The Department had spent R208.5 million (9.86 per cent) of its budget at the end of the first quarter. There was a slow spending in the transfers and subsidies category that constitutes a substantial share of the budget. The Department has only spent R147.5 million (9.07 per cent) of the R1.6 billion budget allocated to transfers and subsidies. Funds for almost all the departmental agencies and public corporations had not been transferred at the end of the first quarter. Only R147.4 million was transferred from the ICT Enterprise Development programme against the projected outflow of R454.7 million. The slow spending was attributed to: