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ADJUSTMENT BUDGET STATEMENT 200809

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					                           • Adjustment Budget - 2008/09




ADJUSTMENT BUDGET STATEMENT



            2008/09


   Gauteng Provncal Government




       20 November 2008




                 
Adjustment Budget - 2008/09 •




PR302/2008
ISBN: 978-0-621-38346-1

The Adjustment Budget Statement 2008/09 is compiled using the latest available information from departmental
and other sources. Some of this information is unaudited or subject to revision

To obtain additional copies of this document, please contact:

The Head of Department
Gauteng Treasury
Gauteng Provincial Government
Private Bag X12, Marshalltown, 2107
Telephone +2711 355 8000
                                                       
                                                                             • Adjustment Budget - 2008/09



Table of Contents

Introductory chapter                                                                          1
1. Summary of adjustment budget aggregates
2. Provincial payments and adjusted estimates by Vote
3. Revenue and financing
4. Expenditure summary


BudGet StateMent 2 (departmental estimates)
Vote 1: oFFIce oF the preMIer                                                                 9
1. Vision, mission & amendments to programme
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustments to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/9
5. Departmental receipts
6. Changes to transfers and subsidies


Vote 2: GautenG proVIncIaL LeGISLature                                                        17
1. Vision, mission & amendments to programme
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/9
5. Changes to transfers and subsidies


Vote 3: econoMIc deVeLopMent                                                                  27
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09


Vote 4: heaLth                                                                                39
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of department expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies
7. Changes in conditional grants
8. Changes in infrastructure




                                                        
Adjustment Budget - 2008/09 •


Vote 5: educatIon                                                                  57
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies, and conditional grants
7. Changes in infrastructure


Vote 6: SocIaL deVeLopMent                                                         73
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies
7. Changes in infrastructure


Vote 7: houSInG                                                                    83
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies, and conditional grants
7. Changes in infrastructure


Vote 8: LocaL GoVernMent                                                           95
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies, and conditional grants


Vote 9: puBLIc tranSport, roadS and WorKS                                          105
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies, and conditional grants
7. Changes in infrastructure


Vote 10: coMMunIty SaFety                                                          119
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of department expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts




                                                   v
                                                                           • Adjustment Budget - 2008/09


Vote 11: aGrIcuLture, conSerVatIon and enVIronMent                                          129
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies, and conditional grants
7. Changes in infrastructure


Vote 12: Sport, artS, cuLture, and recreatIon                                               143
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies, and conditional grants
7. Changes in infrastructure


Vote 13: GautenG Shared SerVIce centre                                                      155
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts


Vote 14: GautenG treaSury                                                                   167
1. Vision, mission & amendments to programme, purposes and measurable objectives
2. Adjustment 2008/09 estimates of departmental expenditure
3. Details of adjustment to 2008/09 estimates of departmental expenditure
4. Expenditure 2007/08 and preliminary expenditure 2008/09
5. Departmental receipts
6. Changes to transfers and subsidies




                                                   v
Adjustment Budget - 2008/09 •




                                v
                                                                                                            • Adjustment Budget - 2008/09




InTroduCTory ChapTer

Introduction

The Adjustments Budget is a key legislative instrument that is used to accommodate changes during the 2008/09
financial year. This budget revises the 2008 Appropriation Act by taking into account funds that have become
available to the province in the form of national transfers and provincial reserves. The total revenue available
will be used to finance expenditure already announced by the MEC in February 2008, unforeseeable and
unavoidable expenditure, unspent funds to be rolled over from the previous financial year, shifting of funds
between and within votes as well as other expenditure sanctioned by the Executive Council.

Summary of adjusted budget aggregates

The 2008 Appropriation Bill was enacted by the Gauteng Provincial Legislature in February 2008 with detailed
provincial expenditure estimates amounting to R46.672 billion for the financial year ending on 31 March 2009.
In line with the provisions of section 31(2) of the PFMA, the 2008/09 Adjustment Appropriation Bill makes
provision for an increase of R1.782 billion to finance key policy imperatives and commitments in the current
financial year. The 2008/09 adjustments will change the main appropriation to an adjusted budget of R48.453
billion. Summary of the key adjustments are reflected in the table below:

     depart-     Main ap-           rollovers             unfore-      other adjustments        Suspen-      Surrenders    Total ad-    adjusted
      ments     propriation   equitable    Conditional    seeable     national   provincial    sions and                   justments     appro-
                 2008/09        share        grants      and una-    additional additional      function                                 priation
                                                         voidable     Funding     Funding         shift                                 2008/09
Office of the
Premier             135,318                                                 3,229     28,000       39,870                      71,099      206,417
Provincial
Legislature         200,525       12,300                                    2,648     20,000                                   34,948      235,473
DED                 698,922                                 55,000          2,765    185,980                    (29,500)      214,245      913,167
Health           13,889,251                      2,500     282,905      502,600      283,000     (51,929)                   1,019,076   14,908,327
Education        16,629,082       83,847                    28,810       23,629       55,000     (35,740)      (106,914)       48,632   16,677,714
Social
Development       1,729,184                                              12,705                     (270)                      12,435    1,741,619
Housing           3,101,521                                              85,768                                                85,768    3,187,289
Local
Government          224,470                                 17,040          3,510     70,000                                   90,550      315,020
DPTRW             7,612,570                                              16,001       70,870                                   86,871    7,699,441
Community
Safety              342,464        6,977                                    5,545     11,500      (2,028)                      21,994      364,458
DACE                353,812        6,261                     8,599          6,790                   (559)                      21,091      374,903
SARC                415,395        5,443                                    2,500      9,000     (40,861)                     -23,918      391,477
GSSC              1,153,627                                                 9,912                  91,517        (8,159)       93,270    1,246,897
GT                  185,549       5,480                                                                                         5,480    191,029
ToTaL           46,671,690     120,308          2,500     392,354      677,602      733,350                   (144,573)    1,781,541 48,453,231




                                                                        
Adjustment Budget - 2008/09 •


provincial payments and adjusted estimates by vote

Vote 1: Office of the Premier – R71.099 million
• An amount of R39.870 million for Gauteng Youth Commission (GYC) has been shifted from Sport, Arts,
  Culture and Recreation (SACR) to Office of the Premier (OoP) to ensure mainstreaming of the youth-related
  activities;
• An amount of R28 million has been allocated for Gauteng City Region Observatory (GCRO) (R8 million) and
  voter education (R20 million); and
• An additional R3.229 million has been allocated for higher than anticipated wage settlement between the
  unions and government agreed upon in 2008.

Vote 2: Gauteng Provincial Legislature – R34.948 million
• An additional amount of R20 million has been allocated to the Gauteng Provincial Legislature to fund political
  parties; and
• R2.648 million has been allocated for higher than anticipated wage settlement between the unions and
  government agreed upon in 2008.
• The rollover of R12.3 million for the implementation of the security system and design of the Budget Solution
  System, which had not been completed at financial year-end.

Vote 3: Economic Development – R214.245 million
• An additional amount of R159 million has been made available to the department to fund the Motor Sports
  programme;
• An amount of R55 million has been appropriated to the Wakegem;
• Additional funds have been made available to the following entities: Gauteng Tourism Authority (R7.315
  million); Gauteng Economic Development Agency (R7.310 million) and Gauteng Film Commission (R12.355
  million);
• The department has surrendered an amount of R29.5 million to the Provincial Revenue Fund (PRF). These
  unspent funds are a result of delays in the tendering process for the construction of tourism hubs in the Cradle
  of Humankind and the Orientation Centre in Dinokeng;
• R2.765 million has been allocated to personnel for the higher than anticipated wage settlement between the
  unions and government agreed upon in 2008.

Vote 4: Health – R1.019 billion
• A total additional amount of R253 million has been made available for the following:
  - R166.089 million for the OSD shortfall for nurses;
  - R8.304 million for the medical vaccines (pneumococcal conjugate and rotavirus) into Expanded Programme
     of Immunisation (EPI) in 2008 to reduce infant and child mortality; and
  - R78.625 million for the medical goods and services.
• In terms of conditional grants allocation, the additional funding relates to the following:
  - Comprehensive HIV and AIDS – R108.512 million to meet the greater demands emanating from the faster
     Anti Retro-Viral take up rate;
  - National Tertiary Services grant - R20.805 million for inflationary adjustment; and
  - Forensic Pathology Services grant - R2.5 million as a rollover from the previous financial year.
• Other adjustments to the main appropriation relates to :
  - R157 million to improve revenue collection and management of revenue;
  - R403 million for the higher than anticipated wage settlement between the unions and government agreed
     upon in 2008; and
  - R126 million for the construction of Natalspruit Hospital.
• A total amount of R51.929 million has been suspended to the Gauteng Shared Services Center (GSSC) for the
  payment of services rendered by the GSSC Contact Centre (R1.550 million) and a further amount of R50.379
  million for the procurement of generators for clinics and hospitals that will be used during power outages.

Vote 5: Education – R48.632 million
• An amount R55 million has been allocated for the establishment and operationalisation of the Global City
  Region Academy (GCRA);
• R15.040 million has been made available to protect the real value of spending in respect of Learner Teacher
  Support Material (LTSM);
• Approval was granted for an amount of R83.847 million as a rollover from the 2007/08 financial year to the
  current financial year for the payment of outstanding invoices for LTSM;


                                                        
                                                                                  • Adjustment Budget - 2008/09


• A total amount of R37.399 million has been allocated to the National School Nutrition Programme for
  inflationary adjustment and to protect the real value of spending;
• With regards to the suspended funds; R8.482 million is suspended to the GSSC for the Contact Centre
  services rendered on behalf of the department; R1.550 million is received from the Department of Agriculture,
  Conservation and Environment (DACE) for the Bontle ke Botho cleaning campaign; and a further R28.808
  million for the procurement of generators for schools to be used during power outages; and
• An amount of R106.914 million is surrendered to the PRF; R77.700 million relates to the ‘No-Fee School’
  policy allocation that could not be transferred to schools and R29.214 million from infrastructure due to slow
  delivery.

Vote 6: Social Development – R12.435 million
• An amount of R12.705 million has been allocated for the higher than anticipated wage settlement between
  the unions and government agreed upon in 2008;
• R270 000 has been suspended to the GSSC for the Contact Centre services.

Vote 7: Housing – R85.768 million
• The department has received additional funding of R11.070 million for personnel to finance the higher than
  anticipated wage settlement between the unions and government agreed upon in 2008; and
• R74.698 million has been allocated to the Integrated Housing and Human Settlement Development grant for
  inflationary adjustment.

Vote 8: Local Government – R90.550 million
• An additional amount of R70 million has been allocated to enable the department and municipalities to
  eradicate the water backlog in identified areas;
• R17.040 million is allocated for the funding of expenditure incurred during the xenophobic attacks for the
  internally displaced people, that occurred in the province during the year; and
• An amount of R3.510 million is allocated for salary adjustments to cater for the higher than anticipated wage
  settlement between the unions and government agreed upon in 2008.

Vote 9: Public Transport, Roads and Works – R86.871 million
• The department received an amount of R69.870 million as a revenue incentive for the improvement and
  management of the revenue.
• R16.001 million has been allocated to personnel for the higher than anticipated wage settlement between the
  unions and government agreed upon in 2008; and
• R1 million has been allocated for the Gautrain in terms of the cooperation agreement and shared vision
  agreement between Gauteng Provincial Government (GPG), City of Tshwane and Bombela Concessions
  Company. These funds will be utilised specifically for the planning and development of the Pretoria Station
  Precinct.

Vote 10: Community Safety – R21.994 million
• An amount of R11.5 million has been allocated for improvement in the quality of policing and reduction in
  crime by increasing the number of patrollers and mobile police station units in identified areas;
• R5.545 million has been allocated for the higher than anticipated wage settlement between the unions and
  government agreed upon in 2008;
• Approval has been granted for the suspension of R2.028 million to GSSC for the Employee Awareness
  Programme services rendered on behalf of the department; and
• A rollover of R6.977 million has been approved for payments of invoices received in respect of the speed
  cameras.

Vote 11: Agriculture, Conservation and Environment – R21.091 million
• An amount of R6.790 million is allocated for the higher than anticipated wage settlement between the unions and
  government agreed upon in 2008;
• R991 000 has been received from SACR to fund the management and operational costs of the Diepkloof Farm
  Museum within the Suikerbosrand Nature Reserve;
• The department has been allocated R5 million for the Agricultural Disaster Management grant and a further
  R3.599 million for the Comprehensive Agricultural Support Programme;
• The department has suspended an amount of R1.550 million to Education for the Bontle ke Botho cleaning
  campaign programme in schools.



                                                        
Adjustment Budget - 2008/09 •


• A rollover approval is granted for an amount of R6.261 million for the payment of invoices for goods and services
  as well as payments for capital assets that could not be paid before the end of the 2007/08 financial year.

Vote 12: Sport, Arts, Culture and Recreation – (R23.918 million)
• An additional amount of R9 million has been made available to fund the Under 17 Championship;
• R2.5 million is allocated to personnel for higher than anticipated wage settlement between the unions and
  government agreed upon in 2008;
• The function in respect to the GYC has been shifted to the OoP with its total allocation of R39.870 million for the
  current year;
• R991 000 has been suspended to Department of Agriculture, Conservation and Environment (DACE) to fund the
  operational costs for the Diepkloof Farm Museum within the Suikerbosrand Nature Reserve;
• A rollover approval was granted for an amount of R5.443 million for the payment of invoices for goods and
  services as well as payments for capital assets that could not be paid before the end of the 2007/08 financial
  year.

Vote 13: Gauteng Shared Services Centre – R93.270 million
• The GSSC has received funds amounting to R91.517 million from various departments in respect of the
  Contact Centre services;
• A total amount of R79.187 million has been received from Education and Health for the procurement of
  generators that will be used during power outages;
• An amount of R9.912 million has been made available to finance the higher than anticipated wage settlement
  between the unions and government agreed upon in 2008;
• The department has surrendered R8.159 million to the PRF. The funds were originally allocated to the learning
  and development function that was shifted to the GCRA located in Education.

Vote 14: Gauteng Treasury – R5.480 million
• Approval was granted for the rollover of R5.480 million for the payments of invoices related to the asset
  evaluation project.


Revenue and financing

TaBLe 2: reVenue and FInanCInG
revenue sources                                                              2008/09
                                                        Main budget                         adjusted budget
r thousand
Equitable share                                                         33,063,829                            33,811,732
Conditional grants                                                      11,213,996                            11,483,549
Sub total                                                               44,277,825                            45,295,281
Own revenue                                                              2,818,890                             2,692,858
Financing from provincial reserves                                                                               276,869
Other revenue                                                                                                      1,000
Sub total                                                               47,096,715                            48,267, 008
Less: Direct Charges for political                                        (41,649)                              (41,649)
       Office Bearers
Total available funds                                                   47,055,066                            48,225,359


The table above shows the provincial main revenue budget as tabled in February 2008 at the Gauteng Provincial
Legislature with a total revenue budget of R47.055 billion; equitable share amounting to R33.064 billion,
R11.214 billion conditional grants and the provincial own receipts totaling to R2.819 billion.

During the 2008/09 adjustment process, the changes to the voted funds were as follows:
• The main budget for equitable share has been adjusted upwards by R747.903 million to R33.812 billion;
• Conditional grant budget increased by an amount of R269.553 million to R11.484 billion,
• An amount of R276.869 million has been allocated from the provincial reserves to cater for key provincial
  commitments;
• An amount of R1 million was received from the City of Tshwane for co-funding the Gautrain project; and
• The provincial own revenue is revised downwards by R125.032 million to R2.693 billion. The revisions are
                                                          
                                                                                                         • Adjustment Budget - 2008/09


  mainly on the projected revenues to be collected by the Department of Economic Development (DED) and
  Gauteng Treasury:
  - DED: Tax receipts budgeted to be collected by the Gauteng Gambling Board (GGB) has been revised
    downwards for the GGB to retain funds for purchasing new premises for their offices; and
  - Gauteng Treasury: The projected interest income from investments has been revised downwards due to
    increased expenditure in the province resulting in reduced surplus funds available for investment.

Overall, the main budget has been revised from R47.055 billion by an increase of R1.170 billion to R48.225
billion. This shows an increase in the revenue budget by 2.5 percent.


Summary of adjusted transfers from national government

TaBLe 3: SuMMary oF ChanGeS To CondITIonaL GranTS TranSFerS
                                                  Main                                                                             adjusted
                                              appropriation                     additional appropriation                         appropriation
                                                2008/09      national roll- unforeseeable         other       Total additional     2008/09
 r thousand                                                      overs       / unavoidable     adjustments     appropriation
health                                            4,134,350           2,500        108,512            20,805          131,817        4,266,167
Comprehensive HIV/AIDS Grant                         541,119                        108,512                            108,512          649,631
Forensic Pathology Services Grant                     77,472           2,500                                             2,500           79,972
Health Professions Training and Development
Grant                                                610,828                                                                            610,828
Hospital Revitalisation Grant                        718,312                                                                            718,312
National Tertiary Services Grant                   2,186,619                                           20,805           20,805        2,207,424
education                                           363,153                         28,810             8,589           37,399          400,552
FET Sector Recapitalisation Grant                    167,156                                                                            167,156
HIV/AIDS Life Skills Grant                            23,886                                                                             23,886
National School Nutrition Programme Grant            172,111                         28,810             8,589           37,399          209,510
housing                                           2,579,973                                           74,698           74,698        2,654,671
Integrated Housing and Human Settlement
Development Grant                                  2,579,973                                           74,698           74,698        2,654,671
Local Government                                                                    17,040                             17,040           17,040
Disaster and other emergencies                                                       17,040                             17,040           17,040
agriculture                                          28,757                          8,599                              8,599           37,356
Comprehensive Agricultural Support Programme
Grant                                                 25,329                          3,599                              3,599           28,928
Land Care Programme Grant: Poverty Relief and
Infrastructure Development                             3,428                                                                              3,428
Disaster Management Grant                                                             5,000                              5,000            5,000
Transport                                         3,265,993                                                                          3,265,993
Gautrain Rapid Link                                3,265,993                                                                          3,265,993
Sport and recreation                                 44,978                                                                             44,978
Mass Sport and Recreation Participation
Programme Grant                                       44,978                                                                             44,978
national Treasury                                   796,792                                                                            796,792
Infrastructure Grant                                 796,792                                                                            796,792
 Total conditional grants                        11,213,996           2,500        162,961          104,092          269,553        11,483,549


The table above shows revisions made to the main conditional grant appropriations. The budget of R11.214
billion has been increased by R269.553 million to R11.484 billion.

The additional funding has been made available to cater for unspent funds from the previous financial year, to
finance expenditure that could not be anticipated at the time of finalising the inputs for the main budget and the
inflationary adjustments.



                                                                       
Adjustment Budget - 2008/09 •


Summary of adjusted provincial own revenue

TaBLe 4: SuMMary oF adjuSTed proVInCIaL own reVenue
                                                       Main appropriation     adjustments           adjusted appropriation
r thousand                                                 2008/09                                        2008/09
Office of the Premier                                                    83                                             83
Economic Development                                                617,007            (20,445)                    596,562
Health                                                              373,044                (75)                    372,969
Education                                                            16,366               3,709                     20,075
Social Development                                                    3,487             (1,478)                      2,009
Housing                                                               3,210             (1,025)                      2,185
Local Government                                                        296                                            296
Public Transport, Roads and Works                                 1,557,110                                      1,557,110
Community Safety                                                      9,060                                          9,060
Agriculture, Conservation and Environment                             1,090                  354                     1,444
Sport, Arts and Culture and Recreation                                  317                                            317
Gauteng Shared Service Centre                                         1,320                 1,434                    2,754
Gauteng Treasury                                                    236,500           (107,506)                    128,994
Total departmental receipts                                      2,818,890           (125,032)                  2,693,858


The table shows the revised revenue for 2008/09 financial year. The main adjustments relate to the approval
for the Gauteng Gambling Board to retain a portion of their revenue collection to co-fund the purchase of their
new premises; and the increased provincial spending that reduced the surplus cash available for investments,
therefore reducing the projected interest income.




                                                       
                                                                                                    • Adjustment Budget - 2008/09


expenditure summary

TaBLe 5: proVInCIaL payMenTS and adjuSTed eSTIMaTeS By eConoMIC CLaSSIFICaTIon
                               Main ap-                              additional appropriation                                adjusted
                              propriation   roll-overs    unforeseeable     Virement/      other adjust-     Total ad-     appropriation
                               2008/09                    / unavoidable reprioritiza-         ments         ditional ap-     2008/09
r thousand                                                                      tion                        propriation
Current payments                30,969,212        92,523        191,122           997,341     1,002,801        2,283,787     33,252,999
 Compensation of employees       21,627,206                        5,000             4,947        674,481          684,428     22,311,634
Goods and services                9,342,006        92,523        186,122           992,394        328,320        1,599,359     10,941,365
Interest and rent on land
Financial trans in assets and
liabilities
Unauthorised expenditure
Transfers and subsidies         12,235,507                        1,200          (21,956)       332,517          311,761      12,547,268
Provinces and municipalities        513,050                                         13,232         59,681         72,913          585,963
Departmental agencies and
accounts                          5,572,010                                         10,078         75,338         85,416        5,657,426
Universities and technikons             755                                          8,633          8,000         16,633           17,388
Foreign govts & international
orgs
Public corps & private
enterprises                         190,111                                          3,355        159,000         162,355         352,466
Non-profit institutions           3,102,853                        1,200          (56,979)       (47,150)       (102,929)       2,999,924
Households                        2,856,728                                          (275)         77,648          77,373       2,934,101
payments for capital
assets                           3,466,970        30,285        126,000        (975,385)           5,094       (814,006)       2,652,964
Buildings and other fixed
structures                        2,828,390         5,601        126,000         (990,954)       (77,093)       (936,446)       1,891,944
Machinery and equipment             631,959        24,684                           15,569         82,187         122,440         754,399
Cultivated assets
Software and other intangible
assets                                  621                                                                                           621
Land and subsoil assets               6,000                                                                                         6,000
Total economic
Classification                 46,671,689       122,808         318,322                       1,340,412        1,781,542     48,453,231

The table above shows the overall provincial adjustments per economic classification.

current payments
Current payments of R30.969 billion have been adjusted by an amount of R2.284 billion to R33.253 billion.
The share of this item has increased from 66 percent to 68.6 percent of the total provincial adjusted budget. The
increase is mainly due to the additional allocation for the higher than anticipated salary adjustments as agreed
upon between government and unions in 2008, inflationary adjustments, key commitments and policy areas.


transfers and subsidies
Transfers and subsidies of R 12.236 billion have been adjusted upwards by an amount of R311.761 million to
R12.547 billion. The increase is mainly due to the shifting of funds from payments for capital assets to transfers.
The capital budget that was formulated by the Department of Public Transport, Roads and Works as per the
2007/08 Standard Chart of Accounts (SCOA) has been reclassified as per the new SCOA that was implemented
in the 2008/09 financial year.

payments for capital assets
Payments for capital assets of R3.467 billion have been adjusted downwards by an amount of R814.006 million
to R2.653 billion. The decrease in the capital budget is mainly due to the virements and surrenders to the PRF.



                                                                    
Adjustment Budget - 2008/09 •


Summary of changes to infrastructure

TaBLe 6: SuMMary oF ChanGeS To InFraSTruCTure By deparTMenT
                                              Main                   additional appropriation                      adjusted
                                          appropriation   roll-overs          other          Total additional    appropriation
 r thousand                                 2008/09                        adjustments        appropriation        2008/09
 Health                                           1,445,784                                                            1,445,784
 Education                                          707,045                                                             707,045
 Social Development                                 198,856                                                             198,856
 Housing                                          2,754,973                            74,698           74,698         2,829,671
 Public Transport, Roads and Works                5,873,728                                                            5,873,728
 Agriculture, Conservation and Environment           11,602            3,354                             3,354            14,956
 Sport, Arts, and Culture and Recreation             87,200            2,247                             2,247            89,447
 Total payments & estimates                     11,079,188            5,601           74,698           80,299        11,159,487



roll-overs

A total amount of R5.601 million has been approved as a roll-over from the 2007/08 into 2008/09 financial
year for payments of claims and invoices received in the current financial year as well as the construction of
prefabricated office accommodation within identified communities.


Other adjustments

Housing has received R74.698 million for the Integrated Housing and Human Settlement Development Grant.