2021 Appropriation Bill - Standing Committees on Appropriations Presented by: Dr Mampho Modise: National Treasury - Parliamentary ...
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2021 Appropriation Bill
Standing Committees on Appropriations
Presented by: Dr Mampho Modise: National Treasury
May 2021Standing Committee on Appropriations
• SCOA Committee was established in terms of Section 4(3) of the Money Bills Amendment
Procedure and Related Matters Act;
• Section 4(4) of the Act states that the Committee’s powers and functions include
considering and reporting on:
‒ Spending issues
‒ Amendments to the Division of Revenue Bill, and all Appropriation Bills (Adjusted,
Special or Supplementary)
‒ Recommendations of the Financial and Fiscal Commission (FFC), including those
referred to in the Intergovernmental Fiscal Relations Act, 1997 (Act No. 97 of 1997);
‒ Reports on actual in-year expenditure published by the National Treasury; and
‒ Any other related matters
• The focus areas centre around the Section 32 Report on the expenditure of national
departments
– highlighting high level spending;
– including a distinction between capital and current expenditure by vote, and
– that cumulative spending data is included 2The relationship between the SCoA Committee and
other Committees in ensuring service delivery
• Committees are the places where members of the public can express their opinions
directly and try to influence the outcome of Parliament's decisions
• Committees monitor and oversee the work of national government departments and
hold them accountable
• The SCoA Committee and other Committees are both used to exercise oversight and
monitor government actions; by detecting and reporting issues that need to be referred
to Parliament in order for the Executive to answer to any anomalies on how public
funds are spent
• This ensures that government operations are more transparent to enable increased
public trust in the government
• In addition the committees support each other:
‒ They take care of domestic parliamentary issues
‒ They consider bills and amend them, and may initiate bills
‒ They consider private members' and provincial legislative proposals and special
petitions
‒ They consider international treaties and agreements 3Parliamentary process
• Money Bills Amendments Procedure and Related Matters Act sets out Parliament's role
in the budget process and enhances stakeholder participation and coordination
• The MTBPS, is discussed in Parliament
– Report issued before Executive finalises the budget
• The Budget is dealt with by the Standing Committees on Finance and Appropriations
comprising members of both houses
• Individual Portfolio Committees dissect the budget and strategic plan for each national
department
• Parliament votes first on the Fiscal Framework, then Division of Revenue and then
Appropriation Bill
• Public Accounts Committee deals with post-facto issues raised by Auditor General
42021 Appropriation Bill
• The Money Bills Amendment Procedure and Related Matters Amendment Act, 2018 requires
that after the tabling of a national budget:
Section 8(3) – Committees on finance must within 16 days or as soon as reasonably
possible thereafter, submit a report to the National Assembly and the National
Council of Provinces on the fiscal framework and revenue proposals
Step 1: fiscal framework was approved on
the 10 March 2021
Section 9(3) – The Division of Revenue Bill (DORA) must be passed within 35 days
after the adoption of the fiscal framework by Parliament, or a soon as reasonably
possible thereafter
Step 2: Division of revenue Bill was
adopted 19 March 2021
Section 10(7) – Parliament must pass the Appropriation Bill with or without
amendments, within four months after the start of the financial year, namely
31 July 2021
Step 3: the appropriation bill 5
considerations2021 Appropriation Bill
• The Appropriation Bill is the legislation that provides for the appropriation of money by
Parliament from the National Revenue Fund in terms of section 213 of the Constitution,
1996 and section 26 of the Public Finance Management Act (PFMA), 1999
• Spending is subject to the PFMA and the provisions of the Appropriation Bill itself
• For transfers to sub-national government, the 2021 Division of Revenue Bill also contains
provisions in terms of which specific spending must take place
• The committees on appropriations may not consider amendments to the Appropriation Bill
prior to the passing of the Division of Revenue Bill
• Any amendment to the Appropriation Bill must be consistent with the adopted fiscal
framework and Division of Revenue Bill passed by Parliament.
• The Appropriation Bill was tabled in Parliament at the time of the Budget – 24
February 2021
62021 Appropriation Bill
• Prior to the 2021 Appropriation Bill being promulgated, departments will incur expenditure
in terms of section 29 of the PFMA, which makes provision for spending before an annual
budget is passed:
– Up to end July, expenditure may not exceed 45 per cent of the 2020/21 financial year
annual budget
• Promulgation of the 2021 Appropriation Act is necessary:
– To allow for monthly expenditure above the transitional provisions contained in the
PFMA
– To ensure expenditure in accordance with the vote and programme purposes as stated
in the Act
72021 Appropriation Bill
A report of the Committee on Appropriations to the House that proposes amendments to the
main Appropriation Bill must, in respect of each amendment—
• Indicate the reason for such proposed amendment;
• Demonstrate how the amendment takes into account the broad strategic priorities and
allocations of the relevant budget;
• Demonstrate the implications of each proposed amendment for an affected vote and the
main divisions within that vote;
• Demonstrate the impact of any proposed amendment on the balance between transfer
payments, capital and recurrent spending in an affected vote;
• Set out the impact of any proposed amendment on service delivery; and
• Set out the manner in which the amendment relates to prevailing departmental strategic
plans, reports of the Auditor General, committee reports adopted by
• a House, reports in terms of section 32 of the Public Finance Management Act, annual
reports and any other information submitted to a House or committee in terms of the
standing rules or on request.
8Structure of the Bill
• The Bill is divided by vote and by main division within a vote (i.e. by programme and / or
transfer and subsidy to a national department within a vote)
• A purpose is set out for each vote, programme and transfer and subsidy to a national
department within a vote
• Allocations are categorised in terms of:
– Current payments
• Compensation of employees
• Goods and services
• Interest and rent on land
– Transfers and subsidies
– Payments for capital assets
– Payments for financial assets
• Allocations marked with a single asterisk refer to specifically and exclusively appropriated
allocations, including, but not limited to:
– all vote and national departments compensation of employees appropriations; and
– conditional grants (also listed in the Division of Revenue Bill, 2020)
9Estimates of National Expenditure (ENE)
publications
• The abridged ENE publication is the explanatory memorandum to the Appropriation Bill
• A set of more detailed e-publications on each vote are also available online at
www.treasury.gov.za
• The ENE publications contain information on:
– what institutions aim to achieve over the MTEF, and why;
– how institutions plan to spend their budget allocations in support of this; and what
outputs and outcomes the spending is intended to produce;
– how institutions have spent their budgets in previous years;
– performance data and targets;
– detailed expenditure trends and estimates by programme, subprogramme, significant
spending item and economic classification for each department and selected entities;
– the institution’s mandate, purpose (and that of its programmes), together with
programme-level objectives and descriptions of subprogrammes;
– infrastructure spending;
– personnel spending;
– provincial and municipal conditional grants;
10Background
2020 MTBPS:
• Government’s medium‐term policy priorities are economic recovery and fiscal consolidation
• The social compact agreed to between government, business, labour and civil society
prioritises short‐term measures to support the economy, alongside crucial structural
economic reforms
• The economy is expected to contract by 7.8 per cent in 2020, recovering to real GDP growth
of 3.3 per cent in 2021. Economic growth is expected to average 2.1 per cent over the
three‐year forecast period
• Fiscal measures – primarily reductions to the wage bill – will narrow the budget deficit and
stabilise debt over the next five years to return the public finances to a sustainable position
– Relative to the 2020 Budget, main budget non‐interest spending (excluding technical
adjustments) is reduced by R60 billion in 2021/22, R90 billion in 2022/23 and R150
billion in 2023/24, with constrained spending growth in the following two years
– The largest share of reductions falls on compensation. Other non‐interest spending
items are also reduced, while funding for buildings and other fixed structures, provincial
and local capital grants, and the Infrastructure Fund is protected
• The consolidated deficit narrows from 15.7 per cent of GDP in 2020/21 to 7.3 per cent by
2023/24. Gross national debt is projected to stabilise at 95.3 per cent of GDP by 2025/26.
11Background
Budget 2021:
• South Africa’s fiscal challenge is to balance the immediate need for support to the
economy during the pandemic with ongoing efforts to close a large, pre-existing budget
deficit. In this context, the fiscal strategy aims to:
– Narrow the deficit and stabilise the debt-to-GDP ratio, primarily by controlling non-
interest expenditure growth.
– Provide continued support to the economy and public health services in the short
term, without adding to long-term spending pressures.
– Improve the composition of spending, by reducing growth in compensation while
protecting capital investment.
• Efforts to reduce growth in the public-service wage bill remain on course, with the
Labour Appeal Court of South Africa confirming that the National Treasury must certify
the affordability and sustainability of wage agreements prior to their implementation.
• Significant risks remain. The global outlook is highly uncertain, with the economic
recovery largely dependent on responses to COVID-19. Several state-owned companies
are requesting additional funding. Negotiations on a new public-service wage agreement
are set to take place this year.
12Background
Adjustments to main budget non-interest expenditure since 2020 Budget
R million 2021/22
2020 Budget non-interest expenditure 1 592 186
Less: Contingency reserve 5 000
Allocated expenditure (2020 Budget) 1 587 186
Ski l l s devel opment l evy a djus tments -2 772
Baseline reductions -65 349
Progra mme ba s el i ne reductions a nd us e of -39 043
res erves
Wa ge bi l l reductions -26 306
Baseline allocations 22 446
COVID-19 res pons e 15 345
1 7 101
Other a l l oca tions
Provisional allocations 11 000
Allocated in 2021 Budget 1 552 511
Plus: Contingency reserve 12 000
2021 Budget non-interest expenditure 1 564 511
Change in non-interest expenditure since 2020 Budget -27 675
1. Includes the New Development Bank, financial support to state-owned companies and public entities,
and the rescheduling of some infrastructure reductions introduced in the 2020 MTBPS
13
Source: National TreasuryBackground
Major underspending for the period between 2012/13-2019/20 (excluding social
development 2019/20 spending)
Under/(over) expenditure against the Adjustments budget
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 1 420 813 2 057 335 3 976 101 2 717 940 3 169 676 2 101 854 3 118 627 3 396 204
as a share of adjusted appropriation 1,3% 1,8% 3,5% 2,4% 2,8% 1,9% 2,8% 3,0%
SOCIAL DEVELOPMENT 1 027 976 1 426 651 737 184 1 487 967 590 601 961 218 242 316 (15 008 404)
as a share of adjusted appropriation 0,9% 1,3% 0,7% 1,3% 0,5% 0,9% 0,2% -13,4%
TRANSPORT 319 013 (635 177) (376 429) 294 290 (117 805) 5 128 920 645 064 324 330
as a share of adjusted appropriation 0,3% -0,6% -0,3% 0,3% -0,1% 4,6% 0,6% 0,3%
BASIC EDUCATION 1 318 110 608 161 160 970 490 301 937 397 61 664 284 816 612 968
as a share of adjusted appropriation 1,2% 0,5% 0,1% 0,4% 0,8% 0,1% 0,3% 0,5%
HEALTH 158 321 703 084 745 915 215 100 101 230 220 866 913 789 422 392
as a share of adjusted appropriation 0,1% 0,6% 0,7% 0,2% 0,1% 0,2% 0,8% 0,4%
WATER AND SANITATION 0 0 2 030 719 189 556 (110 841) 501 212 254 298 1 249 693
as a share of adjusted appropriation 0,0% 0,0% 1,8% 0,2% -0,1% 0,4% 0,2% 1,1%
JUSTICE AND CONSTITUTIONAL DEVELOPMENT 343 289 752 902 497 236 147 973 166 163 286 621 444 875 757 215
as a share of adjusted appropriation 0,3% 0,7% 0,4% 0,1% 0,1% 0,3% 0,4% 0,7%
HUMAN SETTLEMENTS 674 534 552 468 59 373 508 837 109 125 107 216 260 459 516 361
as a share of adjusted appropriation 0,6% 0,5% 0,1% 0,5% 0,1% 0,1% 0,2% 0,5%
ENERGY 75 494 26 181 1 217 681 125 503 37 719 200 784 73 299 256 329
as a share of adjusted appropriation 0,1% 0,0% 1,1% 0,1% 0,0% 0,2% 0,1% 0,2%
POLICE 232 096 28 18 47 15 156 080 1 255 419 754 044
as a share of adjusted appropriation 0,2% 0,0% 0,0% 0,0% 0,0% 0,1% 1,1% 0,7%
ENVIRONMENTAL AFFAIRS 232 660 6 535 5 327 5 377 44 130 258 077 693 561 117 024
as a share of adjusted appropriation 0,2% 0,0% 0,0% 0,0% 0,0% 0,2% 0,6% 0,1%
PUBLIC WORKS 687 323 152 607 99 282 31 075 109 453 57 843 34 777 146 14
831
as a share of adjusted appropriation 0,6% 0,1% 0,1% 0,0% 0,1% 0,1% 0,0% 0,1%Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the
2021/22 2021/22 reduction decline
to 2021/22
Planning, Monitoring and 454,0 524,3 -70,3 -15,5% Filling of critical vacant positions
Evaluation
Public Service and 526,2 606,6 -80,4 -15,3% Filling of critical vacant positions
Administration
Correctional Services 25 218,1 28 565,6 -3 347,5 -13,3% Filling of critical vacant positions
The warder to inmate ratio is expected to decline from
1:6 to 1:7, which is far from the norm of 1:5
Police 96 355,5 108 208,8 -11 853,3 -12,3% Filling of critical vacant positions
Visible Policing and Detective Services affected
limited recruitment of young and physically active
police officers
Public Service Commission 282,4 316,3 -33,9 -12,0% Filling of critical vacant positions
Civilian Secretariat for the 149,0 166,3 -17,4 -11,7% Filling of critical vacant positions
Police Service Intersectoral Coordination and Partnerships;
Legislation and Policy Development; and Civilian
Oversight, Monitoring and Evaluations will be affected
15Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the
2021/22 2021/22 reduction decline
to 2021/22
Home Affairs 8 690,5 9 659,9 -969,5 -11,2%Filling of critical vacant positions
Goods and services will be affected
Justice and Constitutional 19 119,8 21 168,8 -2 049,0 -10,7%Filling of critical vacant positions
Development Court Services and National Prosecuting Authority (NPA)
will be affected
The aspirant prosecutor training programme will have to
be suspended
Increased case backlogs
Office of the Chief Justice 1 211,8 1 335,9 -124,1 -10,2%Superior Court Services will be affected leading to more
case backlogs.
Employment and Labour 3 505,7 3 857,2 -351,4 -10,0% Filling of critical vacant positions
Transfer to the CCMA will be affected
Defence 46 268,7 50 852,5 -4 583,8 -9,9%Inability to implement the Defence Review 2015,
resulting in a decline in SANDF capabilities; their ability
to rejuvenate the SANDF and increase its capacity for
border safeguarding, compromising the country's
territorial integrity due to porous borders.
Decline in capabilities for the SA Navy and the SA Air
force due to inability to conduct major maintenance on
the submarines, frigates and fighter aircrafts
16Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the
2021/22 2021/22 reduction decline
to 2021/22
The Presidency 592,3 648,8 -56,5 -9,5% Impact on project management office which require
additional capacity to support the presidential projects
International Relations and 6 452,4 7 038,5 -586,2 -9,1% Filling of critical vacant positions
Cooperation Impact on the annual increase in fees to international
organizations
Parliament 2 144,1 2 331,5 -187,4 -8,7% Filling of critical vacant positions
Impact of ICT infrastructure projects that are under funded
Military Veterans 654,4 711,0 -56,6 -8,6%Inability to deliver benefits to military veterans as
mandated by the Military Veterans Act (2011).
Independent Police 348,3 377,7 -29,4 -8,4%The directorate's plans of recruiting and appointing
Investigative Directorate adequate investigators will be limited
Statistics South Africa 4 474,6 4 843,9 -369,3 -8,3%Filling of critical vacant positions
The funding of surveys
New surveys and coordination of surveys conducted by
other departments will be affected
17Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the
2021/22 2021/22 reduction decline
to 2021/22
National School of 210,2 227,3 -17,1 -8,1% Filling of critical vacant positions
Government
Traditional Affairs 171,4 184,7 -13,3 -7,8% Operations of the department will be affected
Women, Youth and Persons 763,5 821,5 -57,9 -7,6% Filling of critical vacant positions
with Disabilities
Environment, Forestry and 8 716,8 9 287,8 -571,0 -6,6% Filling of critical vacant positions
Fisheries Goods and services
Transfers to departmental agencies will be reduced
Reduce scale of delivery under the EPWP
programme
Tourism 2 429,6 2 586,2 -156,6 -6,4% Filling of critical vacant positions
Transfers to South African Tourism hindering the
ability to market South Africa as a tourism destination
of choice
Transfers to EPWP, tourism incentive scheme,
tourism sector support programmes will be reduced
Small Business Development 2 538,3 2 696,1 -157,8 -6,2% Less support to small businesses which will affect
recovery from Covid-19 as well contribution to
economic growth by small business
18Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the decline
2021/22 2021/22 reduction
to 2021/22
Communications and 3 692,9 3 918,6 -225,7 -6,1% Operations of department and transfers to entities
Digital Technologies Further reductions on programmes such as SA Connect and
digital migration
Agriculture, Land 16 920,4 17 946,9 -1 026,5 -6,1% The affected programmes are land reform and restitution and
Reform and Rural conditional grants
Development Slowing down land reform and restitution process, which will
impact on social justice
Sports, Arts and Culture 5 693,9 6 035,5 -341,6 -6,0%Community library services grant, transfers to public entities,
heritage institutions and performing arts institutions, and Mass
Sport Participation Grant will be affected
Higher Education and 97 784,0 102 753,0 -4 969,0 -5,1%Filling of critical vacant positions
Training Transfer to NSFAS, university subsidies, infrastructure grants
and subsidies to TVET colleges will be affected
Science and Innovation 8 933,3 9 377,8 -444,5 -5,0% Filling of critical vacant positions
Selected goods and services items such as travel and
subsistence, venues and catering, including transfers to public
entities will be reduced
Public Works and 8 343,2 8 757,3 -414,1 -5,0% Filling of critical vacant positions
Infrastructure Funding of the infrastructure function that was added to the
portfolio
Mineral Resources and 9 180,8 9 570,0 -389,2 -4,2% Operations of department and transfers to entities
Energy 19Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons for the
2021/22 2021/22 reduction to decline
2021/22
Trade, Industry and 9 736,6 10 098,3 -361,7 -3,7%Filling of critical vacant positions
Competition Contractual obligations under goods & services may
not be met
On the manufacturing incentives, less firms will be
supported
Transport 66 691,8 69 034,6 -2 342,8 -3,5% Largely PRASA capex, and PTNG, with reductions
on maintenance budgets on SANRAL and
departmental operations
Cooperative Governance 100 875,9 104 262,1 -3 386,2 -3,4%Largely on equitable share, community work
programme and operations of the department
Social Development 205 226,9 211 810,9 -6 584,0 -3,2% Social grant increases will be below inflation
Water and Sanitation 16 910,1 17 270,4 -360,3 -2,1% Operations of department and transfers to entities
Government 749,7 763,2 -13,5 -1,8% Adhoc projects like communication on the vaccine
Communication and cannot be funded from the baseline due to the small
Information System budget
Funding of special projects and funding of the
community newspaper
Basic Education 27 018,1 27 333,0 -314,9 -1,2%Filling of critical vacant positions
Goods and services, and Funza Lushaka Bursary
Programme will be affected
20Appropriation Bill in numbers
Department 2021 ENE 2020 ENE Difference share of Programmes affected and other reasons
2021/22 2021/22 reductio for the decline
n to
2021/22
Human Settlements 31 658,0 31 788,6 -130,6 -0,4% Reductions on operations of department and
public entities
Health 62 543,3 60 638,3 1 905,0 3,0% Net increase is due to R6bn allocated to
COVID-19 vaccine programme. Reductions in
all other programmes and conditional grants
(around R4bn in total), with largest (R1.7bn)
reduction on HIV/AIDS grant component.
National Treasury 41 055,7 35 822,5 5 233,2 12,7% Funding for the Land Bank
Public Enterprises 36 291,8 4 637,4 31 654,4 87,2% Allocations for ESKOM
Total 980 583,9 988 835,6 -8 251,7 -0,8%
Gross reductions -47 044,3 -4,8%
Gross additions 38 792,6 4,0%
21Appropriation Bill: summary implications
• Filling of vacant posts and operational budgets will be affected
• Peace and security:
– worsening custodial staff to inmate ratio to 1:7 (norm is 1:5) and worsening police to
population ratio to above 1:400 against a norm of 1:220
– Limited recruitment of young and physically active force
– Further delays in the implementation of the Defence review
– Increased case backlog
• Lesser transfers to public entities
• Membership fees to international organisations
• ICT and other infrastructure projects will be affected (infrastructure grants) including road
maintenance
• Funding for new, old and poverty surveys will be affected
• EPWP, community works programmes and business incentives/support will be lowered
• Compensation of employees, transfer to NSFAS, university subsidies, infrastructure grants
and subsidies to TVET colleges will be affected
• Below inflation increases in social grants
• Funza Lushaka Bursary Programme will be affected
• Reductions in all other programmes and conditional grants (around R4bn in total), with
largest (R1.7bn) reduction on HIV/AIDS grant component
22
• Funding for the Land Bank and EskomOther issues to consider: Land Bank funding
• The Land Bank, which defaulted on its debt in April 2020, will receive R7 billion in
recapitalisation over the medium term to put it on a stable and sustainable development
path
• A recapitalisation of R5 billion in 2021/22, to be funded through reprioritisation, and
another R2 billion in both 2022/23 and 2023/24 for the Land Bank
23Other issues to consider: Land Bank funding
Funding Funding Funding Funding Funding Funding
2021/22 budget request (1) request (2) request (3) request (1) request (2) request (3)
Social Development 205 227 1 046 0,5%
Cooperative Governance 100 876 514 0,5%
Higher Education and Training 97 784 499 0,5%
Police 96 356 491 0,5%
Transport 66 692 340 0,5%
Health 62 543 319 756 0,5% 1,2%
Defence 46 269 236 559 0,5% 1,2%
National Treasury 41 056 209 496 0,5% 1,2%
Public Enterprises 36 292 185 439 0,5% 1,2%
Human Settlements 31 658 161 383 0,5% 1,2%
Basic Education 27 018 138 327 690 0,5% 1,2% 2,6%
Correctional Services 25 218 129 305 644 0,5% 1,2% 2,6%
Justice and Constitutional Development 19 120 97 231 488 0,5% 1,2% 2,6%
Agriculture, Land Reform and Rural Development 16 920 86 205 432 0,5% 1,2% 2,6%
Water and Sanitation 16 910 86 204 432 0,5% 1,2% 2,6%
Trade, Industry and Competition 9 737 50 118 249 0,5% 1,2% 2,6%
Mineral Resources and Energy 9 181 47 111 234 0,5% 1,2% 2,6%
Science and Innovation 8 933 46 108 228 0,5% 1,2% 2,6%
Environment, Forestry and Fisheries 8 717 44 105 223 0,5% 1,2% 2,6%
Home Affairs 8 690 44 105 222 0,5% 1,2% 2,6%
Public Works and Infrastructure 8 343 43 101 213 0,5% 1,2% 2,6%
International Relations and Cooperation 6 452 33 78 165 0,5% 1,2% 2,6%
Sports, Arts and Culture 5 694 29 69 145 0,5% 1,2% 2,6%
Statistics South Africa 4 475 23 54 114 0,5% 1,2% 2,6%
Communications and Digital Technologies 3 693 19 45 94 0,5% 1,2% 2,6%
Employment and Labour 3 506 18 42 90 0,5% 1,2% 2,6%
Small Business Development 2 538 13 31 65 0,5% 1,2% 2,6%
Tourism 2 430 12 29 62 0,5% 1,2% 2,6%
Parliament 2 144 11 26 55 0,5% 1,2% 2,6%
Office of the Chief Justice 1 212 6 15 31 0,5% 1,2% 2,6%
Women, Youth and Persons with Disabilities 764 4 9 19 0,5% 1,2% 2,6%
Government Communication and Information System 750 4 9 19 0,5% 1,2% 2,6%
Military Veterans 654 3 8 17 0,5% 1,2% 2,6%
The Presidency 592 3 7 15 0,5% 1,2% 2,6%
Public Service and Administration 526 3 6 13 0,5% 1,2% 2,6%
Planning, Monitoring and Evaluation 454 2 5 12 0,5% 1,2% 2,6%
Independent Police Investigative Directorate 348 2 4 9 0,5% 1,2% 2,6%
Public Service Commission 282 1 3 7 0,5% 1,2% 2,6%
National School of Government 210 1 3 5 0,5% 1,2% 2,6%
Traditional Affairs 171 1 2 4 0,5% 1,2% 2,6% 24
Civilian Secretariat for the Police Service 149 1 2 4 0,5% 1,2% 2,6%
980 584 5 000 5 000 5 000 0,5% 0,5% 0,5%Amendments to the names of certain votes in the
Schedule to the Bill
• The names of votes in the Bill were in accordance with the names of the departments as
they existed when the Bill was introduced
• Subsequently, the President acting in terms of section 7(5)(a) of the Public Service Act,
1994, amended Schedule 1 to that Act with effect from 1 April 2021 by Government Notice
No. 172 of 5 March 2021. Since it is envisaged that the Bill will be passed by Parliament
after 1 April 2021, these amendments will be timeous and will accurately reflect the names
of votes to correspond with the names of the relevant departments in Schedule 1 to the
Public Service Act, as amended.
• It is therefore requested that the Bill be amended in terms of section 14 of the Money Bills
and Related Matters Act, 2009, to align with Schedule 1 to the Public Service Act, by
amending the name of—
• Vote 32 in column 2 of the Schedule, by the substitution for the phrase “Environment,
Forestry and Fisheries” of the phrase “Forestry, Fisheries and the Environment”; and
• Vote 37 in column 2 of the Schedule, by the substitution for the phrase “Sports, Arts
and Culture” of the phrase “Sport, Arts and Culture”.
• The renaming of the vote names would only constitute technical corrections and will have
no funding implication to the proposed appropriations
25Special Appropriation Bill
Appropriation of additional amount of money to vote of Health
An amount of R1.250 billion is hereby appropriated out of the National Revenue Fund for
expenditure authorised in terms of section 16(1) of the Public Finance Management Act, 1999
(Act No. 1 of 1999), and attributed to the vote of Health in order to procure COVID-19
vaccines and implement a related COVID-19 vaccine research project, as set out in the
Schedule.
Main Division Current Payments Transfers and Payments Payments
Subsidies for Capital for Financial
Compensation Goods and Interest Assets Assets
of Employees Services and Rent
on Land
Health 1 250 000 1 100 000 150 000
3 Communicable and Non-Communicable Diseases 1 100 000 1 100 000
6 Health System Governance and Human Resources 150 000 150 000
Of which
Departmental agencies and accounts
– South African Medical Research Council: Covid-19 vaccine 150 000
26Special Appropriation Bill
Appropriation of additional amount of money to vote of Social Development
An amount of R2.826 billion is hereby appropriated out of the National Revenue Fund for
expenditure authorised in terms of section 16(1) of the Public Finance Management Act, 1999
(Act No. 1 of 1999), and attributed to the vote of Social Development in order to fund the
extension of the Special COVID-19 Social Relief of Distress Grant, as set out in the Schedule.
Main Division Current Payments Transfers and Payments Payments
Subsidies for Capital for Financial
Compensation Goods and Interest Assets Assets
of Employees Services and Rent
on Land
Social Development 2 825 803 2 825 803
2 Social Assistance 2 825 803 2 825 803
Of which
Households
* – Social Assistance Transfers: Social grants
– Social Relief of Distress 2 825 803
27Special Appropriation Bill
Adjustment to appropriation of money to vote of Public Enterprises
• Adjustments to an appropriation of money from the National Revenue Fund to the vote of
Public Enterprises in the 2020/21 financial year, are set out in the Schedule
• The Minister of Finance may, on request of the Minister of Public Enterprises, approve any
portion of an amount referred to in the Schedule for a subsidiary of South African Airways
SOC Ltd (SAA) for use by another subsidiary of SAA, referred to in the Schedule, to address
urgent funding needs
• The approval of the use of funds in terms of subsection (2) must be disclosed in the
National Treasury’s next quarterly report to the relevant Parliamentary Committees
• Despite the effective date of this Act, the appropriation for the subsidiaries and
expenditure thereof, must be regarded as an appropriation and expenditure for the
2020/21 financial year.
Main Division Current Payments Transfers and Payments Payments
Subsidies for Capital for Financial
Compensation Goods and Interest Assets Assets
of Employees Services and Rent
on Land
R'000 R'000 R'000 R'000 R'000 R'000 R'000
Public Enterprises
* – South African Airways SOC Ltd: Purchase of equity: Implementation
of business rescue plan (2 700 000)
* – South African Airways Technical SOC Ltd 1 663 000
* – Mango Airlines SOC Ltd 819 000
* – Air Chefs SOC Ltd 28 000
218Special Appropriation Bill
Adjustment to appropriation of money to vote of Public Enterprises
• The 2020 Second Adjustments Appropriation Bill provided R10.5 billion for the
implementation of SAA’s Business Rescue Plan.
• Post the tabling of the 2020 Second Adjustments Appropriation Bill, the Department of
Public Enterprises requested that a mechanism be found to transfer a portion of the
business rescue funding to SAA’s subsidiaries.
• It should be noted that the R2.7 billion to be provided to subsidiaries is not in addition to
the R10.5 billion already allocated to SAA in the 2020 Second Adjustments Appropriation
Act.
• Of the R10.5 billion provided to SAA in the Second Adjustments Appropriation Act, R7.8
billion was transferred to the airline in 2020/21 and the balance of R2.7 billion will be
provided to SAA’s subsidiaries once this Special Appropriation Bill is enacted.
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