No surprises from Trevor?

[Morticia]

Yet another predictable budget speech - should we be thankful or get up in arms?

[Debbiedle]

IMHO - Trevor for president.

[Dave A]

13 years at it and it shows.

I think he did a really great job. Very sensible. Focused on all the right things, including IBT

The relief is going into all the right places. It's the right year to let the budget deficit blow out a bit. And this year I think his growth projections were a lot more realistic than last year (the only time I've ever felt that Trevor has been really off the mark of late).

I particularly like this "make it count" attitude.

Nevertheless, Manuel stressed that while spending may increase, it was the effective distribution of cash that remains paramount, calling on government to become more efficient, effective and economical.

"It's what the money buys that matters and so fixations with the size of deficits or surpluses are illusory detours," he said.

"In the period ahead it will be necessary to take stronger action in pursuit of efficiency and better targeted expenditure," said Manuel. "There is insufficient control of foreign travel, advertising and public relations activities and consultancy services.
extract from M&G here

[Dave A]

Having slept on it and listened to Trevor at the budget breakfast this morning, that 1.2% growth estimate might be more a goal than a hard expectation...

But you've got to shoot at something.

[Marq]

Actual Vs budget

Where does one view the country's Annual Financial Statements and a comparison of year on year numbers against the budgets that have been set in the past?

[Marq]

I listened to parts of the budget breakfast meeting this morning and the only thing that was confirmed for me, was that Trevor is a seasoned politician who waffled on and did not really answer any of the questions asked of him.

For example, I think it was in relation to the seta's - He threw a few percentages out and told them all that it is a group effort - that it is not up to him or organised business or organised crime etc, but a collective effort based on requirements out there. This tells me there is no responsibility on the governments part and they will 'discuss' and 'plan' forever until some agreement is reached on what must be done before they come to a how much and then actually put the money on the table. I do not see anything positive happening in this area for a long time. In the meantime it carries on/becomes just a distribution point for getting bucks to buddies programme.

[garthu]

Hi Marq, dunno know. Trevor is probably the only politician i have any respect for, especially right now and he has by far the most challenging post at the moment. I moan and complain about them all (probably get beaten at a braai since i don't vote), I agree with him that's it's not his job, it's the guys responsible for that post that need to give answers. Just like accountants at a business, his responsibilty is how much to where, not who actually ends up with bribe, payment or whatever it might be at day end..

I have a tremendous amount of respect for a man that come through making most people happy in the economy, even if i dont agree with his opinion (which of course is quite acceptable), i believe he can see something i cannot to have done it the way he has... just my opinion

[Dave A]

I'm not surprised he was cagey about going into SETA issues. SETAs don't fall under his department and they don't draw from his fiscus. SARS only collects the money on behalf of the NSDF and SETAs. However, I'm sure he does have his own views, but is obliged to consider his words carefully.

I suspect he didn't get away with his unilateral change of the SDL threshold entirely unscathed.

Where does one view the country's Annual Financial Statements and a comparison of year on year numbers against the budgets that have been set in the past?

Good question. It would be great to see an actual vs budget comparison.

the only thing that was confirmed for me, was that Trevor is a seasoned politician who waffled on and did not really answer any of the questions asked of him.

But he is a politician!

Hi Marq, dunno know. Trevor is probably the only politician i have any respect for

Certainly one of the few in my book. There are a couple of others.

And it's not like Trevor isn't critical of some of what is happening in government:

One set of unpleasant truths he identified were "programmes of government that do not work, and on which we should spend less".

Manuel did not name them, although he pointedly expressed the hope that the R1.6 billion budgeted to support national carrier SAA's turnaround strategy would not be a recurring allocation.

He also mentioned that there was insufficient control generally of foreign travel, advertising and public relations activities and consultancy services. Stricter oversight was required of such activities and executive remuneration in agencies and government enterprises, he said.
extract from Business Report here

It's just that the most he can do is hold other departments to their budget. And we know what happened with the bus subsidy story. SAA probably falls into the same category. How hard can you press the issue just from controlling the purse strings?

Responsibility for those cock-ups belong elsewhere and we all need to do our little bit to bring pressure to bear so that the culprits do get held accountable.

[Debbiedle]

Hi Marq

Pity you missed the whole speech - thing is Trevor pulled no punches. At the end of that speech there were more disgruntled ANC ministers than from opposition parties. He was downright straight with his message. Those that need it - this is what we can afford - we can do more if it is not wasted/defrauded at operational levels and once we are able to guarantee sustainability.

As far as the SETA's go? Not his department, but he also said to the journalist ASK THEM why? I think he meant it. A lot of his speech was about accountability and I got the distinct impression that he has worked his butt off for this country and is now saying - "your turn" to the others in civil service.

If we can find 26 ministers as upfront, eloquent and passionate as this guy, MAN will this country ROCK!

Oh yeah and by the way there will be free castle and amstel at all voting stations this year!! *wink*

[Morticia]

Agreed! I quite enjoyed the bit where he admonished the MP's: "don't look away" when he was passing comment about curbing expenses etc. - a subtle reference to Travelgate..

[duncan drennan]

Where does one view the country's Annual Financial Statements and a comparison of year on year numbers against the budgets that have been set in the past?

All the documents can be found on the treasury's site. There is a single document for the estimated income, and lots of documents for the estimated expenditure.

There is also a summary.

[Dave A]

I'm a summary kinda guy. Hopefully Marq will pick the bones out of the detail.

What I did get out of that summary is that some of the original estimates got properly blown out of the water, particularly the domestic loans...

Did someone say the banks were short of cash for financing homeloans?

[garthu]

.... yup that could have been me....

[Dave A]

Well, you could be right. And unless I'm misreading the situation, the domestic loan projection figures for the coming fiscal year don't look any prettier. New finance credit is going to be hard to come by.

[Marq]

Thanks for pointing us to the detailed financials Duncan.

Yes OK.....seta's...mmmm....got that point.

I still do not understand the overall financial statement reporting however.

For me a balanced budget = income statement and a balance sheet all balancing and giving a total picture. Not one where the income = expenditure.
I can only find an income statement and a treasury department balance sheet report.

So where do I find a picture on total assets and liabilities showing cash brought forward, provisions for stuff, capex and assets and other normal balance sheet stuff etc.

Having had a look through the income and expenditure summaries
(No Dave I do not have enough time to go through all the details and have also become a summary type guy) I see that every year the actuals are fairly close to the budget. eg - budgeted revenues for 2008 was 625 actual est 611 - diff 2% down. 2007 revenues actual = 577 actual 557 - diff 3% up. Now I have been involved in many budgets from billion rand companies down to a few hundred rands but have never seen such an accurate budget before. Given the many anomalies, sources, variations, and other government related income scenarios, I find this rather hard to believe. Is this why we do not see a balance sheet where the adjustments are? It does not seem to be any different on the expense side.

Given the problems reported within the majority of departments, the inability to produce unqualified audit reports, unaccounted for missing millions and billions, incompetence and many other adjectives describing financial abilities of those in charge, this budget process is remarkable. They manage every year to produce a 'balanced budget' where incomes and expenditures are really accurate and show that our finances are in excellent shape with department spending well within guidelines and budgets set out.

Now I'm not suggesting that the finance department is responsible for putting forward funny numbers nor that they are responsible for anything outside the reporting of income and distribution of the loot....sorry finances.

But, I think I have a problem with a department that reflects a great positive situation where very little appears out of place, all appears to be accounted for and everybody has a piece of the action, compared to what we are seeing on the ground with endless problems non delivery, poor systems and business processes, qualified reports, grime and corruption and squalortics.

So poll of the day.....Does the positive financial position of the country reflect whats actually happening at grassroots level?
Poll for tomorrow......Can one trust the budget process and its results?
Poll for next week.....Who actually compiles the budget?
Poll for next month....Where is the missing balance sheet?
Poll for next year......Who has the missing millions?