CHIEF FINANCIAL OFFICER’s FORUM PRESENTATION
Description: CHIEF FINANCIAL OFFICERs FORUM PRESENTATION LAYOUT 2 Legislative Framework Budget Process Role players in the process Key intergovernmental FOR A Phases in Budget Process Critical dates 2019 MTEF Budget The Constitution Sect.
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slide1. CHIEF FINANCIAL OFFICER’s FORUM<br>
slide2. PRESENTATION LAYOUT 2 Legislative Framework
Budget Process
Role players in the process
Key intergovernmental FOR A
Phases in Budget Process
Critical dates
2019 MTEF Budget<br>
slide3. The Constitution – Sect. 215—transparency, accountability & effective management of the economy, debt & public sector.
PFMA—Sect. 18, 28,30 and 31,—Preparation of National and Provincial budget and exercise control over implementation.
Treasury Regulations—regulates matters of planning & budgeting, revenue & expenditure, asset & liability management, banking and cash management, investment, accounting & reporting etc.
Intergovernmental Fiscal Relations Act- relationships between spheres of government including how revenue is to be shared.
Money Bills—regulates allocation of funds and taxes to be levied.
Division of Revenue Act —deals with vertical (3 spheres of gov.) and horizontal(provinces) division of revenue
Financial and Fiscal Commission Act– which establishes FFC as a consultative body for financial and fiscal matters. 3 LEGISLATIVE FRAMEWORK GOVERNING PUBLIC EXPENDITURE<br>
slide4. BUDGET PROCESS 4<br>
slide5. National budgets used to be drawn up for a twelve-month period only. In 1997, a new way of preparing the budget was introduced, called the Medium Term Expenditure Framework (MTEF)
The budget cycle has 3 year rolling plan (MTEF)
Though it is 3 year budget cycle—Legislature only vote for preceding financial year. E.g 2019/20 of the 2019 MTEF
3 year budgeting allows for certainty with regard to planning.
Allows government to set 3 year spending priorities and to plan further ahead.
Also gives public better picture of how resources are spent/allocated.
Strengthen political decision making and accountability.
Improves management of public finances—due to agreed spending commitments or priorities. 5 BUDGET PROCESS - BACKGROUND<br>
slide6. 6 ROLE PLAYERS IN THE BUDGET PROCESS<br>
slide7. 7 ROLE PLAYERS-BUDGET PROCESS<br>
slide8. KEY INTERGOVERNMENTAL FORA IN BUDGET PROCESS 8 CFOs FOR A (Quarterly)- National and Provincial
10 x 10 Meetings
4 x 4 Meetings
Joint MinMecs
Technical Committee on Finance (4/y)
Technical Committee on Finance Lekgotla
Budget Council (Quarterly)
Budget Forum
Budget Council Lekgotla (Annually)
Forum of South African Director General (FOSAD)
Presidential Coordinating Committee
Provincial Coordinating Forum (PCF)
Technical PCF
Provincial Budget Lekgotla
Adhoc Committee on Borrowings<br>
slide9. 9 PHASES IN BUDGET PROCESS Last Phase Priority Setting 3 year plan, allocative efficiency<br>
slide10. CRITICAL DATES 10<br>
slide11. 11 CRITICAL DATES<br>
slide12. 12 CRITICAL DATES<br>
slide13. 13 CRITICAL DATES<br>
slide14. 14 CRITICAL DATES<br>
slide15. 15 CRITICAL DATES<br>
slide16. 16 CRITICAL DATES<br>
slide17. 2019 MTEF BUDGET 17<br>
slide18. 2019 MTEF FISCAL ENVELOPE 18 The Provincial Legislature has not yet enacted the 2019/20 Appropriation Bill, consequently, Section 29 (1) of the PFMA stipulates that , funds may be withdrawn in accordance with this section from the relevant Revenue Fund for the services of the state or the province concerned during that financial year as direct charges against the Revenue fund until the budget is passed.
Furthermore, section 29(2) and (3) of the PFMA highlights the necessities of withdrawal from the Provincial Revenue Fund in terms of section 29 (1) as follows:
Department may utilize funds withdrawn from the Provincial Revenue Fund only for services for which funds were appropriated in the previous annual budget or adjustments budget; and may not—
During the first four months of that financial year, exceed 45 per cent of the total amount appropriated in the previous annual budget;
During each of the following months, exceed 10 per cent of the total amount appropriated in the previous annual budget; and
In aggregate, exceed the total amount appropriated in the previous annual budget.
In view of the above-mentioned paragraphs, Provincial Treasury requests your department to fully adhere to the requirements of section 29 of the PFMA.<br>
slide19. 2019 MTEF FISCAL ENVELOPE (SOURCE) 19<br>
slide20. 2019 MTEF ALLOCATION PER DEPARTMENT 20<br>
slide21. 2019 MTEF FISCAL ENVELOPE (ECONOMIC CLASS.) 21<br>
slide22. INFRASTRUCTURE OVER THE 2019 MTEF 22<br>
slide23. INFRASTRUCTURE OVER THE 2019 MTEF 23<br>
slide24. 24<br>
slide2. PRESENTATION LAYOUT 2 Legislative Framework
Budget Process
Role players in the process
Key intergovernmental FOR A
Phases in Budget Process
Critical dates
2019 MTEF Budget<br>
slide3. The Constitution – Sect. 215—transparency, accountability & effective management of the economy, debt & public sector.
PFMA—Sect. 18, 28,30 and 31,—Preparation of National and Provincial budget and exercise control over implementation.
Treasury Regulations—regulates matters of planning & budgeting, revenue & expenditure, asset & liability management, banking and cash management, investment, accounting & reporting etc.
Intergovernmental Fiscal Relations Act- relationships between spheres of government including how revenue is to be shared.
Money Bills—regulates allocation of funds and taxes to be levied.
Division of Revenue Act —deals with vertical (3 spheres of gov.) and horizontal(provinces) division of revenue
Financial and Fiscal Commission Act– which establishes FFC as a consultative body for financial and fiscal matters. 3 LEGISLATIVE FRAMEWORK GOVERNING PUBLIC EXPENDITURE<br>
slide4. BUDGET PROCESS 4<br>
slide5. National budgets used to be drawn up for a twelve-month period only. In 1997, a new way of preparing the budget was introduced, called the Medium Term Expenditure Framework (MTEF)
The budget cycle has 3 year rolling plan (MTEF)
Though it is 3 year budget cycle—Legislature only vote for preceding financial year. E.g 2019/20 of the 2019 MTEF
3 year budgeting allows for certainty with regard to planning.
Allows government to set 3 year spending priorities and to plan further ahead.
Also gives public better picture of how resources are spent/allocated.
Strengthen political decision making and accountability.
Improves management of public finances—due to agreed spending commitments or priorities. 5 BUDGET PROCESS - BACKGROUND<br>
slide6. 6 ROLE PLAYERS IN THE BUDGET PROCESS<br>
slide7. 7 ROLE PLAYERS-BUDGET PROCESS<br>
slide8. KEY INTERGOVERNMENTAL FORA IN BUDGET PROCESS 8 CFOs FOR A (Quarterly)- National and Provincial
10 x 10 Meetings
4 x 4 Meetings
Joint MinMecs
Technical Committee on Finance (4/y)
Technical Committee on Finance Lekgotla
Budget Council (Quarterly)
Budget Forum
Budget Council Lekgotla (Annually)
Forum of South African Director General (FOSAD)
Presidential Coordinating Committee
Provincial Coordinating Forum (PCF)
Technical PCF
Provincial Budget Lekgotla
Adhoc Committee on Borrowings<br>
slide9. 9 PHASES IN BUDGET PROCESS Last Phase Priority Setting 3 year plan, allocative efficiency<br>
slide10. CRITICAL DATES 10<br>
slide11. 11 CRITICAL DATES<br>
slide12. 12 CRITICAL DATES<br>
slide13. 13 CRITICAL DATES<br>
slide14. 14 CRITICAL DATES<br>
slide15. 15 CRITICAL DATES<br>
slide16. 16 CRITICAL DATES<br>
slide17. 2019 MTEF BUDGET 17<br>
slide18. 2019 MTEF FISCAL ENVELOPE 18 The Provincial Legislature has not yet enacted the 2019/20 Appropriation Bill, consequently, Section 29 (1) of the PFMA stipulates that , funds may be withdrawn in accordance with this section from the relevant Revenue Fund for the services of the state or the province concerned during that financial year as direct charges against the Revenue fund until the budget is passed.
Furthermore, section 29(2) and (3) of the PFMA highlights the necessities of withdrawal from the Provincial Revenue Fund in terms of section 29 (1) as follows:
Department may utilize funds withdrawn from the Provincial Revenue Fund only for services for which funds were appropriated in the previous annual budget or adjustments budget; and may not—
During the first four months of that financial year, exceed 45 per cent of the total amount appropriated in the previous annual budget;
During each of the following months, exceed 10 per cent of the total amount appropriated in the previous annual budget; and
In aggregate, exceed the total amount appropriated in the previous annual budget.
In view of the above-mentioned paragraphs, Provincial Treasury requests your department to fully adhere to the requirements of section 29 of the PFMA.<br>
slide19. 2019 MTEF FISCAL ENVELOPE (SOURCE) 19<br>
slide20. 2019 MTEF ALLOCATION PER DEPARTMENT 20<br>
slide21. 2019 MTEF FISCAL ENVELOPE (ECONOMIC CLASS.) 21<br>
slide22. INFRASTRUCTURE OVER THE 2019 MTEF 22<br>
slide23. INFRASTRUCTURE OVER THE 2019 MTEF 23<br>
slide24. 24<br>