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Appropriation Act, 2016 (Act No. 6 of 2016)

5. Use of unspent funds

 

(1) Despite any provision in other legislation to the contrary, the amount appropriated for compensation of employees in a vote in the Schedule to this Act may only be increased by means of an Act of Parliament.

 

(2) Despite section 3 of this Act and section 43(4) of the Public Finance Management Act, the Minister may, for purposes of expediting service delivery, approve the use of unspent funds, in an amount appropriated for a vote in the Schedule to this Act, in respect of—
(a) compensation of employees, provided that the amount is used within that vote for transfers and subsidies for the payment of severance or exit packages;
(b) transfer to another institution, provided that the amount is used for the same purpose within the main division it is appropriated to or another purpose which accords with the purpose of that main division; or
(c) payments for capital assets, provided that the amount is used within that vote.

 

(3) The Minister may not approve the use of unspent funds in terms of subsection (2)(b) or (c) for compensation of employees.

 

(4) The approval of the utilisation of unspent funds in terms of subsection (2) must be disclosed in the National Treasury’s next quarterly report to the relevant Parliamentary Committees.