The following key challenges were presented: . The departmental expenditure trend has been at 99 per cent for the previous four years. However, the baseline allocations to fund the increased departmental mandate operations and public entities in the last years and the Medium-Term Expenditure Framework have been insufficient. . The decrease in donor funding due to the global economic recession will place additional budget constraints on environmental management functions. . Reprioritisation and other alternative funding ventures like co- funding have been initiated to make the department and its public entities deliver on their mandate. . The department will approach National Treasury to explore additional funds.