49
Financial statistics of consolidated general government for the fiscal year 2014/2015 Dr Pali Lehohla 24 November 2016 @StatsSA #StatsSA
Financial statistics of consolidated general government for the fiscal year 2014/2015
Dr Pali Lehohla
24 November 2016
@StatsSA
#StatsSA
a. Background and technical issues
b. Economic and functional classification
c. Receipts
d. Payments
e. Capex
f. Closing remarks
Table of contents
2
Each level/sphere: has separate publications. These show what happens at
that level (national, provincial, extra-budgetary accounts, municipalities, HEI).
This publication eliminates double-counting between general government
institutions (mainly transfers).
It provides a consolidated picture of general government finances for a fiscal
year (in this case: 1 April 2014 – 31 March 2015).
It provides a clearer picture of the state of finances in the form of a cash flow
statement of all levels of general government.
Users of the data can see the net economic and functional impact of
government spending on the economy.
What is this publication about?
3
Co
nso
lidat
ed g
ener
al
gove
rnm
ent
National government
(43)
Provincial government
(124)
Extra-budgetary accounts and funds (232)
Higher education institutions (26)*
Local government (non-trading services) (278)*
Cash basis of accounting
Accrual basis of accounting
Converted to cash basis for consolidated
general government
Reporting units for different types of general government institutions
* HEI & LGI: adjusted for the fiscal year ended 31 March 2015
4
Contribution of different levels of general government to the total consolidated cash payments: 2013/2014 and 2014/2015
2013/2014 2014/2015
5
General government receipts and payments 2014/2015
6
Economic classification
7
Economic classification is in general the nature and economic effect
of government operations on the
economy of a country.
Some categories of economic classification:
• Taxes
• Social contributions
• Compensation of employees
• Purchases of goods and services
• Interest
• Subsidies
• Grants
• Social benefits
• Other payments*
* Other payments include: transfers to households and NPISH (Non-Profit Institutions Serving Households)
8
Receipts
9
Contributors to cash receipts: 2013/2014 and 2014/2015 (Rm)
Taxes Other receipts Social contribution Grants
2013/2014 966 872 126 380 21 939 1 949
2014/2015 1 060 957 138 523 22 467 2 239
0
200 000
400 000
600 000
800 000
1000 000
1200 000
R m
illio
n
Cash receipts increased by
R107 billionfrom
R1 117 billion
in 2013/2014 to
R1 224 billion in 2014/2015
10%
* Other receipts mainly includes sales of goods and services, property income
3%15%
10%
10
Revenue by type of general government institution:2013/2014 and 2014/2015 (Rm)
Nationalgovernment
Extra-budgetaryaccounts and funds
Local governmentHigher education
institutionsProvincial
government
2013/2014 928 102 91 066 52 998 30 656 14 318
2014/2015 1 015 549 94 848 63 557 33 639 16 593
0
200 000
400 000
600 000
800 000
1000 000
1200 000
R m
illio
n
National government
collected
83%of the total revenue of
R1 224 billion
9%
20% 10%4%
16%
11
Taxes collected by general government during 2013/2014 and 2014/2015 (Rm)
Taxes paid byindividuals
Value added taxTaxes paid by
businessesAll other taxes* Excise tax
2013/2014 310 929 237 684 196 830 126 254 95 175
2014/2015 353 918 261 312 207 872 131 952 105 903
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
R m
illio
n
Taxes increased by
R94 billion from
R967 billion in 2013/2014 to
R1 061 billion in 2014/2015
14%
10%
6%
5%11%
* All other taxes mainly includes taxes on property, taxes on international trade and transactions
12
Types of taxes collected by general government: 2010/2011 -2014/2015 (Rm)
Taxes paid byindividuals
Value added taxTaxes paid by
businessesAll other taxes Excise tax
2010/2011 228 096 183 574 151 845 84 796 73 549
2011/2012 251 339 191 020 175 245 98 182 80 543
2012/2013 276 679 215 034 180 635 110 415 89 300
2013/2014 310 929 237 684 196 830 126 254 95 175
2014/2015 353 918 261 312 207 872 131 952 105 903
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
R m
illio
n
13
Payments
14
Economic classification of cash payments for operating activities for 2013/2014 and 2014/2015
Compensationof employees
Purchases ofgoods andservices
Interest Subsidies Grants Social benefitsOther
payments
2013/2014 473 932 296 394 107 006 25 515 45 596 149 649 77 625
2014/2015 514 580 311 792 122 013 24 873 53 405 159 588 87 869
0
100 000
200 000
300 000
400 000
500 000
600 000
R M
illio
n
9%
5%
14%
3%17%
7%
13%
15
Contribution by different type of general government institution to the total consolidated cash payments: 2010/2011 – 2014/2015 (Rm)
Nationalgovernment
Provincialgovernment
Local governmentExtra-budgetary
accounts and fundsHigher education
institutions
2010/2011 353 794 322 588 109 256 99 731 39 557
2011/2012 402 417 359 083 143 415 110 884 43 320
2012/2013 456 033 384 702 162 924 132 487 47 699
2013/2014 498 402 412 907 167 717 157 950 52 486
2014/2015 548 890 441 407 190 423 162 920 56 971
0
100 000
200 000
300 000
400 000
500 000
600 000
R m
illio
n
16
17
Provincialgovernment
Nationalgovernment
Localgovernment
Extra-budgetaryaccounts and
funds
Higher educationinstitutions
2013/2014 254 659 114 994 42 666 35 539 26 074
2014/2015 272 750 123 408 50 386 39 525 28 511
0
50 000
100 000
150 000
200 000
250 000
300 000
R m
illio
n
Compensation of employees
increased by
R41 billionfrom
R474 billion
in 2013/2014 to
R515 billion in 2014/2015
Compensation of employees by type of general government institutions: 2013/2014 and 2014/2015
7%
7%
18%11%
9%
18
Social benefits by type of general government institutions: 2013/2014 and 2014/2015 (Rm)
National governmentExtra-budgetary accounts and
fundsProvincial government
2013/2014 115 429 32 621 1 598
2014/2015 126 150 31 237 2 200
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
R m
illio
n
9%
4%
38%
Year 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Expenditure type R million
Irregular expenditure 19 159 26 576 27 531 33 315 26 023 46 363
Fruitless and wasteful 1 300 1 494 2 426 1 197 1 041 1 366
Unauthorised 2 641 1 952 2 284 1 875 1 248 925
Total 23 100 30 022 32 241 36 387 28 312 48 654
Source: www.agsa.co.za: Media release, 16 November 2016; PFMA 2015/2016 Consolidated general
reports, 2012/2013, 2014/2015 and 2015/2016
19
Irregular, Fruitless & Wasteful, Unauthorised expenditure
20
Beneficiaries of Social grant* per type: 2006/2007 – 2014/2015
* Only that paid by Dept of Social Development (SASSA) Source: Dept of Social Development (SASSA)
12 01612 422
13 072
14 057
14 93615 596
16 106 15 93216 643
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
In T
ho
usa
nd
s
Total number of beneficiaries for social protection only
21
Beneficiaries of Social grant per type: 2006/2007 – 2014/2015
* Old Age grant include grant to war veterans Source: Dept of Social Development (SASSA)
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
Child Support Old Age* Disability Foster Child Grant in Aid Care Dependency
In T
ho
usa
nd
s
2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
• These are poor households as determined by municipalities.
• The basis on which a municipality determines if a household
is indigent (and the criteria used for such determination) can
vary.
• Not necessarily consistent across municipalities, even in
same province.
Indigent household
22
3,6 million indigent households
WC EC NC FS KZN NW GP MP LP
Identified
Be
nef
itti
ng
354 145
353 424
329 900 68 527 133 685 231 679 153 162 689 018 121 112 158 289
541 507 64 524 133 958 413 690 87 162 300 351 90 655 108 843
223 940 64 327 133 947 648 403 88 713 360 154 90 827 94 082
356 521
359 334 543 739 70 302 133 874 599 696 114 373 292 991 121 952 183 693
360 238 843 181 76 458 165 333 735 041 172 322 689 859 126 405 401 765
Indigent households in each province and services they receive: 2015
23
24
Animated slide showing poverty movements between 2001 and 2016
25
Percentage of persons who have
benefited from social grants; 30,1%
Vulnerability to hunger: Persons; 13,1%
0%
5%
10%
15%
20%
25%
30%
35%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Percentage of persons who have benefited from social grants Vulnerability to hunger: Persons
The percentage of households that were vulnerable to hunger declined
from 23,8% in 2002 to 11,3% in 2015, including a spell during which
the percentage increased to 16% in 2008 before continuing its decline.
* GHS 2009 did not ask about experienced hunger Data source: Stats SA GHS 2015
26
Social Grant and Self Declared Hunger
0%
10%
20%
30%
40%
50%
60%
70%
GPWCRSANWMPFSKZNLPECNC
Persons Households
More than one-third of individuals in Eastern
Cape (40,3%), Limpopo (38,2%), Northern Cape
(36,9%) and KwaZulu-Natal (36,8%) were grant
beneficiaries,
Data source: Stats SA GHS 2015
27
Percentage of individuals and households benefitting from Social grants per province, 2015
70%
70%
55%
54%
54%
54%
49%
43%
42%
12%
10%
23%
25%
28%
24%
32%
33%
38%
0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 90,0 100,0
WC
GP
MP
NW
KZN
FS
NC
LP
EC
Salaries Remittances Pensions Grants Other sources None
Considerable provincial variations are notable. Western Cape (70,4%) and Gauteng (70,0%) were
the only two provinces in which more than two-thirds of households reported salaries as their main
sources of income.
Data source: Stats SA CS2016
28
Percentage distribution of main source of income by province, GHS 2015
CS 2016
29
Poverty drivers
2,3
2,9
3,2
3,6
3,9
4,7
5,1
8,0
14,6
16,4
35,5
0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0
Energy for lighting
Dwelling type
Assets
Energy for cooking
Water
Energy for heating
Sanitation
General health and functioning
NEET
Adult unemployment
Educational attainment
%
The major contributor to the poverty
situation of the youth in South Africa is
educational attainment.
30
Main contributors to poverty amongst Youth (15-24)
Source: Department of Higher Education. Preliminary results
31
Graduates for 2015
Clarification on donations received during 2015
Stats SA, in their PPT to the media and other stakeholders, reported that Stellenbosch had received R1,125 billion in their annual report during 2015 (donations and other receipts).
Stats SA has since been informed that the Stellenbosch University received donations totalling R220 million for 2015.
Users are advised to use the R220 million as donations received by Stellenbosch.
The statistical release (P9103.1, published on 25 October 2016) is correct. Donations and other amounts are treated as “other receipts” and is not shown separately in P9103.1.
32
Donations received by for Stellenbosch University in 2015
Stellenbosch University: Other receipts for 2015
Private donations R 220 million
Other receipts not specified (e.g. contracts) R 905 million
33
Capital expenditure
34
Local governmentProvincial
governmentNational
governmentExtra-budgetary
accounts and fundsHigher education
institutions
2013/2014 49 590 30 790 14 123 13 815 5 428
2014/2015 57 178 32 527 16 119 14 473 6 194
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
R m
illio
n
14%
Capital expenditure by type of general government institutions:
2013/2014 and 2014/2015 (Rm)
General government spent
R126 billion on capex in2014/2015 as compared to
R114 billion in 2013/2014
15%
6%
14% 5%
Non-residential
buildings
82 %
47 258 Computer
equipment
6 %
3 421
4 %
2 578
3 %
1 524
Land
Other machinery
and equipment
Furniture
2 %
936
Transport
equipment
Cultivated
assets
Intangible
assets
Dwellings
1%
336
1 %
308
0%
228
0%
24
Heritage
assets
0%
13
Local government capital expenditure by asset type : 2015 (Rm)
©
Other structures
1 %
553
35
93,3%
91,0%
65,8%
53,8%
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Western Cape Eastern Cape
Northern Cape Free State
KwaZulu-Natal North West
Gauteng Mpumalanga
Limpopo South Africa
The majority of households in the
Western Cape (93,3%) and
Gauteng (91%) had access to
improved sanitation facilities
About half those in Limpopo (54%) and just
below two-thirds of those in Mpumalanga
(65,8%) had access to improved sanitation
facilities.
36
Households with access to improved sanitation facilities by province
Non-residential
buildings
41 %
13 403
Computer
equipment
41 %
13 242
7 %
2 122
5 %
1 709
LandOther machinery
and equipment
Furniture
3 %
858
Transport
equipment
Cultivated
assets
Intangible
assets
Dwellings
1%
185
0 %
137
0%
131
0%
8
Valuables 0%
6
©Other structures
2 %
725
Provincial government capital expenditure by asset type : 2015 (Rm)
Books 0 %
1
37
38
Functional classification
Total general government
R1 401 billion
General public
services
26%
Education
19%
Social protection
13%
Health
11%
Public order and
safety
10%
Economic affairs
9%
Housing and community amenities
5%
Defence
3%
Recreation, culture and
religion
3%
Environ-mental
protection
1%
Percentage by general government expenditure by function: 2014/2015
39
General public services Education Social protection Health
2010/2011 190 482 186 145 131 283 109 205
2011/2012 236 038 211 185 140 903 123 568
2012/2013 286 498 229 426 153 046 136 698
2013/2014 308 665 249 187 170 422 145 910
2014/2015 365 419 265 792 182 821 157 438
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
R m
illio
n
Main functions of general government: 2010/2011 - 2014/2015
40
Main functions of general government: 2005/2006 - 2014/2015
136 151 157 178 187 190236
286 30936596
106 120144
169 186
211
229249
266
7283
93
107122
131
141
153
170
183
5058
68
82
99109
124
137
146
157
0
100
200
300
400
500
600
700
800
900
1 000
2005/2006 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
R B
ILLI
ON
General public services Education Social protection Health
41
R3,6b
Education expenditure by type of general government institutions:
2013/2014 and 2014/2015 (Rm)
Provincial governmentHigher education
institutionsExtra-budgetary
accounts and fundsNational government
2013/2014 180 668 52 486 8 402 7 631
2014/2015 190 858 56 971 9 154 8 808
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
200 000
R m
illio
n
6%
9%
9% 15%
42
R3,6b
Social protection by type of general government institutions:
2013/2014 and 2014/2015 (Rm)
National governmentExtra-budgetary accounts and
fundsProvincial government
2013/2014 114 088 42 469 13 864
2014/2015 124 890 42 489 15 442
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
R m
illio
n
9%
11%
43
Health by type of general government institutions:
2013/2014 and 2014/2015 (Rm)
Provincial government National government Local governmentExtra-budgetary
accounts and funds
2013/2014 125 693 6 417 7 452 6 348
2014/2015 135 714 7 602 7 558 6 565
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
R m
illio
n
8%
18% 1%3%
44
Cross classification
45
Compensation of employees by functions of general government:2014/2015 (Rm)
4 137
10 581
11 967
12 209
24 102
24 377
59 369
91 921
95 326
180 590
Enviromental affairs
Housing and community amenities
Recreation, culture and religion
Social protection
Defence
Economic affairs
General public services
Public order and safety
Health
Education
General government spent
R515 billionon compensation of
employees in 2014/2015
46
Purchases of goods and services by functions of general government:
2014/2015 (Rm)
3 693
8 318
11 066
15 960
15 964
32 462
34 227
47 432
52 793
89 878
Enviromental affairs
Social protection
Recreation, culture and religion
Defence
Housing and community amenities
Public order and safety
Economic affairs
Health
Education
General public services
General government spent
R312 billionon purchases of goods
and services in
2014/2015
47
Information on general government disaggregated tables is available on the Stats SA website: http://www.statssa.gov.za
1. Cash receipts amounted to R 1,2 trillion
2. Taxes collected contributed about 87% to total revenue
3. R266 billion spent on education
4. Social benefits: R126 billion paid by Social Development (SASSA) to 16,7
million beneficiaries
5. Salaries comprise about 40% of total current expenditure
6. Capital expenditure amounted to R126 billion
7. This publication only reports on the cash transactions of general government
institutions, obtained/adjusted from their financial statements.
Closing remarks on consolidated general government finances: 2014/15
48
Thank you
49
