Money Bills Amendment Procedure and Related Matters Bill B 752008

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Money Bills Amendment Procedure and Related
Matters Bill B 752008 11 November 2008
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Background
Background

• Constitutional context
• Section 73(2) Only the Cabinet member
  responsible for national financial matters may
  introduce a money Bill or a division of revenue
  Bill.
• Money Bill defined in section 77(1).
• Division of Revenue Bill defined in section 214.
• Section 77(3) Money Bills must be considered in
  accordance with the procedure established by
  section 75. An Act of Parliament must provide for
  a procedure to amend money Bills before
  Parliament. It follows that the procedure to
  amend must be additional - and not change the
  section 75 procedure.

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Background cont.

• Parliamentary context
• Parliament, through the Joint Rules Committee,
  established a Task Team on Oversight and
  Accountability to develop an oversight model for
  Parliament in line with the Constitution.
• Three focus groups established (Projects, Budget,
  Committees) - Budget Processes Focus Group
  mandated to develop procedure to amend money
  Bills, including a draft Bill.
• Report to JRC on 19 March 2008.
• Assembly mandates PC on Finance 26 June 2008
• Draft Bill and memorandum setting out its objects
  published in Government Gazette No 31238 of 10
  July 2008.
• Money Bills Amendment Procedure and Related
  Matters Bill B 752008 introduced in National
  Assembly on 13 October 2008.
• Passed on 22 October 2008, with amendment to
  clause 10.
• Amendment removes paragraph (a) of subclause
  10(5).

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Principles

• Co-operative government
• Legislative authority of Parliament - including
  amendment of money Bills
• Maintaining oversight of executive action
• Executive authority develops and implements
  national policy.
• Interpretation must be consistent with oversight
  and the adopted fiscal framework (clause 2).
• Any decision in terms of the legislation must be
  consistent with principles set out in clause
  8(5).
• Public participation

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Committees

• Clause 4 establishes two committees in each
  House, with all the powers and functions
  conferred by the Constitution, legislation, the
  standing rules or a resolution of a House
• Committee on Finance also has the powers to
  consider and report on
• the national macro-economic and fiscal policy
• amendments to the fiscal framework, revised
  fiscal framework and revenue proposals and Bills
• actual revenue published by the National
  Treasury and
• any other related matter set out in this Act.
• Committee on Appropriations also has the powers
  to consider and report on
• spending issues
• amendments to the division of revenue Bill, the
  appropriations Bill, supplementary appropriations
  Bills and the adjustment appropriations Bill
• recommendations of the Financial and Fiscal
  Commission, including those referred to in the
  Intergovernmental Fiscal Relations Act, 1997 (Act
  No. 97 of 1997)
• reports on actual expenditure published by the
  National Treasury and
• any other related matter set out in this Act.

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Procedure prior to introduction of the national
budget clause 5

• Budget review and recommendation report (BRRR)
• Annual assessment of national departments by the
  Assembly, through committee reports
• Service delivery
• Effectiveness and efficiency
• May include recommendations on forward use of
  resources
• Submitted to Assembly after adoption of
  Appropriation Bill and prior to adoption of
  reports on the MTBPS
• Submitted also to Minister of Finance and
  relevant Cabinet member
• Committee may submit additional BRRR

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Medium term budget policy statement

• Tabled three months prior to tabling of national
  budget
• Prescribed content
• Different parts referred to different committees
  established by Bill
• Consultation with other committees may be
  required
• 30 days to report to Houses
• Referred to Minister of Finance 7 days after
  adoption
• Reports may recommend changes to fiscal framework
  and Division of Revenue Bill that is to follow

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Introduction of the division of revenue Bill, the
national budget and the appropriation Bill

• National budget tabled ito PFMA (section 27) must
  contain additional documentation, including the
  multi-year fiscal framework
• Division of revenue Bill introduced at the same
  time
• Minister of Finance must report to on the
  recommendations of Parliament contained in the
  BRRR, reports on the MTBPS

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Fiscal framework and revenue proposals

• Referred to Committees on Finance
• Joint public hearings
• Report by Committees and consideration by Houses
  within16 days after tabling of budget
• Fiscal responsibility clause built in subclause
  (5)
• Addition criteria for revenue proposals (clause
  11(3)).
• Dispute resolution procedure
• Adopted fiscal framework sets bar for any
  amendments to the division of revenue Bill, the
  revenue Bills and the appropriation Bill

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Division of Revenue Bill

• Referred to Committee on Appropriations of
  Assembly after adoption of fiscal framework and
  to Council after Assembly passed it.
• Division of Revenue Bill must be passed within 35
  days after adoption of fiscal framework.
• Specific requirement that standing rules must
  provide for input from chairs of other
  committees, public, affected members of Cabinet,
  provinces, local government, and FFC.
• Report of respective Committees on Appropriations
  must at least contain issues prescribed in
  subclause (6).
• Before Committees report to the Houses it must
  allow Minister of Finance to respond to any
  amendments, which response must be included in
  the report to the Houses.

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Appropriation Bill

• Referred to Committee on Appropriations after
  adoption of fiscal framework
• Specific details required from Minister of
  Finance
• Any amendments to appropriation Bill may only be
  considered after passing of division of revenue
  Bill and must be consistent with adopted fiscal
  framework and division of revenue Bill.
• Conditional appropriations
• Specific and exclusive appropriations
• Appropriation Bill must be finalised within 4
  months of the start of the financial year.

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Revenue Bills

• Referred to Committees on Finance
• Compliance with revenue collection principles
• Comments from public and Minister of Finance

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National Adjustments budget

• Tabling in terms of section 30 of the PFMA
• Revised fiscal framework, division of revenue
  amendment Bill
• Joint sitting of Committees on Finance /
  Appropriations
• Timeframes (9 days to report) including time
  for Minister to respond for amended fiscal
  framework and division of revenue amendment Bill
• Passing of adjustment appropriation Bill after
  passing of amended fiscal framework and division
  of revenue amendment Bill
• Timeframe for adjustment appropriation Bill 30
  days

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Other money Bills

• Committees on Appropriations
• Consistency with fiscal framework and clause 8(5)
• Input from Minister of Finance and public

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Amendments proposed by Minister

• Procedure do not apply
• Only to effect technical corrections

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Parliamentary Budget Office

• Headed by Director
• Provides independent, objective and professional
  advice
• Functions research and analysis
• Priority is to support committees established by
  the Bill
• Bills provides for the appointment, conditions of
  service and removal of Director
• Budget transfer of funds
• Deputy Directors and personnel structure of
  office
• Outsourcing