1995 - National Treasury

-IX-
« proposed changes to taxes (if any); and
the Budget Review
The Printed Estimate of Expenditure (RP 2,
First Print), commonly called the "White Book",
contains the planned expenditure for which the
national government takes responsibility, i.e.
expenditure by national government spending
agencies. Also included are transfer payments to
be made from the national budget to other levels
of general government, such as provincial and
local governments. Printing of the "White Book"
starts about two months before the Budget is
tabled in Parliament.
When the Budget is tabled in Parliament, the
Minister of Finance may announce supplementary
expenditure proposals, which are to be included in
the Supplementary Estimate of Expenditure
(RP 4) some time after the Budget, when it is
approved by Parliament. In the past, supplementary
expenditure proposals included, among
others, expenditure that could not be included
timeously and/or expenditure that could not be
allocated to a specific spending agency in the
"White Book".
The Printed Estimate of Expenditure (RP 2 and
4, Second and Final Print), commonly called the
"Blue Book", comprises the expenditure contained
in both the "White Book" and the Supplementary
Estimate of Expenditure. At the time of the
Budget, the Minister of Finance can also identify
estimates of certain expenditure that may arise
during the financial year, but due to lack of detail,
could not be allocated to a specific spending
agency in the "White Book" or "Blue Book".
These are included in the Adjustments Estimate
towards the end of the financial year.
Thus, at the time of the Budget, the Minister of
Finance gives a total estimate of the expenditure
level for the new financial year, which
constitutes the sum of expenditure contained in
the "White Book", supplementary expenditure
proposals (if any) and other expenditure that will
be included in the Adjustments Estimate (if any).
When the Budget is tabled in Parliament, projections
of total revenue (i.e. taxes and non-tax
revenue) to be collected by the national government
in that specific financial year are contained
in the Printed Estimate of Revenue (RP 3, First
Print). The First Print enables policy makers to
ascertain the level of revenue for a specific year
if no changes are made to the tax structures and
rates of the previous fiscal year. The Minister of
Finance may then announce, for specified
reasons, tax proposals, which are proposed
changes to the existing tax bases, rates and/or
brackets, or may include the introduction of new
taxes. Total estimated revenue for the new
financial year is, therefore, the projected collections
after the tax proposals have been taken into
account and is included in the Printed Estimate
of Revenue (RP 3, Second and Final Print).
The Budget Review summarises and puts in
perspective the proposed expenditure and
revenue of national government for the coming
year, against the background of an overview of
the country's economic circumstances and prospects,
the outcome of the previous year's budget,
important trends and developments in the field of
public finance and the broad approach which
government intends following to ensure sound
fiscal management and in pursuit of particular
policy goals.
To present as comprehensive as possible a
picture on government expenditure when the
national budget is tabled in Parliament 8 , a consolidation
between the national budget and the
Since more than 60 per cent of total expenditure
on the national budget are transfer payments to
other levels of general government, economic and
functional classifications of national budget expenditure
do not present an overall picture. For purposes of
analysis, the ideal is, of course, to present economic
and functional classifications of the general government
(i.e. first, second and third level of government)
expenditure. This requires information on the expenditure
at all levels of general government and on the
financing thereof by way of revenue, balances brought
forward and transfer payments (mainly from the national
budget). This information is not readily and timeously
available - especially at the third level of general
government - which makes it impossible to present
consolidated general government finances when the
national budget is tabled in Parliament. The South
African Reserve Bank does, however, publish historical
data on general government finances in its Quarterly
Bulletin.