Role-players external to the department

Various external role-players have an influence on the way the budget is formed from the process. We
cannot discuss all the committees and bodies in detail. The following role-players are of particular
importance in the budgeting process.
1. National treasury
The first role of the National Treasury is to identify and determine the overall spending level of
government and to develop an MTEF for the public sector as a whole for the current and forthcoming
fiscal years. It prepares and presents the MTEF for consideration by the Ministers Committee for the
Budget (MinComBud) prior to the Minister of Finance presenting it to Cabinet for approval.
Secondly, the National Treasury prescribes budget formats. Treasuries also provide guidance to
departments on budget limits. They evaluate and measure budget inputs received from departments
against the guidelines as approved by the political executive.
Treasuries are responsible for evaluating departmental budget submissions and negotiating with
departments about funding requests, medium-term estimates, departmental priorities, and possible
savings and revenue collection.

2. Medium Term Expenditure Committees

Establishes committees for budgets, normally per cluster (Medium Term Expenditure Committees
(MTECs)). These MTECs evaluate requests for additional funding from national and provincial
departments.
. Advises the MinComBud through its various cluster MTECs regarding budget inputs of institutions.
. Makes recommendations to oversight committees of the political executive regarding budget inputs
of national and provincial departments.
The MTECs are technical committees that formulate recommendations to the executive on the
changes to the medium-term allocations of departments, given the division of revenue between the
three spheres of government. They:
-consider the inputs of departments
-identify spending risk items
-prepare draft memorandums to cabinet.

Officials of the Treasury chair the committees. The line function departmental accounting officers,
senior management and financial managers, who must present and defend the budget, attend the
MTECs. The committees normally consist of the representatives of the treasuries and departments
responsible for other staff function aspects such as public service and administration, i.e. personnel
policy, as well as public works for capital works, rentals and buildings.

3. Ministers Committees on the budget (MinComBud)

Ministers' committees on the budget exist in both the national and provincial spheres. These ministers'
committees fulfil important roles with their political involvement and participation in the process of
policy review and budgetary prioritisation. The committees consider the budgetary and policy issues
before the draft budget is presented to their respective cabinets. Therefore, they are crucial to
allocation decisions that manifest in the budget.
4. The Budget Council and the Local Government Budget Forum
The Budget Council and the Local Government Budget Forum are established by the
Intergovernmental Fiscal Relations Act, Act No. 97 of 1997. The Budget Council consists of the
Minister of Finance and the MECs for finance of the provinces. The Local Government Budget
Forum comprises the Minister of Finance and the MECs for finance in each province, plus a number
of persons representing organised local government.
The functions of the two bodies are mainly to act as consultative forums between the three spheres of
government in connection with, respectively, provincial and local financial affairs. The chairperson of
the Financial and Fiscal Commission (FFC) attends the meetings. The Minister of Finance must
consult the provinces, organised local government and the FFC before submitting the annual DoRA to
Parliament. These two forums are ideal for this. The Budget Council will consider additional
allocations to the spheres of government based on revenue figures, and will recommend adjustments
in equitable shares. They must therefore meet at least once a year.

5. Financial and Fiscal Commision

We have already discussed this committee in the context of the equitable division of nationally raised
revenue. The FFC introduced in Section 4 of Chapter 1 is an independent body established in 1994.
The FFC was established as an advisory body for drafting the budget and to make recommendations
on the budget and inter- governmental financial matters to Parliament, provincial legislatures and the
Budget Council. The FFC must make recommendations on the division of revenue in May of every
year (ten months before the tabling of the budget). The FFC consists of 22 members: nine of these are
nominated by the executive council of each of the provinces and two are nominated by the SA Local
Government Association (SALGA).
6. National and Provincial Cabinets
The various cabinets determine the current political policy. Since the budgets finally reflect
government policy, the cabinets remain responsible for budget contents. The various legislatures must
approve the budgets according to the Constitution, in other words, by right. However, the decision-
makers are the various cabinets, particularly the national cabinet. The national and provincial cabinets
will consider the individual budgets of the ten structures separately, and finalise the budget
allocations. In the provincial sphere, this happens within the funds as divided by Parliament through
DoRA.
7. Parliament
After the cabinet has approved the various budgets, the Minister of Finance will table the various
budgets per vote to Parliament during the budget debate. As we saw above, every vote has a
responsible department. The discussion on a vote is the ideal time for the legislature to evaluate the
performance of members of the executive and their departments, and in part, to execute their oversight
of public money. The provincial and local government shares will be included, as well as all
conditional grants to be paid.
The budget speech may include an indication of future fund allocations for the medium term to the
spheres of government and to departments. Provincial budgets indicating these allocations to
provincial departments are presented to the respective provincial legislatures.
Cabinet ministers and MECs will present and defend their respective budget votes in the legislature.
Parliament and the provincial legislatures could evaluate the budgetary objectives against the People's
needs. Parliament then approves the expenditure budget, through the acceptance of an appropriation
Act, and the budget becomes legislature.
Explained in simple terms

1. National Treasury: They act like the National Treasury does the initial leg,
setting the overall spending level (framework) and prescribing budget formats
for various departments. They assess departmental submissions against
these guidelines.
2. Departments: Each government department submits budget requests
outlining their needs.
3. Medium Term Expenditure Committees (MTECs): These committees take
the baton, evaluating funding requests from departments and recommending
adjustments.
4. Ministers' Committees on the Budget (MinComBud): MinComBud acts like
another runner, considering budgetary and policy issues before the draft
budget goes to Cabinet.
5. The Budget Council and the Local Government Budget Forum: These
forums provide a platform for consultation between different government
spheres (national, provincial, local) regarding budgets, similar to how different
parties might discuss spending plans in a community meeting.
6. Financial and Fiscal Commission (FFC): The FFC acts as an expert
advisor, making recommendations on the division of revenue amongst
government spheres.
7. National and Provincial Cabinets: These cabinets hold the final authority,
similar to parents making the ultimate spending decisions. They consider
individual departmental budgets and finalize allocations.
8. Parliament: Finally, Parliament debates and approves the budget like
everyone in a family having a say in the final spending plan.
w.