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.
