONS BILL (As amended by the Portfolio Committee on Finance (National Assembly)) (The English text is the offıcial text of the Bill) (MINISTER
More informationREPORT OF THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL TREASURIES EXPENDITURE REVIEW FOR THE 2014/15 FINANCIAL YEAR, DATED 14 OCTOBER 2015
REPORT OF THE SELECT COMMITTEE ON FINANCE ON THE PROVINCIAL TREASURIES EXPENDITURE REVIEW FOR THE 2014/15 FINANCIAL YEAR, DATED 14 OCTOBER 2015 1. Introduction and Background The Select Committee on Finance
More informationFFC Public Hearings on the LG Fiscal Framework. Comment by SALGA
FFC Public Hearings on the LG Fiscal Framework Comment by SALGA Leriba Lodge 4 June 2012 Overview Introduction General Comments Service Delivery Capital Investment Revenue Patterns Expenditure LGFF Proposed
More informationPublic Hearings on the Draft Money Bills Amendment Procedure and Related Matters Bill, 2008
Public Hearings on the Draft Money Bills Amendment Procedure and Related Matters Bill, 2008 Submission to the Portfolio Committee on Finance National Parliament Compiled and presented by Applied Fiscal
More information4/7/2015. Group. Governance and Legislation
Group 3 Governance and Legislation DIPLOMA IN PUBLIC ACCOUNTABILITY MINIMUM MUNICIPAL COMPETENCY PROGRAMME Karel van der Molen Module 2 Intergovernmental Fiscal Relations, Legislation and Policies affecting
More informationEquity in Public Sector Health Care Financing and Expenditure in South Africa: An Analysis of Trends between 1995/96 to 2000/01
Equity in Public Sector Health Care Financing and Expenditure in South Africa: An Analysis of Trends between 1995/96 to 2000/01 Technical Report to Chapter 4 of the South African Health Review 1998 Equity
More informationUniversity of Pretoria Department of Economics Working Paper Series
University of Pretoria Department of Economics Working Paper Series Assessing Fiscal Capacity at the Local Government Level in South Africa Margaret Chitiga-Mabugu Human Sciences Research Council, Pretoria
More informationFiscal Federalism in Canada
Fiscal Federalism in Canada Norman Betts, PhD, FCA University of New Brunswick Fredericton, NB, Canada March 30,2005 Presented at: Roundtable on Division of Revenues between the Levels of Government in
More informationPublic Sector Statistics
3 Public Sector Statistics 3.1 Introduction In 1913 the Sixteenth Amendment to the US Constitution gave Congress the legal authority to tax income. In so doing, it made income taxation a permanent feature
More informationEstimates. Fiscal Year Ending March 31, 2019
Fiscal Year Ending March 31, 2019 Fiscal Year Ending March 31, 2019 British Columbia Cataloguing in Publication Data British Columbia., fiscal year ending March 31. 1983 Annual. Continues: British Columbia.
More informationA new national consensus and a new commitment to deliver were necessary to address the triple challenges of poverty, unemployment and inequality.
Budget 2017 Introduction In delivering Budget 2017 in parliament, the finance minister, Pravin Gordhan, emphasised that South Africa was at a conjuncture which requires the wisdom of our elders to help
More informationBorder Management Authority Bill. Presentation by National Treasury to the Portfolio Committee on Home Affairs 16 August 2016
Border Management Authority Bill Presentation by National Treasury to the Portfolio Committee on Home Affairs 16 August 2016 Delegation National Treasury Ismail Momoniat, DDG: Tax Policy and Financial
More informationLEGISLATIVE PROCESS FOR TAXATION
LEGISLATIVE PROCESS FOR TAXATION Standing Committee on Finance Presenters: National Treasury and SARS 30 July 2014 BUDGET SPEECH: FEBRUARY Minister announces Budget in Parliament Minister tables Budget
More informationPOLICY BRIEF How Nepal is Facing the Challenges of a Federal System
POLICY BRIEF How Nepal is Facing the Challenges of a Federal System Locals pack locally grown apples in Tukche village. Nepal s federal system is expected to impact agroincome tax in the country. (Photo
More informationIMPACT ASSESSMENT OF THE DRAFT EU STRUCTURAL FUNDS REGULATIONS
This research was performed by a group of authors lead by H. Brožaitis from the public non-profit organisation Public Policy and Management Institute on the order of the Prime Minister Office of the Republic
More informationLocal Government Regulations on minimum Business Processes and System Requirements. Presentation to: mscoa workgroup
Local Government Regulations on minimum Business Processes and System Requirements Presentation to: mscoa workgroup Presented by National Treasury: Chief Directorate Local Government Budget Analysis 23
More informationCOLE COUNTY MISSOURI
COLE COUNTY MISSOURI Budget Officer Recommended Budget For Fiscal Year 2019 Prepared by: Auditor s Office Kristen Berhorst County Auditor Cole County, Missouri 2019 Budget Table of Contents Budget Message
More information1. INTRODUCTION 2. OVERVIEW OF POLICY PRIORITIES FOR 2016/17
REPORT OF THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS ON THE ANNUAL PERFORMANCE PLAN AND BUDGET VOTE 4 OF THE DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
More information2016 Division of Revenue Amendment Bill Select and Standing Committees on Apportions
2016 Division of Revenue Amendment Bill Select and Standing Committees on Apportions National Treasury 10 November 2016 Overview The 2016 Division of Revenue Act (DoRA) was considered and approved by Legislatures
More informationBudget Cycle and Key Budget Documents under PFM
Budget Cycle and Key Budget Documents under PFM Stipulations of the PFM Act and Regulations (2015) on Budget Preparation, Presentation and Accountability Feedback from the Office of Controller of Budget
More informationMANAGEMENT OF CONTINGENT FISCAL LIABILITIES EXPOSURES: THE SA EXPERIENCE
MANAGEMENT OF CONTINGENT FISCAL LIABILITIES EXPOSURES: THE SA EXPERIENCE Presenter: Mkhulu Maseko I Director: Credit Risk I Division: Asset and Liability Management 01 October 2013 CONTENTS 1. Definition(slides
More informationGlossary of Key Terms 2011 OECD Performance Budgeting Survey
Glossary of Key Terms 2011 OECD Performance Budgeting Survey Accountability A key concept in management theory and practice meaning the existence of an obligation to demonstrate that work has been conducted
More informationRole of Institutional Reform in Fiscal Consolidation: Sub-national Governments Fiscal Adjustment in Brazil
Role of Institutional Reform in Fiscal Consolidation: Sub-national Governments Fiscal Adjustment in Brazil Rome, November 2011 Murilo Portugal President - FEBRABAN Definition of Fiscal Institutions Institutions
More informationREPORT BY THE COMPTROLLER AND AUDITOR GENERAL HC 996 SESSION FEBRUARY Cabinet Office. Improving government procurement
REPORT BY THE COMPTROLLER AND AUDITOR GENERAL HC 996 SESSION 2012-13 27 FEBRUARY 2013 Cabinet Office Improving government procurement 4 Key facts Improving government procurement Key facts 45bn central
More informationGovernment Gazette REPUBLIC OF SOUTH AFRICA
Government Gazette REPUBLIC OF SOUTH AFRICA Vol. 526 Cape Town 3 April 2009 No. 32106 THE PRESIDENCY No. 408 3 April 2009 It is hereby notified that the President has assented to the following Act, which
More informationThe Presidency Department of Performance Monitoring and Evaluation
The Presidency Department of Performance Monitoring and Evaluation Briefing to the Standing Committee on Appropriations on the Strategic Plan and Annual Performance Plan for the 2012/13 financial year
More informationRELATIONSHIP BETWEEN THE BUDGET AND THE IDP 28 FEBRUARY 2017
RELATIONSHIP BETWEEN THE BUDGET AND THE IDP 28 FEBRUARY 2017 1 Contents Introduction Legislative Requirements Inc. MSCOA Why MSCOA Local Government Accountability Cycle Budget Process and linkage to IDP
More informationNATIONAL TREASURY ANNUAL PERFORMANCE PLAN 2014/18 PRESENTATION TO THE STANDING COMMITTEE ON FINANCE
NATIONAL TREASURY ANNUAL PERFORMANCE PLAN 2014/18 PRESENTATION TO THE STANDING COMMITTEE ON FINANCE 02 July 2014 Treasury Aims and Objectives Develop fiscal policy framework and coordinate macro-economic
More informationFISCAL AND FINANCIAL DECENTRALIZATION POLICY
REPUBLIC OF RWANDA MINISTRY OF LOCAL GOVERNMENT, GOOD GOVERNANCE, COMMUNITY DEVELOPMENT AND SOCIAL AFFAIRS AND MINISTRY OF FINANCE AND ECONOMIC PLANNING FISCAL AND FINANCIAL DECENTRALIZATION POLICY December
More information6/10/2017 NOTE ORIENTATION. Unit Standard Apply the principles of budgeting within a municipality
NOTE DIPLOMA IN PUBLIC ACCOUNTABILITY MODULE 13 208 191 / Compliance and control 1 (4 UNIT STANDARDS) US 116345 Dr Len Mortimer Participants are advised to have access to: The respective learner guide,
More informationSouth Africa: National Budget 2009/2010 Budgeting during a global credit and economic crisis. Kevin Lings Economist 12 February 2009
South Africa: National Budget 2009/2010 Budgeting during a global credit and economic crisis Kevin Lings Economist 12 February 2009 US monthly payroll changes 000 s 600 500 400 300 200 100 0-100 -200-300
More informationSubmission Division of Revenue
June 2001 FFC Submission: Division of Revenue 2002 2003 FINANCIAL AND FISCAL COMMISSION Submission Division of Revenue 2002 2003 June 2001 For an Equitable Sharing of National Revenue FFC Submission: Division
More informationLocal Government Reform in Ireland
Local Government Reform in Ireland Forum Citizens in Focus Zagreb, 24 September 2015 Denis Conlan Local Government Division DECLG denis.conlan@environ.ie http://www.environ.ie/en/ Ireland some statistics
More informationSection I: Fiscal Transparency and Accountability
Section I: Fiscal Transparency and Accountability The government is committed to enhancing transparency and accountability. It has taken a number of key actions in this area. ENHANCEMENTS IN TRANSPARENCY
More informationNational Treasury. Financing NHI. Pharmaceutical Society SA 24 June 2018
Financing NHI Pharmaceutical Society SA 24 June 2018 1 Principles of National Health Insurance Public purchaser Provision by accredited public and private providers Affordable and sustainable Primary care
More informationPROVINCIAL TAX REGULATION PROCESS ACT 53 OF 2001
PROVINCIAL TAX REGULATION PROCESS ACT 53 OF 2001 (English text signed by the President) [Assented To: 4 December 2001] [Commencement Date: 1 June 2002] [Proc. R40 / GG 23466 / 20020531] ACT To regulate
More informationFiscal Coordination in Canada
Nipun Vats Federal-Provincial Relations Division, FInance Canada Presentation to OECD-MENA Senior Budget Officials Nov 1, 2010 This presentation does not necessarily reflect the views of the Department
More informationMUNICIPAL FISCAL POWERS AND FUNCTIONS ACT 12 OF 2007
MUNICIPAL FISCAL POWERS AND FUNCTIONS ACT 12 OF 2007 (English text signed by the President) [Assented to: 3 September 2007] [Commencement date: 7 September 2007] ACT To regulate the exercise by municipalities
More informationSupport to Good Governance in Pakistan
Support to Good Governance in Pakistan September 2016 David St. Davidsson Page 1 Support to Good Governance Programme (SGGP) The performance of selected areas of government for effective, transparent and
More informationManaging Fiscal Risks
Managing Fiscal Risks Gerd Schwartz Tokyo Fiscal Forum 11 June 2015 Managing fiscal risks and uncertainties Outline of Presentation I. Defining fiscal risks II. Importance of fiscal risks III. Managing
More informationImproving the fiscal space for health: lessons from South Africa
Improving the fiscal space for health: lessons from South Africa Doherty J, 1,2 McIntyre D 1 1 Health Economics Unit, University of Cape Town, South Africa 2 School of Public Health, University of the
More informationUrban Poverty and Local Governance: Institutional and Financial Implications
Urban Poverty and Local Governance: Institutional and Financial Implications Yasuhiko Matsuda, Sr. Public Sector Specialist Social Protection & Labor Global Practice, South Asia T I T U F R A M E W O R
More informationFinancial scrutiny uncovered. A guide for Members by the Committee Office Scrutiny Unit
Financial scrutiny uncovered A guide for Members by the Committee Office Scrutiny Unit 3rd Edition November 2017 2 Contents Introduction 4 Parliamentary scrutiny of financial management 6 Taxation and
More informationOFFICE OF THE COORDINATING MINISTER FOR ECONOMIC AFFAIRS OF THE REPUBLIC OF INDONESIA
OFFICE OF THE COORDINATING MINISTER FOR ECONOMIC AFFAIRS OF THE REPUBLIC OF INDONESIA PRESS RELEASE The Draft 2007 : Building Hope for a Brighter Future Jakarta, 16 August 2006 The Draft 2007 represents
More informationMoretele Local Municipality. IDP/Budget Process Plan 2018/ ( IDP: Process Plan)
Moretele Local Municipality IDP/Budget Process Plan /2019 1 Revision Control Final - August 2017 Strategic Services IDP/PMS Unit Enquiries: 012 716 1321 / 1324 (tel) thabo.makwela@moretele.org.za nyakale.lale@moretele.org.za
More informationOwn-Source Revenues for Metropolitan Cities
Own-Source Revenues for Metropolitan Cities Presentation to Seminario Internacional sobre alternativas de financiamiento de ciudades Bogotá, Colombia 18 November, 2014 Enid Slack Institute on Municipal
More informationPRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS BRIEFING ON THE 2015 APPROPRIATION BILL 19 MAY 2015
PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS BRIEFING ON THE 2015 APPROPRIATION BILL 19 MAY 2015 Introduction The PSC is established in terms of Chapter 10 of the Constitution. It derives its
More informationGuide to the new Scottish budget process
SPICe Briefing Pàipear-ullachaidh SPICe Guide to the new Scottish budget process Ross Burnside On 8 May 2018, the Scottish Parliament agreed to changes to the Written Agreement between the Finance and
More informationSARS approach to Government institutions
SARS approach to Government institutions 1. SARS focusses on the Tax Compliance of Government Institutions at a National, Provincial and Local Level. 2. SARS Risks that we focus are: Correct Registration,
More informationRegional Governance and Sustainable Development: Fiscal Decentralisation in Tourism-Driven Economies
Regional Governance and Sustainable Development: Fiscal Decentralisation in Tourism-Driven Economies Presentation by: Division for Public Economics and Public Administration UNDESA Prep-com for the International
More informationEstimates. Fiscal Year Ending March 31, 2018
Fiscal Year Ending March 31, 2018 Fiscal Year Ending March 31, 2018 British Columbia Cataloguing in Publication Data British Columbia., fiscal year ending March 31. 1983 Annual. Continues: British Columbia.
More informationPresentation on NFC PIDE FEBRUARY 21, Shahid Kardar
Presentation on NFC PIDE FEBRUARY 21, 2007 by Shahid Kardar NFC TAXATION STRUCTURE AND AMBIT OF NFC Constitution gives limited tax powers to provinces. Constitution & tax structure developed under IMF
More informationTHE CONSTITUTIONALITY OF THE NHI SCHEME AS A FINANCING SYSTEM FOR UNIVERSAL HEALTH COVERAGE
THE CONSTITUTIONALITY OF THE NHI SCHEME AS A FINANCING SYSTEM FOR UNIVERSAL HEALTH COVERAGE * CONTENTS 1 INTRODUCTION... 2 2 FINANCING OF THE NHI... 2 2 1 Introduction... 2 2 2 Collection of funds... 3
More informationFISCAL OVERSIGHT OPPORTUNITIES AND
FISCAL OVERSIGHT OPPORTUNITIES AND CHALLENGES FOR 2017 AND BEYOND A STRATEGIC PLANNING REVIEW SESSION OF THE STANDING COMMITTEE ON APPROPRIATIONS 04 MAY 2017 PRESENTATION OUTLINE 1. Background 2. Impact
More informationEdexcel (B) Economics A-level
Edexcel (B) Economics A-level Theme 2: The Wider Economic Environment 2.6 Introduction to Macroeconomic Policy 2.6.3 Potential policy conflicts and trade-offs Notes Unemployment vs inflation: In the short
More information2015 Division of Revenue Bill Joint meeting of the Standing and Select Committees on Appropriations
. 2015 Division of Revenue Bill Joint meeting of the Standing and Select Committees on Appropriations Presenters: Malijeng Ngqaleni, Wendy Fanoe, Dumebi Ubogu and Empie van Schoor Intergovernmental Relations
More information2013 Workshop: Standing Committee on Appropriations Role of National Treasury in determining appropriations and in-year shift of funds
2013 Workshop: Standing Committee on Appropriations Role of National Treasury in determining appropriations and in-year shift of funds Presented by: Andrew Donaldson 30 January 2013 Chapter 4 of the PFMA
More informationEstimates. Fiscal Year Ending March 31, 2017
Fiscal Year Ending March 31, 2017 Fiscal Year Ending March 31, 2017 British Columbia Cataloguing in Publication Data British Columbia., fiscal year ending March 31. 1983 Annual. Continues: British Columbia.
More information