1. The Committee notes that the Division of Revenue Bill contains clauses that specify criteria and conditions in which infrastructure funds may be allocated and the Committee's view is that similar conditions should be incorporated into the Appropriation Bill. 2. The Committee noted with concern the slow implementation of the Job Fund. 3. The Committee noted the declared savings of R3.021 billion in 2012/13 by national departments and envisaged savings in the medium term. The Committee however expressed concern at the lack of distinction between savings and under expenditure as well as the adverse effect of under expenditure on the performance by departments. 4. The Committee welcomed the reforms aimed at improving the conditional grant frameworks for provincial and local government but remained concerned at the cost of employing implementing agents. 5. The Committee expressed concern about the planning in the longer term by departments given the advantage that they should derive from the Medium Term Expenditure Framework. 6. The Committee welcomed the additional funding made available for infrastructure projects administered by the Department of Water Affairs but remain concerned at the readiness of the Department to implement the projects given the persistent under expenditure on infrastructure projects over the years. 7. The Committee welcomed the Public Service Commission's proposal to develop a legal framework that will empower the Commission to enforce compliance with its recommendations. 8. The Committee noted government's commitment for more prudent expenditure by departments however, it is the Committee's view that such reprioritisation of funds should not be done at the expense of service delivery. 9. The Committee noted the challenges experienced by national departments to administer grant frameworks and stressed the need to make transferring entities more accountable for the performance achieved by way of transferred funds. 10. The Committee noted with concern the shifting of funds originally budgeted for filling vacant positions; and the extent to which this could negatively affect service delivery and budget performance over the Medium Term Expenditure Framework (MTEF) period. 11. The Committee is concerned about the decentralisation of infrastructure development to departments without such departments having the necessary capacity or skills to perform the tasks or where the tasks allocated fall outside the core functions of the departments.