BUDGET CUTS

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					NATIONAL ASSEMBLY



FOR WRITTEN REPLY



QUESTION NO. 1786


DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 4 JUNE 2010
(INTERNAL QUESTION PAPER NO. 16-2010)


"1786. Ms MR Shinn (DA) to ask the Minister of Science and Technology:

(1).   Whether any budget cut targets have been set (a) for the 2010-11
       financial year and (b) over the Medium-Term Expenditure Framework
       for any entities that report to her department; if not, why not; if so,
       what are (i) the relevant details and (ii) the target set in respect of
       each entity; if so,

(2).   Whether any guidelines were supplied to these entities regarding
       where and how budget cuts should be applied; if not, why not; if so,
       what are the relevant details;

(3).   Whether any mechanisms have been put in place to monitor these
       budget cuts; if not, (a) why not and (b) how will it be monitored; if so,
       what are the relevant details?"

                                                                   NW 1945E
REPLY:

1(a)   During the 2010/11 financial year, the Department of Science and
       Technology (DST) did not plan any budget cuts for its public entities.


(b)    Although the DST did not plan any budget cuts, the negative impact of the
       global economic downturn in 2008 made it necessary for the National
       Treasury to impose budget cuts on government departments and their
       public entities over the Medium Term Expenditure Framework (MTEF).
(i)    In the case of the DST, the two public entities affected are the National
       Research Foundation (NRF) and the Council for Scientific and Industrial
       Research (CSIR).     National Treasury identified an efficiency saving of
       R187 060 million for these two entities over the MTEF.


(ii)   The CSIR and NRF will be affected as follows:
          The CSIR: R35,4 million and R31,6 million for the 2011/12 and
           2012/13 financial years, respectively;
          The NRF: R20 million, R20 million and R80 million for the 2010/11,
           2011/12 and 2012/13 financial years, respectively.


2.     Guidelines were supplied to the CSIR and NRF regarding where and how
       budget cuts should be applied. The two entities were also advised by the
       DST to reprioritise their baseline allocation over the MTEF to ensure
       continuity in existing activities and to make certain that objectives and
       targets were met.


3.     In respect of mechanisms to monitor these budget cuts, the information
       regarding the budget cuts and the targets to which they relate will be
       disclosed in the quarterly reports that the entities are required to submit to
       the DST.

				
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