Parliament - Finance Minister Pravin Gordhan presented the Appropriation Bill to the National Council of Provinces (NCOP) on Wednesday.
The original Bill, tabled in February along with the budget, had to be changed according to the new Cabinet structure announced by President Jacob Zuma in May.
President Zuma split many departments in his new administration as well as created new ones.
The minister explained that the Department of Public Services and Administration had put in place a process to give administrative effect to the new Cabinet portfolios and departmental structures. However, he said this process was not yet complete.
Mr Gordhan said that there was no additional funding that the new departments would receive in the main budget. "Funds will be transferred from one vote to another in line with the transfer of functions, and where necessary additional resources will be provided to cater for new ministries and for new functions," he explained.
In order to ensure continuity, departments that were in existence before May will continue to exist until the re-organisation becomes effective. "These transfers and changes will be reflected in October when we table the Adjustments Appropriation Bill," he said.
On Tuesday, Minister Gordhan tabled an explanatory memorandum on the Appropriation Bill, 2009 on how the changes and processes would work.
"This Appropriation Bill is passed in an uncertain and generally gloomy global context," warned Mr Gordhan.
He said the global economic slowdown had not only pushed South Africa's economy into a recession, but also a slowdown in revenue collection to the effect of R60 billion below target.
"What this means is that we have to borrow more to make up the shortfall in revenue. We have to prune unnecessary spending and reprioritise our plans going forward."
The slowdown also means that government must spend wisely and reduce wasteful spending.
"Where necessary, spending must be reprioritised so we can spend more on providing services required by our people and less on programmes that can be delayed. Times have changed and our way of doing things must change too," he said.
