Compliance by Committees Compliance by Committees with the timeframes provided with the timeframes provided

by the Money Bills by the Money Bills Amendment Procedure and Amendment Procedure and Related Matters Act No 9 of Related Matters Act No 9 of

20092009

Prepared by Committee Prepared by Committee SectionSection

11 March 201011 March 2010

Presentation focuses on:Presentation focuses on:

•Objectives of the ActObjectives of the Act

•Implications of the Act to Implications of the Act to ParliamentParliament

•How Committees should How Committees should comply with timeframes comply with timeframes provided by the Act.provided by the Act.

Objectives of the ActObjectives of the Act

• Provides Parliament with procedure to Provides Parliament with procedure to amend money Bills, which details step by amend money Bills, which details step by step in terms of what Parliament should step in terms of what Parliament should do if it intends to amend money Bills.do if it intends to amend money Bills.

• Establishes new committeesEstablishes new committees- Appropriation Committees in both HousesAppropriation Committees in both Houses- Finance Committees in both HousesFinance Committees in both Houses• Establish the Budget OfficeEstablish the Budget Office

Implications of the ActImplications of the Act

• Introduces new stages in the Budget Introduces new stages in the Budget Process in ParliamentProcess in Parliament

• Review of the Parliamentary Programme Review of the Parliamentary Programme as it means more time to be allocated to as it means more time to be allocated to Committees to be able to meet the Committees to be able to meet the deadlines mentioned in the Act.deadlines mentioned in the Act.

• Coordination of work of committeesCoordination of work of committees• Insufficient time is allocated to Parliament Insufficient time is allocated to Parliament

to amend Money Bills.to amend Money Bills.

Budget Process in Parliament Budget Process in Parliament i.t.o the Acti.t.o the Act

• Budgetary Review and Budgetary Review and Recommendations Report (BRRR)Recommendations Report (BRRR)

• Medium Term Budget Policy Medium Term Budget Policy Statement (usually tabled in October)Statement (usually tabled in October)

• Fiscal Framework Fiscal Framework

• Division of Revenue BillDivision of Revenue Bill

• Appropriation Bill Appropriation Bill

Committee ProcessCommittee Process

• The Act states that Committees must:The Act states that Committees must:

- Report to the House on Budgetary Review & Report to the House on Budgetary Review & Recommendation Reports (BRRR) before the Recommendation Reports (BRRR) before the adoption of the MTBPS adoption of the MTBPS

- Consider and report on MTBPS (tabled Consider and report on MTBPS (tabled together with Adjustment Appropriation Bill)together with Adjustment Appropriation Bill)

- Consider and report on: Fiscal Framework, Consider and report on: Fiscal Framework, Division of Revenue Bill and Appropriation BillDivision of Revenue Bill and Appropriation Bill

Budgetary Review & Budgetary Review & Recommendation Reports Recommendation Reports

(BRRR)(BRRR)• BRRR is the assessment of the performance of BRRR is the assessment of the performance of

department on service delivery taking into account the department on service delivery taking into account the resources available and how they are used effectively resources available and how they are used effectively and efficientlyand efficiently

• Committees of the National Assembly should report to Committees of the National Assembly should report to the NA on BRRR adoption of MTBPS, which is usually the NA on BRRR adoption of MTBPS, which is usually tabled in Octobertabled in October

• Tools available for Committees to prepare for Tools available for Committees to prepare for BRRR:BRRR:

- Monthly and quarterly reports published by Treasury on Monthly and quarterly reports published by Treasury on expenditure of the Departments (PFMA)expenditure of the Departments (PFMA)

- Annual reports of Departments & public entities using Annual reports of Departments & public entities using public funds (tabled in Parliament by end September)public funds (tabled in Parliament by end September)

BRRRBRRRContinuation of ToolsContinuation of Tools

- Financial & Fiscal Commission Report Financial & Fiscal Commission Report -recommendations-recommendations

- AG’s reports & SCOPA findingsAG’s reports & SCOPA findings- Findings by Committees during Findings by Committees during

oversight visits oversight visits - Briefing by Departments and entitiesBriefing by Departments and entities- State of the Nation Address (SONA)State of the Nation Address (SONA)- Implementation of Legislation etcImplementation of Legislation etc

Proposal on time to be Proposal on time to be allocated to Committees to allocated to Committees to

compile the BRRRcompile the BRRRTwo weeks in October be allocated to Two weeks in October be allocated to

CommitteesCommittees(10 working days, 11 – 22 October is allocated to(10 working days, 11 – 22 October is allocated toCommittees this year for BRRR. The two weeks Committees this year for BRRR. The two weeks

is sufficient provided: is sufficient provided: – No plenaries will be scheduledNo plenaries will be scheduled– Committees be allowed to use Mondays and Committees be allowed to use Mondays and

Thursdays Thursdays – Committees use Fridays fully (concern of Committees use Fridays fully (concern of

poor attendance of meetings)poor attendance of meetings)

Motivation for time to be Motivation for time to be allocated for BRRRallocated for BRRR

• Too much information to be considered by Too much information to be considered by CommitteesCommittees

• Facilitation of Public involvementFacilitation of Public involvement• Conferral with other CommitteesConferral with other Committees• Compilation of BRRR and reporting to the Compilation of BRRR and reporting to the

House (how)House (how)• Referral of the BRRR to the relevant Referral of the BRRR to the relevant

Department & Standing Committee on Department & Standing Committee on Appropriation Appropriation

--

Motivation for allocation of Motivation for allocation of time for BRRRtime for BRRR

• If two weeks is not allocated for If two weeks is not allocated for compilation of BRRR:compilation of BRRR:

- Each Committee will have 2 mornings (3 Each Committee will have 2 mornings (3 hrs) to compile BRRR hrs) to compile BRRR

- Means that Committees will not be able Means that Committees will not be able to consider all the relevant informationto consider all the relevant information

- Committees may not be able to conferCommittees may not be able to confer

Role of NCOP Committees on Role of NCOP Committees on BRRRBRRR

NB!! The Act is silent on role ofNB!! The Act is silent on role of

NCOP Committees on BRRR, NCOP Committees on BRRR, butbut

the Rules allow Committees of the Rules allow Committees of bothboth

Houses to conferHouses to confer

Medium Term Budget Policy Medium Term Budget Policy Statement (MTBPS)Statement (MTBPS)

• Usually tabled towards the end October each year Usually tabled towards the end October each year and passed by Parliament before it adjournsand passed by Parliament before it adjourns

• Parliament to pass it Parliament to pass it within 30 workingwithin 30 working days days• Referred to the Finance and Appropriations Referred to the Finance and Appropriations

committees for consideration and reportingcommittees for consideration and reporting• The Standing Committee on Appropriation to take The Standing Committee on Appropriation to take

into account recommendations made in BRRR, into account recommendations made in BRRR, therefore may confer with other committeestherefore may confer with other committees

• Parliament may amend the MTBPSParliament may amend the MTBPS

Motivation for time to be allocated Motivation for time to be allocated to Committees for (MTBPS)to Committees for (MTBPS)

• Three weeks (15 working days) be fully allocated Three weeks (15 working days) be fully allocated to Committeesto Committees

• Joint planning by these committees is essential Joint planning by these committees is essential to be able to:to be able to:

- Consider the MTBPSConsider the MTBPS- Facilitate Public ParticipationFacilitate Public Participation- Consider some of BRRRConsider some of BRRR- Confer with other Committees where necessaryConfer with other Committees where necessary- Report to the House Report to the House • The practice is that the MTBPS is debated by the The practice is that the MTBPS is debated by the

House before Parliament adjourns in November.House before Parliament adjourns in November.

Reporting of Reporting of Committees Committees

on MTBPS on MTBPS

•Referral by Parliament to the Referral by Parliament to the Minister within 7 days after the Minister within 7 days after the adoption by the Houseadoption by the House

Tabling of the Budget (Feb every year)Tabling of the Budget (Feb every year)

The Minister of Finance tables the following The Minister of Finance tables the following documents when tabling Budget:documents when tabling Budget:

• Fiscal FrameworkFiscal Framework

• Division of Revenue BillDivision of Revenue Bill

• Appropriation BillAppropriation Bill

FISCAL FRAMEWORKFISCAL FRAMEWORK(FF)(FF)

• Parliament has 16 days to consider and report after tabling of the FrameworkParliament has 16 days to consider and report after tabling of the Framework

• Referred to the Standing and Select Committees on Finance which must hold joint public Referred to the Standing and Select Committees on Finance which must hold joint public hearings.hearings.

• If the two Committees propose amendments, they should submit their report to the Minister If the two Committees propose amendments, they should submit their report to the Minister two days before they report to the House. two days before they report to the House.

• Therefore Parliament has 14 days to consider and report on the FF if it intends to amend the Therefore Parliament has 14 days to consider and report on the FF if it intends to amend the FFFF

• Committee report should include the response from Minister on the proposed amendmentsCommittee report should include the response from Minister on the proposed amendments

• Therefore Joint Planning by the above Committees is essential (Programme of Parliament) Therefore Joint Planning by the above Committees is essential (Programme of Parliament)

Proposal for Joint Public participation: Fiscal FrameworkProposal for Joint Public participation: Fiscal Framework

• 18 – 23 February (4 days) – Invites public input through media (national, local, community 18 – 23 February (4 days) – Invites public input through media (national, local, community newspapers, interviews of Chairpersons in radio stations, distribution of pamphlets)newspapers, interviews of Chairpersons in radio stations, distribution of pamphlets)

Processing of Fiscal Framework by Processing of Fiscal Framework by Committees Committees

• Advert to be published a weekend before Advert to be published a weekend before the tabling of FF the tabling of FF

• After tabling public has 4 days to submit After tabling public has 4 days to submit their viewstheir views

• 2 days Public hearings (oral presentation)2 days Public hearings (oral presentation)

• 2 days – Committees deliberate on inputs 2 days – Committees deliberate on inputs received from public and relevant received from public and relevant stakeholdersstakeholders

Processing of Fiscal Framework by Processing of Fiscal Framework by Committees Committees

• 2 days compilation of a report2 days compilation of a report

• 1 day – deliberations on the report1 day – deliberations on the report

• 2 days – Referral of amendments to the Minister if 2 days – Referral of amendments to the Minister if anyany

• 1 day - Consideration of response of the Minister1 day - Consideration of response of the Minister

• 1 day - adoption of report and publication in the 1 day - adoption of report and publication in the ATCATC

• PlenaryPlenary

FISCAL FRAMEWORKFISCAL FRAMEWORKReporting of the two CommitteesReporting of the two Committees

•The Framework should be passed The Framework should be passed by Parliament before by Parliament before Committees starts to consider Committees starts to consider Division of Revenue Bill and the Division of Revenue Bill and the Appropriation BillAppropriation Bill

BUDGET VOTESBUDGET VOTES

• Budget Votes are referred to Committees once Budget Votes are referred to Committees once Fiscal Framework is passed by ParliamentFiscal Framework is passed by Parliament

• Departments should table their Strategic Plans Departments should table their Strategic Plans after the adoption of the Fiscal Framework after the adoption of the Fiscal Framework

• Therefore Committees may start consideration of Therefore Committees may start consideration of Budget VotesBudget Votes

• Budget Votes are scheduled for Debates from 13 Budget Votes are scheduled for Debates from 13 – 23 April, which means committees have less – 23 April, which means committees have less than a month to consider and report on Budget than a month to consider and report on Budget Votes.Votes.

DIVISION OF REVENUE BILLDIVISION OF REVENUE BILL

NB!! Parliament has 35 days to NB!! Parliament has 35 days to consider andconsider and

pass the Billpass the Bill

National Assembly process (2 days)National Assembly process (2 days)• Referred to the Standing Committee on Referred to the Standing Committee on

Appropriation for consideration and Appropriation for consideration and reporting once Fiscal Framework is reporting once Fiscal Framework is adoptedadopted

DIVISION OF REVENUE BILLDIVISION OF REVENUE BILL

• Briefing by the National Treasury Briefing by the National Treasury consideration and reporting by the consideration and reporting by the Committee (one day) Committee (one day)

• Plenary in National Assembly Plenary in National Assembly

• Referral to NCOPReferral to NCOP

DIVISION OF REVENUE BILLDIVISION OF REVENUE BILLNCOP Process: six weeks cycleNCOP Process: six weeks cycle

• Referral to the Select Committee on AppropriationsReferral to the Select Committee on Appropriations

• Briefing of the Select CommitteeBriefing of the Select Committee

• Briefing in Provinces by permanent delegates (negotiating mandates)Briefing in Provinces by permanent delegates (negotiating mandates)

• Select Committee discussing negotiating mandatesSelect Committee discussing negotiating mandates

• Provincial Committee, formulating final mandatesProvincial Committee, formulating final mandates

• Select Committee discussing final mandatesSelect Committee discussing final mandates

• Voting Mandates – PlenaryVoting Mandates – Plenary

NB!! Should be passed by Parliament by end of MarchNB!! Should be passed by Parliament by end of March

APPROPRIATION BILLAPPROPRIATION BILLNational Assembly processNational Assembly process

• Referral to Standing Committee on Referral to Standing Committee on Appropriation.Appropriation.

• Committee may only report on Committee may only report on Appropriation Bill once Division of Appropriation Bill once Division of Revenue is passed by ParliamentRevenue is passed by Parliament

• May invite public input immediately May invite public input immediately after the referral of the Bill to the after the referral of the Bill to the Committee Committee

APPROPRIATION BILLAPPROPRIATION BILLNational Assembly process: National Assembly process:

• Briefing by DepartmentBriefing by Department

• Consideration of information available for Consideration of information available for the committee (BRRR) the committee (BRRR)

• Whether Minister provided reasons on Whether Minister provided reasons on BRRR proposalsBRRR proposals

• Reports on Budget Votes, inputs received Reports on Budget Votes, inputs received from public, advise from Budget Office and from public, advise from Budget Office and conferral with other committees where conferral with other committees where necessarynecessary

APPROPRIATION BILLAPPROPRIATION BILL

•Report of the Committee to the Report of the Committee to the HouseHouse

•PlenaryPlenary•Referral to NCOPReferral to NCOP

APPROPRIATION BILLAPPROPRIATION BILL

NCOP PROCESSNCOP PROCESS

• Consideration and reporting by the Consideration and reporting by the Committee on 1, 2 & 3 JuneCommittee on 1, 2 & 3 June

• Debate by the NCOP on 4 JuneDebate by the NCOP on 4 June

THANK YOUTHANK YOU