The Department had allocated about R3.2 billion for transfers and subsidies in the 2010/11 financial year. In the first quarter the Department had only managed to spend R742 million or 22.9 per cent of its budget. This resulted in an under expenditure of R14.2 million or 2 per cent in the first quarter. The lower than expected expenditure in this category was attributed to the non transfer of funds to Departmental Agencies and to De Hoop Dam due to outstanding invoices.