The Department of Communications, tasked with developing ICT policy and legislation, will have R150 million less to spend in the new financial year, as once-off key infrastructure spending comes to an end.
Last year, the Estimates of National Expenditure provided by Treasury indicated that the department would have R2.26 billion to spend in the 2010/11 year, an amount that has been trimmed in this year's estimates to R2.114 billion.
The department is expected to see a slowdown in spending as infrastructure for the 2010 Fifa World Cup and other related infrastructure have been implemented, and it expects to see savings of R949 million over the next three years.
Of this amount, R155.5 million will be saved in the 2010/11 financial year through improved efficiencies. Next year, savings are expected to be R314.7 million, with an additional R479 million expected to be saved in 2012/13.
The expenditure document indicates that savings will be made by targeting areas such as consultancy services, travel and subsistence, agency support, catering, venues and facilities, and other operating expenditure.
In the 2011/12 financial year, the department's budget is again lower, this time by R308.7 million, to R1.8 billion, when compared with what government earmarked in last year's budget speech.
Slower spending
Expenditure at the department has grown significantly, from R1.3 billion in 2006/7 to R2.5 billion in the last financial year, which is an average rate of 23.2% a year.
The growth in spending by the department has been attributed to R500 million allocated in 2007/8 to Sentech for its national wireless broadband network; R1.05 billion to Telkom last year and this year for its ICT access network; and R300 million for Sentech to fund the satellite back-up for the 2010 Fifa World Cup.
However, over the next three years, the department's spending is expected to decrease by an average rate of 12.3% each year. This is because the implementation of infrastructure required for the 2010 Fifa World Cup, and other initiatives, will be coming to an end.
In addition, the discontinuation of the South African Broadcasting Corporation's technology unit will save the department R1 billion in the next three years.
The department's only major remaining project is digital migration, the deadline for which has been moved out indefinitely.
Currently, SA is in a dual-illumination period, during which time both digital and analogue signals are broadcast. The country was expected to switch over to digital in November next year, but this has been delayed indefinitely. The international deadline is 2015.
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