Who is Responsible for the Budget?
Department of Finance - The Department is responsible for government's overall macroeconomic and fiscal policy. It co-ordinates with provinces and other departments to compile the national budget, and is responsible for fiscal discipline and debt management.
National and Provincial Departments - These draw up expenditure plans providing departmental goals, policy and spending options and projected inputs, outputs and outcomes. Once approved, they develop and implement these plans.
Budget Council - The Council is made up of the provincial MECs for Finance, the DGs of Finance and State Expenditure, Heads of Treasuries, the Ministry and Deputy Minister of Finance and their advisors. The Council advises Cabinet on the division of revenue between provinces.
Cabinet and Provincial Executive Councils - Cabinet and Executive Councils have political oversight of the budget process. Cabinet decides on the division of revenue between departments and provinces, on the advice of the Budget Council, and sets the policy priorities for the budget. Executive Councils set spending priorities for provincial departments.
Financial and Fiscal Commission (FFC) - This is an independent, advisory body created in terms of the Constitution. It makes recommendations to Cabinet and the Budget Council on the division of revenue between the different levels of government.
National and Provincial Legislatures - They are responsible for reviewing the budget after it has been tabled, and monitoring departmental expenditure once the budget is approved. They facilitate public participation in the budget process.
How is the Budget Formulated, and how can we Influence the Process?
The budget process compromises two stages: the drafting stage and the legislative stage. Both present opportunities to civil society to impact on the formulation of the budget.
The Drafting Stage
Contact:
Dr W Dorning, Director: Treasury
Tel: (033) 897 4539, Fax: (033) 342 4662
February - Setting the overall budget
Finance Department determines how much money is available, and recommends how much departments and provinces should spend. The FFC advises Cabinet on how revenue should be split among provinces, and departments are informed for their planning.
March-September - Departmental plans
Each department (national and provincial) compiles a draft budget. In some provinces, this information is made available to portfolio committees.
Input: Lobby departments to budget adequately for critical issues. Use committees and media to raise these.
September-December - Negotiation and ratification
Each department (national and provincial) negotiates with its budget committee for its share of the budget, within limits. The Minister/MECs for Finance present a draft budget to Cabinet/Executive Councils for approval.
Input: Lobby Cabinet/MECs on issues for the budget.
January-March - Printing
Budget documentation is printed.
The Legislative Stage
Contact:
Mrs BF Scott, Chairperson: Finance and Economic Development
Tel: (033) 355 7582, Fax: (033) 355 7758
February/March - Tabling the budget
The national budget is presented to Parliament in late February, and provincial budgets are tabled in provincial legislatures soon thereafter. The budget is referred to as the Appropriation Bill, and departmental allocations as "Votes".
March/April - Budget review
Nationally and in provinces, the Appropriate Bill is referred to Finance Portfolio Committees to hold hearings with departments and present a report to their legislature.
Input: Attend hearings and make submissions on issues that should be addressed. Make a press statement.
March/April - Portfolio Committee Hearings
In some provinces, sectoral portfolio committees hold hearings with departments to examine each vote.
Input: Attend hearings and feed issues to committee members to ask of departmental officials. Use the media to publicise these.
March/April - Legislative debate
At a sitting of each legislature, there is a detailed debate on each department's vote. The legislature then votes on the Bill and the budget is passed. At national level, once the National Assembly has approved the national budget, it is referred to the National Council of Provinces for consideration.
Input: Lobby MPs and make submissions to NCOP committees.