Copyright © 2008 Setsoto Local Municipality, All Rights Reserved
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Last Updated 14/02/2011
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Last Updated 14/02/2011
" Re Sebeletsa Katleho"
Welcome To SETSOTO LOCAL MUNICIPALITY Official Website
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Will strive to deliver services to the communities in an effective, economic, efficient & sustainable manner
NEWS FEED
PUBLIC FINANCE MANAGEMENT ACT - PFMA
Introduction
The Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) (as amended by Act No. 29 of 1999) is one of the most important pieces of legislation passed by the first democratic government in South Africa. The Act promotes the objective of good financial management in order to maximise service delivery through the effective and efficient use of the limited resources.
The key objectives of the Act may be summarized as being to:
• Modernise the system of financial management in the public sector;
• Enable public sector managers to manage, but at the same time be held more accountable;
• Ensure the timely provision of quality information; and
• Eliminate the waste and corruption in the use of public assets.
The Act, which came into effect from 1 April 2000, gives effect to sections 213 and 215 to 219 of The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) for the national and provincial spheres of government. These sections require national legislation to establish a national treasury, to introduce uniform treasury norms and standards, to prescribe measures to ensure transparency and expenditure control in all spheres of government, and to set the operational procedures for borrowing, guarantees, procurement and oversight over the various national and provincial revenue funds.
The PFMA adopts an approach to financial management, which focuses on outputs and responsibilities rather than the rule driven approach of the previous Exchequer Acts. The Act is part of a broader strategy on improving financial management in the public sector.
Background and Approach
The Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) must be read together with the Public Finance Management Amendment Act (Act No. 29 of 1999). The two Acts do not make sense on their own - the initial consolidated bill had to be separated into two bills for technical reasons to comply with the Constitution which determines various procedures for the passage of bills through Parliament. The first Bill (now Act No. 1 of 1999) had to apply only to the national sphere, and be passed as a section 75 bill as outlined in that section of the Constitution. Almost all references to provinces were removed from this Act, resulting in missing numbering in the Act in order to protect the numbering system for the consolidated Act. A second bill (now Act No. 29 of 1999) amending Act No. 1 of 1999 was then introduced to incorporate provinces - this Bill had to be passed in terms of section 76(1) procedure in Parliament, as outlined in that section of the Constitution.
The Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) (as amended by Act No. 29 of 1999) is one of the most important pieces of legislation passed by the first democratic government in South Africa. The Act promotes the objective of good financial management in order to maximise service delivery through the effective and efficient use of the limited resources.
The key objectives of the Act may be summarized as being to:
• Modernise the system of financial management in the public sector;
• Enable public sector managers to manage, but at the same time be held more accountable;
• Ensure the timely provision of quality information; and
• Eliminate the waste and corruption in the use of public assets.
The Act, which came into effect from 1 April 2000, gives effect to sections 213 and 215 to 219 of The Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) for the national and provincial spheres of government. These sections require national legislation to establish a national treasury, to introduce uniform treasury norms and standards, to prescribe measures to ensure transparency and expenditure control in all spheres of government, and to set the operational procedures for borrowing, guarantees, procurement and oversight over the various national and provincial revenue funds.
The PFMA adopts an approach to financial management, which focuses on outputs and responsibilities rather than the rule driven approach of the previous Exchequer Acts. The Act is part of a broader strategy on improving financial management in the public sector.
Background and Approach
The Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) must be read together with the Public Finance Management Amendment Act (Act No. 29 of 1999). The two Acts do not make sense on their own - the initial consolidated bill had to be separated into two bills for technical reasons to comply with the Constitution which determines various procedures for the passage of bills through Parliament. The first Bill (now Act No. 1 of 1999) had to apply only to the national sphere, and be passed as a section 75 bill as outlined in that section of the Constitution. Almost all references to provinces were removed from this Act, resulting in missing numbering in the Act in order to protect the numbering system for the consolidated Act. A second bill (now Act No. 29 of 1999) amending Act No. 1 of 1999 was then introduced to incorporate provinces - this Bill had to be passed in terms of section 76(1) procedure in Parliament, as outlined in that section of the Constitution.