An evaluation of the implementation of budgetary control measures by the provincial treasury with specific reference to the province of the Eastern Cape Department of Education
- Authors: Kalashe, Mzukisi Harrington
- Date: 2007
- Subjects: South Africa. Dept. of Education -- Appropriations and expenditures , Expenditures, Public , Fiscal policy -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8249 , http://hdl.handle.net/10948/530 , http://hdl.handle.net/10948/d1011681 , South Africa. Dept. of Education -- Appropriations and expenditures , Expenditures, Public , Fiscal policy -- South Africa -- Eastern Cape
- Description: Budget control is a process of financial monitoring to ensure effective allocation, collection and efficient utilizing of public funds. It is a process that is aimed at ensuring the accomplishment of public policy objectives. Budget control is regulated by financial legislation as well as regulations and procedures which guide public financial administrators. Continuous monitoring is needed once appropriation is allowed by parliament or provincial legislatures to ensure effective service rendering as well as tax and user charges collection. This study investigates the reported ineffective budget control measures implemented by the provincial treasury in the Province of the Eastern Cape particularly in the Eastern Cape Department of Education (George, 2004). Ineffective budget control may be associated with the implementation of unstable fiscal policy by the provincial treasury that led to deficit spending in the Department of Education during the 2004/5 financial year. The purpose of this study is to show that the implementation of stable fiscal policy instruments by the provincial treasury would lead to effective budget control in provincial departments such as the Eastern Cape Department of Education. Governments in many instances encounter various challenges in controlling their expenditures on an annual basis as well as in the medium term. This is due to the notion that once the government exceeds the current year’s budget, it consumes the forthcoming budget. Borrowing is by nature an implicit consumption of future unplanned revenue. This makes the Medium Term Revenue Framework in the province immaterial as the provincial own revenue is insignificant. The relative uncontrollability of government expenditure stems from the notion that the provision of, for instance, primary education and social welfare is intertwined with legal entitlement within prescribed parameters. Allocative efficiency embodies recognition of legal entitlement that is reflected in the distribution imperatives if the provincial treasury is to be effective in the budget control function. The National Norms and Standards for School Funding of 2006 state explicitly that public spending in public schools is targeted at increasing the literacy levels of the poor. Intergovernmental fiscal relations play a pivotal role in modelling the fiscal policy of the province. This stems from the fact that expected national collected revenue is distributed as an equitable share to national, provincial and local spheres of government. The criteria for revenue sharing are based on economic disparities and demographics in each sphere of government. It is imperative to note in intergovernmental relations that there are functional areas of concurrent national and provincial competencies. The budget control function of the provincial treasury is implemented within the framework of various administrative processes which are aimed at ensuring effective transactional activities. The disbursement of funds and various other financial processes are subject to the delegation of powers as prescribed in the Public Finance Management Act, 1999 (Act 1 of 1999), as amended by Act 29 of 1999. The provincial governments’ fiscal policies are modelled to be consistent with the macro-economic objectives of the national government. It is for the purpose of macro-economic stability that only national government is eligible to borrow to finance a budget deficit. Provinces are legally prohibited from overspending their budgets. If the fiscal policies of the provinces materially and unreasonably prejudice the national economic policies, the relevant provincial treasury is responsible for taking appropriate steps to place the financial administration on a sound footing.
- Full Text:
- Date Issued: 2007
- Authors: Kalashe, Mzukisi Harrington
- Date: 2007
- Subjects: South Africa. Dept. of Education -- Appropriations and expenditures , Expenditures, Public , Fiscal policy -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MA
- Identifier: vital:8249 , http://hdl.handle.net/10948/530 , http://hdl.handle.net/10948/d1011681 , South Africa. Dept. of Education -- Appropriations and expenditures , Expenditures, Public , Fiscal policy -- South Africa -- Eastern Cape
- Description: Budget control is a process of financial monitoring to ensure effective allocation, collection and efficient utilizing of public funds. It is a process that is aimed at ensuring the accomplishment of public policy objectives. Budget control is regulated by financial legislation as well as regulations and procedures which guide public financial administrators. Continuous monitoring is needed once appropriation is allowed by parliament or provincial legislatures to ensure effective service rendering as well as tax and user charges collection. This study investigates the reported ineffective budget control measures implemented by the provincial treasury in the Province of the Eastern Cape particularly in the Eastern Cape Department of Education (George, 2004). Ineffective budget control may be associated with the implementation of unstable fiscal policy by the provincial treasury that led to deficit spending in the Department of Education during the 2004/5 financial year. The purpose of this study is to show that the implementation of stable fiscal policy instruments by the provincial treasury would lead to effective budget control in provincial departments such as the Eastern Cape Department of Education. Governments in many instances encounter various challenges in controlling their expenditures on an annual basis as well as in the medium term. This is due to the notion that once the government exceeds the current year’s budget, it consumes the forthcoming budget. Borrowing is by nature an implicit consumption of future unplanned revenue. This makes the Medium Term Revenue Framework in the province immaterial as the provincial own revenue is insignificant. The relative uncontrollability of government expenditure stems from the notion that the provision of, for instance, primary education and social welfare is intertwined with legal entitlement within prescribed parameters. Allocative efficiency embodies recognition of legal entitlement that is reflected in the distribution imperatives if the provincial treasury is to be effective in the budget control function. The National Norms and Standards for School Funding of 2006 state explicitly that public spending in public schools is targeted at increasing the literacy levels of the poor. Intergovernmental fiscal relations play a pivotal role in modelling the fiscal policy of the province. This stems from the fact that expected national collected revenue is distributed as an equitable share to national, provincial and local spheres of government. The criteria for revenue sharing are based on economic disparities and demographics in each sphere of government. It is imperative to note in intergovernmental relations that there are functional areas of concurrent national and provincial competencies. The budget control function of the provincial treasury is implemented within the framework of various administrative processes which are aimed at ensuring effective transactional activities. The disbursement of funds and various other financial processes are subject to the delegation of powers as prescribed in the Public Finance Management Act, 1999 (Act 1 of 1999), as amended by Act 29 of 1999. The provincial governments’ fiscal policies are modelled to be consistent with the macro-economic objectives of the national government. It is for the purpose of macro-economic stability that only national government is eligible to borrow to finance a budget deficit. Provinces are legally prohibited from overspending their budgets. If the fiscal policies of the provinces materially and unreasonably prejudice the national economic policies, the relevant provincial treasury is responsible for taking appropriate steps to place the financial administration on a sound footing.
- Full Text:
- Date Issued: 2007
Evaluating the district office budgeting process of the Department of Education in terms of the Batho Pele principles
- Authors: Gorgonzola, Ernest
- Date: 2004
- Subjects: South Africa. Dept. of Education -- Appropriations and expenditures , Budget -- South Africa , Education -- South Africa -- Finance
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10926 , http://hdl.handle.net/10948/165 , South Africa. Dept. of Education -- Appropriations and expenditures , Budget -- South Africa , Education -- South Africa -- Finance
- Description: The objective of this research was to evaluate the district office budgeting process of the Department of Education, Port Elizabeth District, in terms of the Batho Pele principles. The aim of district offices is to satisfy the most basic education needs of people in their respective areas of jurisdiction. Improving service delivery is one of government’s eight priorities as set out in the White Paper on the transformation of the Public Service (South African Government, 1995: 4). The initiative to improve service delivery is called Batho Pele. The main research question to be addressed by this research is: Does the Department of Education experience any problems with its budgeting process to address service delivery? Through a literature survey and empirical study, various conclusions were reached and recommendations made. The bulk of education expenditure takes place within education districts but the controlling, forecasting and budgeting of expenditure takes place at the Provincial Head Office. Most high schools surveyed experience problems with the current funding policy of the Department of Education. The relative poverty of the community around the school impacts negatively on the parent’s ability to support the school. iv The budgeting process of the Department of Education should follow a bottom-up approach to budgeting. Therefore, the district office budget should be informed by the needs of the school and the provincial budget be informed by the district office budget. The management and administrative capacity at the district office need to be developed to ensure effective budgeting.
- Full Text:
- Date Issued: 2004
- Authors: Gorgonzola, Ernest
- Date: 2004
- Subjects: South Africa. Dept. of Education -- Appropriations and expenditures , Budget -- South Africa , Education -- South Africa -- Finance
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10926 , http://hdl.handle.net/10948/165 , South Africa. Dept. of Education -- Appropriations and expenditures , Budget -- South Africa , Education -- South Africa -- Finance
- Description: The objective of this research was to evaluate the district office budgeting process of the Department of Education, Port Elizabeth District, in terms of the Batho Pele principles. The aim of district offices is to satisfy the most basic education needs of people in their respective areas of jurisdiction. Improving service delivery is one of government’s eight priorities as set out in the White Paper on the transformation of the Public Service (South African Government, 1995: 4). The initiative to improve service delivery is called Batho Pele. The main research question to be addressed by this research is: Does the Department of Education experience any problems with its budgeting process to address service delivery? Through a literature survey and empirical study, various conclusions were reached and recommendations made. The bulk of education expenditure takes place within education districts but the controlling, forecasting and budgeting of expenditure takes place at the Provincial Head Office. Most high schools surveyed experience problems with the current funding policy of the Department of Education. The relative poverty of the community around the school impacts negatively on the parent’s ability to support the school. iv The budgeting process of the Department of Education should follow a bottom-up approach to budgeting. Therefore, the district office budget should be informed by the needs of the school and the provincial budget be informed by the district office budget. The management and administrative capacity at the district office need to be developed to ensure effective budgeting.
- Full Text:
- Date Issued: 2004
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