Parliament, Thursday, 14 November 2024 – Parliament cannot be a rubber stamp for the executive on the Medium-Term Budget Policy Statement, said the Standing Committee on Appropriations (SCOA) yesterday in engagements with the Financial and Fiscal Commission and the Parliamentary Budget Office on the 2024 Division of Revenue Amendment Bill, the Special Appropriation Bill and the 2024 Adjustments Appropriation Bill.
SCOA is particularly concerned about the manner in which virements are approved by the National Treasury for government departments. While the committee fully appreciates the powers given to National Treasury to approve certain virements in terms of section 43 of the Public Finance Management Act (PFMA), Treasury Regulation 6.3, and Section 5 of the Appropriation Act, 2024, the committee is concerned about the way this process is managed. Furthermore, the committee appreciates that there are virements that must be approved by Parliament, as presented in the Adjustment Estimates of National Expenditure.
The Chairperson of the committee, Mr Mmusi Maimane, said: “It has been observed today that several virements exceed the legislated 8% threshold of the proposed programme by the executive. In accordance with legislative requirements, it is imperative for Parliament to formally pass these virements and assert its oversight authority.”
SCOA is of the view that even though National Treasury is given the authority in terms of the PFMA, Treasury regulations and the Appropriation Act, Parliament has a final authority on approving the budget. However, Parliament is not given sufficient time and substantive reasons to interrogate these approvals and the rationality of the decisions taken by the National Treasury, even in instances where these virements require Parliament’s approval.
As an example, the committee finds the National Treasury’s decision to approve the shifting of R1.5 billion from the Compensation of Employees to what is primarily the goods and services budget of the Department of Police (Vote 28) difficult to understand. This difficulty arises from the context of challenges with high crime levels, the low population to police ratio, and the fact that the sixth Parliament appropriated substantial amounts of money to this Vote for SAPS’ recruitment drive in order allow SAPS to fight back against the surge in various crime categories in South Africa.
In addition, it is crucial to establish structured programmes aimed at ensuring accountability and transparency. Clear and measurable targets must be articulated within appropriation frameworks to enhance fiscal responsibility,” added Mr Maimane.
“Moreover, the spending on poor households in South Africa has declined in real terms. This moment calls for a strategic adjustment, underpinned by concrete and actionable plans to drive growth that mitigates multidimensional poverty and safeguards the nation’s most vulnerable citizens,” the Chairperson added.
The Standing Committee on Appropriations will hold public hearings on the Division of Revenue Amendment Bill tomorrow, Friday, 15 November, in Parliament.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON APPROPRIATIONS, MR MMUSI MAIMANE.
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