provincial budgets and expenditure review october 2005
TRANSCRIPT
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Provincial Budgets and Expenditure Review
October 2005
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Contents
• Overview• Free State centrally placed• History• Spending capacity• Development• Pressures• Traffic• Transport
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Overview
• Transport underpins development and is a catalyst for unlocking economical growth and social development potential.
• Transport should be geared toward eradicating structural and social imbalances that yielded two economies and under development in our country.
• It should provide access and improvement of mobility thus ensuring that people have access to social services, job creation and skills development and ensuring that the cost doing business is reduced and that the economy of the country is transformed.
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Overview
• Centrality of the Free State
• Infrastructure as an enabler to the economy
• Agricultural Dominance
• Budget Pressures
• EPWP
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Allocation on roads since 1990-2005
Sec. 100
Flood Funds
R40m Decrease in Grant
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Relationship between accidents and roads condition
% Poor and very poor paved roads
0
10
20
30
40
50
91 93 95 97 99 2001
Year
%
Poor
Very poor
Very Poor-Trend
•The kilometers of poor and very poor The kilometers of poor and very poor roads are going to increase dramatically;roads are going to increase dramatically;•Because of the lack proactive Because of the lack proactive maintenance, the cost of repairing a road maintenance, the cost of repairing a road will increase with approximately150%; will increase with approximately150%; •The gravel road system is on verge of The gravel road system is on verge of total collapse.total collapse.•A drastic increase of claims is immanent A drastic increase of claims is immanent considering the conditions of roads. considering the conditions of roads.
Amount Claimed
-1020304050607080
99/20 20/01 01/02 02/03 03/04 04/05 05/06
Year
Cla
im *
R m
illio
n
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Composition of the Department
EXPENDITURE 2004/05CBPWP,
R12m2%
Traffic, R115m
15%
Works, R214m
26%
Admin-istration, R117m
15%
Roads, R322m
40%
Transport, R13m
2%
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Required new links in the Free State
Vrede
Reitz
Warden
Boshof Clarens
Senekal
Winburg
Wepener
Zastron
Villiers
Heilbron
Hoopstad
Frankfort
Ficksburg
Ladybrand
Rouxville
Bothaville
Thaba Nchu
Petrusburg
Dewetsdorp
Smithfield
Fauresmith
Gariep Dam
Bultfontein
Koffiefontein
Welkom
Sasolburg
Bethlehem
Kroonstad
Harrismith
Trompsburg
Bloemfontein
Aliwal North
Phuthaditjhaba
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Comparisons Free State with rest of Provinces
Free State % of Total
TOTAL for Provinces
Length of Road 49,116 km 14% 343,942 km
Registered Vehicles 387 815 6% 6 798 696
Roads Budget R322m 5% R6 353m
Budget per km road R6 555 / km R18 471 / km
% of budget spent 99.3% 98,9%
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Roads MaintenanceFree State % of
TotalTOTAL for Provinces
Length of Road 49 116 km 14% 343 942 km
Length maintained
28 455 km 15% 193 178 km
Maintenance Expenditure
R192m 7% R2 794m
Cost per km of road maintained
R6 731/ km R14 465 / km
The estimated expenditure by SANRAL on capital improvement on National roads in FS (excluding N1 & N3) is: R330/vehicle*km traveled. The budget available to be spend on provincial roads in the Free State by the Department is R33/vehicle*km
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Revenue CollectedFree State % of
TotalTOTAL for Provinces
Registered Vehicles
387 815 5.7% 6 798 696
Motor vehicle licenses
R150m 5.6% R2 689m
Collection Cost (Own Staff)
R42m 28% ???
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114
145
161
176
190
215
240
260
100
120
140
160
180
200
220
240
260
280
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
R m
illi
on
Total Revenue Collected
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Interest, R0.5m
Capital Sales, R1m
Fines, R13m
Fin Trans-actionsR 9 m
Vehicle Lisences, R168 m
Sales, R48m
Revenue classifications
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Vehicle License Tariffs
• Free State Tariffs are on average right in the middle of the 9 provinces.
• On average the 3rd most expensive for light vehicles
• On average 6th most expensive on trucks and busses.
• The Free State has to stimulate industry and agriculture.
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Traffic ManagementFree State % of
TotalTOTAL for Provinces
Length of Road 49 116 km 14% 343 942 km
Registered Vehicles
387 815 6% 6 798 696
Traffic Expenditure
R70m
10% R1 139mRevenue Collection
R43m
Cost for traffic control per km of road
R2 300 / km R3 311 / km
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Traffic Achievements
• Lowest fatalities in Arrive Alive
• Overloading control at Kroonstad, Bothaville and Senekal
• Traffic officials patrolling 183 km of road. Impossible to do every day. Appointed another 160 officers.
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Weigh Bridge SuccessFree State % of
TotalTOTAL for Provinces
No of Weigh Bridges
3 3% 90
Vehicles Weighed
77 348 7% 1 055 438
Number found Overloaded
13 517 4% 303 489
Free State 17%
SA Average 29%
Effectiveness of Scanning process needs attention
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Economic classificationFree State % of
TotalTOTAL
for Provinces
% of Total
Compensation R349 m 44% R3 584 m 28%
Goods& Serv R289 m 36% R3 719 m 29%
Transfers R5 m 1% R1 606 m 12%
Capital R149 m 19% R3 952 m 31%
Non compens R443 m 56% R9 278 m 72%
Non Comp Non Cap
R294 m 37% R5 325 m 41%
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Budget Distribution 2005/06
Capital, R184m,
21%
Transfer, R3m, 0%
Goods & Services, R304m,
35%
Personnel, R367m,
44%
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FS PWR&T BUDGET• MTEF Period: (Medium Term Expenditure
Framework)
Year-1 Year 0 Year 1 Year 2 Year 3
2004/05 2005/06 2006/07 2007/08 2008/09
R792 m R840 m R890 m R1023 m R1094 m• Baseline
• Reprioritized Baseline
R840 m R2071 m R2168 m R2319 m
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Allocations vs. Actuals
654
803
761
809
647
792
847
735
767
600
650
700
750
800
850
900
2001/02 2002/03 2003/04 2004/05 2005/06Financial Year
R m
illio
n
Adjusted
Utilised
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-3
-16
-38-49
35
0.3 2
26
17
-50
-40
-30
-20
-10
0
10
20
30
40
Am
ou
nt
(R m
illio
n)
1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05
FINANCIAL YEAR
(OVERSPENDING) / UNDERSPENDING Amount (R million)
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Personnel vs. Total Expenditure
55.7%
51.6%
40.0%
36.5%39.0%
41.9%
45.5%
0.3
0.35
0.4
0.45
0.5
0.55
0.6
% P
ers
exp
/ B
ud
get
1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06
Financial Year
RATIO: PERSONNEL EXP / TOTAL EXP
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Second quarter expenditure and projections
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Grant Allocation
19.3
37.546.0
86.0 87.2 90.8
184.0
0
50
100
150
200
R m
illio
n
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Financial Year
PROVINCIAL CONDITIONAL GRANT: TRENDS
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Free State Own Roads Grant
85.095.0
111.2 106.8
120.0130.0
136.5
0
50
100
150
R m
illio
n
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Financial Year
FREE STATE OWN GRANT: TRENDS
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Grants 2004/05: Roads Projects
Provincial Conditional
Grant Budget (DORA & Roll
over)
R 39,978 mil
Utilised:
R39,978 mil•Remainder:
R 0 mil
Completed projects:– Meqheleng access road
• 87 local construction jobs created
• 13,600 man days & 3,766 female days
Projects still continuing:– Oppermansgronde link road
• 101 local construction job opportunities
• 13,310 man days & 5,434 female days
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Grant 2004/05: Roads Projects
Provincial own
conditional grant
additional to National Grant
R 91,207 mil
Utilised:R91,207 mil
•Remainder:R 0 mil
Completed projects:– Road planning and design
• 8 Planning, design and systems related projects
– Road contracts• 11 rehabilitation and
maintenance projects through contractors
– Gravel Road rehabilitation• 18 rehabilitation of gravel
road projects with own personnel
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Roads Projects Continue
Roll over Flood Funds Plus
Provincial Own grant
R 25,190 mil
Utilised:
R24,280 mil•Remainder:
R 0,91 mil
Completed 55 projects of between R0,15 mil and R0,50 mil each.
Projects still continuing:– Road signs contractor did
not supply on time.
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Development of SMME’s
16 SMME’s trained in 2003 in Smithfield to build bridge and kerbing
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TRAINING
On site survey training
Classroom training
Practical training
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Successful SMME’s continued in 2004 in Oppermansgronde to build streets.
Development of SMME’s