UPDATE ON THE ALIGNMENT OF GOVERNMENT BUDGETS TO THE NATIONAL DEVELOPMENT PLAN (NDP) 2030 - PowerPoint Presentation

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UPDATE ON THE ALIGNMENT OF GOVERNMENT BUDGETS TO THE NATIONAL DEVELOPMENT PLAN (NDP) 2030 AND THE MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) 2014-2019ANDPROGRESS WITH IMPLEMENTATION OF THE MTSF 2014-2019 STANDING COMMITTEE ON APPROPRIATIONS19 APRIL 2016

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Focus AreasThe National Development Plan (NDP 2030); Medium-Term Strategic Framework (MTSF) 2014-2019 and the 14 OutcomesEnhancing alignment between Budget and the NDP 2030Strengthening planning processes and alignment between the NDP 2030; MTSF 2014-2019; Annual Performance Plans & Strategic Plans of Government Departments – through p

rovision of planning support to government departments

Monitoring the Implementation of the NDP 2030 through the MTSF 2014-2019 focusing on:

Outcomes - with emphasis on strategic areas needing priority

oversight interventionMajor risks and possible action steps for Departments to take to meet the 2019 targetsPossible oversights strategies to accelerate delivery to meet targets set out in the MTSF 2014-2019 and NDP 2030

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3

Eradicate absolute poverty

– from 39% of people living below the poverty line of R432pm (2009 prices).

Reduce unemployment rate to 6%

– creating 11 million more jobs by 2030

Significantly reduce inequality

from 0.69 to 0.60

gini

coefficient through a range of policy interventionsThe NDP sets goals, targets to be achieved by 2030 in each sector as well as policy proposals on how to achieve the goals – (examples on next slides)

NDP 2030 Goals

Our future -

make it work

Our future -

make it workSlide4

Implementing the NDP 2030: The MTSF 2014-2019

Quality basic education

A long and healthy life for all

All people in South Africa are and feel safe

Decent employment through inclusive economic growth Skilled and capable workforce to support an inclusive growth path An efficient, competitive and responsive economic infrastructure network Vibrant, equitable, sustainable rural communities contributing to food security for allSustainable human settlements and improved quality of household life

Responsive, accountable, effective and efficient local government system

Protect and enhance our environmental assets and natural resources

Create a better South Africa, a better Africa and a better world

An efficient, effective and development oriented public service Social protection Nation building and social cohesion

MTSF is government’s first five year implementation plan of the NDP 2030 - covering the electoral period 2014 – 2019

MTSF is structured in accordance with the 14 Outcomes of government

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5ALIGNMENT OF THE BUDGET AND THE NDP 2030Slide6

Need for alignment of plans &elements of alignmentAs pointed out by SCOA and PBO To ensure focused implementation & results, plans have to be aligned:NDP to MTSF to Departmental Strategic Plans to Annual Performance Plans Cascade of planning

Plans have to be reflected in resource allocation/budgets

To assess alignment:

Our plans have to be clear in terms of targets and activities

We need to know what we are spending onIn both areas we have been making ongoing progress:Refinement of plans and interrogation of alignmentImproved information and transparency of budgets

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71. Quality Basic Education(NDP Chapter 9)

9. Responsive Local Government (Chapter 13)

14. Social Cohesion (Chapter 15)

2. A Long & Healthy Life

(Chapter 10)

6. Efficient Economic Infrastructure (Chapter 4)

7. Vibrant Rural Communities (Chapter 6)

5. A Skilled & Capable Workforce (Chapter 9)

10. Protecting Natural Resources (Chapter 5

)

11. International Role & Links (Chapter 7)

8. Sustainable Human Settlements (& Planning & Spatial Planning) (Chapter 8)

13.

Comprehensive

Social Protection (Chapter 11)

3. Safety & Transparency (Chapters 12 & 14)

QUALITY OF LIFE/SOCIAL SERVICES

ECONOMY, INFRASTRUCTURE, EMPLOYMENT

ACTIVE CITIZENRY, CAPABLE STATE & LEADERSHIP

Key pillars extensively covered in NDP & built into MTSF

(By outcome with NDP chapter in brackets)

4

. Decent Employment through Growth (Chapter 3)

12. Effective Public Service

(Chapter 13 & 14)Slide8

Assessment of alignmentComplex exercise because of size and complexity of government’s businessExtensive process followed of negotiation with departments to develop MTSF from NDP In some case NDP only broad framework so needed further elaboration of strategySome government programmes can only be fine-tuned over time

Ongoing efforts to fine-tune MTSF but that large measure of alignment exists

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Assessment of alignment Assessment of planning-budgeting alignment depends on level of assessment but:No evidence that important MTSF priorities remain unfunded although in some areas (such as post-school education) the fiscal environment has not allowed for rapid ramping up of expenditure in line with targets9Slide10

Assessment of alignment Broad priority areas covered by substantial allocations although continual revisiting of allocations among sub-sectors:Annual budget progress assesses in some detail the progress in spending programmes against budgetsEvaluation programme (DPME) and Performance and Expenditure Reviews (GTAC) also assess implementation and impact in more detail and lead to improvement

plans

Commitment from DPME and National Treasury to further strengthen the prioritisation process as key link between planning and budgeting and strengthening political oversight, mainly through the long-standing MINCOMBUD

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A strategyNeed to escape cycle of low growth & worsening inequalityCatalysing through NDP/Budget alignmentIncreased focus in Budget 2016 on job creation & the economy & resolving post-school education issuesGoing forward interrogate fiscal frameworkStrengthen outcomes framework and factoring impact of programmes into allocationsSufficient political oversight over the budget process11Slide12

Mechanisms for NDP/Budget alignment going forwardBudgets need to ensure that:Funds flow to the right services (allocate funds to priorities)Funds are used efficientlySpending is sustainable & stability for planningBudget reform has been critical and also establishment of outcomes framework for monitoring and evaluationPlanning framework & annual reportingMinComBud, 3-year budgets, informationExpenditure Reviews, evaluations, performance dialogues

Priority setting and oversight critical to ensure appropriateness and legitimacy of budgets

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PROVISION OF PLANNING SUPPORT TO GOVERNMENT DEPARTMENTS14Slide14

Reviewing departmental plans to ensure alignment with and implementation of the MTSF DPME assessed the first and second draft Annual Performance P

lans (APP) and revised Strategic Plans (SPs) of

national departments to

ensure that they reflect

targets and actions in the 2014-2019 MTSF. The assessment was done by DPME (GPI & OME units) in collaboration with the National Treasury and the Department of Women.Reports on the findings of the

assessment of the

second draft

APPs

and revised SPs were sent to national departments at the end of January.Of the 43 national departments,

Alignment

to the MTSF could be identified in 30 departments

Of the 30 departments11 departments

demonstrated full alignment of their draft plans to the MTSF, while 19 departments demonstrated partial alignment to the MTSF.

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Reviewing departmental plans to ensure alignment with and implementation of the MTSF In some instances, partial alignment was due to the MTSF refinement process. Final plans should be fully aligned to the revised MTSF.DPME has engaged with national departments regarding the findings of the assessment and to provide support on the improvement of SPs and APPs.

Departments were advised to ensure that all MTSF performance indicators are incorporated in the 2016/17 Annual Performance Plan

.

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Reviewing departmental plans to ensure alignment with and implementation of the MTSF Some of the issues identified in the assessment include:Misalignment of indicators and targets in the APP to those in the MTSF.

Non

inclusion of some key policies and strategies from the

MTSF

in the APP.Crafting of SMART strategic objectives with 5 year and annual targets.

Alignment

of strategic objectives in the Strategic Plan to the Annual Performance

Plan.

Misalignment between strategic objectives and programme performance indicators.

Lack

of and inadequate definition of strategic objectives and programme performance indicators in the Technical Indicator Description table.

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Alignment of Provincial Plans to the MTSF All provincial departments showed some form of alignment of their plans to the MTSF. DPME has provided provincial departments with assessment reports and has engaged with them regarding the reports.DPME has facilitated a process of reviewing the standardised sector indicators for provincial departments for the 10 concurrent functions, with the aim of aligning them to the MTSF.

The

9 provincial sector departments

together

with the national department agreed on a core set of performance indicators (aligned to the MTSF indicators) that are incorporated in the APPs of the provincial departments and which form the basis of the quarterly performance reporting process and the

audited annual reporting

process.

Assessment of the second draft Annual Performance Plans showed that there is generally alignment to the standardised sector indicators

.

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Summary of planning and budgeting issuesDPME is making significant strides towards institutionalising planning in government.Support is being provided to National and Provincial Government Departments.

NPC continues to play a critical and strategic role in reshaping planning and budgeting processes.

The key objective is to ensure

effective resourcing of the NDP 2030 and MTSF

2014-2019 - to achieve alignment between resource allocation and national priorities.Key tasks remain - of enhancing planning, budgeting and monitoring and evaluation capacity, as well as accountability - across all spheres of government

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MONITORING THE IMPLEMENTATION OF THE NDP 2030 AND THE MTSF 2014-2019 19Slide20

Cabinet monitors the implementation of the Medium-Term Strategic Framework (MTSF) for 2014-2019 through quarterly POA Reports POA reports are first tabled before a Technical Implementation Forum and an Implementation Forum of Ministers – prior to submission to Cabinet

For Q3 of 2015/16, POA Reports for all 14 Outcomes (100%) were submitted to Cabinet, accompanied by 14 Briefing Notes from the DPME (100%).

The 14 POA Reports were discussed

on the

08th-10th March 2016 – by the following Cabinet Committees:

Governance and Administration (G&A)

Social Protection, Community and Human Development (SPCHD)

Economic

Sectors, Employment and Infrastructure Development (ESE&ID)

Justice, Crime Prevention and Security (JCPS)

International Cooperation, Trade and Security (ICTS)

Executive Oversight over the MTSF 2014-2019

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Summary of progress towards the MTSF 2014-2019 targets per Outcome21Slide22

Overview of Progress per OutcomeAreas of Progress69% of the annual targets were met and 21.4% of targets are likely to be achieved by the stipulated time

Placement of

Fundza

Lushaka bursary recipients (teachers) reflects good returns on investment - the target has already been exceeded by 1 282 graduates. Targeted learner access to broadband is proceeding well. About 80% of 450 000 targeted learners have

access to broadband

.

Provincial expenditure on infrastructure grant is progressing

- except in the Eastern Cape where expenditure is lowest (36%)

Good progress made towards completion of schools built to replace inappropriate schools

Key Cha

llenges

Slow progress in effective tracking of teachers’ absenteeism

Impasse between government and SADTU which prevents an agreement on principals signing Performance AgreementsUnresolved issues around Annual National Assessments (ANA) – which have led to 80% of schools not administering ANA

Lack of a system to measure school readiness for Grade 1 entrants who have attended Grade R

Additional

37 schools still need to be completed to meet the 2015/16

target

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Outcome 1: Quality Basic Education Slide23

 What needs to be done is:  Resolve the impasse between the DBE and the teacher unions on the signing of performance agreements for principals Resolve the impasses around the administration of ANA including its re-modelling. Urgently develop systems to track teacher absenteeism;

Enhance school

readiness for Grade 1 entrants who have attended Grade R

across provinces

. Consistently monitor and report compliance with new infrastructure norms and standards per province - considering that all schools must compliant by November 2016. Support Eastern Cape to fast track its infrastructure expenditure and reduce the backlog. Report comprehensively the provision of learning material including Braille and Large Print to ensure inclusive education.

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Outcome 1: Quality Basic Education Slide24

Outcome 2: A Long and Healthy Life for AllAreas of ProgressOverall, evidence points to the fact that health status of South Africans is improving.Key health indicators such as Life Expectancy; Infant Mortality Rate, Child Mortality Rate and the Maternal Mortality Ratio show a consistently improving trend. RSA has achieved the second fastest rate of decline in under-five mortality rate in sub-Saharan Africa

, after Rwanda

White

Paper on National Health Insurance (

NHI) released in December 2015. Over 3,1 million people tested for HIV against the Q3 target of 2.5 million.

3 318 384 people living with HIV remaining on ART,

target is

3.6 million.

New TB treatment success rate of 83.0%, consistent

with the 2015/16 target of 83%.TB

death rate of 4.8

%, which exceeded the 2015/16 target of 7%.  89.2% of children under 1 year

old fully immunised,

building towards the 2015/16 target of 90%. Key Challenges

Progress towards key health outcomes is not evenly distributed across the country.

The national population-based maternal mortality ratio (MMR) has improved remarkably, from 302 per 100 000 in 2009 to 155 per 100 000 in 2013.

Institutional MMR in 2014 was 140.9 deaths per 100,000 live births

However

,

institutional

MMR

in

5 Provinces expressed per 100 000 live births was as follows: Eastern Cape (174.1); Free State (194.4), Gauteng (149.7), Limpopo (153.2) and North West (180.0) - all higher than the national average of 140.9 per 100

000

Quality of care in the public sector requires strengthening

Limited collaboration between health sector and other sectors

Limited progress

towards the paradigm shift in nurse training, from

academic

training

to bedside

training offered through nursing colleges

.

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 What needs to be done is:  Implementation Forum for Outcome 2 should be expanded to include other Ministries whose line functions are social determinants of healthNational DoH and the Department of Higher Education and Training (DHET) should collaborate to accelerate the pace of finalisation of the new nursing training

curriculum

National policy for nursing education should be finalised

Health

sector should track progress with the implementation of the Ideal Clinic Realisation and Maintenance Programme in accordance with the 10 criteria for the ideal clinic

outlined by the Presidency

Patient Experience of Care (PEC) surveys in health facilities should be

expedited

Government-wide approach, which includes the Department of Trade and Industry (dti) and National Treasury, is required to reduce the high costs of MDR-TB drugs.

Greater resources to be channelled to addressing underlying factors compromising quality of care in the public sector

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Outcome 2:

A Long and Healthy Life for AllSlide26

Areas of progressProgress has been made towards some key indicators, but levels of crime remain unacceptably high in South Africa.

Five persons were convicted for corruption or offences relating to corruption where the amount benefited per case(s) is more than R5 million in Quarter 3 of

2015/16

Cumulatively

, a total of 29 persons have been convicted, thereby exceeding the annual target of convicting twenty personsImplementation of the National Target of capacitating the Public Order Policing Unit is likely to be met - 1

086 posts for the Unit were advertised

nationally.

National

Drug Master Plan is being implemented to eliminate drug and substance

Key Challenges

Assessment

of performance regarding the reduction of serious crime levels is key challenge - data is only made available once a year.

Slow progress towards the development of a system for the collection,

assessment and analysis of information through safety

audits/assessments

Customer

Satisfaction Surveys for the SAPS have also not been undertaken

.

Slow progress made towards achieving

the detection rate for contact

crimes.

SAPS achieved 51.15% of the targeted 58.95% for contact crimes by 2015/16.

Tedious process of investigations and arrest of suspects still a

challenge

Provincial constraints have affected progress with the

creation of safe

houses.

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Outcome 3:

All people in RSA feel and are safeSlide27

What needs to be done is:Incorporate the role of other relevant cluster departments in efforts to combat the problem of drugs and substance abuse.

Accelerate the pace of establishing

operational community safety forums (

CSFs)

Accelerate the pace of reduction of backlog of cases - backlog appears to be rising rather than diminishing.

SAPS should

provide quarterly

data regarding the reduction of serious crimes

.Data will only be provided to Cabinet and will not be made public in line with the decision of Cabinet that Crime Statistics should be published annually

.

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Outcome 3: All people in RSA feel and are safeSlide28

Areas of progressIn Q3 of 2015, real GDP grew by 0.7% (Seasonally Adjusted Annual Rate) compared to a decline of 1.3% growth registered in the second quarter of 2015. Largest contributors were the manufacturing sector which grew by 6.2% and the services sector which grew by 8.3%. Significant progress has been made towards the 30% set aside programme – in terms of the Preferential Procurement Policy Framework Act (PPPFA

).

The

Independent Development Corporation (IDC) has approved R469 million in support of rural businesses, excluding mining and renewable energy projects.

IDC has approved R9.5 billion under Renewable Energy Independent Power Producer Procurement (REIPPP) and a total of R7.9 billion has been disbursed. Key Challenges

South

African economy continues to face significant challenges.

Weak global commodity prices, lower overall exports and the weaker Rand (higher inflation risks)

Worsening drought situation continues to impact negatively on food supply, leading to higher inflation on basic food goodsDespite

unemployment declining by 1.0 percentage point from 25.5% reported in the third quarter 2015 to 24.5% in the fourth quarter 2015; overall unemployment figures remain high with over 5.4 million people unable to find work. Year-on-year

comparison reveals that employment increased by 171 000 in the fourth quarter 2015 (Quarterly Labour Force Survey).

Manufacturing added 18 000 jobs, but its overall employment is still well below pre-crisis levels.

Employment

levels in the private sector are only 2.5% higher than in 2008

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Outcome 4:

Decent

employment through inclusive

economic growth Slide29

What needs to be done is:Maintain a stable macroeconomic and fiscal policy stance that promotes low inflation, low interest rates and a competitive real exchange rate and which narrows the budget deficit.Implement supportive interventions to address constraints in the Agricultural

sector due to severe drought conditions which will continue

to impact on growth in the sector

, and on

employment and food prices.Implement interventions in the mining and manufacturing sectors to avoid significant job losses in these sectors through a combination of upscaling the Training Lay-off Scheme and industrial support programmes.

Provide c

onsistent

support to current initiatives with business and labour to improve confidence in the SA – including development of a more sustainable labour relations environment; reforms to reduce red tape in

areas that are fundamental

obstacles.

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Outcome 4:

Decent employment through inclusive economic growth Slide30

Outcome 5: A Skilled and capable workforceAreas of good progress288 TVET lecturers are undergoing workplace exposure in industry through partnership with Swiss South African Cooperative Initiative – to enhance the quality of lecturing in TVET colleges

Higher

Education Amendment Bill No. 36 of 2015 was tabled in Parliament on 13 November 2015

Draft

Policy on Community Service for Graduates has been produced Construction of 3 new TVET colleges is in progress University of the Western Cape has received accreditation from the Council for Higher Education for the Postgraduate Diploma in Technical and Vocational Education, and is on track to enrol students in 2016. MTSF target is 3 universities

Challenges

Backlog by SITA in issuing certificates to students qualifying from

Technical and Vocational Education and Training (

TVET) collegesSlow increase in the

enrolment of

students in tertiary institutions

Funding and infrastructure constraints are major inhibiting factors in achieving headcount enrolment targets. Total of 212 150 TVET students received funding through NSFAS in 2014, a decrease from 220 978 in 2013 despite an increase in NSFAS allocation.

Total of 171

841 (2015 unaudited) university students received

financial assistance – a

decline from

the

194

923 (2013) and 186 150 (2014)

figures

.

As NSFAS funding increases, university fees also rise

10 413

artisan candidates were found competent - 2015/16

target of 20 110

is

unlikely to be met.

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Outcome 5: A Skilled and capable workforce What needs to be done is:  DHET working with SITA should urgently table a plan with specific time frames for addressing the backlog on TVET certificates will be eradicated.DHET should work closely with TVET colleges struggling with providing correct information for dealing with the certificate backlog.

DHET should

develop steps to

arrest the decline in the production of

artisans found competent DPSA and DHET should work together to provide accurate number of interns in departments.DHET should develop protocols for work exposure for lecturers in order to avoid labour relations issues.DHET should work with private sector to ensure there is operational budgets for the three new TVET campuses.

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Outcome 6: An efficient, competitive and responsive economic infrastructure network Areas of progress

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Single Transport Economic Regulator (STER) draft bill has been submitted to the Minister of Transport for approval

Progress is being made towards the establishment of Independent Economic Regulator for Water - through the establishment of an internal regulatory unit.

Positive impact of the commissioning of Medupi Unit 6 is that risks of load shedding have been reduced and the system status has improved. Amount of R15 billion was transferred to Eskom as part of support package and a debt conversion of R60 billion has been completed.Public transport system is being improved - 4 cities are now operating quality bus services reliably on a daily basis. Cape Town (

MyCiTi

) 74 000 passengers; Johannesburg (Rea

Vaya

) 33 000 passengers; Tshwane (A Re Yeng) 3 500 passengers; and George (Go George) carried 11 400 passengers.Progress with road rehabilitation includes 390 651 km of pothole patching completed; 362 km of roads have been re-sealed with 1 776 km of roads re-gravelled, and 120 381 kilometres bladedProgress was recorded with the rail and ports with improvements in Ship Working Hours (SWH) at Durban Container Terminal (DCT) Pier 2 which improved by 10.3% compared to the previous year (2014/15 average SWH: 58 to 64 SWH in the 2015/16 year to date).Slide33

Outcome 6: An efficient, competitive and responsive economic infrastructure network Areas of progress

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Maputo rail loop has advanced and is currently nearing completion of the technical engineering solution phase or FEL (Front End Loading) 3 stage of the feasibility studies.

Progress noted in the water sector includes the road map for establishing the National Water Resources Infrastructure Agency - approved by the Minister.

Mzimvubu-Tsitsikamma project submission for business case and gazetting for public comments have been approved by the Minister.

Berg-Olifants

, and Orange Catchment Management Area (CMA) submissions for the approval of business case and

gazetting

for public comments have been developed - with further planning details expected in Q4 of 2015/16.Private sector has contributed to increased mobile and fixed broadband infrastructure expansion; 3G population coverage increased to 96% whilst Long-term evolution (LTE) 4G population coverage increased to 35%; At least 586 km fibre added on the access network - 750 km fibre added in small towns Slide34

Outcome 6: An efficient, competitive and responsive economic infrastructure network Key Challenges

Progress is very slow in the energy sector. Most of the progress reported remained unchanged from the previous quarters.

Development

of draft coal policy is still in

progressDraft Integrated Energy Plan (IEP) also still in the process of being submitted to Cabinet.Funding for key infrastructure projects through the fiscus and from capital markets

remains

constrained under the current economic environment.

Firmer

commitments and clearer private sector participation proposals are required for key large infrastructure projects in energy, transport and communication. Municipalities (key

Metros) have not adequately utilised

the debt leveraging capacity to fund municipal infrastructure projects - this

will require adjusting regulatory support where well-functioning municipalities (metros in particular)) can increase

borrowing from capital markets for large infrastructure projects.

Managing potential risks is crucial to avoid excessive borrowing and over-indebtedness.

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Outcome 6: An efficient, competitive and responsive economic infrastructure network What needs to be done is:  All the SIPS projects should be included in the reporting template in order for the Cabinet to note their progress and to act on the blockages hindering progress – to enable better

alignment in reporting.

Most

SIPS items are currently excluded from the POA reporting template

The UIF surplus is currently valued at over R100 billion, which increased by 11% a year in real terms from 2005 to 2015. Further

funding options for funding for infrastructure or job creating programmes

includes investigating the

utilisation

of the Unemployment Insurance Fund (UIF) surplus. UIF surplus is currently valued at over R100 billion and which increased by 11% a year in real terms from 2005 to 2015. A

more pro-active measure to invest a significant part of the accumulated surplus in programmes

that create jobs through the infrastructure

programme should be considered. A proposed option of modalities should be explored.

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Areas of progressOut of 41 core indicators, 81% of the core targets have either been achieved, or likely to be achieved by 2019.The Extension of Security of Tenure Amendment Bill is being finalised for approval. 267 land claims were settled, benefitting 16 094 people in 3 912 households

173 land were claims finalised.

A total of 123

571 new claims

were lodged An additional 190 farms (more than double quarter 3 target of 83) were recapitalised. 249 150 households gained access to food through various programmes (food parcels, social relief, vouchers). 6 519 households (32.5% of quarter 3 target of 20 000) received support on food production initiatives

263

039 households

gained

access to piped water, 230 916 households accessed sanitation services and 41 555 HH grid electricity

Key Challenges

Slow progress with the eradication of the bucket system - with only 125 (less than 2% of the quarterly target of 8 250) buckets replaced with adequate sanitation.

A total of 83 informal traders (33% of the quarterly target of 250) and 139 existing rural enterprises and cooperatives received support.

Slight increase in rural unemployment from 45% in quarter 2 to 45.7% in quarter 3

Agriculture dropped 37 000 jobs, contributing to the 24.5% unemployment rate (

StatsSA, Q4: 2015).

Only 10

% of newly acquired land

allocated to

farm dwellers and labour tenants, with only 4 147 ha (36.5% of the quarterly target of 11 344 ha) allocated despite this being a key target group for

Land

Reform.

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Outcome 7:

Comprehensive

Rural Development and Food

Security Slide37

Outcome 7: Comprehensive Rural Development and Food Security

What

needs to be done is

:Departments of Agriculture Forestry and Fisheries, Rural Development and Land Reform and Water and Sanitation should consider increasing allocations to augment resources already allocated towards drought mitigationState land adjacent to Agricultural Colleges and Universities should be made available for practical training purposes, to enhance land utilisation and

productivity

Government structures to work in a co-ordinated and integrated manner, to enhance productivity

and

speed up social and economic development in the sector. Given that using financial compensation for land reform can result in secondary dispossession, DRDLR should empower communities to make informed choices on compensation or restoration

.

Implementation of the 9-Point Plan and the one-household one-hectare should be fast-tracked targeting cooperatives, smallholder farmers and traders.

Families should be supported to establish homestead food gardens.

Enhance capacity

to use findings of evaluations and approved improvement plans for purposes of addressing implementation challenges on programmes such as the Recapitalisation and Development Programme (RECAP); Comprehensive Rural development Programme (CRDP), Comprehensive Agricultural Support Programme (CASP), and others.

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 Outcome 8: Sustainable human settlements and improved quality of household life Areas

of good progress

Overall

there is moderate progress, but deliberate corrective steps are being taken to meet the targets.

Good progress is being made towards development of: the Master Spatial Plan, the Investment Framework, the Land Instrument62 Catalytic projects have been identified, which exceeds the 2019 MTSF target of 50 (41 are government led and 21 by the private

sector). Aim is to achieve improved levels of integration of our settlements

.

168

 138 subsidy houses provided (30% of the 2019 MTSF target);Good progress with targets for land (6 148 of the targeted 10 000 hectares (2019 MTSF target) released); meeting 26% of the Community Residential Units target (revised hostels upgrade programme)

DFI

consolidation process is on track with an interim governance structure - significant for catalysing the affordable/gap market.

Key Challenges

Slow

progress with informal settlements upgrading (19% of total MTSF target); title deeds transfer (8% of new titles and 12% of the 900 000 backlog); and rental/social housing (11.6% of total MTSF target). The upgrading of 2 200 informal settlements has not been initiated notwithstanding an assessment of

1 160 and 259 plans being

produced.

Whilst 23% of the total MTSF target for gap loans has been met, there is weak delivery of new units (10% of the total MTSF target of 350 000) coupled with poor performance of the Finance Linked Subsidy Programme that triggers bank loans (3.5% of total MTSF target).

A

mineworker housing strategy has not been consolidated

(although there

are several pieces of significant work in

NDHS

)

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 Outcome 8: Sustainable human settlements and improved quality of household life What needs to be done is:

Develop

an intervention strategy to correct the performance for Title Deeds, Informal Settlements Upgrading and Social Housing

Fast track policy and programme adjustments for rental (adjust subsidy bands) & financial/fiscal frameworks

Consolidate all informal settlement upgrade programmes (NUSP; CSP; HDA; and PHP

)

Utilise

DFI consolidation to develop an affordable housing strategy for negotiations with the Banking Association

Develop

an implementation plan for Catalytic/250 integrated

projects and secure/reconcile funding arrangements

Finalise the Mining Town Strategy and Implementation Plans

Revive the

municipal accreditation programme

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 Outcome 9: A responsive, accountable, effective and efficient local government system

Areas

of good

progress

Coordination of the work of the various partners to the Outcome is proceeding well in the area of improving access to basic services, but not optimal in other areas. Significant progress has been made with providing households with access to water infrastructure, but reliability of infrastructure sits at 66.5% against the 2019 target of 90%. This means that almost 33% of households that have infrastructure, have frequent and lengthy disruptions in supply of water Delivery on grid

and non-grid electricity connections is

progressing, but not optimally

putting the achievement of the annual and 2019 targets at risk.

B2B programme being implemented across municipalities

Key Challenges

Rural Household Infrastructure grant only managed to provide access to sanitation to 131 households in rural areas against the quarterly target of 3 140.

Nationally, inattention to and the neglect of maintenance and asset management over the life cycle of assets has reached catastrophic proportions – contributing to the service delivery disruptions and failures, particularly in water and electricity.

T

rust and confidence in local government has declined in 2015 when compared to 2014, putting into question whether the Back to Basic (B2B) tenets of putting people first and participatory ward level planning are deliberative and meaningful. The total debt owed to municipalities grew to R115 billion from R106.6 billion, which is a R9.3 billion increase over a 3 month period.

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 Outcome 9: A responsive, accountable, effective and efficient local government system

What needs to be done is

:

Improve effectiveness of provincial COGTAs to better monitor, support and empower municipalities, particularly with respect to effective implementation of B2B and management assessments of municipalitiesStrengthen the regulatory oversight of Water Service Authorities (WSAs) and municipal electricity distributors by DWS and NERSA.Encourage greater expenditure on infrastructure maintenance and enforce asset management over the life-cycle of assets at municipal level.

Fast-track the targeted project-based approach to address the planning and institutional constraints to the delivery of basic services in the 27 priority districts.

National Department of Cooperative Governance (DCG) to improve the management, administration and reporting on the Municipal Infrastructure Grant

National DCG and provincial counterparts to urgently take action to ensure that participatory ward level service planning processes meaningfully engage citizens and municipalities have complaints systems that are functional and responsive to complaints and queries from citizens.

CGTA and National Treasury to develop a policy response for the low payment levels and accumulated debt owed to municipalities.41Slide42

Outcome 10: Protect and enhance our environmental assets and natural resourcesAreas of good progress

The overall performance towards attainment on the work of Outcome 10 was at 66

% on Q3 of 2015/16

Some targets were

exceeded. For instance, 87 wetlands were rehabilitated in this quarter against a quarterly target of 37. Cumulatively, 132 wetlands have been rehabilitated exceeding by 17 the annual target of 115. Implementation of programmes such as Working for Wetlands is having positive impacts.Processing

of Environmental Impact Assessments (EIAs) within legislated timeframe

is progressing well,

with the sector sitting at 93% against an efficiency target of 98

%, but requires acceleration Potential negative impact on other sectors such as mining, agriculture and human settlements whose performance relies on high levels of efficiency in processing EIAs42

Key Challenges

Persistent challenge with regard to processing of Water Use Licence Applications (WULAs

)DPME

intervention resulted in the Recovery Plan being signed by DWS Minister in February 2016 and verification of the data for accurate reporting.

Notably, the corrected progress towards processing WULAs was subsequently changed to 88% following the intervention by DPME, and not 19% as reported.Sector’s ability to create jobs through the EPWP is still a challenge. For 2015/16 a

total of 19 232 Full Time Equivalents (FTE’s) were created

against an annual target of

87

441. Meanwhile, 57 142 work

opportunities

had been created against an

annual

target of 229 208.

Lack of adequate resources and capacity for data capturing and validating the number of jobs that the sector is

creatingSlide43

Outcome 10: Protect and enhance our environmental assets and natural resources 

What needs to be done is:

DWS to implement all the interventions as detailed in the WULA Recovery Plan, including those identified through the DPME

intervention

DWS to review the WULA pre-application part of the Business Process to ensure clarity on the number of complete applications to be subjected to legislated timeframesFast track placement of 200 graduate trainees from Department of Public Works

in Water Use

Authorisations.

When

reporting on the EPWP, both numbers the number of FTEs and actual number of people with access to job opportunities should be providedDEA

to evenly and consistently assist struggling Competent Authorities to enhance the processing of EIAs.

43Slide44

Outcome 11: Create a better South Africa, a better Africa and a safer Africa in a better world Areas of good progressAnnual target of R3 billion for sales of manufactured value-added exports has been surpassed with a total of R4.14 billion having been achieved in the first three quarters of 2015/16. period. No Investment Trade Initiatives took place in the current reporting

South Africa has played a key role in the normalisation of the situation in Lesotho

and brokering

the cessation of hostilities among the main factions within the Sudan People's Liberation Movement (SPLM) in South Sudan.

An amount of R7.3 million was disbursed from the African Renaissance Fund against an annual target of R300 million – but progress must be accelerate if the target is to be achievedKey Challenges Total of 8 903 773 tourist arrivals for the period January up to December 2015 against an annual target of 10 977 407. Compared to January to December 2014, this represents a decline of 6.9%.

Decline resulted from a change in the quantification methods -

Department of Tourism has decided to exclude visitors in transit in the computation of total tourist

figures

Total tourism spend achieved from January to June 2015 was R31.3 billion which translates to about 38% of the annual target of R83 billion. It is unlikely that the annual target will be attained. 44Slide45

45What needs to be done is: Department of Justice to assess the implications of the draft Declaration on the facilitation of access to the African Court on Human and People’s Rights (

ACHPR) by citizens – which is mooted as part of the operationalisation of the ACHPR

Implementation Forum to ensure consistent consistency in the computation of tourist arrivals in South Africa – using the latest definition and methodology

Accelerate the pace of implementation of targets with slow progress

Outcome 11: Create a better South Africa, a better Africa and a safer Africa in a better world Slide46

Outcome 12: An Efficient, Effective and Development Oriented Public Service 46 Areas of good progress

Key achievements include the finalisation of the Heads of Department (HOD) PMDS policy which is

en

-route for approval by Cabinet. Guidelines have also been developed to ensure successful implementation of the above-mentioned policy.

In Q3 of 2015/16, 68.4% of citizens who logged queries at the Presidential Hotline rated the response rate as good. The MTSF target of 70% is likely to be achieved.Transparency has improved regarding availability of information on procurement processes. A total of 66 procurement plans (for national departments and entities) are available on e-Tender portal. This

is more than double the 26 procurement plans in the last quarter.

Amendments

to Protected Disclosure Act and revisions of the Public Service Regulations on Financial Disclosure Framework and prohibition of public servants from doing business with the state,

have all been finalised during this quarter.  Key Challenges

Departments took on average of 117 days to resolve disciplinary cases, against target of 19 days.

Poor

financial planning, non-adherence to Supply Chain Management (SCM) processes, poor contract drafting and management as well as behavioural factors contribute to non-adherence to 30 days payment of legitimate invoices. National departments

had

8 612 invoices to the value of R433 million and Provincial departments had 43 369 invoices to the value of R3billion not paid. Slide47

Outcome 12: An Efficient, Effective and Development Oriented Public Service What needs to be done is: Government must stabilise administrative leadership at DG/

HoD

level

Ministers

and DGs should meet quarterly to review performance and address areas of concern.DPSA should strengthen the unit to support departments with resolution of disciplinary cases Ombudsman Office should be established to deal with 30-day payment of invoices

National Treasury should assist departments with item description to fast-track Price Referencing System.

Regulations for this purpose must be promulgated.

MPSA to engage Executing Authorities of non-compliant departments in terms of Section 16A of the Public Service Act, 1994 as amended.

 47Slide48

  Key Challenges

657

social work beneficiaries of the Department of Social Development scholarships have been absorbed into posts while 1 995 remain unabsorbed due to the fact that provinces do not have the necessary budget.

Poor social services and ineffective policing reinforce a sense of powerlessness in poor communities

.Limited progress towards the realisation of the National Integrated Social Protection Information System (NISPIS). This target might not be met by the target date of 2017. Areas

of good progress

Notable

progress made towards achieving the outcome’s commitments.

43% of targets have either been achieved or are achievable within the targeted date, while 53% are amber and thus in progress.

Social Assistance remains an area of excellence.

Currently 90.1% of all eligible children and 95% of all eligible old aged access CSG and Old Age Grant

respectively. The

universal access to ECD policy was approved by Cabinet - the

Programme of Action on ECD is currently being reviewed to accelerate implementation of the policy

A

total of 952 548 children

benefitted from

ECD subsidies

RSA has 26

 000 registered ECD centres

and a need exists to

increase and improve the ECD infrastructure.

A

draft funding model was developed and is being consulted with

provinces.

74

% of UIF claims were finalised in 3 weeks, against a

target of 95

%

-

by

2019.

48

Outcome 13: Social Protection Slide49

  49

Outcome 13: Social Protection

What needs to be done is:

Department

of Social Development (DSD) should reconfigure its reporting timelines in consultation with provinces to achieve reporting alignment between the various spheres of government.

DSD should

develop a project plan with timelines indicating how it intends to deliver on the White Paper within the set target

date.

With the current fiscal situation, DSD needs to strike a balance between the training of Social Service Practitioners and absorption – to avoid producing large numbers of professionals who remain unemployed.

DSD should ensure that the gains on

expanding the CSG and

OAG are sustained. Need exists to identify potential beneficiaries falling through the cracks particularly those living in remote areas and farms. The National Integrated Social Protection Information System (NISPIS) is important for this purpose.

Department of Labour should develop a project plan showing the incremental realisation of the 95% of UIF claims finalised within three weeks

. Slide50

Areas of good progressDespite resource constraints, the Moral Regeneration Movement has - through partnerships with various government departments - held many campaigns and distributed which 7 100 copies of the Charter of Positive ValuesVarious civil society led initiatives such as Know your Constitution, are being implementedSharing of common space in order for South Africans to eliminate stereotyping and discover across races the common humanity is

important.

COGTA is enabling

this through

facilitating the greening and cleaning of cities largely through the community work programme (CWP). However, much more remains to be doneKey Challenges Targets

for the sharing of space through sport might not be met.

Only 973 schools received sport kits against a target of 1 790

From the target

of 60 sport bodies annually, 33 sport and recreation bodies met their transformation targets in Q3, and were eligible

to receive financial and non-financial support.

Limited progress with the employment of Africans particularly Black Africans and women in senior management.

2014/2015 Employment Equity Report submitted by designated employers reflects that Africans accounted for 36.7% of middle management and 20.5% of senior management positions. Development

of an appropriate strategy and programmes for strengthening the family has stalled

50Outcome

14: Social Cohesion and Nation Building Slide51

Outcome 14: Nation Building and Social Cohesion What needs to be done is: Department of Arts and Culture (DAC) should lead the revision of the

Nation Building and Social Cohesion chapter of the

MTSF 2014-2019 e

to ensure a sharper focus on key issues.

DAC should build an understanding of how its initiatives contribute to nation building and social cohesion, and ensure buy-in amongst the many departments who must lead initiatives in this outcome – which are not their core mandate.MTSF revision should seek to

ensure that the values of anti-racism; anti-sexism, and patriotism are inculcated using all platforms (schools, family and all media).

The

aim is to build an Ideal Citizen who lives the values of the Constitution.

 51Slide52

ConclusionDPME has ensured sustained focus on tracking the implementation of the MTSF 2014-2019, and through the MTSF the NDP 2030.Accountability is also being enhanced – through rigorous monitoring and reporting to the Executive. Public accountability is enhanced through placement of progress reports on the DPME website.

Evidence reflects that progress is being across all the 14 outcomes

Improvements in health status; access to education services; access to social grants; housing opportunities; basic services; and reduction in asset poverty levels are

evident.

However, unemployment (particularly youth employment) and the drought situation are persistent challenges – which are being addressedMonitoring and reporting on NDP related interventions implemented by non-state actors (social partners of government) also requires enhancement.

52Slide53

Ke a leboha Ke ya leboga Ke

a leboga

Ngiyabonga

Ndiyabulela Ngiyathokoza Ngiyabonga Inkomu Ndi

khou

livhuha

Thank you Dankie

53