N6 – Module 7
The Adjustment Appropriation Bill Great care is taken to make correct and accurate estimates of expenditure that will be needed for the next financial year. It is possible that additional funds are required as it is sometimes impossible to calculate to the last cent exactly how much money is required to supply a service. It is also possible that a situation may arise where additional funds are required, such as with a national disaster, e.g. a flood.
Keep in mind that all funds must be appropriated by some act of Parliament in order for departments to spend money. Amendments are made to the main budget through the Adjustment Appropriation Bill for one of the following:
Type of Request Transfers Type of Expenditure
e.g. a function may be transferred from one department to another – the funds needed for this also have to be transferred. e.g. a government might decide that the ministry/department of tourism should be done away with and the important function of this department be transferred to another ministry, such as the ministry of trade and industry. Te transfer for a function may also mean the transfer of personnel, but this is not always the case.
Suspension of funds A good example would be the RDP which was shiſted from the Deputy President’s Office to various departments. Te funds allocated for the RDP were allotted to the Deputy S.P. In order for these funds to be allocated to other state departments, they would first have to be suspended from this office.
Roll-overs
Commitments were made in a previous financial year, but were not realised or completed. For example, a batch of computers were ordered but never delivered, and therefore they were not paid for – the money is rolled-over to the following year.
Unforeseen, unavoidable circumstances
Te example of a national disaster above would be a typical unavoidable circumstance. Government departments oſten make unreasonable requests – the Treasury Committee has to approve each submission.
Table 2: Possible amendments included in the Adjustment Appropriation Bill
These additional requests are made only when essential public services are required and cannot wait until the following budget proposals – they would be projects and services offered in the public interest.
One might ask how it is possible that officials do not think of or make provision for essential services. An example of unforeseen activities might be the following – people from other countries begin to pour across our borders, the manpower required to stop this flood is not sufficient, and in fact the State President decides to appoint more staff to patrol our borders and prevent people from entering South Africa illegally, as a matter of urgency – this new service, requiring additional funding, will appear in the Adjustment Estimate.
This Adjustment Appropriation Bill has to be approved by the Treasury Committee which consists of: the State President, the Minister of Finance and the Minister of Trade and Industry.
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