1

Provincial Budgets and Expenditure Review: 2003/04 – 2009/10

Chapter 4: Social Development

17 October 2007

2

2006/07 Outcome

Table 4.1 Provincial social development expenditure as at 31 March 20072006/07

R thousand

Main Appro- priation

Total Adjust-ments

Adjusted budget

Prel.outcome

Preliminary outcome as

% of adjusted budget

Over(-)/Under(+) expen-diture

Total Adjustments as percentage of

main appropriation

% Over(-)/under(+) expen-

diture of adjusted budget

Year-on-year

growth 2005/06 – 2006/07

Eastern Cape 762 772 -21 970 740 802 750 473 101.3% -9 671 -2.9% -1.3% 46.2%

Free State 417 850 27 884 445 734 442 985 99.4% 2 749 6.7% 0.6% 15.7%

Gauteng 981 782 23 861 1 005 643 1 011 634 100.6% -5 991 2.4% -0.6% 23.9%

KwaZulu-Natal 894 810 105 675 1 000 485 941 578 94.1% 58 907 11.8% 5.9% 26.2%

Limpopo 431 750 -36 301 395 449 401 391 101.5% -5 942 -8.4% -1.5% 12.1%

Mpumalanga 430 279 -95 998 334 281 319 218 95.5% 15 063 -22.3% 4.5% 27.7%

Northern Cape 215 025 7 696 222 721 217 643 97.7% 5 078 3.6% 2.3% 24.1%

North West 427 562 -7 969 419 593 368 436 87.8% 51 157 -1.9% 12.2% 13.6%

Western Cape 727 143 828 727 971 719 516 98.8% 8 455 0.1% 1.2% 10.1%

Total 5 288 973 3 706 5 292 679 5 172 874 97.7% 119 805 0.1% 2.3% 22.6%

3

Table 4.3 Programme percentage of total spending, 2006/07Administration Social

welfare services

Development and research

Eastern Cape 25,9% 57,3% 16,8%Free State 28,9% 55,6% 15,5%Gauteng 25,8% 68,5% 5,7%

KwaZulu-Natal 26,6% 56,0% 17,4%

Limpopo 23,4% 48,5% 28,1%Mpumalanga 15,7% 62,9% 21,5%Northern Cape 24,9% 62,0% 13,2%North West 30,2% 55,2% 14,6%

Western Cape 26,6% 64,0% 9,5%

Total 25,8% 59,7% 14,5%

Source: National Treasury provincial database

Programme Spending

4

Programme Spending(cont.)

Table 4.4 Provincial social welfare services by subprogramme, 2003/04 – 2009/102003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

R million

Outcome Preliminaryoutcome

Medium-term estimates

Administration 399 423 539 635 848 975 1 105

Substance abuse prevention and rehabilitation

65 78 92 105 174 200 246

Care and services to older persons

390 407 440 493 584 709 766

Crime prevention and support 145 173 217 210 497 602 664

Services to persons with disabilities

165 178 169 207 227 251 269

Child care and protection services

721 838 963 1 108 1 211 1 538 1 763

Victim empowerment 8 3 1 36 69 74 77

HIV and AIDS 84 126 209 263 380 484 514

Social relief 42 12 77 7 22 25 27

Care and support services to families

0 1 3 26 140 157 168

Total 2 020 2 239 2 709 3 090 4 152 5 014 5 598

Source: National Treasury provincial database

5

Programme Spending (cont.)Table 4.6 Provincial social development expenditure per economic classification,2003/04 – 2009/10

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

R million

Outcome Preliminaryoutcome

Medium-term estimates

Current payments 1 769 1 975 2 155 2 584 3 392 3 916 4 281

of which:Compensation of employees 1 102 1 225 1 320 1 575 2 169 2 445 2 688

Other current payments 667 750 835 1 009 1 223 1 470 1 593

Transfers and subsidies 1 323 1 506 1 924 2 342 2 732 3 541 3 998

of which:

Non-profit institutions 1 225 1 403 1 729 2 156 2 510 3 318 3 739

Payments for capital assets 116 169 141 248 426 419 457

Total 3 209 3 650 4 220 5 173 6 550 7 875 8 735

Percentage of total

Current payments 55,1% 54,1% 51,1% 49,9% 51,8% 49,7% 49,0%

of which:Compensation of employees 34,3% 33,6% 31,3% 30,4% 33,1% 31,0% 30,8%

Other current payments 20,8% 20,5% 19,8% 19,5% 18,7% 18,7% 18,2%

Transfers and subsidies 41,2% 41,2% 45,6% 45,3% 41,7% 45,0% 45,8%

of which:

Non-profit institutions 38,2% 38,4% 41,0% 41,7% 38,3% 42,1% 42,8%

Payments for capital assets 3,6% 4,6% 3,3% 4,8% 6,5% 5,3% 5,2%

Total 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%

Percentage growth (average annual)

2003/04 – 2006/07

2007/08 – 2009/10

Current payments 13,5% 12,3%

of which:Compensation of employees 12,6% 11,3%Other current payments 14,8% 14,1%

Transfers and subsidies 21,0% 21,0%

of which:

Non-profit institutions 20,7% 22,1%

Payments for capital assets 28,7% 3,5%

Total 17,3% 15,5%

Source: National Treasury provincial database

6

Real per capita expenditure on Welfare Services

Rand 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Eastern Cape 66

65

88

108

147

190

197

Free State 157

152

201

182

192

210

248

Gauteng 228

268

286

349

451

532

612

KwaZulu-Natal 77

87

118

127

149

142

154

Limpopo 39

51

56

61

66

100

105

Mpumalanga 82

106

122

168

230

268

296

Northern Cape 188

249

254

339

451

511

662

North West 122

94

121

140

285

399

453

Western Cape 513

579

645

677

975

1,171

1,246

Total 112

123

148

168

225

270

298

Note 1: Per capita population adjusted according to the poverty component of the equitable share.

7

Services to Older Persons

Table 4.8 Services to older persons, 2006 Homes for the Aged Aged clients counselled

Number

Govt. NPO Totalhomes

% of total

per capita distri-bution

Govt. NPO Total counselled

% of total

Percent- age

popu-lation

Eastern Cape 2 56 58 12,7% 9 719 11 500 5 190 16 690 22,8% 2,9%

Free State 2 38 40 8,8% 4 800 93 1 004 1 097 1,5% 0,6%

Gauteng 1 92 93 20,4% 5 343 239 11 266 11 505 15,7% 2,2%

KwaZulu-Natal 1 54 55 12,1% 10 282 1 868 29 117 30 985 42,3% 5,3%

Limpopo 2 6 8 1,8% 44 839 290 235 525 0,7% 0,1%

Mpumalanga n/a 18 18 3,9% 9 422 3 425 356 3 781 5,2% 2,2%

Northern Cape n/a 25 25 5,5% 2 791 108 1 257 1 365 1,9% 1,9%

North West 1 26 27 5,9% 9 126 300 n/a 300 0,4% 0,1%

Western Cape n/a 132 132 28,9% 2 514 4 684 2 266 6 950 9,5% 2,0%

Total 9 447 456 100,0% 6 567 22 507 50 691 73 198 100,0% 2,4%

8

Services to Children

Table 4.9 Services to children, 2006

Number

Total no registered ECD sites

Percentage of total registed ECD sites

per capita distri-bution

Total no.of secure

care centres

per capita distribution

Eastern Cape 3,072 47.2% 255 1 2,992,583

Free State 422 6.5% 710 1 1,089,133

Gauteng 227 3.5% 4,033 5 571,809

KwaZulu-Natal 1,324 20.3% 834 2 1,997,052

Limpopo 11 0.2% 61,837 1 2,578,324

Mpumalanga 383 5.9% 979 1 1,347,087

Northern Cape 193 3.0% 496 2 168,413

North West 28 0.4% 15,384 1 1,471,426

Western Cape 848 13.0% 539 2 797,080

Total 6,508 100.0% 790 16 1,141,418

9

Services to children (cont)

• Child Care Act (1983) – – registration of ECD sites

• 6 508

– provision of subsidies to children from poor households.

• 314 912 children @ a cost of R350 million

• Expansion of ECD is planned over the medium term (however some key challenges remain)– capacity and bureaucracy around registration– aligning ECD provincial targets– cooperation and coordination with other departments

especially Education– investing in infrastructure and equipment

10

Developments within the sector

• With Social Assistance removed different approaches to developmental welfare services are evident: – Eg. Western Cape and Northern Cape continue to follow a

predominantly welfare approach, whereas Limpopo and KwaZulu-Natal tend to focus on community development

• Strong reliance on Non Governmental Organisations (NGOs) as partners to service delivery. – Government and NGOs are the largest employers of social

workers. – competition for scarce resources causes significant

challenges within the sector, of which Social Workers remains the biggest concern.

11

Developments within the sector (cont)

• Shortage of Social Workers– hampers service delivery

• Interim measure, – Social Auxiliary workers – increase Social Worker graduates with the

awarding of about 1000 bursaries per year. – conducting an audit of working conditions, – Norms and Standards – Monitoring and evaluation

12

Developments within the sector (cont)

• Development of a national information management system

• New budget structure• Other projects are also under way such

as– linking grants to sustainable livelihoods, – the National Integrated Social

Information System and – the orphans register.

13

Developments within the sector (cont)

• On the legislative front, – Regulations for the Older Persons Act (2006) – Children’s Act (2005) – The Prevention and Treatment of Substance

Abuse Bill – The Child Justice Bill is yet to be passed by

Parliament.– Social Services Professions Act (1978)

• Provincial departments are in the meantime reorienting their services

14

Conclusion• There are some positive development

in provinces

• Funding for the sector has grown and is set to continue to grow over the MTEF period.

• Focus should now be on improving implementation