Non-profit organisations and government’s pro-poor spending: the case of health and development in Gauteng

L B Mzini

doi:10.4102/td.v7i2.242

Abstract

Globally, there is growing recognition of participatory public expenditure management (PPEM). PPEM is seen as the process whereby citizens and civil society organisations participate in the management of public expenditures. The adoption of PPEM is aimed at ensuring greater transparency, better targeting and tracking of resources, and increased overall responsiveness. The Gauteng Department of Health and Social Development (GDHSD) is committed to co-operative governance; this includes working with different spheres of government and civil society or non-profit organisations (NPOs).NPOs are required to have a governing committee to manage funds allocated by GDHSD. The committee has the capacity to hold the NPO management accountable for the resources (financial and material) entrusted to it by the GDHSD. The effectiveness of NPOs is challenged by poor attendance of board members at meetings, poor understanding of the board’s mandate and responsibilities and lack of experience amongst members.The paradigm of PPEM is still faced with challenges to ensure that significant flows of revenue are accounted for and used effectively for growth and poverty reduction. This study is divided into three components. The first section focuses on the background, the introduction and the conceptual framework. The second part focuses on the empirical study for deriving a benchmark for the South African NPO sector. The third section highlights good practices as well as governance-related challenges. Finally, for further consideration by the GDHSD, a series of recommendations is provided, focusing on how key domestic stakeholders can better contribute to successful participatory budgeting programmes.Keywords: Participatory public expenditure management, non-profit organisations, pro-poor spending, public finance, public financial management, early childhood development. Disciplines: Public Management and Administration, Public Financial Management

Highlights

Public participation is receiving increasing attention in the execution of public affairs, especially in developmental issues
Participatory public expenditure management (PPEM) in this study focuses on efficient and effective delivery of social welfare services aimed at reducing poverty, a function of the Gauteng Department of Health and Social Development (GDHSD)
Research methods The concept of PPEM is still a new endeavour which is aimed at alleviating poverty in South Africa especially in the townships occupied by low-income households

Summary

Introduction

Public participation is receiving increasing attention in the execution of public affairs, especially in developmental issues. Participation in public expenditure management is still a new frontier for policy making. This article is based on a paper presented at the 4th Annual SPMA International Conference on Public. Administration by the School of Public Management and Administration (SPMA), University of Pretoria: South Africa, UP Conference Centre. The main concern of public financial management is how to utilise public resources efficiently and effectively to meet the needs of the community in an equitable manner. Meeting the abovementioned needs for the poor requires skilled personnel and institutions to provide adequate services. Since the 1980s, advocacy groups all over the world have begun examining public resources after realising that their governments have not spent enough to address poverty issues (Dulger and Justice, 2007: 1)

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