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National Treasury ups Department of Home Affairs self-funding target to R1.6bn

Source: Moneyweb, 05/11/2024




Hidden in the volumes of the 2024 Mid-Term Budget Policy Statement (MTBPS) documents tabled by Finance Minister Enoch Godongwana on Wednesday is arguably a pointer to one of the more successful departments in the government of national unity (GNU).The Department of Home Affairs (DHA), headed by Minister Leon Schreiber, has been getting a lot of kudos, especially from business, as it tries to turn things around. National Treasury, it seems, is the latest to recognise the departments efforts, and has given it a new self-funding target of R1.6 billion for 2024/25 R500 million more than budgeted for in February.In budget Vote 5 in reference to the DHA, the Adjusted Estimates of National Expenditure (AENE) 2024 document states:Revenue amounting to R1.6 billion has been generated across all programmes from the issuing of passports and smart identity cards.In the February budget, National Treasurys estimate for departmental receipts (self-funded income) for the DHA was almost R1.1 billion for 2024/25, but it has been increased in the MTBPS for this year to just over R1.6 billion.In the first half of 2024/25 (April-September), the department exceeded its annual targets for the percentage of machine-readable adult and minor passports, and permanent residence applications for general work issued within the prescribed turnaround times, the AENE document notes.This was mainly due to the implementation of daily performance monitoring and strategies to ensure greater efficiency, it says.The relatively slow progress on targets for processing general work and critical skills visa applications is attributed to the processing timelines not considering two additional layers of quality assurance within the workflow. The process has been revised and the department expects the target to be achieved by the end of the financial year, it adds.Budget Vote 5 notes that self-financing expenditure plans for the DHA for the year include:¢Programme 1 Administration: R467 million for the upgrading of offices that will be rolling out smart identity cards, archive management for missions, bank charges and security costs.Programme 2 Citizen Affairs: R1.093 billion for the production and issuing of passports and smart identity cards to the public, and for increasing the departments footprint through the rollout of mobile units.Programme 3 Immigration Affairs: R40 million to defray expenses related to the production of enabling documents, rental costs for personnel living abroad, and transport costs related to the deportation of illegal immigrants.The DHA was one of just a handful of government departments to see increases in its budget in the MTBPS, part of this linked to increased self-funded receipts.Its budget in February was R10.5 billion. This has increased to around R12.1 billion in the MTBPS tabled by Godongwana last week. However, with overall government budget cuts earlier this year, the updated MTBPS figure is still below the DHAs budget expenditure of R12.4 billion in 2023/24.Mid-year expenditure in 2023/24 was R5.7 billion, 46% of the adjusted appropriation, whereas expenditure in the first half of 2024/25 was R6.9 billion, 57.2% of the adjusted appropriation of R12.1 billion, Treasurys AENE document points out.Compared to the first half of 2023/24, expenditure over the same period in 2024/25 increased by R1.2 billion [or] 21.6%. This was mainly due to self-financing expenditure and an additional allocation to cater for adjustments arising from the 2023/24 public sector wage agreement, it adds.On the DHA revenue front, it says: Compared to the first half of 2023/24, revenue over the same period in 2024/25 increased by R104.1 million, 24.5%. This was mainly due to an increase in the production of enabling documents such as smart identity cards, passports, certificates and permits.


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