The National Treasury advised the Committee that one of the issues to pay attention to was improved budgeting for the health sector. The National Treasury recommended that provincial departments of health should prioritise within limited financial resources, especially with respect to personnel spending in the KwaZulu-Natal and Eastern Cape; and on goods and services spending in Gauteng. The National Treasury further recommended that processes for determining salary adjustments, including the occupational specific dispensation (OSD), should be tied to available resources. The National Treasury stated that the National Department of Health should fully support and guide provincial departments of health during the implementation of major policy initiatives. The National Treasury proposed that the process used for determining salary adjustments should involve provincial departments of health and be in line with available funds. The National Treasury reported that the Hospital Revitalization Programme was the least spent grant amongst conditional grants (for example, the total projected under-expenditure is over R813 million as at 31 March 2010). Furthermore, the National Treasury indicated that the Provincial Department of Health of Mpumalanga showed continuous poor financial performance in most conditional grants.