FINANCE PORTFOLIO COMMITTEE

OVERSIGHT REPORT ON

THE PRINCIPLE OF PROVINCIAL APPROPRIATION BILL

[G003 – 2019]

19 March 2019

TABLE OF CONTENTS PAGE

1. INTRODUCTION 4

2. PRINCIPLE OF THE BILL 5

3. PROCESS FOLLOWED 5

4. GLOBAL ECONOMIC OUTLOOK 5

5. SOUTH AFRICAN ECONOMIC OUTLOOK 6

6. PROVINCIAL ECONOMIC STATUS 7

7. LINKAGE BETWEEN OUTCOMES AND PRIORITIES 7

8. PROVINCIAL FISCAL FRAMEWORK 7

9. CAPITAL EXPENDITURE FRAMEWORK 8

10. CONDITIONAL GRANTS 9

11. BUDGET ALLOCATIONS PER VOTE 14

12. SOCIAL IMPACT 23

13. FINANCIAL IMPLICATIONS 24

14. STAKEHOLDER SUBMISSIONS 24

15. COMMITTEE RECOMMENDATIONS 24

16. CONCLUSION 25

17. ACKNOWLEDGEMENTS 25

18. ADOPTION OF THE REPORT 26

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ACRONYMS

AIDS Acquired Immune Deficiency SyndromeCBNRM Community Based Natural Resources Management CGR Gauteng City RegionDED Department of Economic DevelopmentEPRE Estimates of Provincial Revenue and ExpenditureEPWP Expanded Public Works ProgrammeFY Financial YearGBN Gauteng Broadband NetworkGDE Gauteng Department of EducationGDP Growth Domestic ProductGPG Gauteng Provincial GovernmentGPL Gauteng Provincial LegislatureGPT Gauteng Provincial TreasuryHIV Human Immune Deficiency VirusHOD Head of DepartmentICT Information, Communications and TechnologyIGR Inter-governmental RelationsIMF International Monetary FundLTSM Learner Teacher Support MaterialMEC Member of Executive CouncilMTBPS Mid-Term Budget Policy StatementMTEF Mid-Term Expenditure FrameworkMTSF Medium Term Strategic FrameworkNDP National Development PlanNHI National Health Insurance OoP Office of the PremierPAB Provincial Appropriation Bill PES Provincial Equitable SharePMDC Provincial Disaster Management Centre RDP Reconstruction and Development ProgrammeSCM Supply Chain ManagementStatsSA Statistics South AfricaSTIs Sexually Transmitted DiseasesSMMEs Small, Medium and Micro EnterprisesSOM Sector Oversight ModelSONA State of the Nation AddressSOPA State of the Province AddressTB Tuberculosis TER Township Economic RevitalizationTMR Transformation, Modernization and Re-industrialisation

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The Chairperson of the Finance Portfolio Committee, Hon. S. Khumalo, tables the report of the Finance Portfolio Committee on the Provincial Appropriation Bill [G003-2019] as follows:

1. INTRODUCTION

The Provincial Appropriation Bill (PAB) provides for the appropriation of money from the Gauteng Provincial Revenue Fund for the requirements of the Gauteng Province in respect of the financial year ending 31 March 2019 and to provide for related matters.

As the custodian of the provincial purse, the Gauteng provincial Treasury is a partner of the Portfolio Committee in the budget oversight process. Through this process the Portfolio Committee satisfies the constitutional imperative for legislative approval of the budget. During this process, the Portfolio Committee ensures transparency of the budgets, accountability by the Executive Council and that the departmental budgets allocations are directed to priority areas and projects supporting provincial and national priorities.

The fifth administration forges ahead with the programme of Transformation, Modernization and Re-industrialization (TMR) implemented through the Deliverology Approach. Therefore, it is not an anomaly that the 2019 MTEF seeks to ensure continued reprioritization towards core functions, in so doing expanding and enhancing service delivery; strengthening and prioritizing fiscal discipline to enable effective delivery on the Ten-Pillar Programme of Transformation, Modernisation and Re-industrialisation.

Connected to this, the Portfolio Committee seeks to establish the connection in the compilation of the budget to the alignment to the National Development Plan (NDP), 2014-2019 Medium Term Strategic Framework (MTSF) and associated Game Changers by implementing stringent cost containment measures, attaining greater efficiencies to ensure more is achieved under constrained fiscal space.

In this report, the Portfolio Committee strives to confirm the efforts undertaken by the government in responding to the current socio-economic environment and its associated challenges. It is on this basis that the report attempts to illustrate the current economic status and the extent to which government plans to alleviate it in implementing its strategic priorities. Furthermore, the report highlights allocations to GPG departments 2019/20 FY including conditional grants as well as capital expenditure. From the report, the Portfolio Committee will draw conclusions and recommendations on the Provincial Appropriation Bill.

In drafting this report the following source documents were used, among others: SONA, SOPA, Budget Speech by the Minister of Finance; National Development Plan; Budget Speech by the MEC for Finance, Gauteng Provincial Appropriation Bill Explanatory Memorandum 2019 and Estimates of Provincial Expenditure (EPRE) for 2019.

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2. PRINCIPLE OF THE BILL

The Provincial Appropriation Bill provides for the appropriation of money from the Provincial Revenue Fund for the requirements of the Province in the 2019/20FY; and to provide for subordinate matters incidental thereto.

3. PROCESS FOLLOWED

The MEC of Finance, Honourable B. Creecy, introduced the PAB [G003-2019] in the Gauteng Provincial Legislature on Tuesday, 5 March 2019.  Subsequent to this, the Speaker, Honourable N. Mekgwe formally referred the PAB [G003-2019] to the Finance Portfolio Committee for consideration and reporting in terms of Rule 220 (2) of the Standing Rules of the Gauteng Provincial Legislature (GPL). 

The Portfolio Committee received a presentation on the Bill from the Gauteng Provincial Treasury, led by the MEC Creecy at a meeting of Friday, 8 March 2018. In the same meeting, the Portfolio Committee invited GPG departments to present on the principles of their respective budgets to ascertain the extent to which the budget responds to national priorities and the ten pillar programme of the Gauteng provincial government.

As part of an integrated oversight mechanism adopted by the Legislature, the Finance Portfolio Committee extended an invitation to Chairpersons of Portfolio and Standing Committees of the Legislature to engage departments during the budget hearings on the Principles of the Bill. This was to ensure that Portfolio Committees of the GPL meaningfully engage with respective departments when considering the detail of the PAB 2019.

As part of engaging the public in its programmes, the Portfolio Committee meetings were open meetings permitting various stakeholders to participate and make inputs during the consideration of PAB. The Portfolio Committee convened a meeting to deliberate and adopt the report on Friday, 15 March 2019.

4. GLOBAL ECONOMIC OUTLOOK

The global economy has lost the growth momentum in the latter part of 2018 after starting off on a high note. In its World Economic Outlook of January 2019, the International Monetary Fund (IMF) estimates global economic growth to have increased by 3.7% in 2017, compared with 3.2% in 2016. Furthermore, the IMF anticipates the global economic growth momentum to remain stable. The International Monetary Fund (IMF) estimates global economic growth to increase by 3.5% in 2019 compared with 3.7% in 2018. It is anticipated that a less even global economic growth outcome will continue with economic growth in some regions having plateaued1.

1 www.imf.org5

Growth in Emerging Market and Developing Economies (EMDEs) will continue to be affected by developments in their trading partners. However, the GDP growth in the emerging market and developing economies was relatively higher when compared to the advanced economies for most of the review period. Moreover, the IMF reported that the growth in EMDE has remained stable and higher than most regions, which is mainly driven by strong growth in India and China. The International Monetary Fund (IMF) indicates that economic growth in Sub-Saharan Africa (SSA) is anticipated to pick up in 2019, equaling the world economic growth forecast. The energy price, including that of oil, increased during the 2018, climbing around 80 USD a barrel in September 2018. This increase has placed upwards pressure on other economic indicators such as inflation and, as a result, real disposable income have fallen on average across most oil importing countries. Coupled with other natural disasters, South Africa fell to technical recession due to increased oil price a barrel, slow productivity in agricultural sector and slower than anticipated revenue generation.

5. SOUTH AFRICAN ECONOMIC OUTLOOK

The South African economy recovered in the last two quarters of 2018 following negative growth in the first two quarters. The real annual growth was recorded at 0.8% in the latter part of the previous year2. The main contributors to positive growth were the finance, real estate and business services sectors, followed by government. The two sectors reportedly contributed 0.4% and 0.2% overall growth respectively.

The sectors which struggled to keep up were mining and construction. Manufacturing, the country’s fourth largest sector, also contributed positively to growth, contributing 1.2% of growth in the latter part of the previous year. Growth was realized under this sector despite slight under performance in some divisions. According to StatsSA, five of the ten divisions under manufacturing contributed positively to growth, with motor vehicle, parts and accessories division being the top performer.

Unemployment remains high in the country. A total of 2000 and 13 000 jobs were shed in the mining and manufacturing sectors in the second quarter of 2018 alone. The highest number (67 000) of job losses was observed under community services in the previous year. The jobs were mainly casual work. These developments contributed to the high unemployment rate that the country is faced with to date.In addition, the developments at the country’s power utility, Eskom may have a negative impact on employment and the general economic growth in the absence of proper interventions. The current situation at the power utility threatens jobs, productivity and essentially, the overall economic growth.

6. PROVINCIAL ECONOMIC STATUS

2 http://www.statssa.gov.za.6

Gauteng is the smallest but most populous and fastest growing province in South Africa, and remains the highest contributor to the national economy. Year-on-year, the province experiences the levels of in-migration, thereby exerting pressure on the limited resources. The most affected sectors are health and education. The influx also contributes to the housing backlog in the province.

The Province continues to be the biggest contributor to national GDP (over 35%) followed by KwaZulu-Natal and the Western Cape, according to reports3. The biggest sectors in the Province are financial services, mining and manufacturing. The Province is home to an estimated 10 000 firms which are involved in the manufacturing sector and employing approximately half a million people. However, Gauteng will still have to contend with economic challenges, chief among them being the high rate of unemployment.

7. LINKAGE BETWEEN OUTCOMES AND PRIORITIES

The provincial strategic planning processes initiated the development of the 2014- 2019 Medium Term Strategic Framework (MTSF) that stipulates the government outcomes for the province. The province adopted all 14 national outcomes that require the provincial departments to realign their outcomes plans with the latest MTSF. In addition to the 14 adopted provincial outcomes, the fifth administration conducts its work through the adopted ten-pillar programme of radical transformation, modernization and reindustrialization programme.

The ten-pillar programme is implemented as follows: Radical economic transformation; Decisive spatial transformation; Accelerated social transformation; Transformation of the state and governance; Modernization of the public service; Modernization of the economy; Modernization of human settlements and urban development; Modernization of public transport infrastructure; Re-industrialization of Gauteng province and taking the lead in Africa’s new industrial revolution.

To this effect, it is envisaged that departmental budgets reflect alignment and commitment to the TMR, as such would accelerate and improve service delivery in the province while unlocking business potential, particularly for SMMEs thereby contributing to sustainable growth and development.

8. PROVINCIAL FISCAL FRAMEWORK

Table 1 below illustrates the summary of the revenue envelope. The Gauteng Provincial Government receives an amount of R132 487 501 000 in 2019/20 FY with a projected increase to R153 437 171 000 in the outer year of the MTEF. Provincial receipts consist of funds from the equitable share, conditional grants and own revenue.

Table 1: Provincial Revenue Envelope

3 https://businesstech.co.za/news/business/239347/if-gauteng-was-a-country-its-gdp-would-be-the-seventh-largest-in-africa/

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  Medium-term estimatesR thousand 2019/20 2020/21 2021/22

Provincial equitable share 102 448 280 111 635 689 120 699 800

Conditional grants 23 077 035 24 058 098 25 751 367

Total transfers from National 125 525 315 135 693 787 146 451 164

Provincial own revenue 6 326 420 6 699 950 7 073 715

Gross Revenue 131 851 735 142 393 737 153 524 879

Less: Direct Charges Office Bearers (79 116) (83 112) (87 708)

Financing from PRF 714 882

Total Revenue 132 487 501 142 310 625 153 437 171Source: Explanatory Memorandum of the Provincial Appropriation Bill 2019

For the 2019/20 FY the province receives R125.5 billion from the equitable share, which consists of 18% allocation for conditional grants. It is predicted that the equitable share and conditional grant allocations will increase in the outer years of the MTEF. The Portfolio Committee encouraged GPG departments to be efficient and cost effective in the utilization of public resources.

The province has projected to collect revenue amounting to R6.3 billion, which accounts for 5% of the total budget for the financial year. The main revenue sources are generated through the Departments of Roads and Transport, Economic Development, Health and Treasury. The direct charges against the Revenue Fund relates to the remuneration of public office bearers in line with legislation.

9. CAPITAL EXPENDITURE FRAMEWORK

Table 2 below illustrates allocations for infrastructure projects per department in line with the overall strategic objectives of the province. The Estimates of Capital Expenditure allows GPG to communicate infrastructure investments and projects to be planned and implemented over the MTEF period.

Table 2: GPG INFRASTRUCTURE ALLOCATION PER DEPARTMENT  Medium-term estimatesR thousand 2019/20 2020/21 2021/22

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Health 1 659 028 1 809 450 1 980 733Education 1 951 625 1 536 398 1 809 507Social Development 134 211 133 193 114 549Human Settlements 5 347 460 5 361 260 5 544 535Roads and Transport 1 797 061 2 252 562 1 273 225Agriculture & Rural Development 29 535 46 098 70 000Sport, Arts, Culture & Recreation 77 979 57 688 38 601Infrastructure Development 358 092 185 316 173 912Total Infrastructure by Vote 11 354 991 11 381 965 11 005 062

Source: Explanatory Memorandum of the Provincial Appropriation Bill 2019

To address infrastructure needs, the province receives R11.3 billion for infrastructure projects across eight departments. The allocation is set to decrease in the outer year of the MTEF. The Department of Human Settlements receives the largest share of the allocation for construction of new housing units, houses and mega projects that support the plan for the Gauteng City Region towards Vision 2030. To ensure seamless implementation of infrastructure projects, the Portfolio Committee urges GPT to guarantee that departments submit demand management and procurement plans.

10. CONDITIONAL GRANTS

Conditional grants are funds which are transferred from national government and their use is restricted by conditions attached to them. The grants cannot be used at the province’s discretion, as they are designed to finance nationally determined priorities and to reimburse provinces for providing national services. Conditional grants are intended to achieve specific objectives and provinces must meet certain requirements to receive them.

The National government transfers four types of conditional grants, namely, allocations to provinces and municipal made to supplement the funding of programmes or functions funded from provincial and municipal budgets; allocations made for specific purposes of national interest, without a requirement for addition funds from provincial and municipal own budgets; in-kind allocations to provinces and municipalities for designated special programmes; and specific allocations that may be released to provinces and municipalities to fund disaster response, in terms of the Disaster Management Act, 2002 (Act No. 57 of 2002).

Over and above core service grants, provinces are allocated grants to incentivize departments to increase work efforts through labour intensive methods and to remunerate volunteers in the social sector. The grants are the Expanded Public Works Programme Integrated Grant and the Social Sector EPWP Integrated Grant. To this effect, Expanded Public Works Programme Integrated Grant and Social Sector EPWP Integrated Grant are allocated R51 518 000 and R53 346 000 respectively for the 2019/20 FY. The portfolio committee accepts the provision of funds for Integrated EPWP Grant and the EPWP Incentive Grant as that will alleviate poverty and improve the socio-economic condition of citizens through job creation.

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The total amount allocated for conditional grants in 2019/20 FY amounts to R23 077 034 000 which is 23% of the total allocation, and is expected to grow steadily to R24 054 098 000 in 2020/21 FY peaking at R25 751 364 000 in the outer year of the MTEF.

TABLE 3: Conditional Grants Allocated to the province

Department Medium-term estimatesR’000

2019/20 2020/21 2021/22Health 11 570 305 12 488 920 13 606 535Education 2 454 072 2 468 010 2 635 812Social Development 91 261 72 658 76 655Cooperative Governance & Traditional Affairs 2 004Human Settlements 5 331 071 5 343 970 5 526 294Community Safety 1 000Roads and Transport 3 209 966 3 269 126 3 463 482Infrastructure Development 23 878Agriculture and Rural Development 131 471 139 196 149 757Sports, Arts, Culture and Recreation 260 007 276 218 292 829Infrastructure Development 17 780

TOTAL CONDITIONAL GRANTS 23 077 035 24 058 098 25 751 364Source: EPRE- 2019/20

Vote 4: Department of Health

The baselines for the Comprehensive HIV, AIDS and TB Grant change to make provision for a new component called the Malaria component, which provides for sustainable funding for malaria. The Tuberculosis component becomes separate to monitor its expenditure and outcomes. The Comprehensive HIV, AIDS and TB Grant baseline is reduced based on the updated performance data for patients that are still on the antiretroviral treatment. The reduction in the allocation is to provide for the regional co-financing project the elimination of malaria. To this effect, the Grant is allocated R4 766 734 000 in the 2019/20 FY peaking at R5 978 288 00 in the outer year. Despite the reduction, the Portfolio Committee noted with appreciation that the allocation for the Community Outreach Services component increases to bring their remuneration in line with the minimum wage.

Due to slow expenditure pattern, the Health Facilities Revitalization Grant allocation is reduced in the first two years of the 2019 MTEF. The budget reductions are utilized to fund other critical services. The allocations are R859 028 000 and R909 450 000 for 2019 /20 and 202021 financial years individually, growing robustly to R980 733 000 in the 2021/22 FY.

The Health Professionals Training and Development Grant funds the training of health professionals, and the development and recruitment of medical specialists. It enables the shifting of teaching activities from central to regional and district hospitals. It is allocated an amount of R1 027 240 000 for the 2019/20 FY and increase to an amount of R1 143 343 000 for the 2021/22 FY. The Portfolio Committee welcomes the estimated increase of the Health Professionals Training and Development Grant over the MTEF, as that will contribute to the implementation of the national human resource plan for health through the clinical

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training and supervision of health science trainees in designated public health facilities in South Africa

National Tertiary Services Grant provides strategic funding to enable provinces to plan, modernize and transform tertiary hospital service delivery in line with national policy objectives. An allocation of R4 724 843 000 is allocated for 2019/20 FY, which increases steadfastly from R5 041 407 000 in 2020/21 FY to R5 318 684 000 in the outer year of the MTEF. The Portfolio Committee noted that the National Tertiary Services Grant compensate tertiary facilities for the additional costs associated with the provision of tertiary health services.

To enable the health sector to prevent cervical cancer by making available HPV vaccination for grade four school girls in all public and special schools, the Human Papillomavirus Vaccine Grant is allocated R28 841 000 for the 2019/20 FY and the allocation increase to R32 100 000 in the 2021/22 FY.

In order to fill critical public-healthcare posts, including interns and community service positions. A new Human Resource Capacitation Conditional Grant is introduced. The grant receives R135 235 000 in the 2019/20 FY and increases progressively over the 2019 MTEF.

Vote 5: Department of Education

In national government’s endeavour to supplement provinces to fund the provision of education infrastructure in line with the regulations relating to minimum uniform norms and standards for public school infrastructure. In this financial year, the Education Infrastructure Grant is allocated an amount of R1 474 715 000 and is projected to decrease to R1 440 169 000 before increasing to R1 551 501 000 in the outer year of the MTEF.

HIV and AIDS (Life Skills Education) Grant which aims to address social and structural drivers on HIV, sexually transmitted infections (STIs) and Tuberculosis (TB) prevention, care and impact by preventing new HIV, STIs and TB infections and increasing access to sexual and reproductive health services including HIV as well as TB services for learners and educators, with a specific focus on schools that are located in high priority areas. The 2019/20 FY allocation amounts to R37 907 000 and increases to R42 062 000 in the outer year of the MTEF.

The strategic goal of the National School Nutrition Programme Grant is to enhance the learning capacity of learners through the provision of a healthy meal at schools. The grant allocation for the 2019/20 FY amounts to R849 075 000 and increases to R895 774 000 and R945 042 000 in 2020/21 and 2021/22 financial years respectively. The Portfolio Committee commended the increase in allocation as where the programme is implemented, it has shown to improve punctuality, regular school attendance, concentration and the general wellbeing of participating learners.

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The purpose of Maths, Science and Technology Grant is to improve the quality of learner performance in Maths, Physical Science and Life Sciences. The allocation for the 2019/20 FY amounts to R56 042 000 and it is anticipated to increase to R58 483 000 and R61 638 000 in the outer financial years of the MTEF. The Portfolio Committee supports the Grant due to its responsiveness to National Development Plan (NDP) and Goals 1 to 9, 16 and 20 of the Action Plan 2019: Towards Schooling 2030.

The Learners with Profound Intellectual Disabilities Grant, receive an allocation of R31 259 000 in 2019/20 FY peaking at R35 569 000 in 2021/22 FY. The Portfolio Committee welcomes the increase as the strategic goal of the Grant is based on inclusive education which is driven from the perspective of Sustainable Development Goal 4 which talks about ensuring inclusive and equitable quality education that promotes lifelong learning opportunities for all. 

Vote 6: Department of Social Development

The redistributive character of the budget is evident in the increase in allocations of Early Childhood Development (ECD) Grant from R68 067 000 in the 2019/20 FY to R76 655 000 in the 2021/22 FY. The purpose of the Grant is to increase the number of poor children accessing subsidized early childhood development (ECD) services.

Vote 8: Department of Human Settlements

Integrated Housing and Human Settlement Development Grant is funded to establish habitable, stable and sustainable human settlements in which all citizens have access to social and economic amenities. An amount of R5 164 409 000 is allocated for the 2019/20 FY and decreasing to R4 319 346 000 in the 2020/21 FY and further depreciating to R4 293 873 000 in the outer year of the MTEF. In view of the ever-growing demand for human settlements and the decreasing budget allocation, the Portfolio Committee wonders if the creation of sustainable and integrated human settlements to enable improved quality of household life, access to basic services and secure tenure will be realizable.

The strategic goal of the Title Deeds Restoration Grant is create security of tenure and well-functioning equitable residential property market. For the current financial year, the province receives an allocation of R156 204 000 increasing to R164 795 000 in the 2020/21 FY. The Portfolio Committee applauds the government’s efforts to provide funding for the eradication of the pre-2014 title deeds registration backlog and the professional fees associated with it, including beneficiary verification.

Funding amounting to R859 829 000 in the 2020/21 FY and R1 232 421 000 in the 2021/22 FY has been set aside for the introduction of the new conditional grant called Informal Settlements Upgrading Partnership Grant for Provinces. The Portfolio Committee noted that government’s 2014 – 2019 medium term strategic framework for human settlements, set

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itself a target to provide 750 000 households by 2019, through the Informal Settlements Upgrading Programme, with access to basic services and security of tenure.  The introduction of the new informal settlement upgrading grant in the 2019 budget will assist government in achieving the target set for the next 2019 – 2024 Medium Term Strategic Framework period.

Vote 9: Department of Roads and Transport

The allocation for Provincial Roads Maintenance Grant in the 2019/20 FY amounts to R767 506 000 and is projected to decrease to R669 835 000 in 2020/21 FY before increasing to R721 233 000 in the outer year. The Portfolio Committee noted that the aim of the Grant is to ensure efficient and effective investment in provincial roads to implement the Road Infrastructure Strategic Framework for South Africa in line with the S’hamba Sonke road programme and other related road infrastructure asset management programmes.

The Public Transport Operations Grant subsidizes commuter bus services. It supports provinces to ensure that contractual obligations are met and services are efficiently provided. To this effect, an amount of R2 436 074 000 is allocated for the 2019/20 FY and increases to R2 742 249 000 in the outer year. The Portfolio Committee noted with appreciation that the allocation includes the unallocated funds that are ring-fenced in Gauteng Province until the process of awarding the Moloto contract is complete.

Vote 11: Department of Agriculture and Rural Development

The Comprehensive Agricultural Support Programme Grant aims to provide support to subsistence, smallholder and black commercial producers within areas that are strategically identified for the production of grains, livestock, horticulture and aquaculture. The total allocation for the 2019/20 FY is R91 306 000 and grows vigorously to R107 650 000 in the outer year of the MTEF.

Ilima/Letsema Projects Grant is set to receive an estimated R31 974 000 in the 2019/20 FY, which grows up to R35 791 000 in the 2021/22 FY. The Portfolio Committee noted that over the medium term, rural households are expected to benefit from food production initiatives, including the provision of production inputs such as fertilizers, seeds, seedlings, breeding animals, and machinery and equipment.

The purpose of the Land Care Programme Grant: Poverty Relief and Infrastructure Development is to promote sustainable use and management of natural resources by engaging in community based initiatives that support the pillars of sustainability (social, economic and environmental), leading to greater productivity, food security, job creation and better well-being for all. To this end, the province receives an amount of R5 675 000 in 2019/20 FY, which is likely to increase to R6 316 000 in the 2021/22 FY.

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The Portfolio Committee welcomes the allocation of these grants to the Department of Agriculture and Rural Development and the projected increase over the MTEF, as that will provide social safety nets for the vulnerable groups in Gauteng to become food secure.

Vote 12: Department of Sports, Arts, Culture and Recreation

Community Library Service Grant is funded to provide access to knowledge and information to improve socio-economic conditions. For the 2019/20 FY the allocated amount is R167 784 000 and increases to R188 003 000 in the 2021/22 FY.

Mass Participation and Sports Development Grant is funded to increase community recreation and participation through various activities. In the current year, the province receives an amount R92 223 000 which is expected to increase to R104 826 000 in the 2021/22 FY. The Portfolio Committee welcomes the allocations in sports as that promotes social cohesion.

The Portfolio Committee will monitor adherence to conditional grants framework and expenditure patterns to ensure that departments do not surrender funds to National Revenue Fund.

11. BUDGET ALLOCATION PER VOTE

The following budget appropriations have been allocated to departments for expenditure in the 2019/20FY and over the MTEF period. The total allocation for the 2019/20FY amounts to R132 442 501 000 with a projected increase in the outer years of the MTEF.

TABLE 4: PROVINCIAL MTEF ALLOCATIONS  Medium-term estimatesR thousand 2019/20 2020/21 2021/22Office of the Premier 996 271 883 984 781 826Gauteng Provincial Legislature 761 430 806 130 858 075Economic Development 1 581 240 1 674 951 1 774 792Health 50 767 163 54 301 160 58 832 276Education 49 809 551 52 868 747 57 560 507Social Development 5 516 852 5 807 859 6 248 512Cooperative Governance and Traditional Affairs 562 282 526 662 565 980Human Settlements 6 216 526 6 161 145 6 403 170 Roads and Transport 7 708 630 8 535 972 7 927 078Community Safety 759 224 805 075 862 147Agriculture and Rural Development 990 202 1 069 563 1 165 226Sports, Arts, Culture and Recreation 1 058 424 1 136 450 1 183 314e-Government 1 413 914 1 4 96 959 1 592 631Gauteng Provincial Treasury 834 950 887 032 951 909Infrastructure Development 3 465 840 3 483 832 3 682 518Total provincial estimates by Vote 132 442 501 140 445 519 150 389 962

Source: EPRE 2019

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Vote 1: Office of the Premier

The total budget allocation for the Office of the Premier (OoP) is R996 271 000 for the 2019/20 FY. The budget allocation for the vote, which is set to increase over the MTEF, is mainly for efforts to lead the implementation of the TMR programme across the province through the Deliverology Approach. The Portfolio Committee noted that the aim of the Deliverology Approach is to transform the lives of all citizens in Gauteng.

Additional funding amounting to R300 million and R150 million is provided for the pay-outs of claimants and families of Life Esidimeni victims, following the dispute resolution.

One of the strategic goals of the Office of the Premier is to advance gender equality, women’s empowerment, youth development and the rights of people with disability. As such an amount of R21.5 million is allocated for projects aimed at assisting these targeted groups to access socio-economic opportunities. To facilitate the creation of youth employment, the Office of the Premier has set aside an amount of R124.3 million. This amount will be expended through the Tshepo 1 Million project which aims to place youth in internship and learnership programmes. The Portfolio Committee welcomes the intervention as it will provide youth with the much-needed work experience.

Vote 2: Gauteng Provincial Legislature (GPL)

The total budget allocation for the 2019/20 FY for the Gauteng Provincial Legislature (GPL) amounts to R761 430 000. The GPL’s main source of funding comes from the equitable share is projected to increase in the outer year of the MTEF.

The GPL continues to show its commitment towards meaningful public participation processes and to transform law-making processes, to this end an amount of R275.1 million has been allocated to enable the institution to effectively deliver on it functions of oversight, law-making, public participation and cooperative governance. Further to its core business, the GPL avails an amount of R84.5 million for political party funding and constituency allowance to support political parties in fulfilling their role as public representatives.

The Committee notes the GPL’s commitment to cost containment measures and the reprioritization of funds from non-essentials to core business to ensure financial prudence and value for money.

Vote 3: Department of Economic Development

The Department seeks to radically transform, modernize and re-industrialize the economy in Gauteng, manifesting decent work, economic inclusion and equity. To this end, the Department of Economic Development’s allocations for the 2019/20 FY amounts to R1 581 240 000. The budget allocation increases steadily over the MTEF.

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The Department continues on its path of enhancing the township economy by supporting SMMEs and focusing on youth. Funds have been made available for the GCR Economic Development Plan to create employment through sector transformation and skills development. Job creation initiatives include the Accelerated Youth Placement Programme and the Bio-Park Iphase 3B. To this end, an amount of R232 million, which increases over the MTEF has been allocated. In addition, an undertaking has been made to support and sustain SMMEs through the Township Economy Revitalization programmes.

The Gauteng Tourism Agency is allocated an amount of R5 million for the implementation of destination marketing and promotion programme to market Gauteng. The Committee applauded the initiative considering the positive benefits associated with job creation, and business opportunities, among others.

Vote 4: Department of Health

The Department receives the bulk of the budget at R50 767 163 000 in the current financial year and progressing to R58 832 276 000 in the outer year.

The budget is committed to among others, strengthening the district health system towards NHI, funding priority healthcare programmes and primary healthcare services, as well as front line non-negotiable services. The district health facilities is allocated an amount of R4.8 Billion which increases over the MTEF. The allocation will fund various programmes and initiatives which include youth programmes such as “She Conquers and Dreams Campaign”. Furthermore, the Department will digitize the information system in order to improve efficiency and to minimize risk associated with manual paper based systems.

The Department also receives additional allocation of R3.6 billion to supplement the personnel bill, to fund the cost of South African Cuban Student Doctor Programme and to ease the pressure in the Department’s budget for goods and services. The allocation is also inclusive of funding for an alternative accommodation following the fire that destroyed the Bank of Lisbon building in 2018.

Key cost drivers include Compensation of Employees, medicine, as well as laboratory services. To circumvent waste and corruption, the Department undertook to conduct life style audits, monthly ethics and code of conduct training, monitor remuneration of work outside of public service, and security vetting of higher risk positions i.e. SCM unit as well as members of senior management.

The Department continue to experience challenges with accruals, which are attributed mainly to Compensation of Employees and legal claims. At the end of January 2019, total accruals stood at R5 billion. Estimated accruals of R5.5 to R6 billion rand at the end of the current financial year (2018/19).

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The Committee expressed discomfort with the Department’s assertion that the Budget is mainly to sustain current services irrespective of in-migration into the province. The Department is urged to ensure that it will be in the position to accommodate an ever-increasing demand for its services.

Vote 5: Department of Education

The Gauteng Department of Education receives the second largest allocation after Department of Health, at R49 809 551 000 in the 2019/20 FY and growing to R57 560 507 000 in the 2021/22 FY. Its focus will primarily be on Skills development as well as improving learner performance. Furthermore, the Department commits to ensuring that learners will receive all the necessary learning material and that educators are adequately resourced. In addition, an amount of R878.7 million has been made available for e-learning devices and e-LTSM (Learner Teacher Support Material) for the transformation of township schools. The Department is however faced with the challenge of ageing infrastructure which is exacerbated by in-migration.

An amount of R206.8 million has been allocated towards improving the quality of teaching through Continuing Professional Teacher Development with particular focus on ICT. Furthermore, school nutrition has been allocated an amount of R1.3 billion in all no-fee paying schools and selected fee-paying schools.

Additional funding of R6.4 billion is made available over the MTEF to supplement personnel budget arising from growth in learner numbers due to an increase in population and in-migration. It will also be utilized to fund payments of subsidies towards, among others providing specialized scholar transport to Learners with Special Education Needs.

In an effort to curb corruption, the Department has a Fraud Risk Assessment Plan in place which is reviewed on a quarterly basis. In addition, the Department has reviewed its SCM roles and rotates its SCM personnel. This assists in simultaneously dealing with issues of Risk Management as well as reviewing procurement, particularly in monitoring compliance and to provide contract management and compliance.

The Department, however faces a challenge of accruals, particularly regarding learner numbers which often exceed projections. The challenge is exacerbated mainly by in-migration.

The Department is commended on paying 85% of its suppliers within 15 days of receipt of correct invoices and 94% within 30 days.

While the Committee welcomes the Department’s plan to open news schools weekly, the Department is cautioned to set realistic targets which are aligned to its infrastructure budget.

Vote 6: Department of Social Development

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The Department of Social Development is allocated an amount of R5 516 852 000 for the 2019/20 FY with a projected increase in the outer financial years. These allocation will contribute towards addressing the challenges of unemployment and poverty. In addition, through the Bana Pele programme, the Department will provide school uniform to underprivileged children. The Department will also initiate economic opportunities for women receiving child support by developing their skills through the Welfare-to-Work approach. An amount of R93.8 million has been allocated specifically for women development. The Portfolio Committee welcomes the training and skills development for women by the department which is aimed at addressing unemployment.

The budget baselines are increased with an additional R415.6 million over the MTEF. The additions to the baselines provide for absorption of social worker graduates and their supervisors, filling of critical post at head office and regional offices and the purchase of tools of work. Additional funding will also cater for the management of contracts for food relief and distribution of dignity packs.

The Department will conduct integrated substance abuse interventions across the province which aims to curb substance abuse. The Portfolio Committee urged the department to strengthen relations with the Gauteng Department of Education in an effort to collective eradicate substance abuse and criminal behaviour amongst the youth.

Vote 7: Cooperative Governance and Traditional Affairs

The Department of Cooperative Governance and Traditional Affairs (COGTA) receives a total allocation amounting to R562 282 000 for the 2019/20 FY. The allocation funds the coordination and facilitation of cooperative governance in building a globally competitive and people-driven Gauteng City-Region. The increase is mainly for procurement of the Provincial Disaster Management Centre (PMDC) building; disaster relief funding in respect of the floods in the province; water infrastructure for Emfuleni and Merafong Municipalities; procurement of the tools of trade for staff and Community Development Workers; and to support the merger of Westonaria Local Municipality and Randfontein Local Municipality to form Rand West Municipality. Furthermore, in order to provide support to municipalities, the Department receives R341 648 000 for Compensation of Employees. The allocation will also provide for the annual salary adjustments, pay progression, and will also enable the Department to capacitate the programmes in line with the approved structure. The Portfolio Committee welcomed the department’s interventions at municipalities to capacitate and improve performance of municipal employees.

A once-off additional amount of R65 million is provided for the 2019/20 FY allocation. To fund the refurbishment of the water pump station in Emfuleni Local Municipality and the operational requirements for the Disaster Management Services in West Rand District Municipality.

Vote 8: Human Settlements

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The total allocation for the department amounts to R6 216 526 000 in 2019/20 FY growing healthily to R6 403 170 000 in 2021/22 FY.

The Department is experiencing accruals with regard to security for completed but unallocated units, absence of qualifying beneficiaries, vacant land as well as accruals on legal services. To minimize accruals the Department put cost containment measures in place and utilised savings realised from this exercise. The accumulation of security costs is attributed to poor beneficiary administration. However, the Department indicated that measures have been put in place to ensure that there will be no shortage of beneficiaries upon the completion of projects.

The acceleration of the transfer of housing properties to beneficiaries will be done through the Title Deed Restoration Grant, for which an amount of R156.4 has been made available. The grant has also been reserved for the acceleration of the title deeds restoration programme.

The Department receives additional funding to the value of R120 000 000 in the 2019/20 FY. Of this amount, R75 million is once-off assistance and R45 million is for rates and taxes for non-transferred RDP stock and 5 provincial hostels.

Vote 9: Roads and Transport

The Department’s mandate is to provide an integrated transport system that is reliable, accessible, safe, affordable, and has a broad range of socio-economic effects. The Department of Roads and Transport is allocated an amount of R7 708 630 000 for the 2019/20 financial year. The allocation for the Department is projected to increase in the 2020/21 FY and to decline in the outer financial year.

These allocation to the Department includes R2.1 billion allocated in the 2019/20 FY and R6.8 billion allocated over the MTEF for the Gautrain Management Agency to meet its operational requirements. Whilst the infrastructure budget amounts to R1.8 billion in the 2019/20 FY and R7.1 billion over the MTEF. Of the infrastructure budget, the central development corridor is allocated R50 million in the 2019/20 FY, R528 million in the 2020/21 FY and R515 million in the 2021/22 FY; the Northern Development Corridor is allocated R341 million, R568 million and R248 million for the 2019/20, 2020/21 and 2021/22 financial years respectively; the Southern Development Corridor is allocated R13 million in the 2019/20 FY, R170 million in the 2020/21 FY and R87 million in the 2021/22 FY. While in the Western Development Corridor R12 million is made available in the 2019/20 FY, which increases to R126 million in the 2020/21 FY and decreases to R63 million in the last year of the MTEF. The routine maintenance programme receive the bulk of the allocation as well as other key maintenance related work such as the re-gravelling programme and the key infrastructure planning programmes. The budget ranges from R1.4 billion allocated in the 2019/20 FY to R293 million allocated in the 2021/22 FY.

The Department indicated that it was currently concluding the 2014-19 outcomes with the primary focus at the transport infrastructure, which include among others, the upgrading and maintenance of existing road networks, developing four Maas technologies for citizens and

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planning for transport modal integration to reduce time, costs and congestion. The Portfolio Committee noted with concern that the Department was barely maintaining the infrastructure at the required level, which is at least 8% of the carrying value of assets.

However the Portfolio Committee noted with appreciation that the Department was paying 99% of its suppliers within 30 days and its accrual are R120 million, with the bulk of them within the 30 days. The Portfolio Committee further noted that 40% of the Department’s spend is towards the designated groups. Vote 10: Department of Community Safety

The Department of Community Safety is allocated an amount of R759 224 000 in the 2019/20 FY. The allocation is mainly to fund amongst other deliverables, conducting station monitoring and enhancing focus on projects such as Violence against Women and Children, Men as Safety Promoters, Ikhaya Lethemba, Green Doors, School and Youth Safety.

The Department intends to reduce crime in the province by implementing a policing plan that enables the monitoring of police stations to assess the quality of police services rendered to citizens. Further, there will be a continuous assessment of the functionality of Community Police Forums and provision of training and resources to community patrollers. The Portfolio Committee noted that Gauteng accounts for high statistics of crimes and encourages the department to strengthen police oversight in underperforming police stations.

In an effort to reduce road fatalities, the department will conduct road safety education programmes and increase traffic law enforcement operations. These operations are aimed at protecting pedestrians by combating pedestrian fatalities. The Portfolio Committee commended the department for these interventions aimed at improving the safety of pedestrians.

Vote 11: Department of Agriculture and Rural Development

In the 2019 FY, the department receives an amount of R990 202 000 which is projected to increase over a billion in the outer years of the MTEF. The main source of funding are equitable shares and conditional grants. In the financial year under review, the Department has made an undertaking to focus on projects that have the potential to create and protect jobs thus contributing positively to the fight against unemployment and job security as well as driving the transformation agenda.

An amount of R18 000 000 has been reprioritised within the Land Care programme from cost containment items such as travel and subsistence to ensure that job creation and skills development for youth, people living with disability, and women within the natural resources sector, is achieved through EPWP and Community Based Natural Resources Management ( CBNRM) programmes. GDARD has allocated a total amount of R29 535 000 to infrastructure

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investment in the 2019/20 FY and the amount will increase to R46 098 000 and R70 000 000 in the 2020/21 and 2021/22 financial years respectively. These allocations include the allocations for Maintenance ad repairs worth R10 218 000 and upgrades and additions for R2 480 000 in the 2019/20 FY. Some of the major projects include the upgrading of the Vereeniging Fresh Produce Market, upgrading of Bulk Infrastructure at Suikerbosrand Nature Reserve, Construction of a perimeter fence around the Abe Bailey Nature Reserve and construction of New Staff Housing, upgrading of Zeekoeigat Hall and Sleeping Quarters at Roodeplaat Nature Reserve. The Portfolio Committee commended the Department for efforts to maintain their infrastructure and the support for youth, people living with disabilities and women.

Vote 12: Department of Sport, Arts, Culture and Recreation

The core mandate of the Department is to provide library and archival services and ensure access, increased participation and transformation of the sport, arts, culture and recreation sectors that benefit all citizens in the province. To ensure that the Department achieves its mandate, a total budget of R1 058 424 000 has been allocated to the Department of Sport, Arts, Culture and Recreation for the 2019/20 FY and the amount is expected to increase by R55 594 000 and R51 590 000 in outer years of the MTEF.

The Department will expend an amount of R77 979 000 for infrastructure projects. These include the new infrastructure investment of R47 044 000, rehabilitation of assets for R5 556 000 and upgrades and additions of R17 067 000. The Committee applauded the Department for investing in educational facilities such as libraries as these efforts will improve the performance of learners in the Province.

The budget baselines are increased with an additional R153.5 million over the MTEF. To operationalize libraries; to fund creative industries, tri-colour games and social cohesion initiatives.

Vote 13: Department of e-Government

The total budget allocation for the Department of e-Government amounts to R1 413 914 000 which is allocated for the mainly for the provision of broadband services through the Gauteng Broadband Network. The allocations are expected to increase by R80 000 000 and 80 000 000 in 2020/21 and 2021/22 financial years respectively. The budget baselines are increased by R80 million over the MTEF to fund the implementation of phase 2 of Gauteng Broadband Network project.

Pursuant to the TMR pillars relating to the transformation of the state and governance and modernisation of the public service. The Department of e-Government is resolute in supporting the province’s goal of providing 100% connectivity as per the GCR ICT Strategy. To this effect, use of the Broadband network will provide interoperability and eradicate duplicate applications within the Gauteng City Region, through effective governance. The allocation is to enable the

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Department to deliver ICT-related services to the province, including the GBN Project and the implementation of the GPG Digital Ecosystem and other items relating to ICT projects.

The major portion of e-Government’s allocation is on maintenance of the provincial ICT infrastructure in accordance with the Department’s primary strategic objective of providing a modern, reliable and secure ICT infrastructure for the GPG given the Department’s role as a custodian of the GPG Digital Ecosystem. The Portfolio Committee views this target in a positive light not only as it is cost effective but also to improve service delivery in the province.

Vote 14: Gauteng Provincial Treasury

Gauteng Provincial Treasury (GPT) receives an allocation of R834 950 000 in the 2019/20 FY, increasing to R951 909 000 in the outer year of the MTEF. An amount of R10 million is set aside to curb fraud and corruption. The same allocation will be allocated over the MTEF to fund the necessary services in this regard. The GPT will continue to support departments and public entities to achieve unqualified audits. To this end, an amount of R174.3 million has been allocated for the 2019/20 FY.

Moreover, the GPT has been allocated an amount of R124.3 million, towards promoting the effectiveness of Supply Chain Management in the province. The committee notes with appreciation the Department’s commitment to ensuring adherence to SCM regulations. Non-adherence to SCM regulations and lack of consequence management in this regard is a leading contributor to fruitless, wasteful and unauthorised expenditure. The allocation is inclusive of funds set aside for probity audits for open tenders.

In the 2019/20 FY, the GPT will continue to develop and train township suppliers. For the 2019/20 FY, a total of 1 188 suppliers will undergo supplier development. This initiative is expected to impact positively on the Township Economy Revitalisation (TER).

The GPT receives additional R15 000 000 for the 2019 MTEF. The funds are made available to enable the GPT to fund interventions aimed at improving the infrastructure delivery, economic growth and service delivery in the province.

Vote 15: Department of Infrastructure Development

The Department is mandated to develop and maintain socio-economic infrastructure that enables all the province’s people to have access to social services by utilising the construction sector as catalyst for the development of sustainable communities, managing the provincial property portfolio and ensuring the implementation of all infrastructure programmes and projects reflected in the short, medium and long-term plans of the GPG.

The total budget allocation amounts to R3 465 840 000 for the 2019/20 FY and the budget allocation is projected to increase by R200 000 000 and R215 500 000 in 2020/21 and 2021/22

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financial years respectively. Part of the allocation was the Compensation of employees of R1 130 365 000 in the 2019/20 FY, which aim to support youth, people living with disabilities, military veterans and women and it was reported that the Department, as part of EPWP Programme, recruited and placed 100 military veterans and are currently place under Community Safety Department.

The Committee commend the Department’s efforts to amend the Supply Chain Management Policy, which requires all bid winners to include companies owned by youth, people living with disabilities, women and military veterans as per the Preferential Procurement Plan and Supply Chain Management Policy.

The budget baselines are increased by R200 million in 2019/20 FY, R215.5 million in 2020/21 FY and R232.3 million in 2021/22 FY. The additions to the baselines provide for the payment of accruals in rates and taxes for immovable property and the Kopanong Precinct Project to provide for additional infrastructure projects and maintenance requirements.

12. SOCIAL IMPACT

The allocations demonstrate the commitment by the Gauteng Provincial Government to address socio-economic challenges. Provisions are made to cater for youth, women and people with disabilities (PwDs), and job creation through skills development and support afforded to Small, Micro, Medium Enterprises (SMMEs), through Township Economy Revitalisation (TER) programme. The Bill also makes provision for the implementation of GEYODI projects to assist targeted groups to access socio-economic opportunities. The equitable allocation of funds among targeted groups highlights the redistributive nature of the Bill. In addition, the Bill also highlights efforts to complete projects aligned to the TMR, considering that the current term is coming to an end.

The undertaking to create decent jobs through sector transformation, skills development and TER with particular focus on youth is a step in the right direction. According to StatsSA, the unemployment rate among young people aged 15-34 was 38.2% indicating that, more than one in three young people in the labour force did not have a job in the first quarter of 2018. The high rate of youth unemployment persists to date. It has also been reported that long-term unemployment (people who have been unemployed for 12 months or more) affects youth the most. Long-term unemployment also affects women more than men, hence the implementation of GEYODI projects is viewed in a positive light.

Moreover, plans are in place to market Gauteng through urban and township tourism. One of the major benefits of tourism is that it boosts business within different sectors of the economy such as manufacturing, and retail, among others. Another positive spin-off is job creation within these sectors. Tourism will therefore also help inject income into and thereby grow the economy of Gauteng. However, perception may also play an important role in the success of tourism in Gauteng. Factors such as political stability, crime and relative safety, if not addressed adequately, may impact negatively on tourism.

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It is important to highlight that the road ahead will present challenges due to developments in the global and national economy. The downward revision of economic growth coupled with an anticipated increase in inflation may put an upward pressure on the price level thereby dampening local demand. The continued in-migration is also expected to put pressure on the demand for services particularly in the health sector, education as well as the provision for housing. The persistent influx may further pose a challenge to the commitment by the Gauteng Provincial Government to contain the Wage Bill given that the increase in demand for such services is likely have a knock-on effect on human resources with particular reference to health and education.

13. FINANCIAL IMPLICATIONS

The provincial main appropriation amounts to R132 442 501 000 in the 2019/20 FY, expected to increase to R140 445 519 000 in the 2020/21 FY and R150 389 962 000 in the 2021/22 FY.

14. STAKEHOLDER SUBMISSIONS

In line with its public participation mandate and The Constitution of the Republic of South Africa, S. 118, the Portfolio Committee’s hearings were open meetings permitting various stakeholders to participate and make inputs during the consideration of PAB.  No submissions were received on the Principle of the Bill for the 2019/20FY.

15. COMMITTEE RECOMMENDATIONS

The Portfolio Committee recommends the following:

That the GPT should continue to engage National Treasury regarding the equitable share formula to consider service that Gauteng province provide to other provinces and the issue of in-migration which affects optimal service delivery in the province;

That the GPT should continue to monitor value for money and cost containment measures in all expenditure incurred by GPG Departments;

That GPT should engage the National Treasury to ensure optimal allocation of resources to the Department of Roads and Transport to ensure that maintenance of infrastructure is budgeted at the required level; and

That GPT should continue to assist the Department of Health to clear its accruals as that depletes the budget earmarked for service delivery.

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Notwithstanding the aforementioned recommendations, the Portfolio Committee recommends that departments be allowed to spend until such time that the budget is approved.

16. CONCLUSION

The Portfolio Committee notes that this budget was prepared against challenging environment that is characterised by restrained economic activity. Amidst the current social and economic climate, the Portfolio Committee urges GPG departments to exercise austerity measures in relation to financial expenditure and appeals for proper implementation in the interest of promoting inclusive economy.

17. ACKNOWLEDGEMENTS

The Portfolio Committee extends gratitude to the Honourable MEC B. Creecy, the Head of Department Ms. N. Tshabalala and officials of the Gauteng Provincial Treasury for their cooperation during the consideration of the budget.

In the same vein, gratitude is extended to all Chairpersons of Committees and all the MECs for their support.

Appreciation for diligence, dedication and commitment shown during the processing of the Gauteng Provincial Appropriation Bill [G003-2019], goes to all Members of the Finance Portfolio Committee Ms. C. Ranoka; Mr. M. Kanyane; Ms. B. Mncube; Mr. M. Moriarty; Ms. A. Randall; Mr. A. Sarupen; and Ms. M. Mashego. It is an honour to lead such a committed team.

The Committee’s gratitude is extended to the following support staff: Group Committee Coordinator Mr. T. Bodibe, Senior Committee Coordinators Mr. J. Ntsane and Ms. M. Mojapelo, Researchers Mr. M. Tshehla and Ms. L. Chiloane; Information Specialist Ms. T. Bodibe; Senior Information Officer Mr. W. Nsibande; Legal Advisor Ms. W. Ngubane; Media Officer Mr. A. Dikola; Committee Administrators Ms. C. De Beer and Mr. Z. Mabuza, Service Officer Ms. R. Msimanga, Catering Assistant Ms. E. Nthene and Hansard Recorder Ms. N. Zondo.

18. ADOPTION

After due consideration, the Finance Portfolio Committee unanimously adopted the report on the Principle of the Provincial Appropriation Bill [G003-2019].  In terms of Rule 117 (2) (c) read with Rule 164, the Finance Portfolio Committee presents to the House and recommends the adoption of the Committee’s Oversight Report Report on the Gauteng Provincial Appropriation Bill [G003-2019].

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