Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

Programme Expenditure

2020/2021

2021/2022

Final Appropriation

Actual Expenditure

(Over)/ Under Expenditure

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Programme Name

R’000

R’000

R’000

R’000

R’000

R’000

Administration

371 392

315 008

56 384

430 659

403 641

27 018

Public Works Infrastructure

2 665 871

2 657 579

8 292

2 651 586

2 629 775

21 811

Expanded Public Works Programme

160 508

55 745

104 763

166 775

142 993

23 782

Total

3 197 771

3 028 332

169 439

3 249 020

3 176 409

72 611

The above table provides an analysis of Departmental expenditure performance per programme. The Department’s final budget for the year 2021/2022 was R3.2 billion and, to date, R3.1 billion of the allocated budget was spent. Although the Department spent 98% of the allocated budget, there was underspending of R72 million compared to R169 million in the previous financial year. Out of approximately R72 million underspent, R14 million related to compensation of employees, R18 million related to goods and services and R40 million related to implementation of infrastructure. The key cost drivers for the Department are compensation of employees, leases, security services, rates and taxes and infrastructure payments. Compensation of employees, goods and services and rates constitute 97% of the allocated budget. In comparison to the previous year 2020/2021, the budget increased by 1.6% from R3.1 billion to R3.2 billion. In the year 2021/2022, the Department incurred expenditure of R3,1 billion compared to R3.0 billion of the previous financial year. The increase is attributed to increase in number of EPWP beneficiaries recruited in the current year under the EPWP compared to previous year. Programme 1 Administration was allocated R430 million, at year end it reflected an under spending of R27 million. The programme‘s main objective is to support core activities of the Department. The budget allocation for the current year increased by 16% compared to previous financial year. Increase in the budget was meant to ensure that activities related to goods and services are fully implemented in the current financial year. The Department spent 94% of the allocated budget compared to 85% that was spent in the previous financial year. The office of the MEC spent 99% of the allocated budget. Corporate support spent 94% and management of the Department spent 80% of the allocated budget. The R27 million underspending is as a result of failure to fill posts under Corporate Support and the Department will continue to have Human Resources War Room to focus on reducing the vacancy rate. Programme 2 Most of the core activities happened at the programme since it is the core. 82% of the overall departmental projection is in this programme. The allocated budget for the year 2021/22 is R2,6 billion compared to R2.6 billion in the previous financial year, however there is slight decrease of R14 million. 99% spent was on compensation of employees, goods and services, lease, security services, rates and taxes. The programme underspent by 1% because of contractors’ performance and site access limitation in implementing infrastructure programme. The decrease in budget for the programme is as a result of a decrease in the budget allocation for rates and taxes.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT