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DEPARTMENT OF PROVINCIAL DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENTAND LOCAL GOVERNMENT

JOINT BUDGET COMMITTEEJOINT BUDGET COMMITTEE5 NOVEMBER 20025 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 PRIORITIESSTRATEGIC 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 CHALLENGESMTBPS CHALLENGES

Basic Services and Infrastructure Investment

Consolidating Local Government

Coordinating the URP and ISRDP

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MTEF SUMMARYMTEF 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 SUMMARYMTEF 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 SUMMARYMTEF 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 BASIC SERVICES AND INFRASTRUCTURE INVESTMENTINFRASTRUCTURE 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 BASIC SERVICES AND INFRASTRUCTURE INVESTMENTINFRASTRUCTURE 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 BASIC SERVICES AND INFRASTRUCTURE INVESTMENTINFRASTRUCTURE 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 CONSOLIDATING LOCAL GOVERNMENTGOVERNMENT

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 PROGRAMMEURBAN 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 NODESURBAN NODES

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INTEGRATED SUSTAINABLE RURAL INTEGRATED SUSTAINABLE RURAL DEVELOPMENT PROGRAMMEDEVELOPMENT 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 NODESRURAL NODES

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CONCLUSIONCONCLUSION

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 ENDTHE END

THANK YOU ...