1

Briefing on the 2003/2004 Budget to the Social

Development Portfolio Committee

Department of Social Development5 March 2003

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Presentation Outline Vision and Mission Statements Measurable Objectives Strategic Overview and Policy

Developments Budget Priorities for the next 3

years Changes in the Budget Structure

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Presentation Outline (2) Budget Allocation

2002/03 allocation 2003/04 –2005/06 allocation (MTEF) Conditional Grants

Key Challenges

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Vision and Mission Vision

A caring and integrated system of social development services that facilitates human development and improves the quality of life

Mission To enable the poor, the vulnerable and the

excluded within South African society to secure a better life for themselves, in partnership with them and with all those who are committed to building a caring society

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Measurable Objectives To develop policy & strategies for social

assistance to children, families, disabled and older people and to advise on social, economic and fiscal implication thereof.

To provide management, administrative and information services in support of timely payment of social assistance and disaster relief, and to monitor service delivery and compliance

To develop policies, strategies and programmes to empower and support vulnerable individuals, households and communities and to facilitate and monitor implementation

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Measurable Objectives (2) To design, fund and monitor strategies and

programmes for poverty reduction, community development, and counter the impact of HIV/Aids and to register and support NPOs

To research, analyse and interpret population and development trends to inform policy making and planning, including monitoring and evaluation of the population policy and facilitate implementation through intergovernmental programmes, and develop capacity to integrate population issues into development programmes

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Strategic overview & policy developments: 99/00-02/03 Key developments in the ff areas:

Extension of the system of social assistance

Improving service delivery to grant beneficiaries

Addressing poverty and underdevelopment

Mitigating the effects of HIV/Aids Shift from welfare to sustainable social

development

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Widening the social safety net Means tested grant beneficiaries increased significantly

from about 2,5 million to over 5 million in the past 5 years

Just over 2,5 million children now receive the Child Support Grant

An estimated number of between 500 000 & 1 million children under 7 years country-wide are still to be registered in the system

The Committee of Inquiry into Comprehensive Social Security System submitted its report to Cabinet in July 2002

Amendments to the Regulations under the social assistance act have recently been gazetted

Grant Beneficiaries now become entitled from application date instead of approval date

Improved access to disability grants

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Widening the safety net (2) A new Social Assistance is envisaged in

2003 Extension of the age limit for Child support

Grant from below 7 years to below 14 years

Phased approach: 7 & 8 year olds - 2003/04 9 & 10 year olds - 2004/05 11 & 13 year olds - 2005/06

R1,1 billion increasing to R6,4 billion over the medium term made available for this increase (Total R10, 9 billion)

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Improving grant delivery Comprehensive improvement of grant administration

programme was launched in July 2001 Development and implementation of norms and standards for-

Applications Customer management and care Information technology Pay points infrastructure and facilities Financial administration

Upgrading of the current payment system (SOCPEN) is ongoing and process of replacing it is underway

Establishment of a compliance and support unit was approved towards the end of 2002

Cabinet approved the establishment of a national agency

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Fighting poverty & impact of HIV/Aids The poverty relief programme focuses on

sustainable development through income generating initiatives, and targets vulnerable groups like

Women, youth, children, the infirm, disabled and people infected and affected with HIV/Aids

Poverty Relief funding has been allocated to the 365 projects established through the national and provincial offices

24% of the projects were in Integrated Sustainable Rural Development Programme (ISRDT) nodal points

The Home-Based Care programmes for people with HIV/Aids have been accelerated.

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Transformation of welfare services Two important pieces of legislation will be

considered by Parliament this year: Child Care Legislation Child Justice Bill

Costing of the CJB was completed and the process for costing the other legislation is underway

The Department will prioritise the development of norms and standards and costing of welfare services during the forthcoming MTEF period.

The national strategy for child abuse, neglect and expoitation will be finalised during 2003

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Transformation of welfare services (2) The ff additional work is planned over

the medium term: Design of welfare service delivery models

and a financing policy for welfare services Development of a national

empowerment strategy for families and victims of violence

Legislation on older persons is planned to be tabled towards the end of 2003

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Budget priorities:2003/04-2005/06 Improvement of quality, efficiency better access

and provision of Social Security Strengthen poverty relief programmes including

the ISRDP and URP Strengthen Community and Home Based Care for

HIV AIDS Programmes Accelerate the implementation of the Food

security and Nutrition Programme Strengthen Community Development Programmes Accelerate the transformation of Welfare Services Consolidate dept’s communications programme

including reach out to communities

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme Previous sub programmes

New sub programmes

Programme 1Administration

- Minister -Management- Corporate Services- Government Motor Transport- National Development Agency

- Minister- Deputy Minister- Management- Corporate Services- Government Motor Transport

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme Previous sub programmes

New sub programmes

Programme 2:Social Security, Policy and Planning

No changes

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme

Previous sub programmes

New sub programmes

Programme 3:Grant Systems and Administration

-Grant Admin and Disbursement Management- Grant Information Systems- Monitoring, Evaluation and Audit (split)

-Administration

- Grant Administration and Disbursement Management- Grant Information and Payment Service- Monitoring and Evaluation- Audit and Compliance Support-Institutional Reform-Administration

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme Previous sub programmes

New sub programmes

Programme 4:Welfare Service Transformation

- Service Standards-Rights Advocacy to Children, Youth and Families- Rights Advocacy to Other Vulnerable Groups-Contributions-Administration

- Service Standards- Child Care and Protection Services- Families and Victim Empowerment- Social Crime Prevention and Youth Development- Prevention and Rehabilitation of Substance Abuse

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme Previous sub programmes

New sub programmes

Programme 4:Welfare Service Transformation

- Care and Services to Older Persons- Services to People with Disabilities- Contributions- Administration

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme

Previous sub programmes

New sub programmes

Programme 5:Development Implementation Support

- Poverty Eradication- HIV/AIDS- Community Development- Non-Profit Organisations

-Administration

- Poverty Eradication- HIV/AIDS- Community Development- Non-Profit Organisations-National Development Agency- Administration

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CHANGES IN BUDGET STRUCTURE:SUB PROGRAMME LEVEL

Programme

Previous sub programmes

New sub programmes

Programme 6:Population and Development

- Population and Development Strategy- Population and Development Research

-Contributions- Administration

- Population and Development Strategy- Population and Development Research- Population and Development Support Programmes- Contributions- Administration

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Allocation 2002/2003

Amount voted R 409 261 000Adjustments

Estimate R 10 990 000Supplementary Amount R 230 000 000Total allocation R 650

251 000Projected

expenditure R 644 038 000Projected Under spendingAnd/or saving R 6 213 000

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MTEF-National Department

R’0002002/03 650 251 2003/04 1 952 5022004/05 4 225 8052005/06 7 269 343 Increase over the MTEF years reflects

the special allocations for the Emergency Food Security, HIV/AIDS and the CSG Extension

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MTEF Summary

Year Operational

allocationR’000

Special Allocation

R’000

Total Allocation

R’000

2003/04 124,102 1,828 400 1,952 502

2004/05 137,693 4,088 112 4,225 805

2005/06 150,184 7,119 159 7,269 343

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Departmental Budget 2003/04

PROGRAMME 2002/03R’000

2003/04R’000

Administration 50,681 59,268

Social Security, Policy & Planning 7,348 7,871

Grant systems & Administration 82,033 1,201 293

Welfare Service Transformation 13,061 16,681

Development Implement Support

487,923 657,989

Population & Development 9,205 9,400

TOTAL 650,251 1,952 502

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Amount voted R1,952 502 Special Allocations

Poverty Relief R 71 000 Improvement of Social Security System R 69 000 Disaster Relief Funds R 10 000 Emergency Disaster Relief R 5 000 HIV/AIDS R 65 917 Child Support Grant Extension R 1 100 000 Food Relief R 400 000 National Development Agency R 103 283 National Councils R 4 200

Total Special Allocations R 1,828 400

Departmental Budget 2003/04

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Conditional Grants to Provinces: HIV/AIDS 2003/04

Provinces 2002/03R’000

2003/04R’000

2004/05R’000

2004/05R’000

Eastern Cape 4,798 6,658 7,089 7,514

Free State 6,650 9,228 9,825 10,415

Gauteng 6,983 9,690 10,315 10,934

Kwazulu-Natal 8,644 11,996 12,773 13,540

Limpopo 3,135 4,353 4,634 4,912

Mpumalanga 7,077 9,821 10,456 11,084

Northern Cape 2,660 3,691 3,930 4,165

North West 5,463 7,580 8,070 8,554

Western Cape 2,090 2,900 3,088 3,273

TOTAL 47,500 65,917 70,180 74,391

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Conditional Grant to Provinces: Child Support Extension

2003/04

Provinces 2003/04R’000

2004/05R’000

2004/05R’000

Eastern Cape 272,130 866,885 1,669 903

Free State 72,497 233,242 457,870

Gauteng 66,449 193,815 359,609

Kwazulu-Natal 235,143 723,700 1,367 785

Limpopo 172,969 536,542 1,000 815

Mpumalanga 78,360 239,836 442,010

Northern Cape 19,671 63,540 121,421

North West 125,426 367,979 652,257

Western Cape 57,355 174,461 328,330

TOTAL 1,100 000 3,400 000 6,400 000

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Conditional Grant to Provinces: Food Relief Grant

2003/04Provinces 2003/04

R’0002004/05R’000

2004/05R’000

Eastern Cape 94,133 94,133 94,133

Free State 37,334 37,334 37,334

Gauteng 27,904 27,904 27,904

Kwazulu-Natal 68,185 68,185 68,185

Limpopo 61,146 61,146 61,146

Mpumalanga 27,651 27,651 27,651

Northern Cape 9,998 9,998 9,998

North West 41,615 41,615 41,615

Western Cape 20,034 20,034 20,034

TOTAL 388,000 388,000 388,000

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Poverty Relief Grant in Kind 2003/04

2002/03R’000

2003/04R’000

Eastern Cape 16 179 10 449

Free State 8 690 5 774

Gauteng 4 386 3 190

Kwazulu-Natal 17 429 11 274

Limpopo 15 633 10 229

Mpumalanga 10 446 6 874

Northern Cape 4 315 2 887

North West 8 646 5 827

Western Cape 3 811 2 942

TOTAL 89 535 59 446

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Key Outputs for 2003/04

Social Security Policy & Planning Policy for social benefits to children &

families by December 2003 Policy on social benefits to disabled and

elderly by November 2003 Analysis & impact assessment reports

on factors impacting on social security twice a year

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Key Outputs for 2003/04 (2)

Grant Systems and Administration Effective and efficient grant and relief

administration targeting an application processing time of approx 1,5

months Payments to grant beneficiaries within 4 months

of application Full implementation of norms and standards

by all provinces by December 2004 Socpen enhancement to reach 99% up-time

and 95% data integrity by April 2004 Phase 1 of new grant payment system to

replace socpen completed by January 2004

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Key Outputs for 2003/04 (2) Grant Systems and Administration

(cont): Monitoring of compliance on a quarterly

basis and annual impact assessment studies Implementation of fraud prevention and

detection strategy to ensure that each province is audited at least once a year

Report to Cabinet on institutional restructuring (agentisation) by July 2003

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Key Outputs for 2003/04 (3) Welfare Services Transformation

Norms and standards for welfare services to be approved by March 2004

Policy & programmes to care for children e.g. New child care legislation, implementation of national child protection register

Policy and programmes to support families developed and implemented by March 2004

Policy and programmes to protect and support persons affected by crime operational by March 2004

Youth development strategy developed and approved by February 2004

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Key Outputs for 2003/04 (4) Welfare Services Transformation – cont:

Policy and legislation on older persons by September 2003

Strategy for delivery of social welfare services to the disabled by March 2004

Drug master plan developed and approved by March 2004

Prevention and treatment of Drug Dependancy Act reviewed and amendments approved by March 2004

Fully functional Central Drug Authority secretariat by June 2003

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Key Outputs for 2003/04 (5) Development Implementation Support

Develop an anti-poverty strategy- draft by March 2004

Ensure sustainability of poverty relief project through various interventions e.g. provision of financial assistance and programme support to communities

Integrated community development strategy- concept document canvassed by March 2004

Develop an integrated strategy on HIV/Aids by December 2003

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Key Outputs for 2003/04 (6) Development Implementation Support –

cont: Targeting to support about 400 home and

community based care centres by 2004 Policy on protection of orphans and children

affected by HIV/Aids Minimisation of the risk of HIV/Aids amongst

youth Ongoing registration of NPOs Institutionalisation of volunteerism

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Key Outputs for 2003/04 (7) Population and Development

Advise and monitor policy and plans on population and development trends- draft State of South Africa’s population Report 2003/04 by March 2004

Population and development advocacy and information, education and communication activities

Research on national population and social development policies

Implementation of intergovernmental programmes and information dissemination.

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Key challenges facing Department Increased capacity for grant administration and

payment vis-à-vis the current weak systems Need to properly manage the transitional

arrangements for the establishment of the National Agency for social grants administration

Additional service delivery demands to rollout new programmes, e.g. Food Security Programme, against limited internal capacity

Integration of the work of the Department with that of provinces and other cluster departments