DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT JOINT BUDGET COMMITTEE 5 NOVEMBER 2002

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DEPARTMENT OF PROVINCIAL AND LOCAL
GOVERNMENTJOINT BUDGET COMMITTEE5 NOVEMBER
2002
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DPLG MISSION AND MANDATE

• MISSION
• Develop and promote systems and structures of
  effective governance
• Develop and promote a system of integrated
  government between the spheres of government
• CORE LEGISLATIVE MANDATE
• Derived from Chapters 3 and 7 of the Constitution
  and relevant local government legislation

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STRATEGIC PRIORITIES

• Providing leadership and guidance to the process
  of local government transformation
• Providing direct technical and material support
  to provinces and municipalities in fulfilling
  their constitutional roles and functions
• Coordinating the implementation of the Integrated
  Sustainable Rural Development Programme (ISRDP)
  and the Urban Renewal Programme (URP)
• Establishing a policy framework for government
  wide integrated development planning

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MTBPS CHALLENGES

• Basic Services and Infrastructure Investment
• Consolidating Local Government
• Coordinating the URP and ISRDP

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MTEF SUMMARY

• MTEF BASELINE-
• 2002/3 R6.4bn
• 2003/4 R7.8bn
• 2004/5 R8.4bn
• 2005/6 R9.0bn
• Above confirms the relative increase of funding
  allocated to the provincial and local government
  spheres over the MTEF period

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MTEF SUMMARY

• LG Equitable Share-
• 2002/3 R3.8bn
• 2003/4 R5.0bn
• 2004/5 R5.5bn
• 2005/6 R5.8bn
• Conditional Grants Prov.- (CMIP Capacity
  Building)
• 2002/3 R275m
• 2003/4 R271m
• 2004/5 R261m
• 2005/6 R277m

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MTEF SUMMARY

• Conditional Grants Local Government-
• 2002/3 R2.1bn
• 2003/4 R2.3bn
• 2004/5 R2.5bn
• 2005/6 R2.7bn
• Above grants CMIP, LED Fund, Municipal Systems
  Improvement Grant

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BASIC SERVICES AND INFRASTRUCTURE INVESTMENT

• CMIP OBJECTIVES
• Ensure that all South Africans gain access to
  affordable services through the provision of
  capital grants for internal bulk and connector,
  internal infrastructure and community services
  and facilities
• OUTPUTS
• Increases 2002/3 - R1.6 to 2005/6 - R2.6bn
• Consolidate the merger of LED Fund and CMIP
  (2003)
• Strengthen link between IDP and infrastructure
  investment

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OVERVIEW OF BACKLOGS FOR MUNICIPAL SERVICES

• Households below basic levels
• 10 of urban households and 39 of rural
  households have a below basic service level for
  water
• 26 of urban households and 76 of rural
  households have a below basic service level for
  sanitation and
• 21 of urban households and 68 of rural
  households have a below basic service level for
  electricity

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BASIC SERVICES AND INFRASTRUCTURE INVESTMENT

• CAPITAL GRANT CONSOLIDATION
• Objective to improve impact of infrastructure
  investment by government through rationalisation
• OUTPUTS
• phased consolidation of CMIP, Water Sanitation,
  CBPW, NEP, Urban Transport Fund
• Major component be allocated through a
  transparent, multi-year formula
• Establish Programme Management Units within
  municipalities

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BASIC SERVICES AND INFRASTRUCTURE INVESTMENT

• FREE BASIC SERVICES
• Additional funds allocated to the LG Equitable
  Share for this purpose
• Water sector good progress
• Electricity sector pilots currently undertaken
  throughout the country
• FBS is dependent on infrastructure (imp of
  capital infrastructure grants)
• MIIU playing an important support role

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CONSOLIDATING LOCAL GOVERNMENT

• Dec 2000 - 284 new municipalities
• Three phased approach to building developmental
  local government (establishement, consolidation,
  sustainablity)
• PCC - Dec 2001 adopted key resolutions to support
  LG transformation process
• Priorities creating viable financial base (e.g.
  Property Rates Bill, augmenting institutional
  capacity (e.g. 35 PIMS centres, Capacity Building
  Grant), establish IDP Nerve Centre, finalised
  powers and functions of Bs Cs, SA Cities
  Network established

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URBAN RENEWAL PROGRAMME

• OBJECTIVE
• To champion and facilitate sustainable
  development in the (initial) 8 urban nodes by
  implementing an innovative mode of planning,
  budgeting, delivery and governance
• PROGRESS AND PLANS
• Basic institutional arrangements established
  across all three spheres
• Anchor projects identified - support mobilised
• Finalising national implementation framework
• Finalise a national urban policy

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URBAN NODES
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INTEGRATED SUSTAINABLE RURAL DEVELOPMENT PROGRAMME

• OBJECTIVE
• To champion and facilitate sustainable
  development in the (initial) 13 rural nodes by
  implementing an innovative mode of planning,
  budgeting, delivery and governance
• PROGRESS AND PLANS
• Institutional arrangements in place and support
  role of IDT
• Over 120 anchor projects identified - is some
  implementation in all nodes
• Allocated extra funds from CMIP Equitable share
• Finalising national implementation framework

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RURAL NODES
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CONCLUSION

• Programmes to accelerate infrastructure
  investment are in place
• Progress on Free Basic Services
• Local government is key to the developmental
  efforts of the state generally - moved into the
  consolidation phase with increase and focussed
  support
• URP and ISRDP key poverty alleviation frameworks
  for government coordination and good progress
  made

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THE END

• THANK YOU ...