Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698929198952.pdf (South Africa)
REPUBLIC OF SOUTH AFRICA DIVISION OF REVENUE BILL (As introduced in the National Assembly (proposed section 76); explanatory summary of Bill and prior notice of its introduction published in Government Gazette No.

48017 of 10 February 2023) (The English text is the offıcial text of the Bill) (MINISTER OF FINANCE) [B 2—2023] No.
of copies printed ....................................... 150 ISBN 978-1-4850-0849-1 2 BILL To provide for the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2023/24 ﬁnancial year; the determination of each province’s equitable share; allocations to provinces, local government and municipalities from national government’s equitable share; the responsibilities of all three spheres pursuant to such division and allocations; and to provide for matters connected therewith.
PREAMBLE WHEREAS section 214(1) of the Constitution requires an Act of Parliament to provide for— (a) (b) (c) the equitable division of revenue raised nationally among the national, provincial and local spheres of government; the determination of each province’s equitable share of the provincial share of that revenue; and any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and any conditions on which those allocations may be made; and WHEREAS section 7(1) of the Money Bills and Related Matters Act, 2009 (Act No.
9 of 2009), requires the introduction of the Division of Revenue Bill at the same time as the Appropriation Bill is introduced, BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:— ARRANGEMENT OF SECTIONS Sections CHAPTER 1 INTERPRETATION AND OBJECTS OF ACT Interpretation Objects of Act CHAPTER 2 EQUITABLE SHARE ALLOCATIONS 5 10 Equitable division of revenue raised nationally among spheres of government Equitable division of provincial share among provinces Equitable division of local government share among municipalities Shortfalls, excess revenue and increasing equitable share 1.
2.

3.

4.

5.

6.

3 CHAPTER 3 CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES Part 1 Conditional allocations 7.

8.

Conditional allocations to provinces Conditional allocations to municipalities Part 2 Duties of accounting officers in respect of Schedule 4 to 7 allocations 9.

Duties of transferring officer in respect of Schedule 4 allocations 10.

Duties of transferring officer in respect of Schedule 5 or 6 allocations 11.

Duties of receiving officer in respect of Schedule 4 allocations 12.
Duties of receiving officer in respect of Schedule 5 or 7 allocations 13.

Duties of receiving officer in respect of infrastructure conditional allocations to provinces 5 10 14.

Duties in respect of annual ﬁnancial statements and annual reports for 2023/24 15 Part 3 Matters relating to Schedule 4 to 7 allocations Publication of allocations and frameworks Expenditure in terms of purpose and subject to conditions 15.

16.

17.

Withholding of allocations Stopping of allocations 18.

Reallocation of funds 19.


20.

Conversion of allocations 21.

Unspent conditional allocations CHAPTER 4 MATTERS RELATING TO ALL ALLOCATIONS Payment requirements Transfers made in error or fraudulently 22.

23.

Amendment of payment schedule 24.

25.

New allocations during ﬁnancial year and Schedule 7 allocations 26.

27.
27.

Preparations for 2024/25 ﬁnancial year and 2025/26 ﬁnancial year Transfers before commencement of Division of Revenue Act for 2024/25 ﬁnancial year 20 25 30 DUTIES AND POWERS OF MUNICIPALITIES, PROVINCIAL TREASURIES AND NATIONAL TREASURY 35 CHAPTER 5 28.

Duties of municipalities 29.

Duties and powers of provincial treasuries 30.

Duties and powers of National Treasury CHAPTER 6 GENERAL 31.
Liability for costs incurred in violation of principles of cooperative governance and intergovernmental relations Irregular expenditure 32.

33.

Financial misconduct 34.

Delegations and assignments 35.

Departures Regulations 36.

Repeal of laws and savings 37.

40 45 38.
Short title and commencement 4 SCHEDULE 1 Equitable division of revenue raised nationally among the three spheres of govern- ment SCHEDULE 2 5 Determination of each province’s equitable share of the provincial sphere’s share of revenue raised nationally (as a direct charge against the National Revenue Fund) SCHEDULE 3 Determination of each municipality’s equitable share of the local government sphere’s share of revenue raised nationally 10 SCHEDULE 4 Part A Allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets Allocations to municipalities to supplement the funding of programmes or functions funded from municipal budgets Part B SCHEDULE 5 Part A Speciﬁc purpose allocations to provinces Part B Speciﬁc purpose allocations to municipalities SCHEDULE 6 Part A 15 20 Allocations-in-kind to provinces for designated special programmes 25 Allocations-in-kind to municipalities for designated special programmes Part B SCHEDULE 7 Part A Allocations to provinces for immediate disaster response 30 Allocations to municipalities for immediate disaster response Part B 5 CHAPTER 1 INTERPRETATION AND OBJECTS OF ACT Interpretation 1.
(1) In this Act, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in the Public Finance Management Act or the Municipal Finance Management Act has the meaning assigned to it in the Act in question, and— ‘‘accreditation’’ means accreditation of a municipality, in terms of section 10(2) of the Housing Act, 1997 (Act No.
107 of 1997), to administer national housing programmes, read with Part 3 of the National Housing Code, 2009 (Financial Interventions: Accreditation of Municipalities); ‘‘allocation’’ means the equitable share allocation to the national sphere of government in Schedule 1, a province in Schedule 2 or a municipality in Schedule 3, or a conditional allocation; ‘‘category A, B or C municipality’’ means a category A, B or C municipality envisaged in section 155(1) of the Constitution; ‘‘classiﬁed disaster’’ means a disaster classiﬁed as a national, provincial or local state of disaster in terms of section 23 of the Disaster Management Act, 2002 (Act No.
57 of 2002); ‘‘conditional allocation’’ means an allocation to a province or municipality from the national government’s share of revenue raised nationally, envisaged in section 214(1)(c) of the Constitution, as set out in Schedule 4, 5, 6 or 7; ‘‘Constitution’’ means the Constitution of the Republic of South Africa, 1996; ‘‘corporation for public deposits account’’ means a bank account of the Provincial Revenue Fund held with the Corporation for Public Deposits, established by the Corporation for Public Deposits Act, 1984 (Act No.
46 of 1984); ‘‘Education Infrastructure Grant’’ means the Education Infrastructure Grant referred to in Part A of Schedule 4; ‘‘ﬁnancial year’’ means, in relation to— (a) a national or provincial department, the year ending 31 March; or (b) a municipality, the year ending 30 June; ‘‘framework’’ means the conditions and other information in respect of a conditional allocation published in terms of section 15 or 25; ‘‘Health Facility Revitalisation Grant’’ means the Health Facility Revitalisation Grant referred to in Part A of Schedule 5; ‘‘Human Settlements Development Grant’’ means the Human Settlements Develop- ment Grant referred to in Part A of Schedule 5; ‘‘legislation’’ means national legislation or provincial legislation as deﬁned in section 239 of the Constitution; ‘‘level one accreditation’’ means accreditation to render beneﬁciary management, subsidy budget planning and allocation, and priority programme management and administration, of national housing programmes; ‘‘level two accreditation’’ means accreditation to render full programme management and administration of all housing instruments and national housing programmes in addition to the responsibilities under a level one accreditation; ‘‘Maths, Science and Technology Grant’’ means the Maths, Science and Technology Grant referred to in Part A of Schedule 5; ‘‘medium term expenditure framework’’ means a budgeting framework applied by the National Treasury which— (a) translates government policies and plans into a multi-year spending plan; and (b) promotes transparency, accountability and effective public ﬁnancial manage- 50 ment; ‘‘Municipal Finance Management Act’’ means the Local Government: Municipal Finance Management Act, 2003 (Act No.
56 of 2003); ‘‘Municipal Structures Act’’ means the Local Government: Municipal Structures Act, 1998 (Act No.

117 of 1998); ‘‘Municipal Systems Act’’ means the Local Government: Municipal Systems Act, 2000 (Act No.
32 of 2000); ‘‘Neighbourhood Development Partnership Grant’’ means the Neighbourhood Development Partnership Grant referred to in Part B of Schedule 5 or Part B of Schedule 6; 55 60 6 ‘‘organ of state’’ means an organ of state as deﬁned in section 239 of the Constitution; ‘‘overpayment’’ means the transfer of more than the allocated amount of an allocation or the transfer of an allocation in excess of the applicable amount in a payment schedule; ‘‘payment schedule’’ means a schedule which sets out— (a) (b) (c) the amount of each transfer of a provincial equitable share or a conditional allocation for a province or municipality to be transferred in terms of this Act; the date on which each transfer must be paid; and to whom, and to which bank account, each transfer must be paid; ‘‘prescribe’’ means prescribe by regulation in terms of section 36; ‘‘primary bank account’’, in relation to— 5 10 (a) a province, means a bank account of the Provincial Revenue Fund, envisaged in section 21(2) of the Public Finance Management Act and which the accounting officer of the provincial treasury has certiﬁed to the National Treasury; or (b) a municipality, means the bank account of the municipality as determined in 15 terms of section 8 of the Municipal Finance Management Act; ‘‘Provincial Roads Maintenance Grant’’ means the Provincial Roads Maintenance Grant referred to in Part A of Schedule 4; ‘‘Public Finance Management Act’’ means the Public Finance Management Act, 1999 (Act No.
1 of 1999); ‘‘Public Transport Network Grant’’ means the Public Transport Network Grant referred to in Part B of Schedule 5; ‘‘Public Transport Operations Grant’’ means the Public Transport Operations Grant referred to in Part A of Schedule 4; ‘‘quarter’’ means, in relation to— (a) a national or provincial department, the period from— (i) 1 April to 30 June; (ii) 1 July to 30 September; (iii) 1 October to 31 December; or (iv) 1 January to 31 March; or (b) a municipality, the period from— (i) 1 July to 30 September; (ii) 1 October to 31 December; (iii) 1 January to 31 March; or (iv) 1 April to 30 June; ‘‘receiving officer’’ means, in relation to— (a) a Schedule 4, 5 or 7 allocation transferred to a province, the accounting officer of the provincial department which receives that allocation or a portion thereof for expenditure through an appropriation from its Provincial Revenue Fund; or (b) a Schedule 4, 5 or 7 allocation transferred to a municipality, the accounting officer of the municipality; ‘‘receiving provincial department’’, in relation to a Schedule 4, 5 or 7 allocation transferred to a province, means the provincial department which receives that allocation or a portion thereof for expenditure through an appropriation from its Provincial Revenue Fund; ‘‘School Infrastructure Backlogs Grant’’ means the School Infrastructure Backlogs Grant referred to in Part A of Schedule 6; ‘‘this Act’’ includes any framework or allocation published, or any regulation made, in terms of this Act; ‘‘transferring officer’’
 means the accounting officer of a national department that transfers a Schedule 4, 5 or 7 allocation to a province or municipality or spends a Schedule 6 allocation on behalf of a province or municipality; ‘‘Urban Settlements Development Grant’’ means the Urban Settlements Develop- ment Grant referred to in Part B of Schedule 4; and ‘‘working day’’ means any day, except a Saturday, a Sunday or a public holiday as deﬁned in the Public Holidays Act, 1994 (Act No.
36 of 1994).

(2) Any agreement, approval, certiﬁcation, decision, determination, instruction, notiﬁcation, notice or request in terms of this Act must be in writing.

20 25 30 35 40 45 50 55 Objects of Act 7 2.
The objects of this Act are— (a) as required by section 214(1) of the Constitution, to provide for— (i) (ii) the equitable division of revenue raised nationally among the three spheres of government; the determination of each province’s equitable share of the provincial share of that revenue; and (iii) other allocations to provinces, local government or municipalities from the national government’s share of that revenue and conditions on which those allocations are made; to promote predictability and certainty in respect of all allocations to provinces and municipalities, in order that provinces and municipalities may plan their budgets over a multi-year period and thereby promote better coordination between policy, planning and budgeting; and to promote transparency and accountability in the resource allocation process, by ensuring that all allocations, except Schedule 6 allocations, are reﬂected on the budgets of provinces and municipalities and the expenditure of conditional allocations is reported on by the receiving provincial departments and municipalities.
(b) (c) CHAPTER 2 EQUITABLE SHARE ALLOCATIONS 5 10 15 20 Equitable division of revenue raised nationally among spheres of government 3.

(1) Revenue raised nationally in respect of the 2023/24 ﬁnancial year must be divided among the national, provincial and local spheres of government as set out in Column A of Schedule 1.
25 (2) The envisaged division among the national, provincial and local spheres of government of revenue anticipated to be raised nationally in respect of the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, and which is subject to the Division of Revenue Acts for those ﬁnancial years, is set out in Column B of Schedule 1.

Equitable division of provincial share among provinces 4.
(1) Each province’s equitable share of the provincial share of revenue raised nationally in respect of the 2023/24 ﬁnancial year is set out in Column A of Schedule 2.

(2) The envisaged equitable share for each province of revenue anticipated to be raised nationally in respect of the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, and which is subject to the Division of Revenue Acts for those ﬁnancial years, is set out in Column B of Schedule 2.
(3) The National Treasury must transfer each province’s equitable share referred to in subsection (1) to the corporation for public deposits account of the province in accordance with the payment schedule determined in terms of section 22.

Equitable division of local government share among municipalities 5.

(1) Each municipality’s equitable share of local government’s share of revenue raised nationally in respect of the 2023/24 ﬁnancial year is set out in Column A of Schedule 3.
(2) The envisaged equitable share for each municipality of revenue anticipated to be raised nationally in respect of the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, and which is subject to the Division of Revenue Acts for those ﬁnancial years, is set out in Column B of Schedule 3.
(3) The national department responsible for local government must, unless otherwise determined by the National Treasury, transfer a municipality’s equitable share referred to in subsection (1) to the primary bank account of the municipality in three transfers on 5 July 2023, 6 December 2023 and 13 March 2024, in the amounts determined in terms of section 22(2).

30 35 40 45 50 8 Shortfalls, excess revenue and increasing equitable share 6.
(1) If the actual revenue raised nationally in respect of the 2023/24 ﬁnancial year falls short of the anticipated revenue set out in Column A of Schedule 1, the national government bears the shortfall.

(2) If the actual revenue raised nationally in respect of the 2023/24 ﬁnancial year exceeds the anticipated revenue set out in Column A of Schedule 1, the excess accrues to the national government, and may be used to reduce borrowing or pay debt as part of its share of revenue raised nationally.
(3) Further allocations may be made from the excess revenue envisaged in subsection (2), in accordance with the applicable legislation envisaged in section 12 of the Money Bills and Related Matters Act, 2009 (Act No.

9 of 2009), to— (a) national departments; (b) provinces; or (c) municipalities.
(4) (a) If any expenditure from contingencies is approved in terms of the Appro- priation Act, 2023, to increase the equitable share of provinces or municipalities, the National Treasury must increase the equitable share per province or per municipality by notice in the Gazette.

(b) The increase referred to in paragraph (a) takes effect on the date of publication in the Gazette.

(c) Section 22 of this Act applies with the necessary changes in relation to the increase referred to in paragraph (a).
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES CHAPTER 3 Part 1 Conditional allocations Conditional allocations to provinces 7.
(1) Conditional allocations to provinces for the 2023/24 ﬁnancial year from the national government’s share of revenue raised nationally are set out in— (a) Part A of Schedule 4, specifying allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets; (b) Part A of Schedule 5, specifying speciﬁc-purpose allocations to provinces; (c) Part A of Schedule 6, specifying allocations-in-kind to provinces for designated special programmes; and (d) Part A of Schedule 7, specifying funds that are not allocated to speciﬁc provinces, which may be released to provinces to fund an immediate response to a classiﬁed disaster.
(2) An envisaged division of conditional allocations to provinces from the national government’s share of revenue anticipated to be raised nationally for the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, which is subject to the annual Division of Revenue Acts for those years, is set out in Column B of the Schedules referred to in subsection (1).
(3) (a) A Member of the Executive Council responsible for ﬁnance in a province may pledge a conditional allocation or an envisaged conditional allocation, or a portion thereof, as security for any borrowing in terms of the Borrowing Powers of Provincial Governments Act, 1996 (Act No.

48 of 1996), in accordance with this subsection.


(b) If a Member of the Executive Council responsible for ﬁnance in a province intends to pledge as envisaged in paragraph (a), he or she must— consult the relevant transferring officer; and (i) (ii) obtain the approval of the Loan Co-ordinating Committee, referred to in section 2 of the Borrowing Powers of Provincial Governments Act, 1996.
(c) The pledging envisaged in paragraph (a) must comply with any conditions imposed by the Loan Co-ordinating Committee.

(d) The relevant receiving officer must submit ﬁnancial and non-ﬁnancial reports, in the format and on the dates determined by the National Treasury, for any project pledged to be partially or fully funded by using a conditional allocation or an envisaged conditional allocation, or a portion thereof, as security as envisaged in paragraph (a).
9 (4) (a) If any expenditure from contingencies is approved in terms of the Appropriation Act, 2023, to increase any conditional allocation to provinces, the National Treasury must increase the allocation per province by notice in the Gazette.

(b) The increase referred to in paragraph (a) takes effect on the date of publication in the Gazette.
(c) If a conditional allocation in Part A of Schedule 5 or 6 is increased in terms of paragraph (a), the National Treasury must amend the notice published in terms of section 15 by notice in the Gazette.

(d) Section 23 of this Act applies with the necessary changes in relation to the increase referred to in paragraph (a).

Conditional allocations to municipalities 8.
(1) Conditional allocations to municipalities in respect of the 2023/24 ﬁnancial year from the national government’s share of revenue raised nationally are set out in— (a) Part B of Schedule 4, specifying allocations to municipalities to supplement the funding of functions funded from municipal budgets; (b) Part B of Schedule 5, specifying speciﬁc-purpose allocations to municipali- ties; (c) Part B of Schedule 6, specifying allocations-in-kind to municipalities for designated special programmes; and (d) Part B of Schedule 7, specifying funds that are not allocated to speciﬁc municipalities that may be released to municipalities to fund an immediate response to a classiﬁed disaster.
(2) An envisaged division of conditional allocations to municipalities from the national government’s share of revenue anticipated to be raised nationally for the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, which is subject to the annual Division of Revenue Acts for those years, is set out in Column B of the Schedules referred to in subsection (1).
(3) (a) A municipality that intends to pledge a conditional allocation, or a portion thereof, as security for any obligations in terms of section 48 of the Municipal Finance Management Act, must, in addition to notifying the National Treasury in terms of section 46(3) of that Act, notify the transferring officer and the relevant provincial treasury of that intention and provide the transferring officer and National Treasury at least 21 days to comment before seeking the approval of the municipal council.
(b) A municipality must submit ﬁnancial and non-ﬁnancial reports, in the format and on the dates determined by the National Treasury, for any project pledged to be partially or fully funded by using a conditional allocation, or a portion thereof, as security as envisaged in paragraph (a).
(4) (a) If any expenditure from contingencies is approved in terms of the Appropriation Act, 2023, to increase any conditional allocation to municipalities, the National Treasury must increase the allocation per municipality by notice in the Gazette.

(b) The increase referred to in paragraph (a) takes effect on the date of publication in the Gazette.
(c) If a conditional allocation in Part B of Schedule 5 or 6 is increased in terms of paragraph (a), the National Treasury must amend the notice published in terms of section 15 by notice in the Gazette.

(d) Section 23 of this Act applies with the necessary changes in relation to the increase referred to in paragraph (a).

Duties of accounting officers in respect of Schedule 4 to 7 allocations Part 2 Duties of transferring officer in respect of Schedule 4 allocations 9.
(1) The transferring officer of a Schedule 4 allocation must— (a) ensure that transfers to all provinces and municipalities are— (i) deposited only into the primary bank account of the relevant province or municipality; and (ii) made in accordance with the payment schedule determined in terms of section 22, unless allocations are withheld or stopped in terms of section 17 or 18; 55 10 (b) monitor information on ﬁnancial and non-ﬁnancial performance of programmes partially or fully funded by an allocation in Part A of Schedule 4, in accordance with subsection (2) and the applicable framework; (c) monitor information on ﬁnancial and non-ﬁnancial performance of the Urban Settlements Development Grant against the capital budget and the service delivery and budget implementation plan; (d) comply with the applicable framework; (e) (f) submit a quarterly ﬁnancial and non-ﬁnancial performance report within 45 days after the end of each quarter to the National Treasury in terms of the applicable framework; and evaluate the performance of programmes funded or partially funded by the allocation and submit such evaluations to the National Treasury within four months after the end of the 2023/24 ﬁnancial year applicable to a provincial department or a municipality, as the case may be.
(2) Any monitoring programme or system that is used to monitor information on ﬁnancial and non-ﬁnancial performance of a programme partially or fully funded by a Schedule 4 allocation must— (a) be approved by the National Treasury; (b) not impose any excessive administrative responsibility on receiving officers beyond the provision of standard management and budget information; (c) be compatible and integrated with and not duplicate other relevant national, provincial and local systems; and support compliance with section 11(2).
(d) (3) A framework may impose a duty on the accounting officer of a national or provincial department, other than the transferring officer or receiving officer, which contributes to achieving the purpose of the allocation, and the accounting officer must comply with the duty.

Duties of transferring officer in respect of Schedule 5 or 6 allocations 10.
(1) The transferring officer of a Schedule 5 or 6 allocation must— (a) not later than 14 days after this Act takes effect, certify to the National 30 Treasury that— (i) any monitoring or system that is used, is compatible and integrated with and does not duplicate other relevant national, provincial and local systems; and (ii) any plans required in terms of the framework of a Schedule 5 allocation 35 regarding the use of the allocation by— (aa) a province, have been approved before the start of the ﬁnancial year; or (bb) a municipality, shall be approved before the start of the ﬁnancial year; (b) in respect of Schedule 5 allocations— (i) transfer funds only after receipt of all information required to be submitted by the receiving officer in terms of this Act and after submission of all relevant information to the National Treasury; transfer funds in accordance with the payment schedule determined in terms of section 22, unless allocations are withheld or stopped in terms of section 17 or 18; and (ii) (iii) deposit funds only into the primary bank account of the relevant province or municipality; and (c) comply with the applicable framework.
(2) The transferring officer must submit all relevant information and documentation referred to in subsection (1)(a) to the National Treasury within 14 days after this Act takes effect.

(3) A transferring officer, who has not complied with subsection (1), must transfer the allocation in the manner instructed by the National Treasury, which instruction may include transferring the allocation as an unconditional allocation.
(4) Before making the ﬁrst transfer of any allocation in terms of subsection (1)(b), the transferring officer must ensure that the banking details of the relevant province or municipality are as contained in the notice issued by the National Treasury in terms of section 30(1).

40 45 50 55 60 11 (5) The transferring officer of a Schedule 5 allocation to a municipality is responsible for monitoring ﬁnancial and non-ﬁnancial performance information on programmes funded by the allocation.
(6) (a) The transferring officer of a Schedule 5 or 6 allocation must, as part of the reporting envisaged in section 40(4)(c) of the Public Finance Management Act, but subject to paragraph (b), submit information, in the format determined by the National Treasury, for the month in question, and for the 2023/24 ﬁnancial year up to the end of that month, on— (i) (ii) (iii) (iv) (v) the amount of funds transferred to a province or municipality; the amount of funds for any province or municipality withheld or stopped in terms of section 17 or 18, the reasons for the withholding or stopping and the steps taken by the transferring officer and the receiving officer to deal with the matters or causes that necessitated the withholding or stopping of the payment; the actual expenditure incurred by the province or municipality in respect of a Schedule 5 allocation; the actual expenditure incurred by the transferring officer in respect of a Schedule 6 allocation; any matter or information that may be required by the applicable framework for the particular allocation; and such other matters as the National Treasury may determine.
(vi) (b) For purposes of the application of paragraph (a) to Part B of Schedule 5, the period of 15 days envisaged in section 40(4)(c) of the Public Finance Management Act must be construed to mean a period of 20 days.
(7) A transferring officer must submit to the National Treasury— (a) a monthly provincial report on infrastructure expenditure partially or fully funded by the Health Facility Revitalisation Grant, National Health Insurance Indirect Grant, School Infrastructure Backlogs Grant or Maths, Science and Technology Grant, within 22 days after the end of each month, in the format determined by the National Treasury; and (b) a quarterly performance report on all programmes partially or fully funded by a Schedule 5 or 6 allocation within 45 days after the end of each quarter, in accordance with the applicable framework.
(8) The transferring officer must evaluate the performance of all programmes partially or fully funded by a Schedule 5 or 6 allocation and submit such evaluations to the National Treasury within four months after the end of the 2023/24 ﬁnancial year applicable to a provincial department or a municipality, as the case may be.
(9) The transferring officer of the Human Settlements Development Grant may only transfer the Grant to a province after the relevant receiving officer has complied with section 12(6)(a) and (b).

(10) A framework may impose a duty on the accounting officer of a national or provincial department, other than the transferring officer or receiving officer, which contributes to achieving the purpose of the allocation and the accounting officer must comply with the duty.
Duties of receiving officer in respect of Schedule 4 allocations 11.

(1) The receiving officer of a Schedule 4 allocation is responsible for— 45 (a) complying with the applicable framework; and (b) the manner in which the allocation received from a transferring officer is allocated and spent.
(2) The receiving officer of a municipality must— (a) ensure and certify to the National Treasury that the municipality— (i) indicates each programme partially or fully funded by a Schedule 4 allocation in its annual budget and that the allocation is speciﬁcally and exclusively appropriated in that budget for utilisation only according to the purpose of the allocation; and (ii) makes public, in terms of section 21A of the Municipal Systems Act, the conditions and other information in respect of the allocation, to facilitate performance measurement and the use of required inputs and outputs; (b) when submitting the municipality’s statements in terms of section 71 of the Municipal Finance Management Act for September 2023, December 2023, March 2024 and June 2024, report to the transferring officer, the relevant provincial treasury and the National Treasury— 50 55 60 12 (i) in respect of the Urban Settlements Development Grant, on ﬁnancial performance against its capital budget and the measures deﬁned in its service delivery and budget implementation plan; and in respect of any other Schedule 4 allocation, on ﬁnancial performance of programmes partially or fully funded by the allocation; and (c) within 30 days after the end of each quarter, report to the transferring officer (ii) and the National Treasury— (i) (ii) in respect of the Urban Settlements Development Grant, on non-ﬁnancial performance for that quarter against the measures deﬁned in its service delivery and budget implementation plan; and in respect of any other Schedule 4 allocation, on non-ﬁnancial performance of programmes partially or fully funded by the allocation.
(3) The National Treasury must make the report submitted to it in terms of subsection (2)(b) or (c) available to the transferring officer of the Urban Settlements Development Grant, Public Transport Network Grant and Integrated National Electriﬁcation Programme Grant and the accounting officer of any other national department having responsibilities relating to the applicable allocation.
(4) The receiving officer of a provincial department must submit to the relevant provincial treasury and the transferring officer— (a) as part of the report required in section 40(4)(c) of the Public Finance Management Act, reports on ﬁnancial and non-ﬁnancial performance of programmes partially or fully funded by a Schedule 4 allocation; (b) a quarterly non-ﬁnancial performance report of programmes partially or fully funded by a Schedule 4 allocation within 30 days after the end of each quarter; and a monthly provincial report on infrastructure programmes partially or fully funded by a Schedule 4 allocation within 15 days after the end of each month, in the format determined by the National Treasury.
(c) (5) The receiving officer must report on programmes partially or fully funded by a Schedule 4 allocation against the applicable framework in its annual ﬁnancial statements and annual report.
(6) The receiving officer must evaluate the ﬁnancial and non-ﬁnancial performance of the provincial department or municipality, as the case may be, in respect of programmes partially or fully funded by a Schedule 4 allocation and submit such evaluation to the transferring officer and the relevant provincial treasury within two months— (a) (b) in respect of a provincial department, after the end of the 2023/24 ﬁnancial year of the provincial department; and in respect of a municipality, after the end of the 2023/24 ﬁnancial year of the municipality.
Duties of receiving officer in respect of Schedule 5 or 7 allocations 12.

(1) The receiving officer of a Schedule 5 or 7 allocation must comply with the applicable framework.
(2) The relevant receiving officer must, in respect of a Schedule 5 or 7 allocation transferred to— (a) a province, as part of the report required within 15 days of the end of each month in terms of section 40(4)(c) of the Public Finance Management Act, report on the matters referred to in subsection (3) and submit a copy of that report to the relevant provincial treasury and the transferring officer; (b) a municipality, as part of the report required no later than 10 working days after the end of each month in terms of section 71 of the Municipal Finance Management Act, report on the matters referred to in subsection (4) and submit a copy of that report to the relevant provincial treasury, the National Treasury and the relevant transferring officer; and a province or municipality, submit a quarterly non-ﬁnancial performance report within 30 days after the end of each quarter.
(c) (3) A report for a province in terms of subsection (2)(a) must set out for the month in question and for the 2023/24 ﬁnancial year up to the end of the month— (a) (b) the amount received by the province; the amount of funds withheld or stopped in terms of section 17 or 18, the reason for the stopping or withholding and any remedial action taken; 13 (c) (d) (e) (f) the actual expenditure by the province in respect of Schedule 5 and 7 allocations; the amount transferred to any national or provincial public entity to implement a programme funded by a Schedule 5 allocation on behalf of a province or to assist the province in implementing the programme; the available ﬁgures regarding the expenditure by a public entity referred to in paragraph (d); the extent of compliance with this Act and with the conditions of the allocation provided for in its framework, based on the available information at the time of reporting; (g) an explanation of any material difficulties experienced by the province regarding an allocation which has been received and a summary of the steps taken to deal with such difficulties; (h) any matter or information that may be determined in the framework for the allocation; and such other matters and information as the National Treasury may determine.
(4) A report for a municipality in terms of subsection (2)(b) must set out for the month (i) in question and for the 2023/24 ﬁnancial year up to the end of the month— (a) (b) (c) the amount received by the municipality; the amount of funds withheld or stopped in terms of section 17 or 18, the reason for the stopping or withholding and any remedial action taken; the extent of compliance with this Act and with the conditions of the allocation or part of the allocation provided for in its framework; (f) (e) (d) an explanation of any material difficulties experienced by the municipality regarding an allocation which has been received and a summary of the steps taken to deal with such difficulties; any matter or information that may be determined in the framework for the allocation; and such other matters and information as the National Treasury may determine.
(5) The receiving officer must evaluate the ﬁnancial and non-ﬁnancial performance of the provincial department or municipality, as the case may be, in respect of programmes partially or fully funded by a Schedule 5 allocation and submit such evaluation to the transferring officer and the relevant provincial treasury within two months after the end of the 2023/24 ﬁnancial year applicable to a provincial department or a municipality, as the case may be.
(6) (a) The receiving officer of the Human Settlements Development Grant must, in consultation with the transferring officer and after consultation with each affected municipality, publish in the Gazette, within 14 working days after this Act takes effect, the planned expenditure from the Human Settlements Development Grant, for the 2023/24 ﬁnancial year, the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year per municipality with level one or level two accreditation.
(b) The planned expenditure must— (i) indicate the expenditure to be undertaken directly by the province and transfers to each municipality; and include a payment schedule for transfers to each municipality in the 2023/24 ﬁnancial year.
(ii) (c) The receiving officer of the Human Settlements Development Grant may, by notice in the Gazette, after taking into account the performance of the municipality and after consultation with the affected municipality and in consultation with the transferring officer, amend the planned expenditure for that municipality published in terms of paragraph (a).

Duties of receiving officer in respect of infrastructure conditional allocations to provinces 13.
(1) The receiving officer of the Education Infrastructure Grant, Health Facility Revitalisation Grant, Human Settlements Development Grant, Provincial Roads Maintenance Grant and any other conditional allocation partially or fully funding infrastructure must— (a) submit to the relevant provincial treasury a list of all infrastructure projects partially or fully funded by the relevant Grant over the medium-term expenditure framework for tabling as part of the estimates of provincial 14 expenditure in the provincial legislature in the format determined by the National Treasury; (b) within seven days after the tabling in the legislature, submit the list to the (c) transferring officer and the National Treasury; after consultation with the relevant provincial treasury and the transferring officer, submit any amendments to the infrastructure project list, together with reasons for the amendments, to the provincial treasury for tabling with the adjusted estimates of provincial expenditure; (d) within seven days after the tabling in the legislature, submit the amended list (e) to the transferring officer and the National Treasury; report, in the format and on the date determined by the National Treasury, to the transferring officer, the relevant provincial treasury and the National Treasury, on all infrastructure expenditure partially or fully funded by the relevant Grant; (f) within 15 days after the end of each month, in the format determined by the National Treasury, submit to the
 relevant provincial treasury and transferring officer, a draft report on infrastructure programmes partially or fully funded from those Grants; (g) within 22 days after the end of each month, submit to the transferring officer, the relevant provincial treasury and the National Treasury, a ﬁnal report on infrastructure programmes partially or fully funded from those Grants; and (h) within two months after the end of the 2023/24 ﬁnancial year— (i) based on the infrastructure budget of the province, evaluate the ﬁnancial and non-ﬁnancial performance of the province in respect of programmes partially or fully funded by the Grant; and submit the evaluation to the transferring officer, the relevant provincial treasury and the National Treasury.
(ii) (2) The receiving officer of the Education Infrastructure Grant or Health Facility Revitalisation Grant must— (a) within 22 days after the end of each quarter, submit to the transferring officer, the relevant provincial treasury and the National Treasury, a report on the ﬁlling of posts on the approved establishment for the infrastructure unit of the affected provincial department; and (b) ensure that projects comply with infrastructure delivery management best practice standards and guidelines, as identiﬁed and approved by the National Treasury.
Duties in respect of annual ﬁnancial statements and annual reports for 2023/24 14.
(1) The 2023/24 ﬁnancial statements of a national department responsible for transferring an allocation in Schedule 4, 5 or 7 must, in addition to any requirement of any other legislation— (a) (b) (c) (d) (e) (f) indicate the total amount of that allocation transferred to a province or municipality; indicate any transfer withheld or stopped in terms of section 17 or 18 in respect of each province or municipality and the reason for the withholding or stopping; indicate any transfer not made in accordance with the payment schedule or amended payment schedule, unless withheld or stopped in terms of section 17 or 18, and the reason for the non-compliance; indicate any reallocations by the National Treasury in terms of section 19; certify that all transfers to a province or municipality were deposited into the primary bank account of a province or municipality; and indicate the funds, if any, used for the administration of the allocation by the receiving officer.
(2) The 2023/24 annual report of a national department responsible for transferring an allocation in Schedule 4, 5 or 7 must, in addition to any requirement of any other legislation, indicate— (a) (b) (c) the reasons for the withholding or stopping of all transfers to a province or municipality in terms of section 17 or 18; the extent that compliance with this Act by provinces or municipalities was monitored; the extent that the allocation achieved its objectives and outputs; and 15 (d) any non-compliance with this Act and the steps taken to address the non-compliance.
(3) The 2023/24 ﬁnancial statements of a provincial department receiving an allocation in Schedule 4, 5 or 7 must, in addition to any requirement of any other legislation— (a) (b) indicate the total amount of all allocations received; indicate the total amount of allocations received that were budgeted to be transferred to municipalities and public entities, including— (i) the amounts transferred to municipalities and public entities, respec- tively; and the reasons for any discrepancies; (ii) indicate the total amount of actual expenditure on each Schedule 5 or 7 allocation; and (c) (d) certify that all transfers of allocations in Schedules 4, 5 and 7 to the province were deposited into the primary bank account of the province.
(4) The 2023/24 annual report of a provincial department receiving an allocation in Schedule 4, 5 or 7 must, in addition to any requirement of any other legislation— (a) indicate the extent that the provincial department complied with this Act; (b) indicate the steps taken to address non-compliance with this Act; (c) indicate the extent that the allocation achieved its objectives and outputs; (d) contain any other information that may be speciﬁed in the framework for the allocation; and contain such other information as the National Treasury may determine.
(e) (5) The 2023/24 ﬁnancial statements and annual report of a municipality receiving an allocation in Schedule 4, 5 or 7 must be prepared in accordance with the Municipal Finance Management Act.

(6) To facilitate the monitoring of performance and the audit of the allocations for the 2023/24 ﬁnancial year, the National Treasury may determine the format in which receiving officers must report on conditional allocations to municipalities in terms of sections 11(2)(c) and 12(2)(c).
Part 3 Matters relating to Schedule 4 to 7 allocations Publication of allocations and frameworks 15.
(1) The National Treasury must, within 14 working days after this Act takes effect, publish by notice in the Gazette— (a) (b) (c) the conditional allocations per municipality for Part B of Schedule 5 allocations; the indicative conditional allocations per province for Part A of Schedule 6 allocations and per municipality for Part B of Schedule 6 allocations; and the framework for each conditional allocation in Schedules 4 to 7.
(2) For purposes of correcting an error or omission in an allocation or framework published in terms of subsection (1)(a) or (c), the National Treasury must— (a) on its initiative and after consultation with the relevant transferring officer; or (b) at the written request of the relevant transferring officer, by notice in the Gazette, amend the affected allocation or framework.
(3) The National Treasury may, after consultation with the relevant transferring officer and by notice in the Gazette, amend an indicative conditional allocation in Schedule 6 published in terms of subsection (1)(b).

(4) Before amending a framework in terms of subsection (2), the National Treasury must submit the proposed amendment to Parliament for comment for a period of 14 days when Parliament is in session.
(5) An amendment of an allocation or framework in terms of subsection (2) or (3) takes effect on the date of publication of the notice in the Gazette.

Expenditure in terms of purpose and subject to conditions 16.

(1) Despite any other legislation to the contrary, an allocation referred to in Schedules 4 to 7 may only be used for the purpose stipulated in the Schedule concerned and in accordance with the applicable framework.
55 (2) (a) A framework may provide for components within a conditional allocation that are subject to speciﬁc conditions.

16 after consulting the relevant receiving officer; (b) A transferring officer may shift funds from one component to another— (i) (ii) with the approval of the National Treasury; and (iii) (c) The National Treasury must publish a notice in the Gazette of a shift of funds in in accordance with the applicable appropriation legislation.

terms of paragraph (b).
(3) A receiving officer may not allocate any portion of a Schedule 5 allocation to any other organ of state for the performance of a function, unless the receiving officer and the organ of state agree on the obligations of both parties and a payment schedule, the receiving officer has notiﬁed the transferring officer, the relevant provincial treasury and the National Treasury of the agreed payment schedule and— (a) the allocation— (i) (ii) is approved in the budget for the receiving provincial department or municipality; or if not already so approved— (aa) the receiving officer notiﬁes the National Treasury that the purpose to artiﬁcially inﬂate the expenditure of the allocation is not estimates of the relevant provincial department or municipality and indicates the reasons for the allocation; and (bb) the National Treasury approves the allocation; or (b) the allocation is for the payment for goods or services procured in accordance with the procurement prescripts applicable to the relevant province or municipality and, if it is an advance payment, paragraph (a)(ii) applies with the necessary changes.
(4) Section 21(1) and (2) applies to funds referred to in subsection (3).

(5) The receiving officer must— (a) submit a copy of the agreement envisaged in subsection (3) to the transferring officer and the National Treasury; and 30 (b) publish by notice in the Gazette, the allocations envisaged in subsection (3) before payment is made.
(6) (a) For purposes of the implementation of a Schedule 6 allocation to a municipality— (i) Eskom Holdings Limited may receive funds directly from the transferring officer 35 (ii) of the Department of Mineral Resources and Energy; or a water board, as deﬁned in section 1 of the Water Services Act, 1997 (Act No.

108 of 1997), may receive funds directly from the transferring officer of the Department of Water and Sanitation.
(b) A transferring officer may withhold the funds allocated in terms of paragraph (a), 40 or any portion thereof, for a period not exceeding 30 days, if— (i) Eskom Holdings Limited or the relevant water board does not comply with this (ii) (iii) Act; roll-overs of conditional allocations approved by the National Treasury in terms of section 21 have not been spent; or there is signiﬁcant under-expenditure on previous transfers during the 2023/24 ﬁnancial year.
(c) A transferring officer must, at least seven working days before withholding an allocation in terms of paragraph (b)— (i) give Eskom Holdings Limited or the relevant water board— (aa) notice of the intention to withhold the allocation; and (bb) an opportunity to submit written representations as to why the allocation should not be withheld; and (ii) inform the relevant municipality, the National Treasury, the relevant provincial treasury and the provincial department responsible for local government of the withholding.
(d) A notice envisaged in paragraph (c)(i)(aa) must include the reasons for withholding the allocation and the intended duration of the withholding.

(e) (i) The National Treasury may instruct, or approve a request from, the transferring officer to withhold an allocation in terms of paragraph (b) for a period of 30 to 120 days, if the withholding shall— 45 50 55 60 17 (aa) facilitate compliance with this Act; or (bb) minimise the risk of under-spending by Eskom Holdings Limited or the relevant water board.
(ii) When requesting the withholding of an allocation in terms of this subsection, a transferring officer must submit to the National Treasury proof of compliance with paragraph (c) and any representations received from Eskom Holdings Limited or the relevant water board.

(iii) The transferring officer must comply with paragraph (c) when the National Treasury instructs or approves a request by the transferring officer in terms of paragraph (e)(i).
(f) Despite paragraph (b), a transferring officer may reallocate funds in terms of section 19(3).

(g) (i) Section 21(1) and (2) applies to funds referred to in paragraph (a).

(ii) Eskom Holdings Limited or the relevant water board must ensure that any funds that must revert to the National Revenue Fund in terms of section 21(1) are paid into that Fund by the date determined by the National Treasury.
(iii) Eskom Holdings Limited or the relevant water board must request the roll-over of unspent funds through the relevant transferring officer.
(7) (a) For purposes of the Human Settlements Development Grant, a receiving officer and a municipality with level one or two accreditation or functions assigned in terms of section 126 of the Constitution to administer all aspects, including ﬁnancial administration of a national housing programme (herein called ‘‘assigned functions‘‘) as at 1 April 2023, must, by the date determined by the National Treasury— (i) (ii) agree on a payment schedule; and submit, through the relevant provincial treasury, the payment schedule to the National Treasury.
(b) If a municipality receives accreditation after 1 April 2023, the National Treasury may approve that paragraph (a) applies.

(c) If the transfer of the Human Settlements Development Grant to a municipality with assigned functions is withheld or stopped in terms of section 17 or 18, the receiving officer must request the National Treasury to amend the payment schedule in terms of section 23.
(8) If a function, which is partially or fully funded by a conditional allocation to a province, is assigned to a municipality, as envisaged in section 10 of the Municipal Systems Act— (a) the funds from the conditional allocation for the province for the function must be stopped in terms of section 18 and reallocated in terms of section 19 to the municipality, which has been assigned the function; if possible, the province must ﬁnalise any project or fulﬁl any contract regarding the function before the date the function is assigned and, if not ﬁnalised, the province must notify the relevant municipality and the National Treasury; any project or contract regarding the function not ﬁnalised or fulﬁlled at the date at which the function is assigned, must be subjected to an external audit and the province and the municipality must enter into an agreement to complete the project or to the municipality; through ceding it the contract fulﬁl (b) (c) (e) (d) money that is retained by the province for any contract related to the function that is not ceded to the municipality must be spent by 31 March 2024 and shall not be available in terms of section 30 of the Public Finance Management Act or section 22(2) of this Act; the receiving officer of the province must, within seven days after the function is assigned, submit to the transferring officer and the National Treasury a list of liabilities that are attached to the function, but that were not transferred to the municipality, to provide for the adjustment of the applicable allocations; and the receiving officer of the municipality must, within one month from the date of the stopping of funds in paragraph (a), submit to the transferring officer a revised plan for its planned expenditure.
(f) Withholding of allocations 18 17.
(1) Subject to subsections (2) and (3), a transferring officer may withhold the transfer of a Schedule 4 or 5 allocation, or any portion thereof, for a period not exceeding 30 days, if— (a) (b) the province or municipality does not comply with any provision of this Act; roll-overs of conditional allocations approved by the National Treasury in terms of section 21 have not been spent; or there is signiﬁcant under-expenditure on previous transfers during the 2023/24 ﬁnancial year.
(c) (2) If an allocation is withheld in terms of subsection (1), it suspends the applicable payment schedule, approved in terms of section 22(3), until it is amended in terms of section 23.

(3) The amount withheld in terms of this section in the case of the Human Resources and Training Grant or the National Tertiary Services Grant listed in Part A of Schedule 4 may not exceed ﬁve per cent of the next transfer as contained in the relevant payment schedule.
(4) A transferring officer must, at least seven working days before withholding an allocation in terms of subsection (1)— (a) give the relevant receiving officer— 5 10 15 (i) notice of the intention to withhold the allocation; and (ii) an opportunity to submit written representations as to why the allocation 20 should not be withheld; and (b) inform the relevant provincial treasury and the National Treasury, and in respect of any conditional allocation to a municipality, also the provincial department responsible for local government of the withholding.
(5) A notice envisaged in subsection (4)(a)(i) must include the reasons for withholding the allocation and the intended duration of the withholding to inform the amendment of the payment schedule in terms of section 23.
(6) (a) The National Treasury may instruct, or approve a request from, the transferring officer to withhold an allocation in terms of subsection (1) for a period of 30 to 120 days, if the withholding shall— facilitate compliance with this Act; or (i) (ii) minimise the risk of under-spending by the relevant provincial department or municipality.
(b) When requesting the withholding of an allocation in terms of this subsection, a transferring officer must submit to the National Treasury proof of compliance with subsection (4) and any representations received from the receiving officer.

(c) The transferring officer must comply with subsection (4) when the National Treasury instructs or approves a request by the transferring officer in terms of paragraph (a).

25 30 35 40 Stopping of allocations 18.
(1) Despite section 17, the National Treasury may, in its discretion or on request of a transferring officer or a receiving officer, stop the transfer of a Schedule 4 or 5 allocation, or a portion thereof, to a province or municipality— (a) in the case of— (i) a province, if a serious or persistent material breach of this Act, as 45 envisaged in section 216(2) of the Constitution, occurs; or (ii) a municipality, if— (aa) a serious or persistent material breach of this Act, as envisaged in section 216(2) of the Constitution, read with section 38(1)(b)(i) of the Municipal Finance Management Act, occurs; or (bb) a breach or failure to comply, as envisaged in section 38(1)(b)(ii) of the Municipal Finance Management Act, occurs; (b) (c) if the National Treasury anticipates that a province or municipality shall substantially underspend on the allocation, or any programme, partially or fully funded by the allocation, in the 2023/24 ﬁnancial year; or for purposes of the assignment of a function from a province to a municipality, as envisaged in section 10 of the Municipal Systems Act.
50 55 19 (2) A request by a transferring officer or a receiving officer to stop the transfer of a Schedule 4 or 5 allocation, or a portion thereof to a province or municipality in terms of section 18(1)(a) or (b) must, in the case of— (a) a province, be submitted to the National Treasury by 29 December 2023; and (b) a municipality, be submitted to the National Treasury by 31 January 2024.
(3) The National Treasury must, before stopping an allocation in terms of subsection (1)(a)(i) or (b)— (a) comply with the procedures in section 17(4)(a), with the necessary changes; (b) and inform the relevant transferring officer and provincial treasury of its intention to stop the allocation.

(4) The National Treasury must, before stopping an allocation in terms of subsection (1)(a)(ii), comply with the applicable provisions of section 38 of the Municipal Finance Management Act.
(5) The National Treasury must give notice in the Gazette of the stopping of an allocation in terms of this section and include in the notice the effective date of, and reason for, the stopping.
(6) (a) If— (i) (ii) an allocation, or any portion thereof, is stopped in terms of subsection (1)(a) or (b); and the relevant transferring officer certiﬁes, in writing, to the National Treasury that the payment of an amount in terms of a statutory or contractual obligation is overdue and the allocation, or a portion thereof, was intended for payment of the amount, 5 10 15 20 the National Treasury may, by notice in the Gazette, approve that the allocation, or any portion thereof, be used to pay that amount partially or fully.
25 (b) The utilisation of funds envisaged in this subsection is a direct charge against the National Revenue Fund.

Reallocation of funds 19.


(1) When a Schedule 4 or 5 allocation, or a portion thereof, is stopped in terms of section 18(1)(a) or (b), the National Treasury may, after consultation with the transferring officer and the relevant provincial treasury, determine the portion of the allocation to be reallocated, as the same type of allocation as it was allocated originally, to one or more provinces or municipalities, on condition that the allocation must be spent by the end of the 2023/24 ﬁnancial year.
(2) (a) When a Schedule 4 or 5 allocation, or a portion thereof, is stopped in terms of section 18(1)(c), the National Treasury must, after consultation with the transferring officer and the relevant provincial treasury, determine the portion of the allocation to be reallocated, as the same type of allocation as it was allocated originally, to the affected municipalities, on condition that the allocation must be spent by the end of the 2023/24 ﬁnancial year.
(b) The portion of the allocation reallocated in terms of paragraph (a) is, with effect from the date of the notice in the Gazette in terms of subsection (4)(a), regarded as having been converted to an allocation in Part B of the same Schedule it appears before the reallocation.
(3) (a) If the transferring officer of a Schedule 6 allocation indicates, in writing, to the National Treasury that a portion of the allocation is likely to be underspent, or needs to be reprioritised to meet a priority, the National Treasury may, at the request of the transferring officer, determine that the portion be reallocated, as the same type of allocation as it was allocated originally, to a provincial department of another province or to another municipality.
(b) Before requesting a reallocation, the transferring officer must notify the affected provincial department or municipality of the proposed reallocation and give the provincial department or municipality at least 14 days to provide comments and propose changes.

(c) When making a request in terms of paragraph (a), the transferring officer must submit to the National Treasury comments and proposed changes provided by the affected provincial department or municipality in terms of paragraph (b).
(d) The reallocated portion must, as far as possible, be spent by the end of the 2023/24 ﬁnancial year.

30 35 40 45 50 55 60 20 (e) The reallocated portion is regarded as having been converted to an allocation to the relevant provincial department or municipality with effect from the date of the notice in the Gazette in terms of subsection (4)(a).
(4) (a) The National Treasury must— (i) give notice in the Gazette of a reallocation in terms of subsection (1), (2) or (3); and (ii) provide a copy of the notice to the transferring officer and each affected receiving officer.

(b) The reallocation of a portion of an allocation not spent by the end of the 2023/24 ﬁnancial year is eligible for a roll-over in terms of section 21(2).
(5) (a) When an intervention in terms of section 100 or 139 of the Constitution or section 137, 139 or 150 of the Municipal Finance Management Act takes place, the National Treasury may, despite subsection (1) and on such conditions as it may determine, authorise in relation to— (i) (ii) (iii) section 100 of the Constitution, the transferring officer to spend an allocation stopped in terms of section 18 of this Act on behalf of the relevant province; section 139 of the Constitution or section 137 or 139 of the Municipal Finance Management Act, the intervening province to spend an allocation stopped in terms of section 18 of this Act on behalf of the relevant municipality; or section 150 of the Municipal Finance Management Act, the relevant transferring officer to spend an allocation stopped in terms of section 18 of this Act on behalf of the relevant municipality.
(b) An allocation that is spent by the transferring officer or intervening province referred to in paragraph (a) must, for the purposes of this Act, be regarded as a Schedule 6 allocation from the date on which the authorisation is given.

(6) (a) On a joint request by the transferring officer and the National Disaster Management Centre, established by section 8 of the Disaster Management Act, 2002 (Act No.
57 of 2002), the National Treasury may approve that a conditional allocation in Schedule 4, 5 or 6, or a portion thereof, be reallocated to pay for the alleviation of the impact of a classiﬁed disaster or the reconstruction or rehabilitation of infrastructure damage caused by a classiﬁed disaster.
(b) Before the National Treasury approves a reallocation, the receiving officer of the conditional allocation in Schedule 4 or 5 or the transferring officer of a Schedule 6 allocation must conﬁrm that the affected funds are not committed in terms of any statutory or contractual obligation.

(c) The reallocated funds must be used in the 2023/24 ﬁnancial year in the same sphere that the allocation was originally made and for the same functional area that the original allocation relates to.
(d) The transferring officer must, after consultation with the National Disaster Management Centre and with the approval of the National Treasury, determine the conditions for spending the reallocated funds.

(e) Subsection (4) applies, with the necessary changes, to a reallocation in terms of this subsection to another province or municipality.

Conversion of allocations 20.
(1) If satisﬁed that the relevant provincial department or municipality has demonstrated the capacity to implement projects, the National Treasury may, at the request of the transferring officer and after consultation with the receiving officer, convert any portion of— (a) an allocation listed in Part B of Schedule 6 to one listed in Part B of (b) (c) Schedule 5; the School Infrastructure Backlogs Grant to the Education Infrastructure Grant; or the National Health Insurance Indirect Grant listed in Part A of Schedule 6 to the Health Facility Revitalisation Grant, District Health Programmes Grant, Human Resources and Training Grant or the National Health Insurance Grant listed in Part A of Schedule 5.
(2) The National Treasury may, after consultation with the relevant transferring officer, receiving officer and provincial treasury, convert any portion of an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6, if it is satisﬁed that— the conversion shall prevent under-expenditure or improve the level of service delivery in respect of the allocation in question; (a) 21 (b) (c) (d) the affected national or provincial department has demonstrated the capacity to implement projects; the transferring officer has made a demonstrable effort to strengthen the capacity of the receiving officer to implement the allocation, but the receiving officer is still not capable of meeting all the requirements of the allocation; and there is a history of poor performance in the previous two ﬁnancial years for the relevant allocation to the receiving officer, including withholding and stopping of allocations.
(3) If satisﬁed that a municipality has failed to follow the applicable procurement prescripts prescribed in terms of the Municipal Finance Management Act, the National Treasury may, at the request of the transferring officer or in its discretion, after consultation with the relevant transferring officer and receiving officer, convert any portion of an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6.
5 10 (4) (a) Any portion of an allocation, except the School Infrastructure Backlogs Grant, 15 converted in terms of subsections (1), (2) or (3) must— (i) be used for the same province or municipality to which the allocation was originally made; and if— (ii) (aa) possible, be used to implement the same project or projects that were 20 planned if the allocation had not been converted; or (bb) not possible, the receiving officer must sign an agreement that deﬁnes any new project to be funded, before it is implemented.
(b) The School Infrastructure Backlogs Grant must be used— (i) (ii) for the same province to which the allocation was originally made; and to implement the same project or projects that were planned if the allocation had not been converted.

(5) The National Treasury must— (a) give notice in the Gazette of a conversion in terms of subsection (1), (2) or (3); and (b) provide a copy of the notice to the transferring officer and each affected receiving officer.
(6) A conversion in terms of subsection (1), (2) or (3) takes effect on the date of publication of the notice in terms of subsection (5)(a).
(7) If an allocation listed in Schedule 7 is insufficient for a classiﬁed disaster referred to in section 25(3)(a), the National Treasury may, after consultation with, or on the request of, the relevant transferring officer, convert any portion of— (a) (b) the Provincial Disaster Response Grant listed in Part A of Schedule 7 to the Municipal Disaster Response Grant listed in Part B of Schedule 7; or the Municipal Disaster Response Grant listed in Part B of Schedule 7 to the Provincial Disaster Response Grant listed in Part A of Schedule 7.
(8) The National Treasury must— (a) in the notice published in terms of section 25(3)(c), include notiﬁcation of the conversion in terms of subsection (7) and the effective date referred to in subsection (9); and (b) provide a copy of the notice to the transferring officer.

(9) A conversion in terms of subsection (7) takes effect on the date that the National Treasury approves it.

Unspent conditional allocations 21.


(1) Despite a provision to the contrary in the Public Finance Management Act or the Municipal Finance Management Act, any conditional allocation, or a portion thereof, that is not spent at the end of the 2023/24 ﬁnancial year reverts to the National Revenue Fund, unless the roll-over of the allocation is approved in terms of subsection (2).
(2) The National Treasury may, at the request of a transferring officer, receiving officer or provincial treasury, approve a roll-over of a conditional allocation to the 2024/25 ﬁnancial year if the unspent funds are committed to identiﬁable projects.

(3) (a) The receiving officer must ensure that any funds that must revert to the National Revenue Fund in terms of subsection (1), are paid into that Fund by the date determined by the National Treasury.
25 30 35 40 45 50 55 60 22 (b) The receiving officer must— (i) in the case of a provincial department, request the roll-over of unspent funds through its provincial treasury; and inform the transferring officer of all processes regarding the request.
(ii) (4) (a) The National Treasury may, subject to paragraphs (b) and (c), offset any funds that must revert to the National Revenue Fund in terms of subsection (1), but not paid into that Fund by the date determined in terms of subsection (3)(a)— (i) (ii) in respect of a province, against future transfers of conditional allocations to that province; or in respect of a municipality, against future transfers of the equitable share or conditional allocations to that municipality.
(b) Before any funds are offset in terms of paragraph (a), the National Treasury must give the relevant transferring officer, province or municipality— (i) notice of the intention to offset amounts against future allocations, the intended amount to be offset against allocations, the intended date for the offsetting and the reasons for the offsetting; and an opportunity, within 14 days of receipt of the notice, to— (ii) (aa) propose an alternative date for offsetting; (bb) make written submissions why the full or a part of the amount should not be offset; or (cc) propose an alternative date or dates by which the amount, or portions thereof, must be paid into the National Revenue Fund.
(c) The National Treasury must— (i) accept the date or dates proposed in terms of paragraph (b)(ii)(aa) or (cc) or determine a different date or dates; or accept or reject the submissions made in terms of paragraph (b)(ii)(bb).

(ii) (5) (a) The National Treasury may amend the amount of the equitable share or a conditional allocation offset in terms of subsection (4).
(b) If the amendment envisaged in paragraph (a) results in an underpayment to a municipality— (i) (ii) in respect of the equitable share of the municipality, the department responsible for local government must, despite section 5(3), transfer the difference to the municipality within 10 days; or in respect of a conditional allocation of the municipality, the transferring officer must, despite the payment schedule envisaged in section 22(3), transfer the difference to the municipality within 10 days.
(c) If the amendment in terms of paragraph (a) results in an overpayment to a municipality, section 24 applies.

CHAPTER 4 MATTERS RELATING TO ALL ALLOCATIONS Payment requirements 22.

(1) (a) The National Treasury must, after consultation with the provincial treasury, determine the payment schedule for the transfer of a province’s equitable share allocation.
(b) In determining the payment schedule, the National Treasury must take into account the monthly expenditure commitments of provinces and seek to minimise risk and debt servicing costs for national and provincial government.
(c) Despite paragraph (a), the National Treasury may advance funds to a province in respect of its equitable share, or a portion thereof, which has not yet fallen due for transfer in terms of the payment schedule— (i) for cash management purposes relating to the corporation for public deposits account or when an intervention in terms of section 100 of the Constitution takes place; and (ii) on such conditions as it may determine.
(d) Any advance in terms of paragraph (c) must be offset against transfers to the 55 province, which would otherwise become due in terms of the payment schedule.

(2) (a) The National Treasury must, after consultation with the national department responsible for local government, determine the amount of a municipality’s equitable share allocation to be transferred on each date referred to in section 5(3).
23 (b) If an amount less than the amount approved in terms of paragraph (a) is paid to a municipality, the difference must, despite section 5(3), be paid within 10 days after it comes to the attention of the national department responsible for local government, unless it is amended in terms of paragraph (e).
(c) Despite paragraph (a), the National Treasury may approve a request or direct that the equitable share, or a portion thereof, which has not yet fallen due for transfer in terms of section 5(3), be advanced to a municipality— (i) (ii) after consultation with the national department responsible for local govern- ment; for purposes of cash management in the municipality or an intervention in terms of section 139 of the Constitution or section 137, 139 or 150 of the Municipal Finance Management Act; and (iii) on such conditions as the National Treasury may determine.
(d) Any advance in terms of paragraph (c) must be offset against transfers to the municipality, which would otherwise become due in terms of section 5(3).

(e) The equitable share amount envisaged in paragraph (a) may be amended if the transfer of funds is stopped in terms of section 216(2) of the Constitution, read with sections 38 and 39 of the Municipal Finance Management Act, or offset in terms of section 21(4)(a)(ii) of this Act.
(3) (a) Subject to section 27(1), the National Treasury must, within 14 days after this Act takes effect, approve the payment schedule for the transfer of an allocation listed in Schedule 4 or 5 to a province or municipality.

(b) The transferring officer of a Schedule 4 or 5 allocation must submit a payment schedule to the National Treasury for approval before the ﬁrst transfer is made.
(c) Before the submission of a payment schedule in terms of paragraph (b), the transferring officer must, in relation to a Schedule 4 or 5 allocation, consult the relevant receiving officer.

(4) The transferring officer of a Schedule 4 or 5 allocation must provide the receiving officer and the relevant provincial treasury with a copy of the approved payment schedule before making the ﬁrst transfer in terms thereof.
(5) The transfer of a Schedule 4 or 5 allocation to a municipality must accord with the ﬁnancial year of the municipality.

(6) Each transfer of an equitable share or a conditional allocation to a municipality in terms of this Act must be made through a payment system provided by the National Treasury.

Amendment of payment schedule 23.


(1) (a) Subject to subsection (2), a transferring officer of a Schedule 4 or 5 allocation must, within seven days of the withholding or stopping of an allocation in terms of section 17 or 18, submit an amended payment schedule to the National Treasury for approval.

(b) No transfers may be made until the National Treasury has approved the amended payment schedule.
(2) For purposes of— (a) better management of debt and cash-ﬂow; or (b) addressing ﬁnancial mismanagement, ﬁnancial misconduct or slow or accelerated expenditure, the National Treasury may amend any payment schedule for an allocation listed in Schedule 2, 4 or 5, after notifying, in the case of— (i) an allocation to a province, its provincial treasury; (ii) an allocation to a municipality, the national department responsible for local government; and (iii) a Schedule 4 or 5 allocation, the relevant transferring officer.
(3) The amendment of a payment schedule in terms of subsection (1) or (2) must take into account— (a) (b) (c) the monthly expenditure commitments of provinces or municipalities; the revenue at the disposal of provinces or municipalities; and the minimisation of risk and debt servicing costs for all three spheres of government.

(4) The transferring officer must immediately inform the receiving officer of any amendment to a payment schedule in terms of subsection (1) or (2).
Transfers made in error or fraudulently 24 24.

(1) Despite any other legislation to the contrary, the transfer of an allocation that is an overpayment to a province, municipality or public entity, made in error or fraudulently, is regarded as not legally due to that province, municipality or public entity, as the case may be.
(2) The responsible transferring officer must, without delay, recover an overpayment referred to in subsection (1), unless an instruction has been issued in terms of subsection (3).

(3) The National Treasury may instruct that the recovery referred to in subsection (2) be set off against future transfers to the affected province, municipality or public entity in terms of a payment schedule.

New allocations during ﬁnancial year and Schedule 7 allocations 25.
(1) If further allocations are made to provinces or municipalities, as envisaged in section 6(3), the National Treasury must, before the transfer of any funds to a province or municipality, by notice in the Gazette and as applicable— (a) amend any allocation or framework published in terms of section 15; (b) publish the allocation per municipality for any new Part B of Schedule 5 allocation or the indicative allocation per municipality for any new Part B of Schedule 6 allocation; or (c) publish a framework for any new Schedule 4, 5, 6 or 7 allocation.
(2) Section 15(2) to (5) applies, with the necessary changes, to allocations and frameworks published in terms of subsection (1).

(3) (a) The transferring officer may, with the approval of the National Treasury, make one or more transfers of a Schedule 7 allocation to a province or municipality for a classiﬁed disaster, within 100 days after the date of the disaster.
(b) The transferring officer must notify, in writing, the relevant provincial treasury and the National Treasury within ﬁve days of a transfer of a Schedule 7 allocation to a province or municipality.

(c) The National Treasury must, within 21 days after the end of the 100-day period envisaged in paragraph (a), by notice in the Gazette, publish all transfers of a Schedule 7 allocation made for a classiﬁed disaster.
(d) Despite any other legislation to the contrary, the National Treasury may approve that funds allocated in Schedule 7 be used at any time.

(e) The funds approved in terms of paragraph (d) must be included either in the provincial adjustments appropriation legislation, municipal adjustments budgets or other appropriation legislation.

Preparations for 2024/25 ﬁnancial year and 2025/26 ﬁnancial year 26.
(1) (a) A category C municipality that receives a conditional allocation in terms of this Act must, using the indicative conditional allocations to that municipality for the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year as set out in Column B of the Schedules to this Act, by 15 September 2023— (i) (ii) agree with each category B municipality within the category C municipality’s area of jurisdiction on the provisional allocations and the projects to be funded from those allocations in the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year; and submit to the transferring officer— (aa) the provisional allocations referred to in subparagraph (i); and (bb) the projects referred to in subparagraph (i), listed per municipality.
(b) If a category C municipality and a category B municipality cannot agree on the allocations and projects referred to in paragraph (a), the category C municipality must request the relevant transferring officer to facilitate agreement.

(c) The transferring officer must take all necessary steps to facilitate agreement as soon as possible, but no later than 60 days after receiving a request referred to in paragraph (b).
(d) Any proposed amendment or adjustment of the allocations that is intended to be published in terms of section 29(3)(b) must be agreed with the relevant category B municipality, the transferring officer and the National Treasury, before publication and the submission of the allocations referred to in paragraph (a)(ii).
25 (e) If agreement is not reached between the category C municipality and the category B municipality on the provisional allocations and projects referred to in paragraph (a) before 2 October 2023, the National Treasury, after consultation with the relevant provincial treasury, must determine the provisional allocations and provide those provisional allocations to the affected municipalities and the transferring officer.
(f)(i) The transferring officer must submit the ﬁnal allocations, based on the provisional allocations referred to in paragraphs (a)(i) and (ii) and (e), to the National Treasury by 1 December 2023.

(ii) If the transferring officer fails to submit the allocations referred to in subparagraph the National Treasury may determine the appropriate (i) by 1 December 2023, allocations, taking into consideration the indicative allocations for the 2024/25 ﬁnancial year.
(2) (a) The transferring officer of a conditional allocation, using the indicative conditional allocations for the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, as set out in Column B of the affected Schedules to this Act, must, by 2 October 2023, submit to the National Treasury— (i) (ii) (iv) (iii) the provisional allocations to each province or municipality in respect of new conditional allocations to be made in the 2024/25 ﬁnancial year; any amendments to the indicative allocations for each province or municipality set out in Column B of the affected Schedules in respect of existing conditional allocations; the draft frameworks for the allocations referred to in subparagraphs (i) and (ii); and electronic copies of any guidelines, business plan templates and other documents referred to in the draft frameworks referred to in subparagraph (iii).
(b) A transferring officer must consult the accounting officer of a national or provincial department, other than the transferring or receiving officer, on a duty in the draft framework before submission to the National Treasury in terms of paragraph (a).
(c) When a document referred to in a draft framework that is submitted in terms of paragraph (a)(iii) is amended, the transferring officer must immediately provide the National Treasury and each receiving officer with electronic copies of the revised document.

(d) The National Treasury must approve any proposed amendment or adjustment for the 2024/25 ﬁnancial year of the allocation criteria of an existing conditional allocation before the submission of the provisional allocations and draft frameworks.
(e) The transferring officer must, under his or her signature, submit to the National Treasury, by 1 December 2023, the ﬁnal allocations and frameworks based on the provisional allocations and frameworks.

(f) If the transferring officer fails to comply with paragraph (a) or (e), the National Treasury may determine the appropriate draft or ﬁnal allocations and frameworks, taking into consideration the indicative allocations for the 2024/25 ﬁnancial year.
(g) (i) The National Treasury may amend ﬁnal allocations and frameworks in order to ensure equitable and stable allocations and fair and consistent conditions.

(ii) The National Treasury must give notice, in writing, to the transferring officer of the intention to amend allocations and frameworks and invite the transferring officer to submit written comments within seven days after the date of the notiﬁcation.
(h) The draft and ﬁnal allocations and frameworks must be submitted in the format determined by the National Treasury.

(3) The National Treasury may instruct transferring officers, accounting officers of the provincial treasuries and receiving officers to submit to it such plans and information for any conditional allocation, as it may determine, at speciﬁed dates before the start of the 2024/25 ﬁnancial year.
(4) (a) For purposes of the Education Infrastructure Grant or Health Facility Revitalisation Grant in the 2024/25 ﬁnancial year, the receiving officer of the relevant provincial department must, in the format and on the date determined by the National Treasury, submit to the transferring officer, the relevant provincial treasury and the National Treasury— (i) (ii) an infrastructure asset management plan for all infrastructure programmes for a period of at least 10 years; an infrastructure programme management plan, including an infrastructure procurement strategy for infrastructure programmes and projects envisaged to commence within the period for the medium-term expenditure framework; and 26 (iii) a document that outlines how the infrastructure delivery management system must be implemented in the province and is approved by the Executive Council of the province before or after the commencement of this Act.
(b) The receiving officer of the relevant provincial department must review the document, referred to in paragraph (a)(iii), and if any substantive change is made to the document during the 2023/24 ﬁnancial year, the amended document must be approved by the Executive Council of the province before submission to the National Treasury within 14 days after such approval.
(5) (a) Any category B municipality may apply to qualify for the Integrated Urban Development Grant, referred to in Part B of Schedule 5, by submitting an application to the Department of Cooperative Governance by 28 July 2023.

(b) The Department of Cooperative Governance must determine the form of the application, including the minimum qualifying conditions.
(c) The Department of Cooperative Governance must submit, by 2 October 2023, to the National Treasury for comment, a list of any proposed additional qualifying municipalities and any municipalities that have failed to meet the qualifying conditions to continue to qualify for approval.
(d) A municipality that is informed by the Department of Cooperative Governance that it will qualify for the Integrated Urban Development Grant, must submit to the Department of Cooperative Governance— (i) by 28 March 2024, a ﬁrst draft of its three-year capital programme and the 10-year Capital Expenditure Framework; and (ii) by 31 May 2024, the ﬁnal versions of its three-year capital programme and the 10-year Capital Expenditure Framework, which must be evaluated by the Department of Cooperative Governance after consultation with relevant stakeholders.
(6) (a) A provincial treasury must, in respect of the 2024/25 ﬁnancial year— (i) on the same date that its budget for the 2024/25 ﬁnancial year is tabled in the provincial legislature; or (ii) on a date not later than 14 June 2024 approved by the National Treasury, 30 publish a notice in the Gazette containing the information set out in section 29(2)(a).

(b) This subsection continues in force until 14 June 2024.
Transfers before commencement of Division of Revenue Act for 2024/25 ﬁnancial year 27.
(1) Despite the Division of Revenue Act for the 2024/25 ﬁnancial year not having commenced on 1 April 2024, the National Treasury may determine that an amount, not exceeding 45 per cent of the total amount of each— 35 (a) equitable share in terms of section 4(1), be transferred to the relevant province; (b) equitable share in terms of section 5(1), be transferred to the relevant 40 (c) municipality; allocation made in terms of section 7(1) or 8(1), as the case may be, be transferred to the relevant province or municipality.
(2) An amount transferred in terms of subsection (1)(c) is, with the necessary changes, subject to the applicable framework for the 2023/24 ﬁnancial year and the other requirements of this Act, as if it is an amount of an allocation for the 2023/24 ﬁnancial year.

45 DUTIES AND POWERS OF MUNICIPALITIES, PROVINCIAL TREASURIES AND NATIONAL TREASURY 50 CHAPTER 5 Duties of municipalities 28.
(1) (a) In addition to the requirements of the Municipal Finance Management Act, the accounting officer of a category C municipality must, within 10 days after this Act takes effect, submit to the National Treasury, the relevant provincial treasury and all category B municipalities within that municipality’s area of jurisdiction, the budget, as tabled in accordance with section 16 of the Municipal Finance Management Act, for the 2023/24 ﬁnancial year, the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year, except if submitted in terms of any other legislation before the end of the 10-day period.
55 27 (b) The budget must indicate all allocations from its equitable share and conditional allocations to be transferred to each category B municipality within the category C municipality’s area of jurisdiction and disclose the criteria for allocating funds between the category B municipalities.
(2) A category C municipality that is providing a municipal service must, before implementing any capital project for water, electricity, roads or any other municipal service, consult the category B municipalities within whose area of jurisdiction the project must be implemented, and agree, in writing, which municipality is responsible for the operational and maintenance costs and the collection of user fees.
(3) A category C municipality must ensure that it does not duplicate a function currently performed by a category B municipality and must transfer funds for the provision of services, including basic services, to the relevant category B municipality that is providing municipal services, despite — 5 10 (a) the category C municipality retaining the function in terms of the Municipal Structures Act; and 15 (b) a service delivery agreement for the provision of services by the category B municipality on behalf of the category C municipality not being concluded.
(4) A category B municipality which is not authorised to perform a function in terms of the Municipal Structures Act may not extend the scope or type of services that it currently provides, without— (a) entering into a service delivery agreement with the category C municipality which is authorised to perform the function in terms of the Municipal Structures Act; or (b) obtaining authorisation to perform the function in terms of the Municipal Structures Act.
(5) (a) A category C municipality and a category B municipality must, before the commencement of a ﬁnancial year, agree to a payment schedule in respect of the allocations, referred to in subsection (1)(b), to be transferred to the category B municipality in that ﬁnancial year, and the category C municipality must submit the payment schedule to the National Treasury before the commencement of the ﬁnancial year.
(b) A category C municipality must make transfers in accordance with the payment schedule submitted in terms of paragraph (a).
(6) (a) The National Treasury may withhold or stop any allocation to the category C municipality and reallocate the allocation to the relevant category B municipalities if a category C municipality fails to— (i) make allocations referred to in subsection (1)(b); (ii) (iii) (b) The following provisions apply to the withholding or stopping of an allocation in reach an agreement envisaged in subsection (2); or submit a payment schedule in accordance with subsection (5)(a).
accordance with paragraph (a): (i) Section 216 of the Constitution; (ii) in the case of withholding an allocation, section 17(4)(a), with the necessary changes; and in the case of stopping an allocation, section 18(3)(a), (4), (5) and (6), with the necessary changes.
(iii) (c) If an allocation is stopped in terms of this subsection, the National Treasury may, after consultation with the transferring officer, determine that a portion of the allocation that will not be spent, be reallocated to one or more municipalities, on condition that the allocation must be spent by the end of the 2023/24 ﬁnancial year.
(7) A municipality must ensure that any allocation made to it in terms of this Act, or by a province or another municipality, which is not reﬂected in its budget as tabled in accordance with section 16 of the Municipal Finance Management Act, is reﬂected in its budget to be considered for approval in accordance with section 24 of the Municipal Finance Management Act.

Duties and powers of provincial treasuries 29.


(1) A provincial treasury must reﬂect allocations listed in Part A of Schedule 5 to the province separately in the appropriation Bill of the province.
(2) (a) A provincial treasury must not later than seven working days after this Act takes effect, publish by notice in the Gazette— 20 25 30 35 40 45 50 55 60 28 (i) (ii) (iii) (iv) (v) the indicative allocation per municipality for every allocation to be made by the province to municipalities from the province’s own funds and from conditional allocations to the province; the indicative allocation to be made per school and per hospital in the province in the format determined by the National Treasury; the indicative allocation to any national or provincial public entity for the implementation of a programme funded by an allocation in Part A of Schedule 5 on behalf of a province or for assistance provided to the province in implementing the programme; the envisaged division of the allocation envisaged in subparagraphs (i) and (ii), in respect of each municipality, school and hospital, for the 2024/25 ﬁnancial year and the 2025/26 ﬁnancial year; and the conditions and other information in respect of the allocations, referred to in subparagraphs (i), (ii) and (iii), to facilitate performance measurement and the use of required inputs and outputs.
(b) The allocations referred to in paragraph (a) must be regarded as ﬁnal when the provincial appropriation Act takes effect or, if published on a later date, on the date of publication of the notice.

(c) If the provincial legislature amends its appropriation Bill, the provincial treasury must publish amended allocations and budgets, by notice in the Gazette, within 14 working days after the appropriation Act takes effect, and those allocations and budget must be regarded as ﬁnal.
(d) Allocations to municipalities in terms of subsection (2)(a) must be consistent with the terms of any agreement concluded between the province and a municipality.

(3) (a) Despite subsection (2) or any other legislation, a provincial treasury may, in accordance with a framework determined by the National Treasury, amend the allocations referred to in subsection (2) or make additional allocations to municipalities that were not published in terms of subsection (2).
(b) Any amendments to the allocations published in terms of subsection (2)(a) or (c) must be published, by notice in the Gazette, not later than 2 February 2024 or such later date as approved by the National Treasury and takes effect on the date of publication.
(4) A provincial treasury must, as part of its report in terms of section 40(4)(b) and (c) of the Public Finance Management Act, in the format determined by the National Treasury, report on— (a) actual transfers received by the province from national departments and actual expenditure on such transfers, excluding Schedule 4 allocations, up to the end of that month; and (b) actual transfers made by the province to municipalities and public entities and actual expenditure by municipalities and public entities on such transfers, based on the latest information available from municipalities and public entities at the time of reporting.
(5) (a) A provincial treasury must— (i) ensure that a payment schedule, or any amendment thereof, is agreed between each provincial department and receiving institution envisaged in subsection (2)(a); ensure that transfers are made promptly to the relevant receiving officer in terms of the agreed payment schedule; and submit the payment schedules to the National Treasury within 14 days after this Act takes effect and any amended payment schedule, agreed to, within 14 days of it being agreed to.
(ii) (iii) (b) If a provincial department and receiving institution do not agree to a payment schedule in time for submission to the National Treasury, the provincial treasury must, after consultation with the transferring officer, determine the payment schedule.
(6) If a provincial treasury fails to make a transfer in terms of subsection (5)(a), the relevant receiving officer may request the provincial treasury to immediately make the transfer or to provide written reasons, within three working days, as to why the transfer has not been made.
(7) If a provincial treasury fails to make the transfer requested by the receiving officer or provide reasons in terms of subsection (6), or the receiving officer disputes the reasons provided by the provincial treasury as to why the transfer has not been made, the receiving officer may request the National Treasury to investigate the matter.
29 (8) On receipt of a request in terms of subsection (7), the National Treasury must— (a) consult the transferring officer on the matter; (b) investigate the matter, assess any reasons given by the provincial treasury as to why the transfer was not made; (c) direct the provincial treasury to immediately effect the transfer or provide reasons to the receiving officer, conﬁrming why the provincial treasury was correct in not making the transfer; and (d) advise the provincial treasury and the receiving officer as to what steps must be taken to ensure the transfer.
Duties and powers of National Treasury 30.

(1) The National Treasury must, within 14 days after this Act takes effect, submit a notice to all transferring officers containing the details of the primary bank accounts of each province and municipality.

(2) The National Treasury must, together with the statement envisaged in section 32(2) of the Public Finance Management Act, publish a report on actual transfers of all allocations listed in Schedules 4, 5, 6 and 7 or made in terms of section 25.
(3) The National Treasury may include in a report on the equitable share and conditional allocations in terms of this Act, any report it publishes— (a) (b) that aggregates statements published by provincial treasuries envisaged in section 71(7) of the Municipal Finance Management Act; and in respect of municipal ﬁnances.

5 10 15 20 CHAPTER 6 GENERAL Liability for costs incurred in violation of principles of cooperative governance and intergovernmental relations 25 31.
(1) An organ of state involved in an intergovernmental dispute regarding any provision of this Act or any division of revenue matter or allocation must— (a) comply with section 41 of the Constitution and Chapter 4 of the Intergovern- (b) mental Relations Framework Act, 2005 (Act No.
13 of 2005); and if it decides to institute judicial proceedings against another organ of state, within 10 working days of its decision, notify the National Treasury, the relevant provincial treasury, the Department of Cooperative Governance and the Auditor-General, of the details of compliance with Chapter 4 of the Intergovernmental Relations Framework Act, 2005, including an explanation of the failure to resolve the dispute.
(2) If a dispute is referred back by a court in terms of section 41(4) of the Constitution, due to the court not being satisﬁed that the organ of state approaching the court has complied with section 41(3) of the Constitution, the expenditure incurred by that organ of state in approaching the court must be regarded as fruitless and wasteful.
(3) The amount of any such fruitless and wasteful expenditure must, in terms of the applicable procedures in the Public Finance Management Act or the Municipal Finance Management Act, be recovered, without delay, from every person who caused the organ of state not to comply with section 41(3) of the Constitution.

Irregular expenditure 32.


Expenditure of an allocation in Part B of Schedule 4 or Part B of Schedule 5 contrary to this Act is irregular expenditure and must be dealt with in terms of the Municipal Finance Management Act, except if it is unauthorised expenditure in terms of the Municipal Finance Management Act.

30 35 40 45 Financial misconduct 33.

(1) Despite any other legislation to the contrary, any wilful or negligent 50 non-compliance with a provision of this Act constitutes ﬁnancial misconduct.
(2) Section 84 of the Public Finance Management Act or section 171 of the Municipal Finance Management Act, as the case may be, applies in respect of ﬁnancial misconduct envisaged in subsection (1).

Delegations and assignments 30 34.

(1) The Minister may, in writing, delegate any of the powers entrusted to, and assign any of the duties imposed on, the National Treasury in terms of this Act, to an official of the National Treasury.
(2) A delegation or assignment in terms of subsection (1) to an official of the National 5 Treasury— (a) is subject to any limitations or conditions that the Minister may impose; (b) may authorise that official to sub-delegate, in writing, the delegated power or assigned duty, to any other official of the National Treasury; and (c) does not divest the National Treasury of the responsibility concerning the exercise of the delegated power or the performance of the assigned duty.
10 (3) The Minister may vary or revoke any decision taken by an official as a result of a delegation or assignment, subject to any rights that may have vested as a consequence of the decision.

(4) A Member of the Executive Council responsible for ﬁnance in a province may, in writing, delegate any power entrusted to, and assign any duty imposed on, the provincial treasury in terms of this Act, to an official of the provincial treasury.
(5) (a) A transferring officer may, in writing, delegate any power entrusted to, and assign any duty imposed on, the transferring officer in terms of this Act, to an official in his or her department.

(b) A copy of the written delegation must be submitted to the National Treasury.

(6) Subsections (2) and (3) apply, with the necessary changes, to a delegation or assignment in terms of subsection (4) or (5).

Departures 35.
Departures 35.

(1) The Minister may, if good grounds exist, approve a departure from a provision of a framework, a regulation made under section 36 or a condition imposed in terms of this Act.
(2) For purposes of subsection (1), good grounds include the fact that the provision of the framework, regulation or condition— (a) cannot be implemented in practice; (b) (c) (d) undermines the ﬁnancial viability of the affected national department, impedes the achievement of any object of this Act; impedes an immediate response to a classiﬁed disaster; or provincial department or municipality.
15 20 25 30 (3) Any departure approved in terms of subsection (1) must set out the period and 35 conditions of the departure, if any, and must be published, by notice in the Gazette.

Regulations 36.

The Minister may, by notice in the Gazette, make regulations regarding— (a) any matter which must or may be prescribed in terms of this Act; or (b) any ancillary or incidental administrative or procedural matter that is necessary to prescribe for the proper implementation or administration of this Act.
Repeal of laws and savings 37.

(1) Subject to subsection (2)— (a) (b) (c) the Division of Revenue Act, 2022 (Act No.

5 of 2022), except sections 15 and 25, is hereby repealed; sections 15 and 25 of the Division of Revenue Act, 2022, are hereby repealed with effect from 1 July 2023 or the date that this Act takes effect, whichever is the later date; the Division of Revenue Amendment Act, 2022 (Act No.

15 of 2022), is hereby repealed.


40 45 50 (2) Any repeal referred to in subsection (1) does not affect— (a) any duty to be performed in terms of any provision of an Act, referred to in subsection (1), after the end of the 2023/24 ﬁnancial year; and (b) any obligation in terms of any provision of an Act, referred to in subsection 55 (1), the execution of which is outstanding.
31 (3) Any framework published in terms of section 15 of the Division of Revenue Act, 2022, as amended in terms of section 15 or 25 of that Act, applies to funds of a conditional allocation approved for roll-over in terms of section 21(2) of that Act if that conditional allocation does not continue to exist in terms of this Act.

Short title and commencement 5 38.


This Act is called the Division of Revenue Act, 2023, and takes effect on 1 April 2023 or the date of publication in the Gazette, whichever is the later date.
32 SCHEDULE 1 EQUITABLE DIVISION OF REVENUE RAISED NATIONALLY AMONG THE THREE SPHERES OF GOVERNMENT Spheres of Government National1,2 Provincial Local TOTAL Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' 1.
National share includes conditional allocations to provincial and local spheres, general fuel 1. levy sharing with metropolitan municipalities, debt-service costs, the contingency reserve 1. and provisional allocations 2.
The direct charges for the provincial equitable share are netted out SCHEDULE 2 DETERMINATION OF EACH PROVINCE'S EQUITABLE SHARE OF THE PROVINCIAL SPHERE'S SHARE OF REVENUE RAISED NATIONALLY (as a direct charge against the National Revenue Fund) Province Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape TOTAL Column A Column B 2023/24 R'000 73 291 569 31 379 647 120 752 475 115 947 671 65 349 432 46 674 214 15 150 291 40 096 285 58 886 129 Forward Estimates 2024/25 2025/26 R'000 76 021 540 32 369 234 125 437 722 118 858 268 67 973 726 48 436 625 15 717 510 41 764 581 60 920 492 R' SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality EASTERN CAPE A A Buffalo City BUF NMA Nelson Mandela Bay EC101 Dr Beyers Naude EC102 Blue Crane Route EC104 Makana EC105 Ndlambe EC106 EC108 Kouga EC109 Kou-Kamma DC10 B B B B B B B C Total: Sarah Baartman Municipalities Sundays River Valley Sarah Baartman District Municipality EC121 Mbhashe EC122 Mnquma EC123 Great Kei EC124 Amahlathi EC126 Ngqushwa EC129 Raymond Mhlaba DC12 Amathole District Municipality B B B B B B C Total: Amathole Municipalities Inxuba Yethemba Intsika Yethu EC131 EC135 EC136 Emalahleni EC137 Dr. A.B.
Xuma EC138 EC139 Enoch Mgijima DC13 B B B B B B C Total: Chris Hani Municipalities Sakhisizwe Chris Hani District Municipality EC141 Elundini EC142 Senqu EC145 Walter Sisulu DC14 B B B C Total: Joe Gqabi Municipalities Joe Gqabi District Municipality EC153 Ngquza Hill EC154 Port St Johns EC155 Nyandeni EC156 Mhlontlo EC157 King Sabata Dalindyebo DC15 O.R.

Tambo District Municipality B B B B B C Total: O.R.
Tambo Municipalities EC441 Matatiele EC442 Umzimvubu EC443 Winnie Madikizela-Mandela EC444 Ntabankulu DC44 Alfred Nzo District Municipality B B B B C Total: Alfred Nzo Municipalities National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' Total: Eastern Cape Municipalities 12 544 801 13 358 282 13 660 460 34 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF
 THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality FREE STATE National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R'000 A MAN Mangaung 1 037 664 1 133 782 1 248 048 FS161 Letsemeng FS162 Kopanong FS163 Mohokare DC16 Xhariep District Municipality B B B C Total: Xhariep Municipalities FS181 Masilonyana Tokologo FS182 FS183 Tswelopele FS184 Matjhabeng FS185 Nala DC18 B B B B B C Total: Lejweleputswa Municipalities Lejweleputswa
 District Municipality Setsoto FS191 FS192 Dihlabeng FS193 Nketoana FS194 Maluti-a-Phofung FS195 Phumelela FS196 Mantsopa DC19 B B B B B B C Total: Thabo Mofutsanyana Municipalities Thabo Mofutsanyana District Municipality FS201 Moqhaka FS203 Ngwathe FS204 Metsimaholo FS205 Mafube DC20 B B B B C Total: Fezile Dabi Municipalities Fezile Dabi District Municipality Total: Free State Municipalities 5 576 371 6 003 852 6 311 233 35 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality GAUTENG A A A EKU JHB TSH City of Ekurhuleni City of Johannesburg City of Tshwane GT421 Emfuleni GT422 Midvaal GT423 Lesedi DC42 B B B C Total: Sedibeng Municipalities Sedibeng District Municipality GT481 Mogale City GT484 Merafong City GT485 Rand West City DC48 West Rand
 District Municipality B B B C Total: West Rand Municipalities National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' 343
041 014 743 342 337 912 522 030 260 059 1 863 343 Total: Gauteng Municipalities 19 497 785 21 582 738 23 998 628 36 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality KWAZULU-NATAL A ETH eThekwini KZN212 uMdoni KZN213 uMzumbe KZN214 uMuziwabantu KZN216 Ray Nkonyeni B B B B C Total: Ugu Municipalities DC21 Ugu District Municipality KZN221 uMshwathi KZN222 uMngeni KZN223 Mpofana KZN224 iMpendle KZN225 Msunduzi KZN226 Mkhambathini KZN227 Richmond B B B B B B B C Total: uMgungundlovu Municipalities DC22 uMgungundlovu District Municipality KZN235 Okhahlamba KZN237 iNkosi Langalibalele KZN238 Alfred Duma B B B C Total: uThukela Municipalities DC23 uThukela District Municipality KZN241 eNdumeni KZN242 Nquthu KZN244 uMsinga KZN245 uMvoti B B B B C Total: uMzinyathi Municipalities DC24 uMzinyathi District Municipality KZN252 Newcastle KZN253 eMadlangeni KZN254 Dannhauser B B B C Total: Amajuba Municipalities DC25 Amajuba District Municipality National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' 763
SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE
 RAISED NATIONALLY Number Municipality KZN261 eDumbe KZN262 uPhongolo KZN263 AbaQulusi KZN265 Nongoma KZN266 Ulundi B B B B B C Total: Zululand Municipalities DC26 Zululand District Municipality KZN271 uMhlabuyalingana KZN272 Jozini KZN275 Mtubatuba KZN276 Big Five Hlabisa B B B B C Total: uMkhanyakude Municipalities DC27 uMkhanyakude District Municipality KZN281 uMfolozi KZN282 uMhlathuze KZN284 uMlalazi KZN285 Mthonjaneni KZN286 Nkandla B B B B B C Total: King Cetshwayo Municipalities DC28 King Cetshwayo District Municipality KZN291 Mandeni KZN292 KwaDukuza KZN293 Ndwedwe KZN294 Maphumulo B B B B C Total: iLembe Municipalities DC29 iLembe District Municipality KZN433 Greater Kokstad KZN434 uBuhlebezwe KZN435 uMzimkhulu KZN436 Dr Nkosazana Dlamini Zuma B B B B C Total: Harry Gwala Municipalities DC43 Harry Gwala District Municipality National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' 552
Total: KwaZulu-Natal Municipalities 18 587 693 20 045 910 20 959 437 38 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality LIMPOPO LIM331 Greater Giyani
 LIM332 Greater Letaba LIM333 Greater Tzaneen LIM334 Ba-Phalaborwa LIM335 Maruleng DC33 Mopani District Municipality B B B B B C Total: Mopani Municipalities LIM341 Musina LIM343 Thulamela LIM344 Makhado LIM345 Collins Chabane DC34 Vhembe District Municipality B B B B C Total: Vhembe Municipalities LIM351 Blouberg LIM353 Molemole LIM354 Polokwane LIM355 Lepele-Nkumpi DC35 B B B B C Total: Capricorn Municipalities Capricorn District Municipality LIM361 Thabazimbi LIM362 Lephalale LIM366 Bela-Bela LIM367 Mogalakwena LIM368 Modimolle-Mookgophong DC36 Waterberg District Municipality B B B B B C Total: Waterberg Municipalities LIM471 Ephraim Mogale LIM472 Elias Motsoaledi LIM473 Makhuduthamaga LIM476 Fetakgomo Tubatse DC47 B B B B C Total: Sekhukhune Municipalities Sekhukhune District Municipality National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' 455
Total: Limpopo Municipalities 12 800 618 13 773 722 14 158 645 39 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality MPUMALANGA MP301 Chief Albert Luthuli MP302
 Msukaligwa MP303 Mkhondo MP304 Dr Pixley ka Isaka Seme MP305 Lekwa MP306 Dipaleseng MP307 Govan Mbeki DC30 Gert Sibande District Municipality B B B B B B B C Total: Gert Sibande Municipalities MP311 Victor Khanye MP312 Emalahleni MP313 Steve Tshwete MP314 Emakhazeni MP315 Thembisile Hani MP316 Dr JS Moroka DC31 Nkangala District Municipality B B B B B B C Total: Nkangala Municipalities MP321 Thaba Chweu MP324 Nkomazi MP325 Bushbuckridge MP326 City of Mbombela DC32 B B B B C Total: Ehlanzeni Municipalities Ehlanzeni District Municipality National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' Total: Mpumalanga Municipalities 8 141 511 8 823 737 9 314 333 40 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality NORTHERN CAPE NC061 Richtersveld NC062 Nama Khoi
 NC064 Kamiesberg NC065 Hantam NC066 Karoo Hoogland NC067 Khâi-Ma B B B B B B C Total: Namakwa Municipalities DC6 Namakwa District Municipality NC071 Ubuntu NC072 Umsobomvu NC073 Emthanjeni NC074 Kareeberg NC075 Renosterberg NC076 Thembelihle NC077 Siyathemba NC078 Siyancuma B B B B B B B B C Total: Pixley Ka Seme Municipalities DC7 Pixley Ka Seme District Municipality !Kai !Garib !Kheis NC082 NC084 NC085 Tsantsabane NC086 Kgatelopele NC087 Dawid Kruiper B B B B B C Total: Z.F.
Mgcawu Municipalities DC8 Z.F.
Mgcawu District Municipality NC091 Sol Plaatjie NC092 Dikgatlong NC093 Magareng NC094 Phokwane B B B B C Total: Frances Baard Municipalities DC9 Frances Baard District Municipality NC451 Joe Morolong NC452 Ga-Segonyana NC453 Gamagara DC45 B B B C Total: John Taolo Gaetsewe Municipalities John Taolo Gaetsewe District Municipality National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' Total: Northern Cape Municipalities 2 458 646 2 637 090 2 741 694 41 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality NORTH WEST NW371 Moretele NW372 Madibeng NW373 Rustenburg NW374 Kgetlengrivier NW375
 Moses Kotane DC37 B B B B B C Total: Bojanala Platinum Municipalities Bojanala Platinum District Municipality NW381 Ratlou NW382 Tswaing NW383 Mafikeng NW384 Ditsobotla NW385 Ramotshere Moiloa DC38 Ngaka Modiri Molema District Municipality B B B B B C Total: Ngaka Modiri Molema Municipalities NW392 Naledi NW393 Mamusa NW394 Greater Taung NW396 Lekwa-Teemane NW397 Kagisano-Molopo DC39 Dr Ruth Segomotsi Mompati District Municipality B B B B B C Total: Dr Ruth Segomotsi Mompati Municipalities NW403 City of
 Matlosana NW404 Maquassi Hills NW405 JB Marks DC40 Dr Kenneth Kaunda District Municipality B B B C Total: Dr Kenneth Kaunda Municipalities National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R' Total: North West Municipalities 8 237 443 8 928 461 9 420 025 42 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Number Municipality WESTERN CAPE National Financial Year Column A Column B 2023/24 R'000 Forward Estimates 2024/25 R'000 2025/26 R'000 A CPT City of Cape Town 4 066 769 4 475 653 4 953 531 WC011 Matzikama WC012 Cederberg WC013 Bergrivier WC014 Saldanha Bay WC015 Swartland B B B B B C Total: West Coast Municipalities DC1 West Coast District Municipality WC022 Witzenberg WC023 Drakenstein
 WC024 Stellenbosch WC025 Breede Valley WC026 Langeberg B B B B B C Total: Cape Winelands Municipalities DC2 Cape Winelands District Municipality WC031 Theewaterskloof WC032 Overstrand WC033 Cape Agulhas WC034 Swellendam B B B B C Total: Overberg Municipalities DC3 Overberg District Municipality WC041 Kannaland WC042 Hessequa WC043 Mossel Bay WC044 George WC045 Oudtshoorn WC047 Bitou WC048 Knysna B B B B B B B C Total: Garden Route Municipalities DC4 Garden Route District Municipality WC051 Laingsburg WC052
 Prince Albert WC053 Beaufort West B B B C Total: Central Karoo Municipalities DC5 Central Karoo District Municipality Total: Western Cape Municipalities 7 343 873 8 034 242 8 803 609 Unallocated National Total 1 357 517 584 001 - 96 546 258 103 772 035 109 368 064 43 / 5 2 0 2 0 0 0 ' R 5 2 / 4 2 0 2 0 0 0 ' 1
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t c A t n e m e g a n a M r e t s a s i D e h t f o ) b ( ) 1 ( ) 3 e t o V ( 55 MEMORANDUM ON THE OBJECTS OF THE DIVISION OF REVENUE BILL, 2023 1.
BACKGROUND 1.1 Section 214(1) of the Constitution of the Republic of South Africa, 1996 (‘‘the Constitution’’), requires that an Act of Parliament must provide for— (a) the equitable division of revenue raised nationally among the national, provincial and local spheres of government; the determination of each province’s equitable share of the provincial share of that revenue; and any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and for any conditions on which those allocations may be made.
(b) (c) 1.2 Section 10 of the Intergovernmental Fiscal Relations Act, 1997 (Act No.

97 of 1997) (‘‘Intergovernmental Fiscal Relations Act’’), requires that, as part of the process of the enactment of the Act of Parliament referred to in paragraph 1.1, each year when the annual budget is introduced, the Minister of Finance must introduce in the National Assembly a Division of Revenue Bill (‘‘the Bill’’) for the ﬁnancial year to which that budget relates.
1.3 The Intergovernmental Fiscal Relations Act, requires that the Bill be accompanied by a memorandum explaining— (a) how the Bill takes account of each of the matters listed in section (b) (c) 214(2)(a) to (j) of the Constitution; the extent to which account was taken of any recommendations of the Financial and Fiscal Commission (‘‘the FFC’’) that were submitted to the Minister of Finance or were raised during consultations with the FFC; and any assumptions or formulae used in arriving at the respective shares of the three spheres of government and the division of the provincial share between the nine provinces.
1.4 In terms of section 7(4) of the Money Bills and Related Matters Act, 2009 (Act No.
9 of 2009) (‘‘Money Bills and Related Matters Act’’), when tabling the budget, a report must also be tabled that responds to the recommendations made in the reports by the Parliamentary Committees on Finance on the proposed ﬁscal framework in the Medium Term Budget Policy Statement and the reports by the Committees on Appropriations regarding the proposed division of revenue and the conditional grant allocations to provinces and local government as contained in the Medium Term Budget Policy Statement.
The report must explain how the Bill and the national budget give effect to, or the reasons for not taking into account, the recommendations contained in the Committee reports.

1.5 The memorandum referred to in paragraph 1.3 is attached to this Memoran- dum and will also be attached as ‘‘Annexure W1’’ to the Budget Review, and the report referred to in paragraph 1.4 will be tabled with the budget.
1.6 The Bill is introduced in compliance with the Constitution, the Intergovern- mental Fiscal Relations Act, and the Money Bills and Related Matters Act, as set out in paragraphs 1.1 to 1.4.
1.7 The allocations contemplated in section 214(1) of the Constitution are set out in the following Schedules to the Bill: Schedule 1 contains the equitable shares of the three spheres of govern- ment; Schedule 2 sets out provincial equitable share allocations; 56 Schedule 3 sets out local government equitable share allocations per municipality; Schedules 4 to 7 deal with grant allocations for provinces and municipali- ties, including allocations to supplement funding of functions funded from provincial and municipal budgets, speciﬁc purpose allocations, allocations- in-kind (indirect transfers to provinces and local government) and the release of funds to provinces and municipalities for immediate response to a disaster.
2.
SUMMARY OF BILL The following is a brief summary of the Bill: Clause 1 contains deﬁnitions; Clause 2 sets out the objects of the Bill, which are to provide for the equitable division of revenue raised nationally among the three spheres of government and to promote predictability and certainty in respect of allocations to provinces and municipalities as well as transparency and accountability in the resource allocation process; Clause 3 provides for the equitable division of anticipated revenue raised nationally among the national, provincial and local spheres of government, which is set out in Schedule 1; Clause 4 provides for each province’s equitable share, which is set out Schedule 2, and that it must be transferred in terms of a payment schedule; in Clause 5 provides for each municipality’s equitable share of revenue, which is set out in Schedule 3 and that it must be transferred on dates speciﬁed in clause 5 in amounts as determined in terms of clause 22(2); Clause 6 determines what must happen if actual revenue raised falls short or is in excess of anticipated revenue for the ﬁnancial year, and allows for additional conditional and unconditional allocations to be made from the excess revenue as well as an increase of the equitable share of provinces or municipalities; Clause 7 provides for conditional allocations or an increase of conditional allo- cations to provinces in Part A of Schedules 4 to 7; Clause 8 provides for
 conditional allocations or an increase of conditional allo- cations to municipalities in Part B of Schedules 4 to 7; Clauses 9 and 10 set out the duties of a transferring national officer in respect of Schedules 4, 5 and 6 allocations; Clauses 11 and 12 set out the duties of a receiving officer in respect of Sched- ules 4, 5 and 7 allocations; Clause 13 sets out the additional duties of a receiving officer in respect of infra- structure conditional allocations to provinces;
 Clause 14 prescribes the duties in respect of annual ﬁnancial statements and annual reports for the 2023/24 ﬁnancial year; Clause 15 requires the publication of certain allocations and all conditional grant frameworks in the Government Gazette; Clause 16 requires that spending must only be in accordance with the purpose and subject to the conditions set out in the grant frameworks for Schedules 4 to 7 allocations, and sets out funding related arrangements if a function partially or fully funded by a conditional grant is assigned by a province to a municipality; 57 Clauses 17 and 18 provide for the withholding and stopping of allocations; Clause 19 provides for the reallocation of funds; Clause 20 provides for the possible conversion of certain allocations in order to prevent under-spending on the allocation or if the affected national or provincial department has demonstrated the capacity to implement projects; Clause 21 provides for the management of unspent conditional allocations; Clauses 22 and 23 provide for payment schedules and their amendment; Clause 24 provides for the recovery of any allocation transferred in error or fraudulently; Clause 25 provides for new allocations during a ﬁnancial year and the use of funds allocated in Schedule 7; Clause 26 provides for preparations for the 2024/25 and 2025/26 ﬁnancial years; Clause 27 deals with
 transfers before the commencement of the Division of Revenue Act for the 2024/25 ﬁnancial year and the conditions attached to such transfers; Clause 28 sets out the duties of municipalities; Clause 29 sets out the duties and powers of provincial treasuries; Clause 30 sets out the duties and powers of the National Treasury; Clauses 31 to 36 provide for general matters such as liability for costs incurred in violation of principles of cooperative governance and
 intergovernmental rela- tions, irregular expenditure, ﬁnancial misconduct, delegations and assignments, departures, and the power for the Minister of Finance to make regulations; Clause 37 provides for the repeal of laws and savings; and Clause 38 provides for the short title and commencement.
3.

ORGANISATIONS AND INSTITUTIONS CONSULTED The following institutions were consulted on the Bill: Financial and Fiscal Commission; South African Local Government Association; and National and provincial departments.

4.
4.

FINANCIAL IMPLICATIONS TO THE STATE This memorandum outlines the proposed division of revenue between the three spheres of government, and the ﬁnancial implications to government are limited to the total transfers to provinces and local government as indicated in the Schedules to the Bill.

5.

CONSTITUTIONAL IMPLICATIONS The Bill gives effect to section 214 of the Constitution.

6.

PARLIAMENTARY PROCEDURE 58 6.1 The Constitution prescribes the classiﬁcation of Bills.
Therefore, a Bill must be correctly classiﬁed otherwise it will be constitutionally out of order.

6.2 The State Law Advisers and the National Treasury have considered the Bill against the provisions of the Constitution relating to the tagging of Bills, and against the functional areas listed in Schedule 4 (functional areas of concurrent national and provincial legislative competence) and Schedule 5 legislative competence) to the (functional areas of exclusive provincial Constitution.
6.3 For the purposes of tagging, the constitutional court case of Tongoane and Others v Minister for Agriculture and Land Affairs and Others CCT 100/09 [2010] Z4CC 10, conﬁrmed the substantial measure test indicated in Ex Parte President of the Republic of South Africa: In re Constitutionality of the Liquor Bill.

The test entailed that any Bill whose provisions in substantial measure fall within a speciﬁc Schedule must be classiﬁed in terms of that Schedule.
6.4 In terms of section 76(3) of the Constitution, a Bill must be dealt with in accordance with the procedure established by either subsection (1) or subsection (2) if it falls within a functional area listed in Schedule 4 to the Constitution.
Furthermore, in terms of section 76(4)(b) of the Constitution, a Bill must be dealt with in accordance with the procedure established by section 76(1) of the Constitution, if it provides for legislation envisaged in Chapter 13 of the Constitution and includes provisions affecting the ﬁnancial interests of the provincial sphere of government.
6.5 The issue that needs to be determined is whether the proposed amendments as contained in the Bill, in substantial measure, fall within a functional area listed in Schedule 4 to the Constitution, or whether the proposed amendments fall under section 76(4)(b) of the Constitution.

6.6 The provisions of the Bill have been carefully examined, and in our view, they amount to legislation envisaged in Chapter 13 of the Constitution.
Further- more, the Bill includes provisions affecting the ﬁnancial interests of the provincial sphere of government as contemplated in section 76(4)(b) of the Constitution.

We are therefore of the opinion that the Bill must be dealt with in accordance with the procedure envisaged by section 76(1) of the Constitution.
6.7 The State Law Advisers and the National Treasury are of the opinion that it is not necessary to refer this Bill to the National House of Traditional and Khoi-San Leaders in terms of section 39(1)(a) of the Traditional and Khoi-San Leadership Act, 2019 (Act No.

3 of 2019), since it does not contain provisions pertaining to customary law or the customs of traditional communities.

59 DIVISION OF REVENUE ATTACHMENTS Page 1.


Website ‘‘Annexure W1’’ to the 2023 Budget Review: Explanatory Memorandum to the Division of Revenue ..................... 61 2.

Annexure W2: Frameworks for Conditional Grants to Provinces ..... 123 3.

Annexure W3: Frameworks for Conditional Grants to Municipalities ....................................................................................... 204 4.
Annexure W4: Speciﬁc Purpose Allocations to Municipalities (Schedule 5, Part B and Schedule 7, Part B): Current Grants ........... 255 5.

Annexure W5: Infrastructure Grant Allocations to Municipalities (Schedule 4, Part B and Schedule 5, Part B) ...................................... 262 6.

Annexure W6: Allocations-In-Kind to Municipalities (Schedule 6, Part B) ............................................................................. 275 7.
Annexure W7: Equitable Share and Total Allocations to Municipalities (Schedule 6, Part B) ............................................................................. 282 8.
Appendix W1 to Schedule 3: Equitable Share Allocations to Municipalities (Equitable Share Formula Allocations + RSC Levies Replacement + Special Support for Councillor Remuneration and Ward Committees + Breakdown of Equitable Share Allocations per Local Municipality per Service for District Municipalities Authorised for Services) ...................................................................... 289 9.
Appendix W2 to Schedule 5, Part B and Schedule 6, Part B: Municipal Infrastructure Grant and Water Services Infrastructure Grant (Breakdown of MIG And WSIG Allocations per Local Municipality for District Municipalities Authorised for Services) ..... 296 10 Appendix W3 to Schedule 5, Part B: Municipal Infrastructure Grant Ring-Fenced Funding for Sports Infrastructure, Breakdown per Municipality ................................................................................... 301 11 Appendix W4 to Schedule 5, Part B: Targets for Expanded Public Works Programme Integrated Grant for Municipalities ...................... 304 12 Appendix W5 to Schedule 5, Part B and Schedule 6, Part B: Breakdown of Regional Bulk Infrastructure Grant Allocations per Local Municipality per Project ............................................................ 311 13 Appendix W6 to Schedule 5, Part A: Breakdown of the Early Childhood Development Grant: Allocations per Grant Component per Province .......................................................................................... 317 14 Appendix W7 to Schedule 5, Part A: Breakdown of the District Health Programmes Grant: Allocations per Grant Component per Province ................................................................................................ 319 60 15 Appendix W8 to Schedule 5, Part A: Breakdown of Human Resources and Training and Grant: Allocations per Grant Component per Province ...................................................................... 321 16
321 16 Appendix W9 to Schedule 5, Part A: Breakdown of EPWP Integrated Grant for Provinces: Targets and Allocations per Provincial Departments ........................................................................ 323 17 Appendix 10 to Schedule 5, Part A: Breakdown of Social Sector EPWP Incentive Grant for Provinces: Allocations per Provincial Department............................................................................................ 326 18 Appendix W11 to Schedule 6, Part A: Breakdown of the School Infrastructure Backlogs Grant: Allocations per Province ................... 328 19 Appendix W12 to Schedule 6, Part A: Breakdown of the National Health Insurance Indirect Grant: Allocations per Grant Component per Province .......................................................................................... 330 20 Appendix W13 to Schedule 4, Part A and Schedule 5, Part A: Breakdown of Ring-fenced Disaster Funding: Allocations Per Province per Grant .............................................................................. 332 61 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE BACKGROUND Section 214(1) of the Constitution requires that the nationally raised revenue be divided equitably between national government, the nine provinces and 257 municipalities.
This is outlined in the annual Division of Revenue Act.

The division of revenue takes into account the powers and functions assigned to each sphere; fosters transparency, predictability and stability; and is at the heart of constitutional cooperative governance.

The principles underpinning the equitable sharing and allocation of nationally raised revenue are prescribed in the Intergovernmental Fiscal Relations Act (1997).
Sections 9 and 10(4) of the act set out the consultation process to be followed with the Financial and Fiscal Commission (FFC), including considering recommendations made regarding the division of revenue.
This explanatory memorandum to the 2023 Division of Revenue Bill fulfils the requirement set out in section 10(5) of the Intergovernmental Fiscal Relations Act that the bill be accompanied by an explanatory memorandum detailing how the bill takes account of each of the matters listed in section 214(a) to (j) of the Constitution; government’s response to the FFC’s recommendations submitted to the minister in terms of section 9 of the act or as a result of consultations with the FFC; and any assumptions and formulas used in arriving at the respective shares.
Moreover, this memorandum complements the discussion on the division of revenue in Chapter 6 of the Budget Review.

It has six sections: Part 1 lists the factors that inform the division of resources between national, provincial and local government.

 Part 2 describes the 2023 division of revenue.

 Part 3 sets out how the FFC’s recommendations on the 2023 division of revenue have been taken into account.
Part 4 explains the formula and criteria for dividing the provincial equitable share and conditional grants among provinces.

 Part 5 sets out the formula and criteria for dividing the local government equitable share and conditional grants among municipalities.

 Part 6 summarises issues that will form part of subsequent reviews of provincial and local government fiscal frameworks.
The Division of Revenue Bill and its underlying allocations are the result of extensive consultation between national, provincial and local government.

The Budget Council deliberated on the matters discussed in this memorandum at several meetings during the year.
The approach to local government allocations was discussed with organised local government at technical meetings with the South African Local Government Association (SALGA), culminating in meetings of the Budget Forum (made up of the Budget Council and SALGA).

The division of revenue, along with the government priorities that underpin it, was agreed for the next three years at a Cabinet meeting in October 2022.
62 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Part 1: Constitutional considerations Section 214 of the Constitution requires that the annual Division of Revenue Act be enacted after 10 key principles outlined in sub-sections 2(a) to (j) are considered.

The 10 constitutional principles considered in the 2023 division of revenue are briefly noted below.
National interest and the division of resources The National Development Plan sets out the national interest by outlining a long-term vision for the country through which South Africa can advance inclusive economic transformation.
To achieve this vision, South Africa needs to use the division of resources in a manner that draws on the energies of its people; builds and grows an inclusive economy; builds capabilities; enhances the capacity of the state; and promotes leadership and partnerships throughout society.

The 2019–2024 Medium Term Strategic Framework outlines the plan and outcome-based monitoring implementing South Africa’s national for development priorities for the sixth administration.
framework In the 2022 Medium Term Budget Policy Statement (MTBPS), the Minister of Finance outlined how the resources available to government over the 2023 medium-term expenditure framework (MTEF) period would be allocated to help address government’s areas of immediate focus.

These focus areas are as follows: Achieve fiscal sustainability by narrowing the budget deficit and stabilising debt.
Promote economic growth by increasing spending on policy priorities such as security and infrastructure.

 Reduce fiscal and economic risks, including through targeted support to key public entities and building fiscal buffers against future shocks.

These focus areas have informed the division of resources between the three spheres of government over the 2023 MTEF period.
Chapter 4 of the 2022 MTBPS and Chapters 5 and 6 of the 2023 Budget Review discuss how funds have been allocated across the three spheres of government based on these focus areas.

The framework for each conditional grant also notes how the grant is linked to government’s 14 priority outcomes.

Provision for debt costs The resources shared between national, provincial and local government include proceeds from national government borrowing used to fund public spending.
Gross loan debt is expected to increase from R4.73 trillion (71.1 per cent of GDP) in 2022/23 to R5.06 trillion (72.8 per cent of GDP) in 2023/24 and will peak at R5.84 trillion (73.6 per cent of GDP) in 2025/26.

To protect and maintain the country’s integrity and credit reputation, it is important that national government provide for the resulting debt costs.

Chapter 7 of the 2023 Budget Review provides a more detailed discussion.
National government’s needs and interests The Constitution assigns exclusive and concurrent powers and functions to each sphere of government.

National and provincial government have concurrent responsibility for a range of functions, such as school education, health services, social welfare services, housing and 63 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE agriculture.
For these functions, national government is mainly responsible for providing leadership, formulating policy (including setting norms and standards) and providing oversight and monitoring, while provincial government is mainly responsible for implementation in line with the nationally determined framework.
National government is exclusively responsible for functions that serve the national interest and are best centralised, including national defence, the criminal justice system (safety and security, courts), higher education and administrative functions (home affairs, collection of national taxes).

Provincial and local government receive equitable shares and conditional grants to enable them to provide basic services and perform their functions.
Functions may shift between spheres of government in line with legislative prescripts to better meet the country’s needs, which is then reflected in the division of revenue.

Changes continue to be made to various national transfers to provincial and local government to improve their efficiency, effectiveness and alignment with national strategic objectives.
Provincial and local government basic services Provinces and municipalities are responsible for providing education, health, social development, housing, roads, electricity and water, and municipal infrastructure services.

They have the autonomy to allocate resources to meet basic needs and respond to provincial and local priorities, while giving effect to national objectives.
The division of revenue provides equitable shares to provinces and local government to enable them to meet their basic service obligations.

In addition, conditional grants are provided to enable them to improve and expand services.

Over the 2023 MTEF period, R2.69 trillion or 51.3 per cent of non-interest spending is allocated to provinces and local government.

Of this, R2.17 trillion or 41.5 per cent is allocated to provinces, while R521.7 billion or 10 per cent is allocated to local government.
This is to continue funding local and provincial government priorities over the medium term, which include health, education and basic services, and funding the rising costs of these services as a result of population growth and higher bulk electricity and water costs.

Fiscal capacity and efficiency Fiscal capacity refers to the revenue-raising power of each sphere of government.

National government has limited revenue-raising powers and large spending responsibilities.
As such, it receives the biggest share of the nationally raised revenue, after taking into account the contingency reserve and debt-servicing costs.

Provinces have limited revenue-raising capacity and large spending responsibilities so they receive the second largest share of nationally raised revenue.

Municipalities, on the other hand, have extensive revenue-raising powers, through property rates, user charges and fees.
The revenue raised by municipalities provides for basic services such as sanitation, waste management, electricity and water, the costs of which can be recovered through tariffs.

As a result, local government finances most of its expenditure through property rates, user charges and fees.

The ability of individual municipalities to raise revenue varies greatly – rural municipalities raise significantly less revenue than large urban and metropolitan municipalities.
The design of the local government fiscal framework acknowledges that, as a result of their lower own 64 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE revenue-raising capacity, many rural municipalities will depend on transfers for most of their funding.
This is done through the local government equitable share formula, which incorporates a revenue adjustment factor that considers the fiscal capacity of each recipient municipality (full details of the formula are provided in Part 5 of this annexure).

The mechanisms for allocating funds to provinces and municipalities are regularly reviewed to improve their efficiency.
To maximise the effect of allocations, conditional grant allocations to provincial and local government are informed by the recipient’s efficacy and efficiency in using allocations in the past.

Developmental needs Developmental needs are accounted for at two levels.
First, in determining the division of revenue, which mostly grows the provincial and local government shares of nationally raised revenue faster than inflation, and second, in the formulas used to divide national transfers among municipalities and provinces.
Developmental needs are built into the equitable share formulas for provincial and local government and included in specific conditional grants, such as the municipal infrastructure grant, which allocates funds according to the number of households in a municipality without access to basic services.

Various infrastructure grants and the capital budgets of provinces and municipalities aim to boost economic and social development.
Economic disparities The equitable share and infrastructure grant formulas redistribute funds towards poorer provinces and municipalities (parts 4 and 5 of this annexure provide statistics illustrating this).

Through the division of revenue, government continues to invest in economic infrastructure (such as roads), allocating R107.2 billion over the 2023 MTEF period, and social infrastructure (such as schools, hospitals and clinics), allocating R262.3 billion over the 2023 MTEF period.
This is to stimulate economic development, create jobs and address economic and social disparities.

Obligations in terms of national legislation The Constitution gives provincial governments and municipalities the power to determine priorities and allocate budgets.

National government is responsible for developing policy, fulfilling national mandates, setting national norms and standards for provincial and municipal functions, and monitoring the implementation of concurrent functions.
The 2023 MTEF, through the division of revenue, continues to fund the delivery of provincial, municipal and concurrent functions through a combination of conditional and unconditional grants.

Predictability and stability Provincial and local government equitable share allocations are based on estimates of nationally raised revenue.

If this revenue falls short of estimates within a given year, the equitable shares of provinces and local government will not be reduced.
Allocations are assured (voted, legislated and guaranteed) for the first year and are transferred according to 65 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE a payment schedule.

To contribute to longer-term predictability and stability, estimates for a further two years are published with the annual proposal for appropriations.
Adjusted estimates as a result of changes to data underpinning the equitable share formulas and revisions to the formulas themselves are phased in to ensure minimal disruption.

Flexibility in responding to emergencies Government has a contingency reserve for unforeseen and unavoidable events.
In addition, two conditional grants for disasters and housing emergencies (provincial disaster response grant and municipal disaster response grant) allow government to allocate and transfer funds to affected provinces and municipalities in the immediate aftermath of a disaster.

Over the 2023 MTEF period, R1.6 billion is allocated to these grants.
Furthermore, various pieces of legislation, such as sections 16 and 25 of the Public Finance Management Act (1999), provide for the allocation of funds (including adjustment allocations) to deal with emergency, unforeseeable and unavoidable situations.

Section 29 of the Municipal Finance Management Act (2003) allows a municipal mayor to authorise unforeseeable and unavoidable expenditure in an emergency.
Part 2: The 2023 division of revenue Medium-term fiscal policy is focused on reducing the budget deficit and stabilising the debt- to-GDP ratio.

Over the medium term, restoring fiscal sustainability requires continued restraint in expenditure growth and reforms to raise economic growth.
The 2023 Budget proposes: Additional allocations to address immediate spending pressures, including extending the COVID-19 social relief of distress grant for 12 months until March 2024, and bolstering provincial transfers for health and education.

 Setting aside a portion of higher-than-expected revenue to narrow the budget deficit.

This mitigates the impact of higher interest rates on debt-service costs and improves the longer-term debt outlook.
Supporting economic growth through a range of reforms, including the infrastructure- build programme financed through innovative funding mechanisms and supported by improved technical capabilities (see Chapter 3 of the 2023 Budget Review).

The most important public spending programmes that help poor South Africans, contribute to growth and create jobs have been protected from major reductions.

The 2023 division of revenue reprioritises existing funds to ensure these objectives are met.
Excluding debt-service costs and the contingency reserve, allocated expenditure shared across government amounts to R1.70 trillion in 2023/24, R1.74 trillion in 2024/25 and R1.82 trillion in 2025/26.

The division of these funds between the three spheres takes into account government’s spending priorities, each sphere’s revenue-raising capacity and responsibilities, and input from various intergovernmental forums and the FFC.
The provincial and local equitable share formulas are designed to ensure fair, stable and predictable revenue shares, and to address economic and fiscal disparities.

66 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Increase in non-interest spending Given the improved tax revenue estimates experienced in 2022/23 and projected increases in tax revenue over the 2023 MTEF period, government proposes a small increase in non- interest spending compared with the 2022 Budget projections.
Total main budget non- interest expenditure is projected to increase by R128.4 billion over the 2023 MTEF period as follows: R37.1 billion in 2023/24, R42.1 billion in 2024/25 and R49.3 billion in 2025/26.

Several provincial and local government infrastructure grants that are likely to go unspent based on historical spending trends are being reprioritised to other priorities.
Parts 4 and 5 of this annexure set out in more detail how the changes to the baseline affect provincial and local government transfers.

Reprioritisations Existing budgets need to be reprioritised to meet government’s policy goals while remaining within the revised expenditure ceiling.

These reprioritisations complement baselines that provide R2.17 trillion to provinces and R521.7 billion to local government in transfers over the 2023 MTEF period.
These transfers fund core policy priorities, including basic education, health, social development, roads, housing and municipal services.

The fiscal framework Table W1.1 presents the medium-term macroeconomic forecasts for the 2023 Budget.

It sets out the growth assumptions and fiscal policy targets on which the fiscal framework is based.
Table W1.1 Medium-term macroeconomic assumptions R billion/percentage of GDP 2022/23 2023/24 Gross domestic product Real GDP growth GDP inflation National budget framework Revenue Percentage of GDP Expenditure Percentage of GDP Main budget balance1 Percentage of GDP 2022 Budget 6 441.3 1.9% 1.1% 1 588.0 24.7% 1 975.3 30.7% -387.2 -6.0% 2023 Budget 6 651.3 2.0% 3.7% 1 703.6 25.6% 2 004.0 30.1% -300.4 -4.5% 2022 Budget 6 805.3 1.7% 3.9% 1 660.2 24.4% 1 992.0 29.3% -331.8 -4.9% 2023 Budget 7 005.7 1.0% 4.3% 1 759.2 25.1% 2 034.6 29.0% -275.4 -3.9% 1.
A positive number reflects a surplus and a negative number a deficit Source: National Treasury 2024/25 2022 Budget 7 233.7 1.8% 4.5% 1 774.2 24.5% 2 096.6 29.0% -322.4 -4.5% 2023 Budget 7 452.4 1.7% 4.6% 1 868.1 25.1% 2 137.9 28.7% -269.9 -3.6% 2025/26 2023 Budget 7 938.5 1.9% 4.6% 2 007.7 25.3% 2 266.5 28.6% -258.8 -3.3% Table W1.2 sets out the division of revenue for the 2023 MTEF period after accounting for new policy priorities.
67 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.2 Division of nationally raised revenue 2019/20 R million 2020/21 2021/22 Outcome 2022/23 Revised estimate 2023/24 2024/25 2025/26 Medium-term estimates Division of available funds National departments 749 797 790 545 822 956 854 446 828 572 835 665 877 920 of which: Indirect transfers to provinces Indirect transfers to local government Provinces Equitable share Conditional grants Local government Equitable share Conditional grants General fuel levy sharing with metros Provisional allocation not assigned to votes1 Non-interest Percentage increase Debt-service costs Contingency reserve Unallocated reserve Main budget expenditure Percentage increase Percentage shares – – – – – – 4.7% 232 596 – – 4.0% 268 072 – – 4.8% 307 157 – – -0.5% 340 460 5 000 – 6.2%
034 580 2 137 945 2 266 506 12.2% 5.8% 5.5% 6.2% 1.5% 5.1% 6.0% National department Provinces Local government 50.4% 41.3% 8.3% 50.8% 40.4% 8.8% 50.8% 40.8% 8.4% 50.4% 40.9% 8.7% 49.1% 41.2% 9.7% 48.3% 41.6% 10.1% 48.3% 41.6% 10.1% 1.
Infrastructure fund and other provisional allocations Source: National Treasury Table W1.3 shows how changes to the baseline are spread across government.

The new focus areas are accommodated by small increases in non-interest spending.
Table W1.3 Changes over baseline R million National departments Provinces Local government Allocated expenditure Source: National Treasury 2023/24 57 662 27 762 3 458 88 882 2024/25 30 003 30 306 4 235 64 544 Table W1.4 sets out schedule 1 of the Division of Revenue Bill, which reflects the legal division of revenue between national, provincial and local government.
In this division, the national share includes all conditional grants to provinces and local government in line with section 214(1) of the Constitution, and the allocations for each sphere reflect equitable shares only.

68 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.4 Schedule 1 of the Division of Revenue Bill R million 2024/25 2025/26 2023/24 Allocation 1 370 506 567 528 96 546 2 034 580 Forward estimates National1 Provincial Local Total 1 542 867 614 271 109 368 2 266 506 1.
National share includes conditional grants to provinces and local government, general fuel levy sharing with metropolitan municipalities, debt-service costs, the contingency reserve and provisional allocations Source: National Treasury 1 446 673 587 500 103 772 2 137 945 The 2023 Budget Review sets out in detail how constitutional considerations and government’s priorities are taken into account in the division of revenue.
It describes economic and fiscal policy considerations, revenue issues, debt and financing considerations, and expenditure plans.

Chapter 6 focuses on provincial and local government financing.
Part 3: Response to the FFC’s recommendations Section 9 of the Intergovernmental Fiscal Relations Act requires the FFC to make recommendations regarding: “An equitable division of revenue raised nationally, among the national, provincial and local spheres of government; the determination of each province’s equitable share in the provincial share of that revenue; and any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and any conditions on which those allocations should be made.” The act requires that the FFC table these recommendations at least 10 months before the start of each financial year.
The FFC tabled its Submission for the Division of Revenue 2023/24 to Parliament in May 2022.

This year’s theme is “Addressing socio-economic vulnerabilities through fiscal transparency and strategy”.
The 2023/24 recommendations cover the following areas: strategies for preventing corruption in the public sector and funding for anti-corruption agencies; youth unemployment and intergovernmental fiscal relations; debt sustainability in South Africa; inequality in South Africa’s labour market; social grants; public-sector wage bill; provincial equitable share formula; system of provincial conditional grants; constitutional right to basic education; effectiveness of independent fiscal institutions; and powers, functions and funding framework of district municipalities.
Section 214 of the Constitution requires that the FFC’s recommendations be considered before tabling the division of revenue.

Section 10 of the Intergovernmental Fiscal Relations Act requires that the Minister of Finance table a Division of Revenue Bill with the annual budget in the National Assembly.

The bill must be accompanied by an explanatory memorandum setting out how government has taken into account the FFC’s recommendations when determining the division of revenue.
This part of the explanatory memorandum complies with this requirement.

69 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE The FFC’s recommendations can be divided into three categories: Recommendations that apply directly to the division of revenue.

 Recommendations that indirectly apply to issues related to the division of revenue.

 Recommendations that do not relate to the division of revenue.
Government’s responses to the first and second categories are provided below.

Recommendations that do not relate to the division of revenue are normally referred to the officials to whom they were addressed, who are requested to respond directly to the FFC.

All the FFC recommendations can be accessed at www.ffc.co.za.
Recommendations that apply directly and indirectly to the division of revenue Chapter 7: A review of the provincial equitable share formula – Responsiveness to the changing social structure Review of provincial equitable share formula The FFC recommends the following: “In line with the Commission’s recommendation on a costed norms approach, full costing exercises should be undertaken by all provinces, particularly for the provision of education and health.
The costing results will be used to determine allocations by provinces to these key functional areas.

This will ensure consistency and fully informed resource allocation.” Government response The Technical Committee on Finance Lekgotla held in June 2022 recommended that provinces review the service model or options that are best suited to the uniqueness of each province.
In addition, provinces were recommended to investigate other methodologies that can be used to allocate the provincial equitable share (PES) while maintaining the principles embedded in the PES allocation.
Alignment of infrastructure delivery plans and programmes The FFC recommends the following: “The national Department of Basic Education, as a custodian of conditional grants (particularly indirect grants and being responsible for capital spending), and all provincial departments of Basic Education, as recipients of the PES and being responsible for school infrastructure delivery and maintenance, should improve the coordination of infrastructure delivery plans and programmes to ensure alignment.” Government response In line with its oversight role, the National Treasury, alongside the Department of Basic Education and the provincial treasuries, will monitor the coordination and alignment of infrastructure delivery plans and programmes.
Chapter 8: Repurposing and realigning the system of provincial conditional grants Review of conditional grants scheduling The FFC recommends the following: “National Treasury, in conjunction with the national departments responsible for conditional grants, must revise the Division of Revenue Act’s 70 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE system of grant scheduling as it creates no fiscal incentives for provinces to reveal their expenditure preferences or sustain expenditure previously funded by conditional grants.
Instead, government must invest the capacity to improve overall grant design, taking account of all good grant design imperatives, such as types of grants and their implications, pre-grant introductory due diligence, sunset clauses, conditioning schemes and allocation methodologies.” Government response The National Treasury, in collaboration with provincial treasuries and sector departments, is reviewing all conditional grants to determine if the existing grant system is structured efficiently to provide efficient service delivery, roll out infrastructure, build capacity, and provide operational support.
Alignment of outputs, objectives and outcomes The FFC recommends the following: “National Treasury, in conjunction with the national departments responsible for conditional grants, should undertake three-yearly reviews of their respective grants to ensure alignment across grant objectives, conditions and grant outcomes.
These reviews must be informed by an overarching conditional grants guideline, setting out the circumstances under which grants are introduced and terminated, applicable minimum and type conditions, and the applicable minimum outputs.

Further, there should be a mandatory grant introduction and termination pre-assessment by the Financial and Fiscal Commission to determine suitability, impact on the fiscal framework and overall grant outcome.
Grant conditions are generally administrative, while the outputs are seemingly unconnected to the long-run outcomes.” Government response In collaboration with grant-administering sector departments and provinces, the National Treasury is reviewing conditional grants in the system and will examine ways to tighten the requirements for introducing grants, designing them, and phasing them out or closing them out as part of this process.
Allocation criteria The FFC recommends the following: “The Department of Basic Education, in conjunction with National Treasury, must update the allocation formula for the Education Infrastructure Grant to ensure the alignment of grant needs indicators with grant objectives and further streamline expected and reported grant outputs to improve focus and ease of monitoring.
At the very least, the allocation criteria may include learner enrolment, learner densities by area, index of schools with access to learning infrastructure and travel time to schools.

The actual formula must be published in the grant framework for transparency purposes.” Government response The conditional grant review is examining the allocation criteria used to determine each province or municipality’s share of a grant.
71 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Compartmentalisation of conditional grants The FFC recommends the following: “The Department of Health and other custodians of grants with multiple components must halt the over-compartmentalisation of provincial health responsibilities through multiple grant funding windows unrelated to the main objective of the main grant.
Conditional grants must, as a matter of principle, accommodate not more than two sub-components or take the shape of a traditional block grant to allow provinces the flexibility to prioritise within the set sub-functional responsibility.
Sub- components that are unrelated to the main grant objective must be incorporated into the provincial equitable share and be monitored through the normal budget and accountability system instead of subdividing or itemising provincial health responsibilities to be funded by grant sub-components.
The formulae for the newly restructured HIV/AIDS grant must be published in the grant framework for transparency purposes.” Government response The HIV, TB, malaria and community outreach grant has been renamed the district health programmes grant and its components reduced to two.

The grant review will identify grants and functions that need to be shifted to the provincial equitable share.
Chapter 11: District municipalities: Powers, functions and funding framework Effectiveness of independent fiscal institutions The FFC recommends the following: “National Treasury should immediately abolish the Regional Services Council Replacement Grant and combine the Local Government Equitable Share for district municipalities and the Regional Services Council Replacement Grant under one funding instrument.” Government response Abolishing the Regional Services Council replacement grant and including its baseline in the local government equitable share baseline will negatively affect the finances of district municipalities without the water and sanitation function, as this grant is their main source of revenue.
The redesign of the funding framework for district municipalities must align with the outcomes of the Department of Cooperative Governance’s ongoing review of sections 84 and 85 of the Municipal Structures Act (1998), which aims to address the current ambiguity in the functions performed by local and district municipalities.

Designing a new funding formula based on the review’s outcomes will require consultation with all district municipalities.
In addition, the new funding formula should be based on a realistic costing of the core functions of all districts, which will require extensive technical work.

Introducing a revised funding framework in the 2023 Division of Revenue Bill is thus unfeasible.

Part 4: Provincial allocations Provincial government receives two forms of allocations from nationally raised revenue, the equitable share and conditional grants.
Sections 214 and 227 of the Constitution require that an equitable share of nationally raised revenue be allocated to provincial government to 72 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE provide basic services and perform its allocated functions.

The equitable share is an unconditional transfer to provinces and constitutes their main source of revenue.

Due to their limited revenue-raising abilities, provinces receive 41.5 per cent of nationally raised revenue over the medium term.
In addition, they receive conditional grants to help them fulfil their mandates.

Transfers to provinces account for over 97 per cent of provincial revenue.

This section outlines national transfers to provinces for the 2023 MTEF period announced in the 2022 MTBPS and changes that were effected after it was tabled, both to the equitable share and conditional grants.
Having taken the revisions to the provincial fiscal framework into account, national transfers to provinces increase from R694.6 billion in 2022/23 to R695.1 billion in 2023/24.

Over the MTEF period, provincial transfers will grow at an average annual rate of 2.8 per cent to R754.7 billion in 2025/26.

Table W1.5 sets out the transfers to provinces for 2023/24.
A total of R567.5 billion is allocated to the provincial equitable share and R127.5 billion to conditional grants, which includes an unallocated amount of R146 million for the provincial disaster response grant.
Table W1.5 Total transfers to provinces, 2023/24 Conditional R million grants 14 637 9 280 27 437 26 320 11 329 9 734 5 095 9 093 14 474 146 127 544 Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total Equitable share 73 292 31 380 120 752 115 948 65 349 46 674 15 150 40 096 58 886 567 528 Total transfers 87 928 40 660 148 189 142 267 76 678 56 408 20 245 49 190 73 360 146 695 072 Source: National Treasury The provincial fiscal framework takes account of the different pressures facing each province and allocates larger per capita allocations to poorer provinces, and provinces with smaller populations.
73 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Figure W1.1 Per capita allocations to provinces, 2023/24 16 12 8 4 0 d n a s u o h t R Average equitable share per capita Average conditional grant per capita 2.2 3.2 2.3 1.9 1.7 7.5 g n e t u a G 11.0 10.7 e p a C n r e t s a E e t a t S e e r F 10.0 11.0 o p o p m i L l a t a N - u u Z a w K l 2.1 9.9 l a g n a a m u p M 3.9 11.6 e p a C n r e h t r o N 2.2 9.6 t s e W h t r o N 2.0 8.2 e p a C n r e t s e W Source: National Treasury Changes to provincial allocations For the 2023 MTEF period, revisions to the provincial fiscal framework reflect additions, shifting of funds to national government following the closure of the housing emergency grant and realignment of Budget Facility for Infrastructure (BFI) funding to align with the required cash flows.
Table W1.6 provides a summary of the changes to the provincial fiscal framework.

Additional funding was added to the provincial equitable share over the next three years.

This includes R20 billion to help provincial education departments cover shortfalls in compensation budgets within the sector (R5.7 billion in 2023/24, R6.7 billion in 2024/25 and R7.6 billion in 2025/26).
An additional R23.5 billion (made up of R7.5 billion in 2023/24, R7.8 billion in 2024/25 and R8.1 billion in 2025/26) is added for provincial health departments for compensation of employees, healthcare services backlogs including antiretroviral therapy and TB, laboratory services, medicine and other goods and medical supplies.

After the tabling of the 2022 MTBPS, additional funding was added to the provincial equitable share over the 2023 MTEF period.
This consists of R31.1 billion for the carry through costs following the implementation of the 2022/23 public-service wage (R10.2 billion in 2023/24, R10.4 billion in 2024/25 and R10.5 billion in 2025/26).

An amount of R1.8 billion is added through the BFI for the Coega Special Economic Zone for building a new bulk sewer connection pipeline, upgrading bulk infrastructure and building critical bulk water (return effluent) infrastructure.
Furthermore, R631 million is added in 2023/24 to fund arrears in the compensation of izinduna in KwaZulu-Natal.

Additions to provincial conditional grants over the MTEF period include R1.6 billion added to the early childhood development grant to increase the number of children accessing the early childhood development subsidy, provide pre-registration support to early childhood development centres, and pilot a nutrition support programme and a results-based service delivery model.
An amount of R1.5 billion is added to the education infrastructure grant through the BFI for the Gauteng Schools Project and a further R283 million is added in 74 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE 2023/24 for repairing school infrastructure damaged by the April 2022 floods in KwaZulu- Natal and the Eastern Cape.
An amount of R1.5 billion is added to the national school nutrition programme grant to ensure that the meals provided to almost 9 million learners meet the nutritional requirements.

A total of R10.8 billion is added to the provincial roads maintenance grant.
This consists of R6.8 billion to address the refurbishment backlog of provincial roads, R3.7 billion added through the BFI to build rural bridges under the Welisizwe Rural Bridges Programme and R307 million for the carry through costs for the repairs of damaged provincial roads in the Eastern Cape and KwaZulu-Natal resulting from the April 2022 floods.

Through the BFI, R153 million is added to comprehensive agricultural support programme grant for agri-hubs in KwaZulu-Natal.
Other changes include shifting R1.1 billion from the provincial emergency housing grant to the vote of the national Department of Human Settlements following the grant’s closure.

This shift will give the Department of Human Settlements the flexibility to respond to housing emergencies timeously.

These funds were part of the provincial baselines in the 2022 MTBPS.
The BFI funding within the health facility revitalisation grant component of the national health insurance indirect grant has been rescheduled, with a net increase of R629 million brought forward over the medium term.
Table W1.6 Revisions to direct and indirect transfers to provincial government R million 2023/24 2024/25 2025/26 Additions to baselines Direct transfers Provincial equitable share Comprehensive agricultural support programme Early childhood development Education infrastructure National school nutrition programme Provincial roads maintenance Indirect transfers School infrastructure backlogs National health insurance indirect Reduction to baselines Indirect transfers National health insurance indirect Total change to provincial government allocations Change to direct transfers Change to indirect transfers Net change to provincial government allocations Source: National Treasury 28 102 24 379 8 – 778 400 2 537 0 0 – -372 -372 -372 27 730 28 102 -372 27 730 30 662 25 481 86 587 503 500 3 504 433 0 432 – – – 31 094 30 662 433 31 094 33 968 27 074 58 985 498 600 4 753 569 0 569 – – – 34 537 33 968 569 34 537 MTEF total revision 92 732 76 934 153 1 572 1 779 1 500 10 794 1 002 1 1 001 -372 -372 -372 93 361 92 732 629 93 361 After accounting for these changes, the provincial equitable share grows at an average annual rate of 2.5 per cent over the MTEF period, while direct conditional grant allocations grow at an average annual rate of 4.5 per cent.
The provincial equitable share The equitable share is the main source of revenue through which provinces are able to meet their expenditure responsibilities.

To ensure that allocations are fair, the equitable share is allocated through a formula using objective data to reflect the demand for services across all 75 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE nine provinces.
For each year of the 2023 MTEF period, the following amounts are allocated to the provincial equitable share respectively: R567.5 billion, R587.5 billion and R614.3 billion.

The equitable share formula The equitable share formula consists of six components that account for the relative demand of services and take into consideration changing demographics in each of the provinces.
The structure of the two largest components, education and health, is based on the demand and the need for education and health services.

The other four components enable provinces to perform their other functions, taking into consideration the population size of each province, the proportion of poor residents in each province, the level of economic activity and the costs associated with running a provincial administration.
In addition to the annual data updates that are made to the provincial equitable share formula components, changes are being made to the components as part of the most recent review of the formula.

The review, which started at the end of 2016, is being carried out in a phased manner.

The changes to enrolment data and mid-year population estimates for the education component have been fully phased in.
The most recent phase of the review involved updating the health component with a newly designed risk-adjusted index to inform the risk profile of each province.

These changes are being phased in over the 2022 MTEF period (2022/23– 2024/25).
For the 2023 MTEF, the rest of the formula has been updated with data from Statistics South Africa’s 2022 mid-year population estimates on population and age cohorts and the 2022 preliminary data published by the Department of Basic Education on school enrolment from the Learner Unit Record Information Tracking System (LURITS) database.

Data from the health sector for 2019/20 and 2020/21 and the 2021 General Household Survey for medical aid coverage is also used to update the formula.
The provincial equitable share formula continues to be reviewed.

Further details of this review are discussed in Part 6.

Summary of the formula’s structure The formula’s six components, shown in Table W1.7, capture the relative demand for services across provinces and take into account specific provincial circumstances.

The components are neither indicative budgets nor guidelines as to how much should be spent on functions.
Rather, the education and health components are weighted broadly in line with historical expenditure patterns to indicate relative need.

Provincial executive councils determine the departmental allocations for each function, taking into account the priorities that underpin the division of revenue.
For the 2023 Budget, the formula components are set out as follows: An education component (48 per cent), based on the size of the school-age population (ages five to 17) and the number of learners (Grades R to 12) enrolled in public ordinary schools.

 A health component (27 per cent), based on each province’s risk profile and health system caseload.
76 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE A basic component (16 per cent), derived from each province’s share of the national population.

 An institutional component (5 per cent), divided equally between the provinces.

 A poverty component (3 per cent), based on income data.

This component reinforces the redistributive bias of the formula.
An economic activity component (1 per cent), based on regional gross domestic product (GDP-R, measured by Statistics South Africa).
Table W1.7 Distributing the equitable shares by province, 2023 MTEF Economic activity Education Poverty Health Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 48.0% 13.3% 5.2% 20.7% 21.2% 12.6% 8.2% 2.2% 6.8% 9.7% 100.0% 27.0% 13.4% 5.5% 21.2% 20.7% 11.2% 8.0% 2.3% 7.1% 10.6% 100.0% Source: National Treasury Education component (48 per cent) Basic share Institu- tional 5.0% 11.1% 11.1% 11.1% 11.1% 11.1% 11.1% 11.1% 11.1% 11.1% 100.0% Weighted average 100.0% 12.8% 5.5% 21.4% 20.2% 11.7% 8.3% 2.7% 7.1% 10.3% 100.0% The education component has two sub-components, accounting for school-age population (five to 17 years) and enrolment data.
Each element is assigned a weight of 50 per cent.

The school-age population data is updated using the 2022 mid-year population estimates data obtained from Statistics South Africa.

The enrolment data is obtained from the Department of Basic Education’s LURITS system, with the most recent data collected in 2022.

These sub- components are used to calculate a weighted share for the education component for each of the provinces.
Table W1.8 shows the combined effect of updating the education component with new enrolment and age cohort data on the education component shares.
Table W1.8 Impact of changes in school enrolment on the education component share Age 5-17 1 881 721 3 190 3 047 1 698 1 146 322 1 026 1 484 14 515 School enrolment 2021 2022 Changes in enrolment data Weighted average 2022 MTEF 2023 MTEF -22 2 44 -11 -1 10 2 2 -20 6 13.5% 5.2% 20.0% 21.5% 12.6% 8.3% 2.2% 6.8% 9.8% 100.0% 13.3% 5.2% 20.7% 21.2% 12.6% 8.2% 2.2% 6.8% 9.7% 100.0% Difference in weighted average -0.25% -0.02% 0.66% -0.23% -0.05% -0.09% 0.01% 0.01% -0.04% – Thousand Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Source: National Treasury 77 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Health component (27 per cent) The health component uses a risk-adjusted capitation index and output data from public hospitals to estimate each province’s share of the health component.
These methods work together to balance needs (risk-adjusted capitation) and demands (output component).

The health component is presented in three parts below.

Table W1.9 shows the shares of the risk-adjusted component, which accounts for 75 per cent of the health component.
Table W1.9 Risk-adjusted sub-component shares Risk-adjusted Thousand index (with one- third of the changes) Mid-year population estimates Insured population Weighted population Risk-adjusted shares Change Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 2022 6 677 2 922 16 099 11 538 5 941 4 720 1 309 4 187 7 212 60 605 Source: National Treasury MTEF 12.4% 5.3% 23.4% 20.1% 10.4% 8.1% 2.2% 7.3% 10.7% 100.0% 2023 MTEF 13.5% 5.2% 20.8% 20.4% 11.7% 8.6% 2.3% 7.5% 9.9% 100.0% 1.1% -0.1% -2.6% 0.3% 1.2% 0.5% 0.1% 0.2% -0.8% 0.0% The risk-adjusted sub-component estimates a weighted population in each province using the risk-adjusted index.
The percentage of the population with medical insurance, based on the 2018 General Household Survey, is deducted from the 2022 mid-year population estimates to estimate the uninsured population per province.

The risk-adjusted index, which is an index of each province’s health risk profile, is applied to the uninsured population to estimate the weighted population.

Each province’s share of this weighted population is used to estimate their share of the risk-adjusted sub-component.
The last column in Table W1.9 shows the change in this sub-component between 2022 and 2023.
Table W1.10 Output sub-component shares Thousand Primary healthcare visits Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 2020/21 12 951 4 810 16 964 22 810 12 389 7 320 2 214 6 300 9 590 95 347 2021/22 13 693 4 772 18 648 23 906 12 753 7 734 2 333 6 606 10 950 101 394 Average 13 322 4 791 17 806 23 358 12 571 7 527 2 274 6 453 10 270 98 370 Share 13.5% 4.9% 18.1% 23.7% 12.8% 7.7% 2.3% 6.6% 10.4% 100.0% Source: National Treasury Hospital workload patient-day equivalents 2020/21 3 276 1 709 6 361 5 539 2 493 1 579 510 1 512 3 629 26 608 2021/22 4 084 1 947 6 834 6 139 2 660 1 733 577 1 631 4 075 29 680 Average 3 680 1 828 6 598 5 839 2 576 1 656 543 1 571 3 852 28 144 Share 13.1% 6.5% 23.4% 20.7% 9.2% 5.9% 1.9% 5.6% 13.7% 100.0% 78 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE The output sub-component (shown in Table W1.10) uses patient load data from the District Health Information Services.
The average number of visits to primary healthcare clinics in 2019/20 and 2020/21 is calculated to estimate each province’s share of this part of the output component, which makes up 5 per cent of the health component.

For hospitals, each province’s share of the total patient-day equivalents at public hospitals in 2019/20 and 2020/21 is used to estimate their share of this part of the output sub-component, which makes up 20 per cent of the health component.
In total, the output component is 25 per cent of the health component.

Table W1.11 presents the health component in three parts, with the risk-adjusted component, which accounts for 75 per cent of the health component, and the output component, which accounts for 25 per cent of the health component.
Table W1.11 Health component weighted shares Weight Risk-adjusted Primary healthcare 5.0% 13.5% 4.9% 18.1% 23.7% 12.8% 7.7% 2.3% 6.6% 10.4% 100.0% Hospital component 20.0% 13.1% 6.5% 23.4% 20.7% 9.2% 5.9% 1.9% 5.6% 13.7% 100.0% Weighted shares Change 2022 MTEF 12.7% 5.5% 23.1% 20.7% 10.3% 7.6% 2.1% 6.8% 11.2% 100.0% 2023 MTEF 13.4% 5.5% 21.2% 20.7% 11.2% 8.0% 2.3% 7.1% 10.6% 100.0% 0.8% -0.1% -1.9% -0.0% 1.0% 0.4% 0.1% 0.3% -0.6% 0.0% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 75.0% 13.5% 5.2% 20.8% 20.4% 11.7% 8.6% 2.3% 7.5% 9.9% 100.0% Source: National Treasury Basic component (16 per cent) The basic component is derived from each province’s share of the national population.
This component constitutes 16 per cent of the total equitable share.

For the 2023 MTEF, population data is drawn from the 2022 mid-year population estimates produced by Statistics South Africa.

Table W1.12 shows how population changes have affected the basic component’s revised weighted shares.
79 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.12 Impact of the changes in population on the basic component shares Thousand Change Mid-year population estimates1 Population change % population change Basic component shares 2021 6 726 2 936 15 801 11 643 5 880 4 738 1 305 4 164 7 113 60 305 Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total -0.14% -0.05% 0.36% -0.27% 0.05% -0.07% -0.00% 0.00% 0.10% – 1.
The population estimates were informed by a data set that StatsSA shared with National Treasury on population, used to inform the mid-year population estimates, and not the data from the 2021 mid-year population estimates publication.
This data is used in different components of the formula Source: National Treasury -0.7% -0.5% 1.9% -0.9% 1.0% -0.4% 0.3% 0.6% 1.4% 0.0% -49 -15 298 -105 61 -17 4 23 99 300 2022 MTEF 11.2% 4.9% 26.2% 19.3% 9.8% 7.9% 2.2% 6.9% 11.8% 100.0% 2023 MTEF Institutional component (5 per cent) The institutional component recognises that some costs associated with running a provincial government and providing services are not directly related to the size of a province’s population or factors included in other components.
It is therefore distributed equally between provinces, with each province receiving 11.1 per cent.

This component benefits provinces with smaller populations, especially the Northern Cape, the Free State and the North West, because the allocation per person for these provinces is much higher in this component.

Poverty component (3 per cent) The poverty component introduces a redistributive element to the formula and is assigned a weight of 3 per cent.
For this component, the poor population is defined as people who fall into the lowest 40 per cent of household incomes in the 2010/11 Income and Expenditure Survey.

The estimated size of the poor population in each province is calculated by multiplying the proportion of people in that province who fall into the poorest 40 per cent of South African households by the province’s population figure from the 2022 mid-year population estimates.
Table W1.13 shows the proportion of the poor in each province from the Income and Expenditure Survey, the 2022 mid-year population estimates and the weighted share of the poverty component per province.
80 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Income and Expendi- ture Survey 2011/12 52.0% 41.4% 28.9% 45.3% 52.9% 47.3% 40.8% 47.9% 21.9% Table W1.13 Comparison of current and new poverty component weighted shares Thousand 2022 MTEF Mid-year population estimates 20211 Weighted shares Poor popula- tion Mid-year population estimates 2022 2023 MTEF Poor popula- tion Weighted shares Difference in weighted shares 6 726 2 936 15 801 11 643 5 880 4 738 1 305 4 164 7 113 60 305 Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total -0.1% -0.0% 0.3% -0.3% 0.1% -0.1% 0.0% 0.0% 0.1% – 1.
The population estimates were informed by a data set that StatsSA shared with National Treasury on population, used to inform the mid-year population estimates, and not the data from the 2021 mid-year population estimates publication.
This data is used in different components of the formula Source: National Treasury Economic activity component (1 per cent) The economic activity component is a proxy for provincial tax capacity and expenditure assignments.
Given that these assignments are a relatively small proportion of provincial budgets, the component is assigned a weight of 1 per cent.

For the 2023 MTEF, 2019 GDP-R data is used.

Table W1.14 shows the weighted shares of the economic activity component.
Table W1.14 Current and new economic activity component weighted shares 2022 MTEF 2023 MTEF GDP-R, 2019 (R million) Weighted shares Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 7.6% 5.0% 34.5% 15.9% 7.4% 7.5% 2.0% 6.5% 13.6% 100.0% 1.
The latest available data on GDP-R is the 2019 series Source: National Treasury 387 332 252 763 1 750 062 806 843 374 064 381 915 103 349 329 363 691 934 5 077 625 GDP-R, 2020 (R million)1 387 332 252 763 1 750 062 806 843 374 064 381 915 103 349 329 363 691 934 5 077 625 Weighted shares 7.6% 5.0% 34.5% 15.9% 7.4% 7.5% 2.0% 6.5% 13.6% 100.0% Difference in weighted shares 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Full impact of data updates on the provincial equitable share Table W1.15 shows the full impact of the data updates on the provincial equitable share per province, after the six updated components have been added together.
It compares the target shares for the 2022 and 2023 MTEF periods.

The size of each province’s share reflects the relative demand for provincial public services in that province.

The changes in shares from 2022 to 2023 respond to changes in that demand.

The details of how the data updates affect each component of the formula are described in detail in the sub-sections above.
81 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.15 Full impact of data updates on the equitable share Difference 2022 MTEF weighted average 12.9% 5.5% 21.4% 20.4% 11.4% 8.2% 2.7% 7.1% 10.4% 100.0% 2023 MTEF weighted average 12.9% 5.5% 21.3% 20.4% 11.5% 8.2% 2.7% 7.1% 10.4% 100.0% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 0.0% -0.0% -0.1% 0.0% 0.1% 0.0% 0.0% 0.0% -0.0% 0.0% Source: National Treasury Phasing in the formula The annual updates to the official data used to calculate the provincial equitable share formula result in changes to each province’s share of the available funds.
These changes reflect the changing balance of service delivery demands among the provinces, and the annual data updates are vital to ensuring that allocations can respond to these changes.

However, provinces need stable and predictable revenue streams to allow for sound planning.

As such, the new shares calculated using the most recent data are phased in over the three- year MTEF period.
The equitable share formula data is updated every year and a new target share for each province is calculated, as shown in Table W1.16.

The phase-in mechanism provides a smooth path to achieving the new weighted shares by the third year of the MTEF period.
It takes the difference between the target weighted share for each province at the end of the MTEF period and the indicative allocation for 2023/24 published in the 2022 MTEF, and closes the gap between these shares by a third in each year of the 2023 MTEF period.

As a result, one third of the impact of the data updates is implemented in 2023/24 and two thirds in the indicative allocations for 2024/25.

The updates are thus fully implemented in the indicative allocations for 2025/26.
82 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.16 Implementation of the equitable share weights Percentage 2023/24 2025/26 2024/25 2023 MTEF weighted shares 3-year phasing 2023/24 Indicative weighted shares from 2022 MTEF 12.8% 5.5% 21.4% 20.4% 11.4% 8.2% 2.7% 7.1% 10.5% 100.0% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Source: National Treasury Allocations calculated outside the equitable share formula In addition to allocations made through the formula, the provincial equitable share includes allocations that have been determined using other methodologies.
These allocations are typically introduced when a new function or additional funding is transferred to provinces.

National government indicates separately how much funding has been allocated to each province for this specific purpose.

Funds are also added through this approach when a priority has been identified through the national budget process and provincial government performs the function or when a conditional grant is absorbed into the equitable share.
For the 2023 MTEF period, R1.8 billion for the Coega Special Economic Zone is allocated outside the provincial equitable share formula for a water security programme that will construct and upgrade bulk infrastructure.

A further R631 million is allocated in 2023/24 to fund arrears in the compensation of izinduna.
Table W1.17 provides a summary of the allocations made outside the provincial equitable share that carry through from previous financial years and a short description of how these amounts are allocated among provinces.
83 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.17 Allocations outside provincial equitable share formula R million 2023/24 2025/26 2024/25 Medium-term estimates Food relief shift Social worker employment grant shift 77 806 81 300 84 942 250 635 261 681 273 433 285 683 2022/23 Adjusted budget 74 521 Substance abuse treatment grant shift 87 167 91 009 95 096 99 356 Municipal intervention support HIV Prevention Programmes 97 371 101 663 106 228 110 987 114 000 119 024 124 370 129 941 Social worker additional support shift Sanitary Dignity Programme Infrastructure delivery improvement programme shift Education sector presidential employment initiative – – BFI: Coega – 298 000 632 000 848 000 KZN Izinduna 631 083 Total 7 236 483 8 475 112 1 769 310 2 036 262 Source: National Treasury Final provincial equitable share allocations Allocation criteria Allocated equally among the provinces Allocated in terms of what provinces would have received had the grant continued Allocated in terms of what provinces would have received had the grant continued Allocated equally among the provinces Allocated based on the non-profit organisations located in the 27 priority districts Allocated according to areas of high prevalence of gender- based violence, substance abuse and issues affecting children Allocated proportionately based on the number of girl learners per province in quintiles 1 to 3
 schools Allocated equally among the provinces Allocations are based on each provincial education department’s projected capacity to employ assistants in schools in line with the objectives of the initiative Allocated only to Eastern Cape Allocated only to KwaZulu-Natal The final equitable share allocations per province for the 2023 MTEF period are detailed in Table W1.18.
These allocations include the full impact of the data updates, phased in over three years, and the allocations that are made separately from the formula.
84 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.18 Provincial equitable share R million Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total 2023/24 73 292 31 380 120 752 115 948 65 349 46 674 15 150 40 096 58 886 567 528 Source: National Treasury 2024/25 76 022 32 369 125 438 118 858 67 974 48 437 15 718 41 765 60 920 587 500 Conditional grants to provinces There are four types of provincial conditional grants: 2025/26 79 620 33 735 131 095 123 812 71 502 50 752 16 463 43 843 63 448 614 271 Schedule 4, part A grants supplement various programmes partly funded by provinces.
Schedule 5, part A grants fund specific responsibilities and programmes implemented by provinces.

 Schedule 6, part A grants provide in-kind allocations through which a national department implements projects in provinces.

 Schedule 7, part A grants provide for the swift allocation and transfer of funds to a province to help it deal with a disaster.
Changes to conditional grants The overall growth in direct conditional transfers to provinces averages 4.5 per cent over the medium term.

Direct conditional grant baselines total R127.5 billion in 2023/24, R133 billion in 2024/25 and R140.4 billion in 2025/26.

Indirect conditional grants amount to R4.2 billion, R4.4 billion and R4.8 billion respectively for each year of the same period.

Table W1.19 provides a summary of conditional grants by sector for the 2023 MTEF period.
More detailed information, including the framework and allocation criteria for each grant, is provided in the 2023 Division of Revenue Bill.

The frameworks provide the conditions for each grant, the outputs expected, the allocation criteria used for dividing each grant between provinces, and a summary of the grants’ audited outcomes for 2021/22.
85 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.19 Conditional grants to provinces R million Agriculture, Land Reform and Rural Development Comprehensive agricultural support programme Ilima/Letsema projects Land care programme: poverty relief and infrastructure development Basic Education Early childhood development Education infrastructure HIV and AIDS (life skills education) Learners with profound intellectual disabilities Maths, science and technology National school nutrition programme Cooperative Governance Provincial disaster response Health District health programme grant Health facility revitalisation Human resources and training grant National health insurance grant National tertiary services Human Settlements Human settlements development Informal settlements upgrading partnership Provincial emergency housing grant Public Works and Infrastructure Expanded public works programme integrated grant for provinces Social sector expanded public works Sport, Arts and Culture Community library services Mass participation and sport development Transport Provincial roads maintenance Public transport operations Total direct conditional allocations Indirect transfers Basic Education School infrastructure backlogs Health National health insurance indirect Source: National Treasury 2022/23 Revised estimate 2 294 2023/24 2 333 2024/25 2 516 2025/ 1
– – – 940 475 466 2 374 1 715 659 27
493 15 796 4 697 – MTEF total – Agriculture, land reform and rural development grants The comprehensive agricultural support programme grant aims to support newly established and emerging farmers, particularly subsistence, smallholder and previously disadvantaged farmers.
The grant funds a range of projects, including providing training, developing agri- processing infrastructure and directly supporting targeted farmers.

Over the 2023 MTEF period, R5.2 billion is allocated to this grant, and the baseline grows at an average annual growth rate of 4.5 per cent, from R1.6 billion in 2023/24 to R1.8 billion in 2025/26.
This 86 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE includes R8 million in 2023/24, R86 million in 2024/25 and R58 million in 2025/26 added through the BFI for agri-hubs in KwaZulu-Natal.

The land care programme grant: poverty relief and infrastructure development aims to improve productivity and the sustainable use of natural resources.

Provinces are also encouraged to use this grant to create jobs through the Expanded Public Works Programme.
Over the medium term, R271 million is allocated to this grant.

The Ilima/Letsema projects grant aims to boost food production by helping previously disadvantaged farming communities.

The grant’s baseline is R1.9 billion over the 2023 MTEF period.

Basic education grants The early childhood development grant supports government’s prioritisation of early childhood development, as envisioned in the National Development Plan.
The grant aims to improve poor children’s access to early childhood programmes and ensure that early childhood development centres have adequate infrastructure.

The grant baseline totals R5.5 billion over the 2023 MTEF period.

A portion of the funds allocated for the maintenance component of the grant are unallocated for 2024/25 and 2025/26 as they will be informed by the outcomes of the infrastructure assessments that will be conducted in each province.
Over the same period, a portion of the additional funds are unallocated in the subsidy component to pilot a nutrition support programme and a results-based service delivery model.

infrastructure grant provides supplementary The education for ongoing infrastructure programmes in provinces.

This includes maintaining existing infrastructure and building new infrastructure to ensure school buildings meet the required norms and standards.

Over the 2023 MTEF period, R42.2 billion is allocated to the grant.
This includes R609 million in 2023/24 earmarked for repairing school infrastructure damaged by natural disasters in the Eastern Cape and KwaZulu-Natal.

funding Provincial education departments go through a two-year planning process to be eligible to receive incentive allocations for infrastructure projects.

To receive the 2023/24 incentive, the departments had to meet certain prerequisites in 2021/22 and have their infrastructure plans approved in 2022/23.
The national Department of Basic Education and the National Treasury assessed the provinces’ infrastructure plans.

The national departments, provincial treasuries and provincial departments of basic education undertook a moderation process to agree on the final scores.

Provinces had to obtain a minimum score of 60 per cent to qualify for the incentive.

Table W1.20 shows the final score and incentive allocation for each province.
87 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.20 Education infrastructure grant allocations R thousand 2023/24 Basic component Incentive component Final allocation for 2023/24 Planning assessment results from 2022 81% 78% 80% 80% 61% 69% 81% 75% 91% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total – – Source: National Treasury The national Department of Basic Education uses the indirect school infrastructure backlogs grant to replace unsafe and inappropriate school structures and to provide water, sanitation services and electricity on behalf of provinces.
This grant is allocated R6.5 billion over the medium term in the Planning, Information and Assessment Programme.

The national school nutrition programme grant aims to improve the nutrition of poor school children, enhance their capacity to learn and increase their attendance at school.

The programme provides a free daily meal to learners in the poorest schools (quintiles 1 to 3).
To provide meals to more children, while still providing quality food, growth in the grant’s allocations over the MTEF period averages 6.6 per cent, with a total allocation of R29.3 billion.

The maths, science and technology grant provides for ICT, workshop equipment and machinery to schools, which should lead to better outcomes in maths and science in the long term.

Over the medium term, R1.4 billion is allocated to the grant.
The HIV and AIDS (life skills education) grant provides for life skills training, and sexuality and HIV/AIDS education in primary and secondary schools.

The programme is fully integrated into the school system, with learner and teacher support materials provided for Grades 1 to 9.

The grant’s total allocation is R758 million over the medium term.

The learners with profound intellectual disabilities grant aims to expand access to education for these learners.
This grant has been allocated R817 million over the 2023 MTEF period to provide access to quality, publicly funded education to such learners by recruiting outreach teams.

Cooperative governance grant The provincial disaster response grant is administered by the National Disaster Management Centre in the Department of Cooperative Governance.

It is unallocated at the start of the financial year.
The grant allows the National Disaster Management Centre to immediately release funds (in-year) after a disaster is classified, without the need for the transfers to be gazetted first.
To ensure that sufficient funds are available in the event of a disaster, section 20 of the 2023 Division of Revenue Bill allows for funds allocated to the municipal disaster response grant to be transferred to provinces if funds in the provincial disaster 88 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE response grant have already been exhausted, and vice versa.
The bill also allows for more than one transfer to be made to areas affected by disasters, so that an initial payment for emergency aid can be made before a full assessment of damages and costs has been completed.

Over the medium term, R457 million has been allocated to the provincial disaster response grant.
Health grants The district health programmes grant consists of two main components: a comprehensive HIV/AIDS component (made up of the former HIV/AIDS and TB components) and a district health component (made up of the former community outreach, malaria, HPV and COVID-19 components).
The grant supports HIV/AIDS prevention programmes and specific interventions, including voluntary counselling and testing, prevention of mother-to-child transmission, post-exposure prophylaxis, antiretroviral therapy and home-based care.

Over the medium term, the grant is allocated R84.3 billion.

The national tertiary services grant provides strategic funding to enable provinces to plan, modernise and transform tertiary hospital service delivery in line with national policy objectives.
The grant operates in 29 tertiary hospitals across the nine provinces and continues to fund medical specialists, equipment, and advanced medical investigation and treatment according to approved service specifications.

Patient referral pathways often cross provincial borders and, as a result, many patients receive care in neighbouring provinces if the required services are unavailable in their home province.
In the 2022 MTEF, R73 million was unallocated for 2023/24, and these funds have now been allocated to the Eastern Cape, Limpopo, Mpumalanga and the North West provinces to develop and expand tertiary services in their facilities.

A similar approach to allocating developmental funds is taken in the training component of the human resources and training grant.

Further details on the amounts ring-fenced are discussed under this grant.
The urban areas of Gauteng and the Western Cape continue to receive the largest share of the grant because they provide the largest proportion of high- level, sophisticated services.

The grant is allocated R44 billion over the medium term: R14 billion in 2023/24, R14.7 billion in 2024/25 and R15.3 billion in 2025/26.
The health facility revitalisation grant funds the construction and maintenance of health infrastructure, including large projects to modernise hospital infrastructure and equipment, general maintenance and infrastructure projects at smaller hospitals, and the refurbishment and upgrading of nursing colleges and schools.

Over the 2023 MTEF period, R22.2 billion has been allocated to this grant.
Like the education infrastructure grant discussed previously, a two-year planning process is required for provinces to access this grant’s incentive component.

The national Department of Health and the National Treasury assessed the provinces’ infrastructure plans.

This was followed by a moderation process involving the national departments, provincial treasuries and provincial departments of health to agree on the final scores.
Provinces had to obtain a minimum score of 60 per cent to qualify for the incentive.

Funds for the incentive component 89 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE in the outer years are shown as unallocated.

Table W1.21 sets out the final score and the incentive allocation per province.
Table W1.21 Health facility revitalisation grant allocations R thousand 2023/24 Basic component Incentive component Final allocation for 2023/24 Planning assessment results from 2022 83% 80% 79% 94% 71% 82% 51% 79% 94% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total – 78 195 – 78 195 78 195 547 362 773 491 680 792 1 116 750 1 462 122 552 983 493 450 465 311 691 663 883 298 7 119 860 Source: National Treasury The human resources and training grant has two components and has been allocated R5.5 billion in 2023/24, R5.4 billion in 2024/25 and R5.6 billion in 2025/26.
The training component funds the training of health sciences professionals, including specialists, registrars and their supervisors.

The statutory human resources component funds internship and community service posts, as well as some posts previously funded from the equitable share.

In the 2022 MTEF, R26 million was unallocated for 2023/24 in the training component.
This amount has now been allocated to the Eastern Cape, Limpopo, Mpumalanga, the Northern Cape and the North West provinces to develop and expand tertiary services.

The national health insurance indirect grant continues to fund all preparatory work for universal health coverage, as announced in 2017/18.
Over the 2023 MTEF period, this will be done through three components: the health facility revitalisation component and two integrated components (personal services component and non-personal services component).

The personal services component funds priority services for national health insurance, which include: Expanding access to school health services, focusing on optometry and audiology.
Providing maternal care for high-risk pregnancies, screening and treatment for breast and cervical cancer, hip and knee arthroplasty, cataract surgeries and wheelchairs.

Non-personal services will test, and scale up when ready, the technology platforms and information systems needed to ensure a successful transition to national health insurance.
This component is allocated R2 billion over the medium term to continue funding initiatives to strengthen health information systems, clinics, and the dispensing and distribution of centralised chronic medicines.

The indirect grant is allocated R6.9 billion over the 2023 MTEF period.

Funds for contracting health professionals were previously shifted from the personal services component of the indirect grant to create a new direct national health insurance grant.
The contracting of health professionals in former national health insurance pilot sites was previously administered at national level but being carried out at provincial level, with the 90 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE requirement that provinces submit claims for the costs they incurred.

Transferring these funds to the provinces allows them to pay contractors directly.
The contracting of health professionals will continue to be funded in the direct national health insurance grant.

In addition, the grant funds the provision of mental health services and oncology services.

These components were shifted, along with the funding, from the district health programmes grant in the 2022 MTEF.

They are not standalone components, but part of the activities that are funded through the grant.
This is part of a continuation of shifting funds for mental health services and oncology services to the national health insurance grant that started in the 2021 MTEF, where changes were made during the 2021 MTBPS to accommodate the shift of funding for these services from the national health insurance indirect grant to this grant.
Over time, provinces have showed readiness to take on the delivery of these services and they will be more appropriately placed as part of the preparatory work for national health insurance.

The grant’s baseline is R2.2 billion over the medium term.

Human settlements grants The human settlements development grant seeks to establish habitable, stable and sustainable human settlements in which all citizens have access to social and economic amenities.
Over the 2023 MTEF period, R45.9 billion has been allocated to this grant.

This includes R475 million in 2023/24 earmarked for repairing houses affected by natural disasters in KwaZulu-Natal.

This grant is allocated using a formula with three components: The first component shares 70 per cent of the total allocation between provinces in proportion to their share of the total number of households living in inadequate housing.
Data from the 2011 Census is used for the number of households in each province living in informal settlements, shacks in backyards and traditional dwellings.

Not all traditional dwellings are inadequate, which is why information from the 2010 General Household Survey on the proportion of traditional dwellings with damaged roofs and walls per province is used to adjust these totals so that only dwellings providing inadequate shelter are counted in the formula.
The second component determines 20 per cent of the total allocation based on the share of poor households in each province.

The number of households with an income of less than R1 500 per month is used to determine 80 per cent of the component and the share of households with an income of between R1 500 and R3 500 per month is used to determine the remaining 20 per cent.

Data used in this component comes from the 2011 Census.
The third component, which determines 10 per cent of the total allocation, is shared in proportion to the number of people in each province, as measured in the 2011 Census.

Table W1.22 shows how the human settlements development grant formula calculates the shares for each province and the metropolitan municipalities within the provinces.
Section 12(6) of the Division of Revenue Act requires provinces to gazette how much they will spend within each accredited municipality (including the amounts transferred to that municipality and the amounts spent by the province in that municipal area).

Funds for mining towns and disaster recovery are allocated separately from the formula.
91 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.22 Human settlements development grant formula calculation Components Description Poverty Share of poverty Population Share of population Housing needs Weighted share of inadequate housing 70.0% Component weight Eastern Cape Nelson Mandela Bay Buffalo City Other Eastern Cape municipalities Free State Mangaung Other Free State municipalities Gauteng Ekurhuleni City of Johannesburg City of Tshwane Other Gauteng municipalities KwaZulu-Natal eThekwini Other KwaZulu-Natal municipalities Limpopo Mpumalanga Northern Cape North West Western Cape City of Cape Town Other Western Cape municipalities Total 10.1% 1.6% 2.2% 6.3% 5.9% 1.4% 4.4% 30.9% 9.1% 10.5% 6.8% 4.5% 18.0% 7.0% 11.0% 4.4% 6.2% 1.9% 10.0% 12.7% 9.3% 3.4% 100.0% Grant formula Weighted share of grant formula Source: 2011 Census and General Household Survey A total of R253 million is ring-fenced within the human settlements development grant in 2023/24 to upgrade human settlements in mining towns in four provinces.
These allocations respond to areas with significant informal settlement challenges, with a high proportion of economic activity based on the natural resources sector.

The informal settlements upgrading partnership grant intensifies efforts to upgrade informal settlements in partnership with communities.
The grant is dedicated to increasing investment in in-situ informal settlement upgrading, which includes identifying informal settlements for upgrades, providing households with tenure and providing municipal engineering services.

Over the 2023 MTEF period, R13.5 billion is allocated to the grant.

The provincial emergency housing grant enables the Department of Human Settlements to rapidly respond to emergencies by providing temporary housing in line with the Emergency Housing Programme.
However, the grant is limited to funding emergency housing following the immediate aftermath of a disaster, and not the other emergency situations listed in the programme.

The grant’s purpose was also previously expanded to fund the repair of houses damaged in disasters if those repairs are cheaper than the grant’s funding of relocating households to temporary shelter.
From 2023/24, this grant ceases to exist as funds are shifted to the vote of the national department to give the department the flexibility to respond timeously to housing emergencies.

92 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Public works and infrastructure grants The expanded public works programme (EPWP) integrated grant for provinces incentivises provincial departments to use labour-intensive methods in infrastructure, environmental and other projects.
Grant allocations are determined upfront based on the performance of provincial departments in meeting job targets in the preceding financial year.

The grant is allocated R1.4 billion over the MTEF period.

The social sector EPWP incentive grant for provinces rewards provinces for creating jobs in the preceding financial year in the areas of home-based care, early childhood development, adult literacy and numeracy, community safety and security, and sports programmes.
The grant’s allocation model incentivises provincial departments to participate in the EPWP and measures the performance of each province relative to its peers, providing additional incentives to those that perform well.

The grant is allocated R1.3 billion over the 2023 MTEF period.

Sport, arts and culture grants The community library services grant, administered by the Department of Sport, Arts and Culture, aims to help South Africans access information to improve their socioeconomic situation.
The grant is allocated to the relevant provincial department and administered by that department or through a service-level agreement with municipalities.

In collaboration with provincial departments of basic education, the grant also funds libraries that serve both schools and the general public.

Funds from this grant may be used to enable the shift of the libraries function between provinces and municipalities.

The grant is allocated R4.9 billion over the next three years.
This grant’s baseline grows by 2.9 per cent over the medium term.

The mass participation and sport development grant aims to increase and sustain mass participation in sport and recreational activities in the provinces, with greater emphasis on provincial and district academies.

The grant is allocated R1.9 billion over the medium term.

This grant’s baseline grows by 3 per cent over the medium term.

Transport grants The public transport operations grant subsidises commuter bus services.
It helps ensure that provinces meet their contractual obligations and provide services.

Most of the contracts subsidised through this grant continue to operate on long-standing routes that link dormitory towns and suburbs established under apartheid to places of work.

The grant allows provinces to renegotiate contracts and routes, and/or to devolve the function and funding to municipalities.
This provides an opportunity for routes to be restructured in line with new settlement patterns and to promote more integrated urban development patterns in future.

The grant is allocated R23.2 billion over the 2023 MTEF period.

The provincial roads maintenance grant is a supplementary grant that supports the cost of maintaining provincial roads.

Provinces are expected to fund the construction of new roads from their own budgets and supplement the cost of maintaining and upgrading existing roads.
Grant allocations are determined using a formula based on provincial road networks, road traffic and weather conditions.

These factors reflect the varying costs of maintaining road 93 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE networks in each province.

The grant requires provinces to follow best practices for planning, and to use and regularly update roads asset management systems.
The incentive portion of the grant is allocated based on performance indicators relating to traffic loads, safety engineering and visual condition indicators.

The total allocation for the 2023 MTEF period is R52 billion.

This includes R601 million in 2023/24 earmarked for the Eastern Cape and KwaZulu-Natal for repairing provincial roads affected by natural disasters.

Over the medium term, R3.7 billion is allocated for building rural bridges and R6.8 billion for refurbishing provincial roads.
Part 5: Local government fiscal framework and allocations This section outlines the transfers made to local government and how these funds are distributed between municipalities.

Funds raised by national government are transferred to municipalities through conditional and unconditional grants.
National transfers to municipalities are published to enable them to plan fully for their 2023/24 budgets, and to promote better accountability and transparency by ensuring that all national allocations are included in municipal budgets.

Over the 2023 MTEF period, R521.7 billion will be transferred directly to local government and a further R26.6 billion has been allocated to indirect grants.
Direct transfers to local government over the medium term account for 10 per cent of national government’s non- interest expenditure.

When indirect transfers are added to this, total spending on local government increases to 10.5 per cent of national non-interest expenditure.
Table W1.23 Transfers to local government R million 2019/20 2020/21 2021/22 Direct transfers Equitable share and related Equitable share formula1 RSC levy replacement Support for councillor remuneration and ward committees General fuel levy sharing with metros Conditional grants Infrastructure Capacity building and other Indirect transfers Infrastructure Capacity building and other Outcome 122 986 65 627 59 301 5 357 969 137 098 83 102 76 482 135 625 76 169 69 197 5 652 969 5 963 1 009 2022/23 Adjusted budget 154 188 87 311 80 023 6 249 1 040 2023/24 2024/25 2025/26 Medium-term estimates Total 141 292 1.
Outcome figures for the equitable share reflect amounts transferred after funds have been withheld to offset underspending by municipalities on conditional grants.

Rollover funds are reflected in the year in which they were transferred Source: National Treasury 172 453 143 352 128 576 162 359 183 244 192 589 The local government fiscal framework responds to the constitutional assignment of powers and functions to this sphere of government.
The framework refers to all resources available to municipalities to meet their expenditure responsibilities.

National transfers account for a 94 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE relatively small proportion of the local government fiscal framework, with the majority of local government revenues being raised by municipalities themselves through their substantial revenue-raising powers.
However, each municipality varies dramatically, with poor rural municipalities receiving most of their revenue from transfers, while urban municipalities raise the majority of their own revenues.

This differentiation in the way municipalities are funded will continue in the period ahead.

As a result, transfers per household to the most rural municipalities are more than twice as large as those to metropolitan municipalities.
Figure W1.2 Per household allocations to municipalities, 2023/24* 14 12 10 8 6 4 2 0 d n a s u o h t R Average equitable share per HH 2023/24 Average conditional grant per HH 2023/24 2.4 3.2 2.5 4.1 2.8 5.3 5.0 8.5 3.9 6.9 Metro (8) Secondary cities (19) Large towns (26) Small towns (99) Rural municipalities (61) *Reflects funds allocated through the Division of Revenue Bill.
Allocations to district municipalities are re-assigned to local municipalities where possible Source: National Treasury Changes to local government allocations Allocations to local government increase by R14.3 billion.

No fiscal consolidation reductions were proposed in the 2022 MTBPS.

The growth in direct allocations to municipalities over the next three years is just above inflation, at an average annual rate of 5.9 per cent.
The growth in indirect allocations is just below projected average inflation over the same period, at an average annual rate of 4.3 per cent.

The changes to each local government allocation are summarised in Table W1.24.
95 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.24 Revisions to direct and indirect transfers to local government R million 2024/25 2023/24 2025/26 Technical adjustments Direct transfers Local government equitable share Equitable share formula Support for councillor remuneration and ward committees Conditional grants Integrated urban development Municipal infrastructure Additions to baselines Direct transfers Local government equitable share Equitable share formula Conditional grants Urban settlements development Public transport network Regional bulk infrastructure Reductions to baselines Direct transfers Conditional grants Public transport network Regional bulk infrastructure Municipal housing emergency Total change to local government allocations Change to direct transfers Change to indirect transfers Net change to local government allocations Source: National Treasury – – – 28 -28 – 50 -50 3 777 2 460 2 460 2 460 1 317 473 105 739 -319 – -319 – -136 -183 3 458 – 3 458 – – – 11 -11 – 54 -54 4 434 2 286 2 286 2 286 2 149 772 40 1 337 -199 – -199 -8 – -191 4 235 – 4 235 – – – 17 -17 – 58 -58 6 059 3 335 3 335 3 335 2 724 963 316 1 445 -213 – -213 -13 – -200 5 846 – 5 846 2023 MTEF total revisions – – – 56 -56 – 162 -162 14 270 8 080 8 080 8 080 6 190 2 208 461 3 521 -731 – -731 -21 -136 -574 13 539 – 13 539 Over the medium term, R8.1 billion is added to the local government equitable share to increase coverage of the provision of free basic services.
Over the medium term, R2.2 billion is added to the urban settlements development grant to fund the implementation of projects in the eThekwini Metropolitan Municipality and the City of Johannesburg, funded from the BFI.

Further details are discussed in the conditional grants section.
Over the medium term, R461 million is added to the public transport network grant to align funding with the revised implementation plan and cash flow projections for the City of Cape Town’s MyCiTi public transport network project, funded from the BFI.

A total of R21 million in the outer years is reprioritised from this grant to fund the rollout of the single integrated ticketing system.
An amount of R136 million is reduced from the direct regional bulk infrastructure grant in 2023/24, while R1.4 million is added in 2024/25 to align funding with the revised implementation plan and cash flow projections for George Local Municipality’s potable water security and remedial works project, funded from the BFI.

Over the medium term, R3.4 billion is added to the same grant to fund three other water projects funded from the BFI.

Further details are discussed in the conditional grants section.
96 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE The municipal emergency housing grant is discontinued and its funds are shifted to the vote of the Department of Human Settlements.

These funds formed part of the baseline of local government conditional grants in the 2022 MTBPS.
The local government equitable share local government equitable share In terms of section 227 of the Constitution, local government is entitled to an equitable share of nationally raised revenue to enable it to provide basic services and perform its allocated functions.

The is an unconditional transfer that supplements the revenue that municipalities can raise themselves (including revenue raised through property rates and service charges).
The equitable share provides funding for municipalities to deliver free basic services to poor households and subsidises the cost of administration and other core services for those municipalities with the least potential to cover these costs from their own revenues.
Over the 2023 MTEF period, the local government equitable share, including the Regional Service Council/Joint Service Board (RSC/JSB) levies replacement grant and the special support for councillor remuneration and ward committees grant, amounts to R309.7 billion (R96.5 billion in 2023/24, R103.8 billion in 2024/25 and R109.4 billion in 2025/26).
Due to above-inflation electricity tariff increases and increasing household growth rates over the medium term, R8.1 billion has been added to the local government equitable share, which grows at an average annual rate of 7.8 per cent over the next three years.

Formula for allocating the local government equitable share The portion of national revenue allocated to local government through the equitable share is determined in the national budget process and endorsed by Cabinet (the vertical division).
Local government’s equitable share is divided among the country’s 257 municipalities, using a formula to ensure objectivity (the horizontal division).

The principles and objectives of the formula are set out in detail in the Explanatory Memorandum to the 2013 Division of Revenue.

Structure of the local government equitable share formula The formula uses demographic and other data to determine each municipality’s portion of the local government equitable share.
It has three parts, made up of five components: The first part of the formula consists of the basic services component, which provides for the cost of free basic services for poor households.

 The second part enables municipalities with limited resources to afford basic administrative and governance capacity and perform core municipal functions.

It does this through three components: - The institutional component provides a subsidy for basic municipal administrative costs.
- The community services component provides funds for other core municipal services not included under basic services.

- The revenue adjustment factor ensures that funds from this part of the formula are only provided to municipalities with limited potential to raise their own revenue.

97 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Municipalities that are least able to fund these costs from their own revenues should receive the most funding.
The third part of the formula provides predictability and stability through the correction and stabilisation factor, which ensures that all of the formula’s guarantees can be met.

Each of these components is described in detail in the sub-sections that follow.
Structure of the local government equitable share formula LGES = BS + (I + CS) x RA ± C where LGES is the local government equitable share BS is the basic services component I is the institutional component CS is the community services component RA is the revenue adjustment factor C is the correction and stabilisation factor The basic services component This component helps municipalities provide free basic water, sanitation, electricity and refuse removal services to households that fall below an affordability threshold.
Following municipal consultation, the formula’s affordability measure (used to determine how many households need free basic services) is based on the level of two state old age pensions.

When the 2011 Census was conducted, the state old age pension was worth R1 140 per month, which means that two pensions were worth R2 280 per month.

A monthly household income of R2 300 per month in 2011 has therefore been used to define the formula’s affordability threshold.
Statistics South Africa has calculated that 59 per cent of all households in South Africa fall below this income threshold.

However, the proportion in each municipality varies widely.

In 2023 terms, this monthly income is equivalent to about R4 216 per month.

This threshold is not an official poverty line or a required level to be used by municipalities in their own indigence policies.
If municipalities choose to provide fewer households with free basic services than they are funded for through the local government equitable share, then their budget documentation should clearly set out why they have made this choice and how they have consulted with their community during the budget process.

The number of households per municipality, and the number below the poverty threshold, is updated annually.
The number of households per municipality used to calculate indicative allocations for the outer years of the MTEF period is updated based on the growth experienced between the 2001 Census and the 2016 Community Survey.

Provincial growth rates are then rebalanced to match the average annual provincial growth reported between 2002 and 2021 in the annual General Household Survey.
Statistics South Africa has advised the National Treasury that, in the absence of official municipal household estimates, this is a credible method of estimating the household numbers per municipality needed for the formula.

Statistics South Africa is researching methods for producing municipal-level data estimates, which may be used to inform equitable share allocations in future.

The proportion of households below the affordability threshold in each municipality is still based on 2011 Census data.
This is because the 2016 Community Survey did not publish data 98 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE on household income.

The total number of households in each municipality is adjusted every year to account for growth.

Although the share of households subsidised for free basic services through the formula remains constant, the number of households subsidised increases annually in line with estimated household growth.
The basic services subsidy is typically allocated to 100 per cent of households that fall below the poverty threshold.

However, due to baseline reductions over the years, and the rapid growth in the cost of bulk services, the basic services subsidy could not be fully funded, as the reductions had to spread across all components of the formula to minimise the impact on service delivery in smaller and more rural municipalities.
Over the MTEF period ahead, the subsidy is allocated to 100 per cent of households below the poverty threshold.

The basic services subsidy will fund: 11.2 million households in 2023/24.

 11.5 million households in 2024/25.

 11.8 million households in 2025/26.

The basic services component provides a subsidy of R528.29 per month in 2023/24 for the cost of providing basic services to each of these households.
The subsidy includes funding for the provision of free basic water (six kilolitres per poor household per month), energy (50 kilowatt-hours per month) and sanitation and refuse removal (based on service levels defined by national policy).

The monthly amount provided for each service is detailed in Table W1.25 and includes an allocation of 10 per cent for service maintenance costs.
Table W1.25 Amounts per basic service allocated through the local government equitable share, 2023/24 Allocation per household below affordability threshold (R per month) Operations 111.1 162.7 109.7 92.0 475.5 Maintenance 12.34 18.08 12.19 10.22 52.83 Total 123.40 180.79 121.90 102.19 528.29 Total allocation per service (R million) 16 556 24 256 16 355 13 710 70 878 Energy Water Sanitation Refuse removal Total basic services Source: National Treasury The formula uses the fairest estimates of the average costs of providing each service that could be derived from available information.
More details of how the costs were estimated can be found in the discussion paper on the proposed structure of the new local government equitable share formula, available on the National Treasury website.

The per household allocation for each of the basic services in Table W1.25 is updated annually based on the following factors.

The electricity cost estimate is made up of bulk and other costs.
Bulk costs are updated based on the bulk multi-year price determination approved by the National Energy Regulator of South Africa (NERSA).

For the 2023 MTEF, 2 per cent is added to the recently announced NERSA approved electricity tariff increasess.
This is in anticipation of higher increases than those published in January, for municipalities, due to the difference in the financial years of Eskom customers and municipalities meaning that Eskom only has nine months to collect the 99 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE allowable revenue from municipalities.

R1.1 billion is added to the free basic energy subcomponent of the free basic services component to find these higher tariff increases.
To this end, the free basic electricity subsidy in the local government equitable share is calculated based on a 20.7 per cent tariff increase in 2023/24 and a 14.7 per cent increase in 2024/25.

In the absence of an approved tariff increase in the outer year of the MTEF period, the formula assumes an increase of 17.7 per cent in 2025/26.

This is the average of the estimated increases for the first two years of the MTEF period.
Other (non-bulk) electricity costs are updated based on the National Treasury’s inflation projections in the 2022 MTBPS.

The water cost estimate is also made up of bulk and other costs.

Bulk costs are updated based on the average increase in bulk tariffs charged by water boards (although not all municipalities purchase bulk water from water boards, their price increases serve as a proxy for the cost increases for all municipalities).
The average increase in tariffs for bulk water from water boards in 2022/23 was 8.6 per cent.

As the bulk price increase for 2023 will only be announced after the 2023 Budget is tabled, the equitable share formula continues to use the 8.9 per cent bulk tariff increase that was used when the baseline for this year was calculated in the 2022 MTEF period.

Other costs are updated based on the National Treasury’s inflation projections in the 2022 MTBPS.
The costs for sanitation and refuse removal are updated based on the National Treasury’s inflation projections in the 2022 MTBPS.

The basic services component allocation to each municipality is calculated by multiplying the monthly subsidy per household by the updated number of households below the affordability threshold in each municipal area.
The basic services component BS = basic services subsidy x number of poor households Funding for each basic service is allocated to the municipality (metro, district or local) that is authorised to provide that service.

If another municipality provides a service on behalf of the authorised municipality, it must transfer funds to the provider in terms of section 28 of the Division of Revenue Act.
The basic services component is worth R70.9 billion in 2023/24 and accounts for 80.9 per cent of the value of the local government equitable share formula allocation.

The institutional component To provide basic services to households, municipalities need to be able to run a basic administration.

Most municipalities should be able to fund the majority of their administration costs with their own revenue.
But, because poor households are unable to contribute in full, the equitable share includes an institutional support component to help meet some of these costs.

To ensure that this component supports municipalities with limited revenue-raising abilities, a revenue adjustment factor is applied so that municipalities with 100 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE less potential to raise their own revenue receive a larger proportion of the allocation.
The revenue adjustment factor is described in more detail later in this annexure.

In 2023/24, this component consists of a base allocation of R8 million, which goes to every municipality, and an additional amount that is based on the number of council seats in each municipality.

The number of council seats accounts for the councillor numbers that took effect on the date of the 2021 local government elections.
This component reflects the relative size of a municipality’s administration and is not intended to fund the costs of councillors only (the Minister of Cooperative Governance and Traditional Affairs determines the number of seats recognised for the formula).

The base allocation acknowledges that there are some fixed costs that all municipalities face.
The institutional component I = base allocation + [allocation per councillor x number of council seats] The institutional component accounts for 7.6 per cent of the equitable share formula and is worth R6.7 billion in 2023/24.

This component is also complemented by special support for councillor remuneration in poor municipalities, which is not part of the equitable share formula.
The community services component This component funds services that benefit communities rather than individual households (which are provided for in the basic services component).

It includes funding for municipal fire services, municipal roads, cemeteries, planning, stormwater health services, management, street lighting and parks.
To ensure this component assists municipalities with limited revenue-raising abilities, a revenue adjustment factor is applied so that these municipalities receive a larger proportion of the allocation.

The allocation for this component is split between district and local municipalities, which both provide community services.

In 2023/24, the allocation to district municipalities for municipal health and related services is R11.85 per household per month.
The component’s remaining funds are allocated to local and metropolitan municipalities for other services, based on the number of households in each municipality.

The community services component CS = [municipal health and related services allocation x number of households] + [other services allocation x number of households] The community services component accounts for 11.5 per cent of the equitable share formula and is worth R10 billion in 2023/24.
The revenue adjustment factor The Constitution gives local government substantial revenue-raising powers (particularly through property rates and surcharges on services).

Municipalities are expected to fund most of their own administrative costs and cross-subsidise some services for indigent residents.
101 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Given the varied levels of poverty across South Africa, the formula does not expect all municipalities to be able to generate similar amounts of own revenue.

A revenue adjustment factor is applied to the institutional and community services components of the formula to ensure that the funds assist municipalities that are least likely to be able to fund these functions from their own revenue.
To account for the varying fiscal capacities of municipalities, this component is based on a per capita index using the following factors from the 2011 Census: Total income of all individuals/households in a municipality (as a measure of economic activity and earning).

 Reported property values.

 Number of households on traditional land.

 Unemployment rate.

 Proportion of poor households as a percentage of the total number of households in the municipality.
Based on this index, municipalities were ranked according to their per capita revenue-raising potential.

The top 10 per cent of municipalities have a revenue adjustment factor of zero, which means that they do not receive an allocation from the institutional and community services components.

The 25 per cent of municipalities with the lowest scores have a revenue adjustment factor of 100 per cent, which means that they receive their full allocation from the institutional and community services components.
Municipalities between the bottom 25 per cent and top 10 per cent have a revenue adjustment factor applied on a sliding scale, so that those with higher per capita revenue-raising potential receive a lower revenue adjustment factor and those with less potential have a larger revenue adjustment factor.
The revenue adjustment factor is not based on the actual revenues municipalities collect, which ensures that this component does not create a perverse incentive for municipalities to under-collect revenue to receive a higher equitable share.

Because district municipalities do not collect revenue from property rates, the revenue adjustment factor applied to these municipalities is based on the RSC/JSB levies replacement grant allocations.
This grant replaces a source of own revenue previously collected by district municipalities and it is still treated as an own revenue source in many respects.

Similar to the revenue adjustment factor for local and metropolitan municipalities, the factor applied to district municipalities is based on their per capita RSC/JSB levies replacement grant allocations.
District municipalities are given revenue adjustment factors on a sliding scale – those with a higher per capita RSC/JSB levies replacement grant allocation receive a lower revenue adjustment factor, while those with lower allocations have a higher revenue adjustment factor.

Correction and stabilisation factor Providing municipalities with predictable and stable equitable share allocations is one of the principles of the equitable share formula.
Indicative allocations are published for the second and third years of the MTEF period to ensure predictability.

To provide stability for municipal 102 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE planning while giving national government flexibility to account for overall budget constraints and amend the formula, municipalities are guaranteed to receive at least 90 per cent of the indicative allocation for the middle year of the MTEF period.
Ensuring the formula balances The formula is structured so that all of the available funds are allocated.

The basic services component is determined by the number of poor households per municipality and the estimated cost of free basic services, so it cannot be manipulated.

This means that balancing the formula to the available resources must take place in the second part of the formula, which includes the institutional and community services components.
The formula automatically determines the value of the allocation per council seat in the institutional component and the allocation per household for other services in the community services component to ensure that it balances.

Increases in the cost of providing basic services can result in lower institutional and community services allocations.
Details of new allocations In addition to the three-year formula allocations published in the Division of Revenue Bill, a copy of the formula, including the data used for each municipality and each component, is published online (http://mfma.treasury.gov.za/Media_Releases/LGESDiscussions/Pages/def ault.aspx).
Other unconditional allocations RSC/JSB levies replacement grant Before 2006, district municipalities raised levies on local businesses through a Regional Services Council (RSC) or Joint Services Board (JSB) levy.

This source of revenue was replaced in 2006/07 with the RSC/JSB levies replacement grant, which was allocated to all district and metropolitan municipalities based on the amounts they had previously collected through the levies.
The RSC/JSB levies replacement grant for metropolitan municipalities has since been replaced by the sharing of the general fuel levy.

The RSC/JSB levies replacement grant is allocated R20.5 billion over the 2023 MTEF period and grows at an average annual rate of 4.5 per cent.

In 2017/18, adjustments were made to the grant to redistribute funds to the 13 district municipalities that were receiving less than R40 million per year from this grant.
To fund increased allocations to these district municipalities, the growth rates of the 10 district municipalities with the largest allocations were reduced so that they received two-thirds of their original growth rate in 2017/18 and one-third of their original growth rate in 2018/19.
In recognition that the two categories of district municipalities have varying service-delivery responsibilities, from 2019/20, different growth rates of a 3:1 ratio were applied to allocations to district municipalities authorised for water and sanitation (C2) and unauthorised district municipalities (C1), respectively.
These two changes combined have significantly affected the per household RSC/JSB levies replacement grant allocations, including under-allocating funds to some districts and over-allocating to others.

To address this, from 2023/24 the growth rates for allocations to C1 and C2 district municipalities will be equalised.
The application of a 103 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE single growth rate for all district municipalities should see the allocations for C1 municipalities grow in line with inflation – which hasn’t been the case since 2019 – and will stop districts moving further up and down the per household rankings.
This revised allocation methodology will be in place until the Department of Cooperative Governance finalises its review of section 84 of the Municipal Structures Act to streamline the powers and functions of district municipalities.

The review aims to clarify the roles and responsibilities of district municipalities and should inform the development of an appropriate funding model for district municipalities.
Special support for councillor remuneration and ward committees Councillors’ salaries are subsidised in poor municipalities.

The total value of the support provided in 2023/24 is R1 billion, calculated separately to the local government equitable share and in addition to the funding for governance costs provided in the institutional component.
The level of support for each municipality is allocated based on a system gazetted by the Minister of Cooperative Governance and Traditional Affairs, which classifies municipal councils into six grades based on their total income and population size.

Special support is provided to the lowest three grades of municipal councils (the smallest and poorest municipalities).
A subsidy of 90 per cent of the gazetted maximum remuneration for a part-time councillor is provided for every councillor in grade 1 municipalities, 80 per cent for grade 2 municipalities and 70 per cent for grade 3 municipalities.

In addition to this support for councillor remuneration, each local municipality in grades 1 to 3 receives an allocation to provide stipends of R500 per month to 10 members of each ward committee in their municipality.
Each municipality’s allocation for this special support is published in the Division of Revenue Bill appendices.

Conditional grants to local government National government allocates funds to local government through a variety of conditional grants.

These grants fall into two main groups: infrastructure and capacity building.

The total value of conditional grants directly transferred to local government increases from R52 billion in 2023/24 to R54.5 billion in 2024/25 and R57.1 billion in 2025/26.
There are four types of local government conditional grants: Schedule 4, part B sets out general grants that supplement various programmes partly funded by municipalities.

 Schedule 5, part B grants fund specific responsibilities and programmes implemented by municipalities.

 Schedule 6, part B grants provide in-kind allocations through which a national department implements projects in municipalities.
Schedule 7, part B grants provide for the swift allocation and transfer of funds to a municipality to help it deal with a disaster.

104 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Infrastructure conditional grants to local government National transfers for infrastructure, including indirect or in-kind allocations to entities executing specific projects in municipalities, amount to R182.6 billion over the 2023 MTEF period.
Table W1.26 Infrastructure grants to local government R million 2019/20 2021/22 2020/21 Outcome Direct transfers Integrated urban development Municipal disaster recovery Municipal infrastructure Informal settlements upgrading partnership Urban settlements development Energy efficiency and demand-side management Integrated national electrification programme Neighbourhood development partnership Public transport network Rural roads asset management systems Regional bulk infrastructure Water services infrastructure Indirect transfers Integrated national electrification programme Neighbourhood development partnership Regional bulk infrastructure Water services infrastructure Total Source: National Treasury 42 322 857 133 14 816 – 11 655 227 37 901 936 – 14 491 – 10 572 193 42 636 1 009 – 15 593 3 945 7 405 221 2022/23 Revised budget 48 857 1 085 3 319 16 842 4 273 7 352 223 2023/24 2024/25 Medium-term estimates 2025/26 49 733 1 172 321 17 545 4 365 8 149 224 52 123 1 227 – 18 331 4 561 8 793 243 54 646 1 284 – Municipal infrastructure grant
3 938 879 63 745 Municipal infrastructure grant The largest infrastructure transfer to municipalities is made through the municipal infrastructure grant, which supports government’s aim to expand service delivery and alleviate poverty.
The grant funds the provision of infrastructure for basic services, roads and social infrastructure for poor households in all non-metropolitan municipalities.

The total allocations for this grant amount to R55 billion over the medium term and grow at an average annual rate of 4.4 per cent.

The municipal infrastructure grant is allocated through a formula with a vertical and horizontal division.
The vertical division allocates resources between sectors and the horizontal division takes account of poverty, backlogs and municipal powers and functions in allocating funds to municipalities.

The five main components of the formula are described in the box that follows.
105 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Municipal infrastructure grant = C + B + P + E + N C Constant to ensure a minimum allocation for small municipalities (this allocation is made to all municipalities) B Basic residential infrastructure (proportional allocations for water supply and sanitation, roads and other services such as street lighting and solid waste removal) P Public municipal service infrastructure (including sport infrastructure) E Allocation for social institutions and micro-enterprise infrastructure N Allocation to the 27 priority districts identified by government Allocations for the water and sanitation sub-components of the basic services component are based on the proportion of the national backlog for that service in each municipality.
Other components are based on the proportion of the country’s poor households located in each municipality.

The formula considers poor households without access to services that meet sector standards to be a backlog.
Table W1.27 Data used in the municipal infrastructure grant formula Component Input for horizontal calculation B Number of water backlogs Number of sanitation backlogs Number of road backlogs Number of other backlogs P E N Number of poor households Number of poor households Number of poor households in nodal areas Proxy used in 2023 (corresponding with data available from 2011 Census) Water access: Poor households1 report having access to piped water inside their dwelling, in the yard or within 200 meters of their dwelling Sanitation access: Poor households report flush toilet, chemical toilet, pit toilet with ventilation or ecological toilet Roads backlog: Number of households Refuse access: Poor households report that refuse is mainly removed by local authorties or a private company once a week (urban, traditional and farms).
It should be noted that acceptable services standards differ by area.

For traditional and farms the following conditions apply: removed by local authority / private company / community members less than once a week, communal refuse dump and communal contained / central collection point.

For farms the following further addition applies: own refuse dump Number of poor households Number of poor households Allocated to the 27 priority districts identified by Cabinet as having large backlogs.
Allocation is based on total households (not poor households) 1.

Poor household defined as a monthly household income of less than R2 300 per month in 2011 Census data Source: National Treasury 106 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.28 sets out the proportion of the grant accounted for by each component of the formula.

The constant component provides a R5 million base to all municipalities receiving municipal infrastructure grant allocations.
Table W1.28 Municipal infrastructure grant allocations per sector Proportion of Municipal infrastructure grant (formula) municipal infrastructure grant per sector Value of component 2023/24 (R million) Component weights 75.0% 54.0% 17.3% 3.8% 15.0% 33.0% 5.0% 5.0% B-component Water and sanitation Roads Other P-component Sports E-component N-component Constant Ring-fenced funding for sport infrastructure Total Source: National Treasury 12 122 6 546 2 091 455 2 424 800 808 808 1 130 253 17 545 69.1% 37.3% 11.9% 2.6% 13.8% 4.6% 4.6% 4.6% 6.4% 1.4% 100.0% The municipal infrastructure grant includes an amount allocated outside of the grant formula and earmarked for specific sport infrastructure projects identified by the Department of Sport, Arts and Culture.
These earmarked funds amount to R758 million over the MTEF period (R253 million in each year of the three years of the 2023 MTEF period).

In addition, municipalities are required to spend a third of the P-component (equivalent to 4.5 per cent of the grant) on sport and recreation infrastructure identified in their own integrated development plans.

Municipalities are also encouraged to increase their investment in other community including cemeteries, community centres, taxi ranks and marketplaces.
infrastructure, Over the 2023 MTEF period, municipalities will continue to be allowed to use up to 5 per cent of their allocations to fund the development of infrastructure asset management plans.

This is intended to build the necessary asset management capabilities in municipalities.

It allows for phased-in and systematic reforms to incentivise municipalities to start appropriately budgeting for the repairs and maintenance of municipal infrastructure.
To make use of this provision, municipalities must submit a business plan to the Department of Cooperative Governance, accompanied by a copy of their audited asset register.

To support municipalities experiencing project implementation challenges, over the 2023 MTEF period, the Department of Cooperative Governance will use the indirect component of the grant to implement projects on behalf of identified municipalities.
Further details regarding the criteria that will be used, including the conditions, and the responsibilities of the transferring officer and receiving officer are contained in the grant framework.

107 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Integrated urban development grant The integrated urban development grant is allocated to selected urban local municipalities in place of the municipal infrastructure grant.
The grant recognises that municipalities differ in terms of their context and introduces a differentiated approach to encourage integrated development in cities.

It is intended to: Support spatially aligned public infrastructure investment that will lead to functional and efficient urban spaces.

 Enable and incentivise municipalities to invest more non-grant funding in infrastructure projects in intermediate cities.
The grant extends some of the fiscal reforms already implemented in metropolitan municipalities to non-metropolitan cities and is administered by the Department of Cooperative Governance.

Municipalities must meet certain criteria and apply to receive the integrated urban development grant instead of the municipal infrastructure grant in terms of a process set out in section 26(5) of the Division of Revenue Act.
The qualification criteria cover the following areas: Management stability (low vacancy rates among senior management).

 Audit findings.

 Unauthorised, irregular, fruitless and wasteful expenditure.

 Capital expenditure.

 Reporting in terms of the Municipal Finance Management Act.

To remain in the grant, cities must continue to meet or exceed the entry criteria.

If they do not do so, they will be placed on a performance improvement plan.
If they still do not meet the criteria in the subsequent year, they will shift back to receiving grant transfers through the municipal infrastructure grant, which comes with closer oversight and support from national and provincial departments.

The base allocations a municipality receives through the municipal infrastructure grant and the integrated urban development grant will be the same and are determined in terms of the municipal infrastructure grant formula described above.
Over the 2023 MTEF period, the 3 per cent planning baseline will be used to undertake planning and programme management activities.
In addition to the basic formula-based allocation, municipalities participating in the integrated urban development grant are eligible to receive a performance-based incentive component, 108 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE is based on performance against the weighted which Table W1.29 Performance-based component weighted indicators for integrated urban development grant indicators set out below.
Weight 40% Scores 1 if 70% or higher 0 if 30% or lower Linear scale in between 30% 1 if 8% or higher 30% 1 if yes for all three 0 if no for any of the three 1 if 50% or higher 0 if 10% or lower Linear scale in between Indicators Non-grant capital as a percentage of total capital expenditure Repairs and maintenance expenditure as percentage of operating expenditure Asset management plan Land-use applications in priority areas Building plans applications in priority areas Source: National Treasury Purpose Encourage cities to increase their capital investments funded through own revenue and borrowing Reward cities that take good care of their existing asset base Must have a plan in place that has been approved by municipal council and updated in the last three years Due to the lack of available data, these indicators, which are intended to reward spatial targeting of investment, remain dormant in 2023/24 Due to the lack of available data, these indicators, which are intended to reward spatial targeting of investment, remain dormant in 2023/24 The total allocations for this grant amount to R3.7 billion over the 2023 MTEF period and grow at an average annual rate of 5.8 per cent.
The above-inflation growth rate can be attributed to the inclusion of George Local Municipality as a grant participant over the 2023 MTEF period.
109 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.30 Formula for integrated urban development grant incentive component Planning allocation (R 000) uMhlathuze Drakenstein Mogale City Polokwane Ray Nkonyeni Sol Plaatje Stellenbosch Steve Tshwete George Total 3 843 1 243 4 215 12 234 2 201 1 775 1 266 1 772 1 423 29 973 Non-grant capital as percent- age of total capital spend 30% 10% 10% 10% 10% 10% 30% 30% 20% Mainten- ance spend Asset manage- ment plan Performance incentive Land use and building plans in priority areas Weighted score Total incentive (R 000) Total for incentive and planning (R 000) 30% 20% 20% 30% 10% 30% 10% 10% 30% 20% 30% 20% 20% 30% 10% 20% 20% 20% – – – – – – – – – Source: Department of Cooperative Governance Urban settlements development grant The urban settlements development grant is an integrated source of funding for infrastructure for municipal services and upgrades to urban informal settlements in the eight metropolitan municipalities.
It is allocated as a supplementary grant to cities (schedule 4, part B of the Division of Revenue Act), which means that municipalities are expected to use a combination of grant funds and their own revenue to develop urban infrastructure and integrated human settlements.

Cities report their progress on these projects against the targets set in their service-delivery and budget implementation plans.
Since 2019/20, cities have been required to report in line with the requirements of the Municipal Finance Management Act Circular 88.

This is the result of a process led by the National Treasury to rationalise and streamline built environment reporting for the eight metropolitan municipalities.

Cities report on one agreed set of indicators used by multiple stakeholders to monitor progress on the integrated and functional outcomes, rather than reporting separately to each department.
The grant is allocated R26.3 billion over the medium term and grows at an average annual rate of 8.3 per cent.

This includes an additional amount of R2.2 billion allocated to eThekwini Metropolitan Municipality and the City of Johannesburg from the BFI over the same period.

eThekwini Metropolitan Municipality is allocated R88 million in 2023/24 and R118 million in 2024/25 for the implementation of phase 1 of the Avoca Node Programme, which entails upgrading roads and stormwater infrastructure.
The City of Johannesburg is allocated R385 million in 2024/25, R654 million in 2024/25 and R963 million in 2025/26 for the implementation of the Lufhereng Mixed Use Development Programme.

These funds will be used to build municipal connection links for bulk electrical, water, sanitation, roads and stormwater infrastructure that will serve 30 000 housing units.

The allocation per municipality (excluding the BFI allocations) is based on the municipal infrastructure grant formula.
Up to 3 per cent of the grant may be used to fund municipal capacity in the built environment in line with the Department of Human Settlements’ capacity-building guideline.

110 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Informal settlements upgrading partnership grant Upgrading informal settlements remains a priority over the medium term.

The informal settlements upgrading partnership grant is allocated R4.4 billion in 2023/24, R4.6 billion in 2024/25 and R4.8 billion in 2025/26.
Informal settlements upgrading is an inclusive process through which informal residential areas are incrementally improved, formalised and incorporated into the city or neighbourhood by extending land tenure security, infrastructure and services to residents of informal settlements.

This grant requires cities to work in partnership with communities to develop and complete their informal settlements upgrading strategies.
Programme and project preparation support grant The programme and project preparation support grant supports metropolitan municipalities in developing a pipeline of investment-ready capital programmes and projects.

This is done by establishing and institutionalising an effective and efficient system of programme and project preparation and the allocation of a growing level of municipal resources for preparation activities.
The grant is allocated R1.2 billion over the 2023 MTEF period and grows at an average annual rate of 4.5 per cent.

Public transport network grant The public transport network grant, administered by the Department of Transport, helps cities create or improve public transport systems in line with the National Land Transport Act (2009) and the Public Transport Strategy.
This includes all integrated public transport network infrastructure, such as bus rapid transit systems, conventional bus services, and pedestrian and cycling infrastructure.

The grant also subsidises the operation of these services.

It is allocated R14.5 billion over the medium term.

Reprioritisations are made within the vote of the Department of Transport, affecting this grant.
To fund the rollout of a single integrated ticketing system, R8 million in 2024/25 and R13 million in 2025/26 are reprioritised from this grant.

The allocations for this grant are determined through a formula, which determines 95 per cent of the allocations, and a performance-based incentive component, which accounts for the remaining 5 per cent.
The formula increases certainty about the extent of national funding that municipalities can expect when planning their public transport networks and encourages cities to make more sustainable public transport investments.

To qualify for an allocation from the performance incentive, a city must have an operational municipal public transport system approved by the national Department of Transport and it must have spent more than 80 per cent of its grant allocation in the previous financial year.
Incentive allocations are then calculated based on the coverage of costs from fares, passenger trips and the city’s own financial commitment to the system.

Cities must exceed the minimum threshold in at least one of these three indicators.
Following growing concerns with regards to the performance data used to calculate the incentive allocations; as well as the implications of requiring a city meet at least one of the three indicators, the incentive component is dormant in 2023/24; and its baseline allocated through the formula.
This will allow the Department of Transport and the National Treasury to explore possible refinements to this 111 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE component, including measures to address the concerns with respect to the performance data used.
Table W1.31 Formula for the public transport network grant Base 20% Equally shared Demand-driven factors 75% Population component shares Regional gross value added component shares Public transport users component shares Subtotal: base and demand- driven factors 100% Grant allocations1 (R 000) City of Cape Town City of Johannesburg City of Tshwane Ekurhuleni eThekwini George Mangaung Nelson Mandela Bay Polokwane Rustenburg Total 1.
Excludes additional funds for Cape Town allocated through the Budget Facility for Infrastructure Source: National Treasury In the formula for the grant, a base component accounts for 20 per cent of total allocations and is divided equally among all participating cities – this ensures that smaller cities in particular have a significant base allocation to run their transport system regardless of their size.
The bulk of the formula (75 per cent) is allocated based on three demand-driven factors, which account for the number of people in a city, the number of public transport users in a city (the weighting of train commuters is reduced as trains are subsidised separately through the Passenger Rail Authority of South Africa) and the size of a city’s economy.

Table W1.31 sets out how the final allocation for each municipality is determined, taking account of both the formula and incentive components.
In addition to the formula, R4.8 billion is allocated through the public transport network grant over the medium term for Phase 2A of the City of Cape Town’s MyCiTi public transport network, linking the underserved areas of Khayelitsha and Mitchells Plain to the city centre.

This project is funded through the BFI.


This allocation includes additions of R105 million in 2023/24, R40 million in 2024/25 and R316 million in 2025/26, which align with the City of Cape Town’s revised implementation plan and cash flow projections for the project over the 2023 MTEF period.

Neighbourhood development partnership grant The neighbourhood development partnership grant supports municipalities in developing and implementing urban network plans.
The grant funds the upgrading of identified precincts to stimulate third-party public and private investment.

In metropolitan municipalities, the focus is on upgrading urban hubs in townships.
The National Treasury, in collaboration with other stakeholders, including the Department of Agriculture, Rural Development and Land Reform and the Department of Cooperative Governance, had identified a cohort of non-metropolitan 112 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE municipalities to implement new projects as part of this grant.
The National Treasury will continue to partner with these municipalities to identify, plan and implement infrastructure upgrades in targeted urban hub precincts.

The grant is allocated R3.1 billion over the 2023 MTEF period, made up of R2.8 billion for the direct capital component and R316 million for the indirect technical assistance component.
This allocation includes an additional allocation of R856 million in 2023/24 made in the 2022 Budget for metropolitan municipalities to continue to create jobs through labour-intensive projects as part of government’s response to the impacts of the COVID-19 pandemic.

Water services infrastructure grant This grant, administered by the Department of Water and Sanitation, aims to accelerate the delivery of clean water and sanitation facilities to communities that do not have access to basic water services.
It provides funding for various projects, including the construction of new infrastructure and the refurbishment and extension of existing water schemes.

This grant has a direct and indirect component.

In areas where municipalities have the capacity to implement projects themselves, funds are transferred through a direct component.

In other areas, the Department of Water and Sanitation implements projects on behalf of municipalities through the indirect component.
Over the 2023 MTEF period, the direct component of this grant is allocated R12.1 billion and the indirect component is allocated R2.5 billion.

Regional bulk infrastructure grant This grant supplements the financing of the social component of regional bulk water and sanitation infrastructure.

It targets projects that cut across several municipalities or large bulk projects within one municipality.
The grant funds the bulk infrastructure needed to provide reticulated water and sanitation services to individual households.

It may also be used to appoint service providers to carry out feasibility studies, related planning or management studies for infrastructure projects.

This grant has a direct and indirect component.

In areas where municipalities have the capacity to implement projects themselves, funds are transferred through a direct component.
In other areas, the Department of Water and Sanitation implements projects on behalf of municipalities through an indirect component.

A parallel programme, funded by the Department of Water and Sanitation, also funds water boards for the construction of bulk infrastructure.

Though not part of the division of revenue, these projects still form part of the Department of Water and Sanitation’s larger programme of subsidising the construction of regional bulk infrastructure for water and sanitation.
The direct component of the grant is allocated R11.6 billion over the 2023 MTEF period and grows at an average annual rate of 17.1 per cent.

The overall allocation includes additional amounts from the BFI over the same period.
Sol Plaatje Local Municipality is allocated R86 million in 2023/24, R492 million in 2024/25 and R574 million in 2025/26 to refurbish and renew old water supply is allocated R305 million in 2023/24, R593 million in 2024/25 and R481 million in 2025/26 to upgrade sanitation infrastructure.

Nelson Mandela Bay is allocated R348 million in 2023/24, R250 million in 2024/25 and R390 million in 2025/26 to avert the water supply crisis from the infrastructure.
Drakenstein Local Municipality 113 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE ongoing drought over the short term.

The programme includes fixing water leaks, upgrading the water treatment works, borehole exploration and development, and upgrading a bulk water pipeline.
The BFI allocation for George Local Municipality’s potable water security and remedial water project is reduced by R136 million in 2023/24 and increased by R1.4 million in 2024/25 to align with the municipality’s revised implementation plan and cash flow projections.

This project is allocated R375 million in 2023/24 and R276 million in 2024/25.

The indirect component of this grant is allocated R11.3 billion over the 2023 MTEF period and grows at an average annual rate of 4.3 per cent.
Integrated national electrification programme grants These grants aim to provide capital subsidies to municipalities to provide electricity to poor households and fund bulk infrastructure to ensure a constant supply of electricity.

Allocations are based on the backlog of households without electricity and administered by the Department of Mineral Resources and Energy.

The grant only funds bulk infrastructure that serves poor households.
The national electrification programme has helped provide in the 91 per cent of all poor households with access to electricity, as reported 2016 Community Survey (up from the 85 per cent reported in the 2011 Census).

To sustain this progress, government will spend R18.9 billion on the programme over the 2023 MTEF period.

The integrated national electrification programme (municipal) grant is allocated R6.9 billion over the 2023 MTEF period and grows at an average annual rate of 4.4 per cent.
The integrated national electrification programme (Eskom) grant is allocated R12 billion over the medium term and grows at an average annual rate of 5.2 per cent.

Energy efficiency and demand-side management grant The energy efficiency and demand-side management grant funds selected municipalities to implement projects with a focus on public lighting and energy-efficient municipal infrastructure.
The grant continues to make provision for municipalities to use funding for planning and preparing for the Energy Efficiency in Public Infrastructure and Building Programme.

The programme aims to create a market for private companies to invest in the large-scale retrofitting of municipal infrastructure, and then be paid back through the savings on energy costs achieved.

This has the potential to unlock energy and cost savings on a much larger scale.
Municipalities can use 15 per cent of this grant funding to develop a project pipeline and thereby strengthen the market for energy companies that offer this service.

This scaling up of energy-efficiency retrofits is a key part of meeting the goals in the National Climate Change Response Strategy and the United Nations Framework Convention on Climate Change.

This approach will also allow municipalities to benefit from donor financing.
A Guarantee Fund from the Nationally Appropriated Mitigation Action Facility has been jointly established with funding from the German and United Kingdom governments to help private energy service companies obtain loans to implement the Energy Efficiency in Public Infrastructure 114 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE and Building Programme.

The programme will have significant long-term effects on energy savings, carbon emissions and the market for energy-efficient technologies.
The grant is allocated R720 million over the medium term and grows at an average annual rate of 4.3 per cent.

Rural roads asset management systems grant The Department of Transport administers the rural roads asset management systems grant to improve rural road infrastructure.

The grant funds the collection of data on the condition and usage of rural roads in line with the Road Infrastructure Strategic Framework for South Africa.

This information guides investments to maintain and improve these roads.
District municipalities collect data on all the municipal roads in their area, ensuring that infrastructure spending (from the municipal infrastructure grant and elsewhere) can be properly planned to maximise impact.

As data becomes available, incentives will be introduced to ensure that municipalities use this information to plan road maintenance appropriately.
The Department of Transport will continue to work with the municipal infrastructure grant administrators to ensure that municipal roads projects are chosen, prioritised and approved using roads asset management systems data wherever possible.

This grant is allocated R115 million in 2023/24, R121 million in 2024/25 and R126 million in 2025/26.
Municipal disaster recovery grant After the initial response to a disaster has been addressed, including through funding from the municipal disaster response grant discussed below, repairing damaged municipal infrastructure is funded through the municipal disaster recovery grant.
This grant is allocated R321 million in 2023/24 for municipalities in KwaZulu-Natal, to fund the repair and reconstruction of municipal infrastructure damaged by disaster incidents that occurred between October 2019 and January 2022 in the province.

Capacity-building grants and other current transfers Capacity-building grants help to develop municipalities’ management, planning, technical, budgeting and financial management skills.
Other current transfers include the EPWP integrated grant for municipalities, which promotes in municipalities, and the municipal disaster response grant.

A total of R7.5 billion is allocated to capacity-building grants and other current transfers to local government over the medium term.
increased intensity labour 115 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Table W1.32 Capacity building and other current grants to local government 2023/24 R million 2019/20 2021/22 2020/21 Outcome Direct transfers Municipal disaster response Municipal emergency housing Infrastructure skills development Local government financial management Programme and project preparation support Expanded public works programme integrated grant for municipalities Indirect transfers Municipal systems improvement Total Source: National Treasury 1 870 – 147 149 533 310 730 111 111 1 981 2 068 151 166 144 545 314 748 120 120 2 187 Local government financial management grant 2022/23 Revised budget 2 685 764 55 159 566 361 778 2 204 330 66 155 552 341 759 135 135 2 339 140 140 2 825 2024/25 Medium-term estimates 2025/26 2 259 373 – 160 569 377 781 147 147 2 406 2 361 389 – 167 594 394 816 153 153 2 514 2 467 407 – 175 621 411 853 160 160 2 627 The local government financial management grant, managed by the National Treasury, funds the placement of financial management interns in municipalities and the modernisation of financial management systems.
This includes building in-house municipal capacity to implement multi-year budgeting, linking integrated development plans to budgets, and producing quality and timely in-year and annual reports.

The grant supports municipalities in the implementation of the Municipal Finance Management Act and provides funds for the implementation of the municipal standard chart of accounts.
This grant prioritises supporting municipalities with challenges in processes, procedures and systems to effectively implement the act and to improve compliance and areas of weakness identified in the financial management capability maturity model.

Over the 2023 MTEF period, R1.8 billion is allocated to this grant.
Infrastructure skills development grant The infrastructure skills development grant develops capacity within municipalities by creating a sustainable pool of young professionals with technical skills in areas such as water, electricity and town planning.

The grant places interns in municipalities so that they can complete the requirements of the relevant statutory council within their respective built environment fields.

The interns can be hired by any municipality at the end of their internship.
The grant aims to collaborate with other sectors, such as the Department of Water and Sanitation and the Department of Cooperative Governance, with the primary objective of improving infrastructure skills development grant services.

In addition, a shared services model should exist between municipalities to ensure effective management of the grant.

Total allocations for this grant amount to R501 million over the 2023 MTEF period.
Municipal systems improvement grant The municipal systems improvement grant funds a range of projects in municipalities in support of the implementation of the district development model approach and the back to 116 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE basics strategy, including helping municipalities set up adequate record management systems, drawing up organograms for municipalities and reviewing their appropriateness relative to their assigned functions, implementing the Integrated Urban Development Framework, and assisting municipalities with revenue collection plans and the implementation of the municipal standard chart of accounts.
The Department of Cooperative Governance implements the indirect grant.

The grant’s total allocations amount to R460 million over the 2023 MTEF period and grow at an average annual rate of 4.5 per cent.

Over the next three years, a third of the grant’s baseline will be allocated to continue supporting the institutionalisation of the district development model adopted by Cabinet in August 2019.
The model is intended to improve coordination between national, provincial and local government, focusing on the municipal district and metropolitan spaces as the impact areas of joint planning, budgeting and implementation.

In 2023/24, the grant will fund: Comprehensive institutional diagnostic assessments of the 21 district municipalities that are water service authorities.
The purpose of the diagnostic assessments is to determine skills, systems, performance, institutional gaps and the main constraints impeding effective municipal performance.

 The development of institutional improvement/support plans that will inform all future capacity development programmes and municipal support initiatives to enhance the continued rollout of the model.
EPWP integrated grant for municipalities labour-intensive methods This grant promotes the use of in delivering municipal infrastructure and services.

To determine eligibility for funding, municipalities must have reported performance on the EPWP, including performance in the infrastructure, social and environment and culture sectors and on the full-time equivalent jobs created in these sectors in the last 18 months.
A formula then determines allocations based on this performance as well as the labour intensity of the work opportunities created.

The number of bands in which labour intensity is recorded in the formula has been expanded from seven to eight, providing an incentive for labour-intense projects to further increase their intensity.

The formula is weighted to give larger allocations to rural municipalities.
The grant is allocated R2.5 billion over the 2023 MTEF period, with an allocation of R781 million in 2023/24, R816 million in 2024/25 and R853 million in 2025/26.

Municipal disaster response grant The municipal disaster response grant is administered by the National Disaster Management Centre in the Department of Cooperative Governance as an unallocated grant to local government.

The centre is able to disburse disaster-response funds immediately, without the need for the transfers to be gazetted first.
The grant supplements the resources local government would have already used in responding to disasters.

To ensure that sufficient funds are available in the event of disasters, section 20 of the Division of Revenue Bill allows for funds allocated to the provincial disaster response grant to be transferred to municipalities if funds in the municipal grant have already been exhausted, and vice versa.
The bill also allows for more than one transfer to be made to areas affected by disasters, so that initial emergency aid can be provided before a full assessment of damages and costs is conducted.

117 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Over the 2023 MTEF period, R1.2 billion is available for disbursement through this grant: R373 million in 2023/24, R389 million in 2024/25 and R407 million in 2025/26.
There are no budget adjustments to the grant’s baseline over the period, and the grant decreases by an average annual rate of 19 per cent.

This is due to the additional funding of R393 million that was added in 2022/23 following the depletion of this grant by the time of the 2022 MTBPS.
To ensure that sufficient funds are available to respond to disasters, section 20(7) of the Division of Revenue Bill allows funds from other conditional grants to be reallocated for this purpose, subject to the National Treasury’s approval.

Municipal emergency housing grant The municipal emergency housing grant is intended to enable the Department of Human Settlements to rapidly respond to emergencies by providing temporary housing and repairs in line with the Emergency Housing Programme.
The grant is limited to funding emergency housing and repairs following the immediate aftermath of a disaster, and not the other emergency situations listed in the programme.

From 2023/24, this grant ceases to exist as funds are shifted to the vote of the national department to give the department the flexibility to respond timeously to housing emergencies.
Part 6: Future work on provincial and municipal fiscal frameworks The fiscal frameworks for provincial and local government encompass all their revenue sources and expenditure responsibilities.

As underlying social and economic trends evolve and the assignment of intergovernmental functions change, so must the fiscal frameworks.
The National Treasury, together with relevant stakeholders, conducts reviews to ensure that provinces and municipalities have an appropriate balance of available revenues and expenditure responsibilities, while taking account of the resources available and the principles of predictability and stability.

This part of the annexure describes the main areas of work to be undertaken over the 2023 MTEF period as part of the ongoing review and refinement of the intergovernmental fiscal framework.
Provinces and municipalities will be consulted on all proposed changes.

Cross-cutting reforms Review of the conditional grants system In the Budget Forum and Budget Council meetings on 7 February 2022, several issues were raised regarding conditional grants, including the proliferation of grants and indirect conditional grants, frequent underspending on infrastructure grants, and duplication and fragmentation in both the provincial and municipal grant systems.
In response, the Minister of Finance proposed a review of both municipal and provincial conditional grants.

The purpose of this review is to determine if the existing grant system is structured efficiently to provide efficient service delivery, roll out infrastructure, build capacity and provide operational support.

The review will structure discussions about reforming the grant system based on the findings of the grants’ impact.

It will ask: Does the system fund the right things?
118 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Does it fund the things correctly?

 Does the system respond adequately to the differentiated approach at the provincial and local levels?

Following a thorough stakeholder consultation process, several research areas were identified and literature reviews conducted to gain insights into conditional grant programs and recent trends.

Once all the reviews have been completed, stakeholders will be consulted on the findings.
This will be followed by in-depth data collection and analysis to make evidence-based recommendations for reform.

The proposed reforms will be considered in the 2024 Budget process, for implementation in the 2024 Budget.

For this reason, there are no large-scale changes to conditional grants in the 2023 Budget.

Improving intergovernmental coordination on infrastructure investment Public infrastructure investments can play a major role in transforming South Africa’s spatial development patterns.
This requires a significant improvement in intergovernmental coordination in planning and budgeting for infrastructure.

The National Treasury is working with provinces to ensure that their investments in schools, roads, health facilities and housing are made in locations that align with the spatial development plans of municipalities.

Municipalities must be consulted and agree on the location and bulk services requirements of all provincial infrastructure projects.
Joint planning sessions have been held between provinces and municipalities, and support in this area will continue in 2023/24.

National departments will also be supported to participate in intergovernmental planning and to review sector policies and funding strategies to promote better alignment with spatial development frameworks.

This is in line with the Cabinet-approved district development model.
Since then, the National Treasury has enhanced the infrastructure reporting tool to show budgets and expenditures for social projects implemented by provinces according to location (district, local or city).

This is essential for data analysis and transparency, as well as for achieving value for money, as it allows one to see which localities are prioritised more by sectors.
In 2023/24, the National Treasury will continue to review provincial infrastructure sector funding policies and propose how grants, incentives and other funding sources can best be structured to strengthen funding coordination to achieve spatial development objectives.
The next step entails including long-term infrastructure projects across the three spheres of government that have not yet been approved to ensure the appropriateness of projects that must be undertaken in accordance with metropolitan spatial development frameworks.

The aim is to consolidate infrastructure investment by the whole of government, both for projects whose budgets have already been approved and those whose budgets have not yet been approved.
In 2023/24, the National Treasury will continue to work with the National Disaster Management Centre to review the funding of disaster response and recovery activities.

Climate change will make extreme weather events more common, and the disaster funding system needs to adapt to this new reality.

The current system is designed to allow for the rapid release of funds following the declaration of a disaster.
In addition to addressing the problems and inefficiencies within the existing system, the review must consider how to place 119 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE greater emphasis on being prepared before disasters occur.

The system also needs to be adapted to respond better to long-running disasters such as drought conditions that may last for several years.
Review of the provincial fiscal framework Review of the provincial equitable share formula The Constitution stipulates that provinces are entitled to a share of nationally raised revenue to deliver on their mandates.

Provincial funds are allocated using a formula that considers the spread of the burden of service delivery across provinces.
The provincial equitable share formula contains weighted elements that reflect government priorities and incorporates elements to redress inequality and poverty across provinces.

The provincial equitable share task team, made up of representatives from the National Treasury and provincial treasuries, is reviewing the formula.

The task team partners with sector departments, Statistics South Africa and the FFC on different components of the review.
It reports to the Technical Committee on Finance, and the Budget Council considers and approves any proposed changes to the formula.

The review of the health component was completed in 2021/22 and the reforms are being phased in over three years from 2022/23.

In 2023/24, the review will focus on: Implementing the updated risk-adjusted factor within the health component.
Working with the Department of Basic Education to develop options for how to account for the different funding needs of different types of schools and learners.

Preparing for national health insurance implementation Government continues to prepare for the implementation of national health insurance.
The implications that establishing the National Health Insurance Fund and increasingly channelling health budgets via this fund are likely to have for provincial finances are being discussed through consultative structures like the Technical Committee on Finance.
In parallel, efforts to strengthen the health system will continue, including developing and piloting provider payment mechanisms, expanding the national insurance beneficiary registry, and purchasing and providing a prioritised set of health services.
Government is also piloting a new quality improvement initiative within the non-personal services component of the national health insurance indirect grant that will help facilities meet the envisaged standards required for national health insurance accreditation.

The experience gained from this pilot will inform future efforts to improve quality.
Streamlining provincial conditional grants Over the 2023 MTEF period, the National Treasury will work with the Department of Basic Education to allocate the funds that have been shifted from the school backlogs infrastructure grant to the education infrastructure grant as a result of the former being incorporated into the latter.

Currently, these funds remain unallocated within the education infrastructure grant.
Furthermore, the National Treasury will work with the Department of Transport and the Department of Public Works and Infrastructure to allocate the funding in the provincial roads maintenance grant for the construction of rural bridges under the Welisizwe Rural 120 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Bridges Programme.

These funds for rural bridges are unallocated for 2024/25 and 2025/26 to allow more provinces to make submissions for their rural bridges projects.
In 2023/24, the National Treasury will work with the Department of Health to shift funding from the national health insurance grant to the relevant grants where health programmes are funded.

The role of provinces in promoting economic development faster and more All three spheres of government must work with businesses and other relevant stakeholders to provide an enabling environment inclusive economic for growth.
While the Economic Development Coordination Forum is reorganising following the merger of the Department of Economic Development into the Department of Trade, Industry and Competition, the National Treasury-led City Forum for Economic Development Managers is engaging provincial departments of economic development on issues of mutual interest every quarter to ensure coherence in policy implementation.
The forum includes participants from provincial departments of economic development and their agencies; sector departments; the Department of Small Business Development; the Department of Cooperative Governance; the Presidency; the Department of Trade, Industry and Competition; financing institutions; metropolitan municipalities; secondary cities; and SALGA.
Review of the local government fiscal framework Refinements to the local government equitable share formula Government continues to work with stakeholders to improve the local government equitable share formula.

Areas of work in the period ahead include: Improving the responsiveness of the formula to the different functions assigned to district and local municipalities.

This work depends on the availability of credible official records of the functions assigned to each sphere of government.
Policy and administrative work under way in the National Disaster Management Centre could help improve the targeting of funding for fire services.

 Reviewing and updating how the special support for councillor remuneration is calculated.

This support is calculated separately from the rest of the equitable share formula but transferred with equitable share allocations.

Support is only provided to small and poor municipalities, and the data used for determining eligibility needs to be updated.
A working group, comprising the Department of Cooperative Governance, the National Treasury and SALGA, with technical support from the FFC and Statistics South Africa, has identified areas for possible refinements that could not be accommodated in the 2012/13 formula review due to data availability.
Over the 2023 MTEF period, the National Treasury with the support of the working group will undertake the following reforms to refine the local government equitable share formula: Basic services component: Introduce a cost differential model, which takes into account factors such as distances, topography and settlement type.
Community services component: Introduce a separate component in the local government equitable share for municipal health services, and an explicit sub-component for the firefighting function.
121 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE Institutional component: Develop an objective criterion which municipalities can be benchmarked against in relation to their administrative functions and the policy options related to financing infrastructure in small and rural municipalities.
Review of the municipal capacity-building system As part of the ongoing review of local government capacity-building programmes, the National Treasury, the Department of Cooperative Governance, SALGA and the FFC will work closely to implement the reforms agreed to through the review, including: Following a change management approach to tackling systems within the broader local government capacity-building system, starting with an inward approach within the National Treasury.
Building on existing National Treasury work and seeking improvements in capacity building in parallel with new capability development initiatives.

 Following a new framework for sustainable capability development that emphasises collaboration, a problem-led approach and a whole-municipality (fully integrated) approach.

 Improving the administration of capacity-building grants and programmes, including rationalising them.
Reforms to local government own revenue sources Municipalities play a critical role in boosting economic growth and providing an enabling environment for job creation by providing well-maintained and functioning infrastructure services.

However, municipalities are finding it increasingly difficult to build the infrastructure required for growth and to meet the demands of rapid urbanisation.
The National Treasury continues to explore how cities and other municipalities with a significant own revenue base can use a broader package of infrastructure financing sources to meet their developmental mandate.

The National Treasury is implementing the reforms discussed below.
Norms and standards for electricity surcharges Section 8 of the Municipal Fiscal Powers and Functions Act (2007) gives the Minister of Finance the power to prescribe compulsory national norms and standards for imposing municipal surcharges.

To date, the minister has not prescribed such norms and standards.

However, their absence does not restrict a municipality from imposing surcharges.
Concerns have been raised that the process that municipalities must follow to impose municipal surcharges is unclear, with some municipalities having been legally challenged when they levy surcharges.

Electricity has been the largest component of service charges from which municipalities generate their revenue; however, this revenue source has been declining over the years due to electricity becoming unaffordable (caused by rapid increases in bulk tariffs).
The National Treasury is conducting research to develop compulsory national norms and standards for regulating municipal surcharges on electricity and to determine a list of supplementary or replacement sources of revenue for electricity surcharges.
These norms and standards will provide clarity and guidance for all municipalities and ensure that the process of determining 122 ANNEXURE W1 EXPLANATORY MEMORANDUM TO THE DIVISION OF REVENUE electricity surcharges is transparent and the surcharges imposed are affordable.

This work started in May 2022 and is anticipated to be completed in June 2023.
Development charges Development charges are important components of a sustainable municipal infrastructure financing system, especially for cities and large urban municipalities, as they are used to finance land intensification.

Despite their potential as an alternative option for financing infrastructure, municipalities have not fully used development charges due to uncertainty surrounding the regulatory frameworks.
To address this uncertainty, amendments to the Municipal Fiscal Powers and Functions Act are proposed.

The Municipal Fiscal Powers and Functions Amendment Bill proposes new, uniform regulations for levying development charges, thereby strengthening municipalities’ revenue-raising framework.

This will allow municipalities to mobilise own revenue resources to fund their infrastructure needs and support economic growth.
Once enacted, these amendments will create legal certainty for municipalities to levy development charges, regulate their applicability and create a more standardised, equitable and sustainable framework for development charges.

The bill was submitted to Parliament in September 2022 and is awaiting processing.

Once the bill has been processed, the amendments will be effective from the next municipal financial year (commencing 1 July).
Municipal borrowing The National Treasury has updated the original municipal borrowing policy framework.

The updated policy proposes changes that aim to increase the term maturity of borrowing, improve the secondary market for the trade of municipal debt instruments, and define development finance institutions’ role to avoid crowding out the private sector.

The framework was endorsed by Cabinet on 17 August 2022.
It has been presented and discussed at various stakeholder engagements and is available on the National Treasury’s website.

The updated municipal borrowing policy framework will be implemented in line with the recommendations that were endorsed at the Budget Forum Lekgotla meeting on 23 July 2021.

To clarify the role of development finance institutions, engagements have commenced on developing a matrix of developmental objectives with development finance institutions.
The National Treasury continues to publish the Municipal Borrowing Bulletin on a quarterly basis.
Copies can be obtained from www.mfma.treasury.gov.za 123 Annexure W2: Frameworks for Conditional Grants to Provinces Detailed frameworks on Schedule 4, Part A; Schedule 5, Part A; Schedule 6, Part A; and Schedule 7, Part A grants to provinces Introduction This annexure provides a brief description for each grant in Schedule 4, Part A; Schedule 5, Part A; Schedule 6, Part A; and Schedule 7, Part A of the 2023 Division of Revenue Bill.
The following are key areas considered for each grant: Strategic goal and purpose of the grant Outcome statements and outputs of the grant Priority(ties) of government that the grant primarily contributes to Conditions of the grant (additional to what is required in the Bill) Criteria for allocation between provinces Rationale for funding through a conditional grant Past performance The projected life of the grant 2023 MTEF allocations The payment schedule Responsibilities of transferring national department and receiving provinces Process for approval of business plans for 2024/25 The attached frameworks are not part of the Division of Revenue Bill but are published in order to provide more information on each grant to parliament, legislatures, municipal councils, officials in all three spheres of government and the public.
Once the Division of Revenue Bill, 2023 is enacted, these frameworks will be gazetted in terms of the Act.

The financial statements and annual reports for 2023/24 will report against the Division of Revenue Act, Division of Revenue Amendment Act and their schedules, and the grant frameworks as gazetted in terms of the Act.

Such reports must cover both financial and non-financial performance, focusing on the outputs achieved.
124 AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT GRANTS Transferring department Grant schedule Strategic goal Comprehensive Agricultural Support Programme Grant Agriculture, Land Reform and Rural Development (Vote 29) Schedule 5, Part A To create a favourable and supportive agricultural services environment for the farming community, in particular subsistence and smallholder farmers and distressed commercial farmers within strategically identified grain, livestock and horticulture production areas Grant purpose To provide effective and coordinated agricultural support services through collaborations with industry Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions transformation initiatives where possible To promote and facilitate agricultural development by targeting beneficiaries of land reform and other black producers who have acquired land through private means and are engaged in value-adding enterprises domestically, or involved in export To revitalise agricultural colleges into centres of excellence Broadened access to agricultural support for black subsistence, smallholder and distressed commercial farmers Increased number of sustainable and profitable black producers in horticulture, grains, livestock, fibre and aquaculture value chains Increased capacity to support and oversee productivity and farming efficiency of beneficiaries of the Comprehensive Agricultural Support Programme (CASP) Improved systems required for the maintenance of a foot and mouth disease free status as prescribed by the World Organisation for Animal Health Increased wealth creation and sustainable employment in rural areas Increased access to formal and institutional markets by beneficiaries of CASP Improved household and national food security Reliable and accurate agricultural information available for
 management decision making On and off-farm infrastructure provided and repaired, including agro-processing infrastructure Number of farmers supported per category (subsistence, smallholder and commercial) and per commodity 50 per cent women, 40 per cent youth and six per cent people living with disabilities (farmers supported per category) Quantity of output (tons) produced by beneficiaries of CASP per commodity Number of beneficiaries of CASP that are South African Good Agricultural Practices certified Number of jobs created Number of unemployed graduates placed on commercial farms Number of beneficiaries of CASP trained on farming methods or opportunities along the value chain Percentage of CASP beneficiaries with access to formal and institutional markets Tracing system for animal identification and movement provided and maintained for cattle in the foot and mouth disease controlled areas of Limpopo, Mpumalanga and KwaZulu-Natal Physical boundary between the foot and mouth disease free zone and the protection zone provided and maintained Food and veterinary laboratory infrastructure, including quality systems accreditation, revitalised in eight provinces (except Gauteng) Number of animals vaccinated for foot and mouth disease in Limpopo and Mpumalanga Number of extension officers recruited and/or maintained in the system
 Number of extension officers trained or deployed to commodity organisations Partnerships with commodity organisations Priority 2: Economic transformation and job creation Outcome indicators Outputs indicators Inputs Key activities Monitoring framework Risks and mitigation strategies At least 70 per cent of the project allocation must support infrastructure development for production areas prioritised in the
 Agriculture and Agro-processing Master Plan Provinces should prioritise and implement livestock production schemes especially those aligned to Kaonafatso ya Dikgomo in partnership with the Agricultural Research Council The farmers supported must be linked to, but not limited to, commodity organisations including the commercial and emerging commodity organisations.
The province should have formal partnership agreements with these commodity organisations to ensure appropriate support is provided to farmers (i.e.
specialised technical support, joint funding, access to markets and joint implementation as outlined by the Dynamic Business Model) In cases where farmers requiring support are outside a commodity organisation agreement, their proposals received from the advertisement process must be approved by committees and authorities established by the province as outlined in the standard operating procedure 125 Comprehensive Agricultural Support Programme Grant All assisted farmers should be listed or registered in the provincial and national project registers At least 10 per cent of the project allocation must be spent on market access and development At least six per cent of the project allocation must be spent on training and capacity building of farmers, and four per cent can be used for mentorship programme At least 1000 unemployed agricultural graduates should be placed in commercial farms nationally as follows: o Gauteng and Northern Cape must place at least 80 graduates each o o all graduates must be employed at a rate of R87 000 per annum the remainder of the provinces must place at least 120 graduates each The Department of Agriculture, Land Reform and Rural Development (DALRRD) will reprioritise the allocated funds on the following basis: o in the event of poor spending on the part of a province where poor spending is the result of poor planning or failure by service provider to meet contractual obligations in the event of a disaster that affects the
 implementation of approved plans o o provinces not adhering to the CASP standard operating procedure framework when implementing Allocation criteria Reasons not incorporated in equitable share Past performance projects or implementing projects that are not approved by DALRRD The provincial departments are to confirm human resources capacity to implement the CASP business plan by 31 March 2023 The funds will be transferred as per the disbursement schedule approved by National Treasury Provinces are to inform the transferring officer of any changes to the plans and allocations approved by the DALRRD within seven days of such a change, and such changes must be approved by the transferring officer before they are implemented The provincial business plans must be signed-off by the heads of departments of the provincial agriculture departments in collaboration with chief financial officers or their representatives, and must be co-signed by the heads of provincial treasuries The signed business plan for CASP must be submitted to the DALRRD for approval The allocations for agricultural colleges must only be used to revitalise infrastructure and equipment at these colleges, as determined in the business plan An amount of R8 million is allocated to KwaZulu-Natal through the Budget Facility for Infrastructure (BFI) for KwaZulu-Natal agri-hubs.
These funds may only be used for that purpose The formula used to allocate funds is a weighted average of the following variables: agricultural land area, households involved in agriculture (General Household Survey 2019 report), previous CASP performance and current benchmarks on production and national policy imperatives Agriculture is identified as a game changer and investment in agriculture must be guided under strict conditions to achieve the aspirations of the National Development Plan and the Agriculture and Agro- processing Master Plan 2021/22 audited financial outcomes Allocated and transferred R1.6 billion of which R55 million were approved rollovers and R1.1 billion (78 per cent) was spent 2021/22 service delivery performance 1 882 subsistence farmers supported 4 466 smallholder farmers supported 59 black commercial farmers supported 1 1340 beneficiaries were supported from 479 projects implemented, with 280 projects completed at the end of the financial year 65 (fourteen per cent) supported projects were owned by youth and 95 (twenty per cent) were owned by women 41 per cent of beneficiaries supported were women, 13 per cent were youth and 0.5 per cent were people with disabilities on and off farm infrastructure delivered include 54 irrigation systems, 2 stock and irrigation dams, 94 boreholes, 20 stock water structures, 33 stock handling facilities, 20 projects of solar systems erected, 6 dipping tanks, 24 small stock structures, 7 poultry structures, 2 abattoirs and 1 feedlot.
5 564 jobs created foot and mouth disease control deliverables: 120 000 animals were vaccinated in Mpumalanga and 74 904 animals vaccinated in Limpopo; two holding camps, guard shelters, office space and promotion of dipping activities were done in KwaZulu-Natal 105 farms were audited for South African Good Agricultural Practices certification and 62 farms were certified, while 33 farms were re-certified 70 per cent of the smallholder farmers supported had access to formal markets 17 323 farmers were trained in targeted training programmes, 52 per cent trained were women, 40 per cent trained were youth and 0.5 per cent trained were people with disabilities 700 beneficiaries of CASP were supported with mentorship 972 agricultural graduates were placed on commercial farms for a period of two years as part of the youth Projected life entrepreneurial programme 53 extension officers were recruited nationally and 250 maintained in the system 10 agricultural colleges upgrading infrastructure (ongoing) Grant continues until 2025/26, subject to review MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 126 Comprehensive Agricultural Support Programme Grant 2023/24: R1.6 billion; 2024/25: R1.8 billion and 2025/26: R1.8 billion Four instalments:12 May 2023, 25 August 2023, 27 October 2023 and 26 January 2024
 Responsibilities of the national department Agree on outputs and targets with provincial departments in line with grant objectives for 2023/24 Provide the guidelines and criteria for the development, approval and implementation of business plans Provide a template for project registration and reporting CASP transfers (planned, actual and revised) related to infrastructure projects must be reported in the National Infrastructure Reporting Model (IRM) Monitor monthly
 financial expenditure by provinces and conduct sampled project site visits quarterly Submit monthly financial reports to National Treasury 20 days after the end of the month Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter Submit an annual evaluation of performance report to National Treasury within four months after the end of the financial year Oversee and monitor implementation of the grant during Ministerial Technical Committee and quarterly review meetings Responsibilities of the provincial departments Provinces to adhere to the conditions of this framework and the Division of Revenue Act Provinces to submit a detailed project list and project profiles as per the DALRRD project list template Provinces must report infrastructure projects and related infrastructure support funded through CASP in the Provincial IRM monthly and quarterly Provinces to implement the CASP business plans as approved All receiving departments must abide by the Public Finance Management Act, Treasury Regulations and the Division of Revenue Act when executing projects as well as for reporting purposes Provinces are to report monthly (for financial performance) 15 days after the end of each month, and quarterly (for non-financial performance) 20 days after the end of each quarter, and annually two months after the end of the financial year on the progress and achievements of the programme Submit quarterly project performance reports to DALRRD Assign and delegate officials to manage and monitor the implementation of the programme before April 2023 Keep a record of projects supported Monitor project implementation on a quarterly basis and evaluate the impact of projects in achieving CASP goals Provinces to adhere to the approved CASP standard operating procedure framework Provide provincial
 departments with business plan format, guidelines, criteria and outputs as prescribed by National Treasury by 26 May 2023 Submission of provincial CASP business plans by provinces by 31 August 2023 Engagement with provinces (pre-national assessment panel) on submitted business plans during October/November 2023 prior to final national assessment panel meeting Evaluation and recommendation of business plans by national assessment panel between November 2023 and February 2024 Send funding agreements to provinces by February/March 2024 to be signed by heads of departments, chief financial officers, and CASP coordinators Approval of business plans by the transferring officer before 28 March 2024 Inform provinces of approval of the business plans by March or April 2023 Approval by the transferring officer regarding 2024/25 business planning process compliance during April 2024, and send to the National Treasury by end April 2024 127 Ilima/Letsema Projects Grant Transferring department Grant schedule Strategic goal Grant purpose Agriculture, Land Reform and Rural Development (Vote 29) Schedule 5, Part A To reduce poverty through increased food production initiatives To assist vulnerable South African farming communities to achieve an increase in agricultural production and invest in infrastructure that unlocks agricultural production within strategically
 identified grain, livestock, horticulture and aquaculture production areas Outcome statements Increased agricultural production of field crops such as grains and oilseeds, livestock, horticulture, fibre and aquaculture at both household and national level Improved access to production inputs Number of black subsistence, smallholder and distressed commercial farmers supported Increased quantities (tons) of agricultural commodities produced by smallholder and household
 farmers Reduced underutilisation of land in high potential areas in the state-owned land and former homelands Improved farm income (in rands) Increased job opportunities Reduced poverty and improved food security Rehabilitated and expanded irrigation schemes Land under agricultural production (field crops such as grains and oilseeds, horticulture fibre, and livestock) Beneficiaries/farmers supported by the grant per category 50 per cent women, 40 per cent youth and six per cent people living with disabilities (farmers supported per category) Superior breeding animals acquired and distributed to farmers Job opportunities created Hectares of rehabilitated and expanded irrigation schemes Partnerships with commodity organisations Community gardens supported School gardens supported Priority 2: Economic transformation and job creation Outcome indicators Outputs indicators Inputs Key activities Monitoring framework Risks and mitigation strategies Schedule 5, Part A allocation Ilima/Letsema grant should be allocated to support food production (crop and livestock production) in support of the Fetsa Tlala initiatives, prioritising vulnerable households, communal areas and areas under traditional leadership, targeting subsistence and smallholder producers
 supported with inputs and mechanisation Only commercial farmers in distress can receive production inputs from Ilima/Letsema to assist with their production and recovery Partnerships with black commodity organisation should be prioritised for joint support, joint funding and joint implementation At most 30 per cent of Ilima/Letsema allocations can be used for rehabilitation of irrigation schemes in Eastern Cape, Free State, Northern Cape, North West and KwaZulu-Natal provinces
 Provincial departments to confirm human resources capacity to implement Ilima/Letsema business plans on or before 31 March 2023 All assisted farmers should be listed in the provincial and national farm registers Provinces to inform the transferring officer of any changes to plans and allocations approved by the Department of Agriculture, Land Reform and Rural Development (DALRRD) within seven days of such change, and such changes must be approved by the transferring officer before they are implemented The business plans must be signed off by the heads of departments of the provincial agriculture departments in collaboration with the chief financial officers or their representatives, and co-signed by the heads of provincial treasuries The signed business plans must be submitted to DALRRD for approval The formula used to allocate funds is a weighted average of the following variables: agricultural land available, previous homeland areas, households involved in agriculture (General Household Survey 2019), food insecure areas and national priority areas targeted for increased food production and previous Ilima/Letsema performance The funding originated with the special poverty allocations made by national government for a specific purpose and requires tight conditionality to achieve the national goal Agriculture is identified as a game changer and investment in agriculture must be guided under strict conditions to achieve aspirations of the National Development Plan Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance 2021/22 audited financial outcomes Allocated and transferred R597 million with approved roll over of R2 million and R546 million (92 per cent) was spent 128 Ilima/Letsema Projects Grant 2021/22 service delivery performance
 48 750 subsistence farmers supported 21 110 smallholder farmers supported 304 black commercial farmers supported 23 038 jobs created 39 651 households supported with starter packs and production inputs 145 schools assisted to establish food gardens (Gauteng, Limpopo, North West Western Cape) 732 community food gardens established (Gauteng, Limpopo, Mpumalanga, North West, Western Cape) 82 518 beneficiaries supported by the programme (61 per cent were women, 13 per cent were youth and 0.4 per cent were people with disabilities) 92 396 hectares of land cultivated Between three and seven tons per hectare of maize achieved Vaalharts and Makhathini irrigation schemes were revitalised Grant continues until 2025/26, subject to review 2023/24: R620 million; 2024/25: R648 million and 2025/26: R677 million Transfers for Schedule 5, Part A: Four instalments: 12 May 2023, 25 August 2023, 27 October 2023 and 26 January 2024 Responsibilities of the national department Agree on outputs and targets with provincial departments in line with grant objectives for 2023/24 Provide the guidelines and criteria for the development and approval of business plans Provide template for project registration and reporting Monitor monthly financial expenditure by provinces and conduct sampled project site visits quarterly
 Submit monthly financial reports to National Treasury 20 days after the end of the month Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter Submit annual evaluation of performance report to National Treasury within four months after the end of the financial year Oversee and monitor implementation of the grant during Ministerial Technical Committee and quarterly review meetings Responsibilities of the provincial
 departments Provinces to adhere to the conditions of this framework and Division of Revenue Act Provinces to submit detailed project list as per the DALRRD project list template Provinces to report monthly (on financial performance) 15 days after the end of each month, and quarterly (on non-financial performance) 20 days after the end of each quarter, and annually two months after the end of the financial year on the progress and achievements of the programme Provinces to implement the Ilima/Letsema business plans as approved All receiving departments must abide by the Public Finance Management Act, Treasury Regulations and the Division of Revenue Act when executing projects as well as for reporting purposes Assign and delegate officials to manage and monitor implementation of the programme by 31 March 2023 Keep records of projects supported Monitor project implementation on a quarterly basis and evaluate the impact of projects in achieving Ilima/Letsema goals Provide provincial departments with business plan format, guidelines, criteria and outputs as prescribed by National Treasury by 26 May 2023 Submission of provincial Ilima/Letsema business plans by provinces on 31 August 2023 Engagement with provinces (pre-national assessment panel) on submitted business plans during October/November 2023 prior to final national assessment panel meeting
 Evaluation and recommendation of business plans by national assessment panel between November 2023 and February 2024 Send funding agreements to provinces by February/March 2024 to be signed by heads of departments, chief financial officers and Ilima/Letsema coordinators Approval of business plans by the transferring officer before 28 March 2024 Inform provinces of approval of the business plans in March or April 2024 Approval by the transferring officer regarding 2024/25
 business planning process compliance during April 2024, and send to National Treasury by end April 2024 Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 129 LandCare Programme Grant: Poverty Relief and Infrastructure Development Transferring department Grant schedule Strategic goal Agriculture, Land Reform and Rural Development (Vote 29) Schedule 5, Part A To optimise productivity and sustainability of natural resources leading to greater productivity, food security, Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions job creation and better quality of life for all To promote sustainable use and management of natural resources by engaging in community-based initiatives that support the pillars of sustainability (social, economic and environmental), leading to greater productivity, food security, job creation and better well-being for all Improved veld grazing capacity and livestock productivity Improved production potential of arable land leading to increased yield Improved quantity and quality of South Africa’s water resources through projects in SoilCare, VeldCare, Conservation Agriculture and WaterCare focus areas of LandCare programmes Improved youth participation in the agricultural sector through agricultural schools activities and intergenerational skills transfer to develop the capacity of youth as well as provide opportunity to learn agricultural skills and knowledge Improved custodianship and stewardship of natural agricultural resources through community-based initiatives by all land users Improved livelihoods of rural communities within the ambit of the green economy Improved partnerships with private, public, non-governmental
 organisations and community sectors Improved knowledge and skills base of participants and land users Enhanced ecosystem services and biodiversity for current and future generations Improved governance of natural agricultural resources of the country Improve policy and legislative frameworks for natural agricultural resources management Hectares of rangeland protected and rehabilitated Hectares of arable land protected and rehabilitated Hectares of land under conservation agriculture Number of farmers using conservation agriculture Number of youths and agricultural schools successfully attended all the organised Junior LandCare initiatives Number of hectares of land where water resources are protected and rehabilitated Number of capacity building initiatives conducted for land carers and institutions Number of people who benefited from capacity building initiatives Number of awareness campaigns conducted Number of people more aware of sustainable use of natural agricultural resources Hectares of land where weeds and invader plants are under control Number of kilometres of fence erected Number of green jobs created expressed as full-time equivalents Number of LandCare committees established Number of protocols, guidelines, strategies, policy and legislative frameworks developed for
 natural resources management Priority 2: Economic transformation and job creation Project header Project background Farm plan map Farm management plan detail Beneficiaries and job creation Change pathways Pre-project assessment Risk assessment Implementation map Implementation details Exit strategy Monitoring and evaluation Provinces must confirm capacity to implement
 projects before funds can be transferred Provincial departments annual evaluations must be submitted two months after the end of the financial year using an approved LandCare template The impact (before and after) of the LandCare programme should also be quantified during initiation, implementation and handing-over phases of the projects Projects should be implemented guided by farm management plan in terms of Conservation of Agricultural Resources Act Provinces should report signed financial performance per project on the 15th of every month in compliance with the 2023 Division of Revenue Act 130 LandCare Programme Grant: Poverty Relief and Infrastructure Development Provinces should report on the number of jobs created 15 days after the end of each month using an approved LandCare template.
The number of jobs created should further be reported on the Expanded Public Works Programme reporting system Projects should adhere to the reporting dates as stipulated in the 2023 Division of Revenue Act and furthermore adhere to dates as agreed during the quarterly meetings and national LandCare secretariat Provinces should submit their portfolio of evidence (acknowledgement letters, project maps etc.)

30 days after the end of quarter to national LandCare secretariat.
The report should be in line with quarterly and monthly reports Provinces should undertake skill audit of beneficiaries, provide training and submit reports to the Department of Agriculture, Land Reform and Rural Development (DALRRD) Allocation criteria Allocations are based on an index comprising of nodes, land capability, poverty, degradation and land size land capability: total hectares class I, II and III (spatial analysis - land capability data) derived from the following sources: o nodes of the most deprived wards in the country o o size: hectares (new boundaries from the Municipal Demarcation Board) o poverty: poverty gap based on food poverty line of Statistic South Africa Living Conditions Survey 2018 o o policy imperatives and development for sustainable land management land degradation: hectares (Land Degradation Report 2018) Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer The funding originated with the special poverty allocations made by national government for a specific purpose 2021/2022 audited financial outcomes Allocated R83.3 million and transferred R80.6 million to provinces, of which provinces spent R74.7 million (89.5 per cent) by the end of the financial year 2021/2022 service delivery performance 24 847.72 hectares of rangeland protected and rehabilitated 1 465 hectares of arable land protected and
 rehabilitated 7 810.66 hectares of land under conservation agriculture 4 982 youths successfully attending organised Junior LandCare initiatives 44 household and school food gardens established through Junior LandCare 23 water sources developed or protected against over-utilisation 40 capacity building initiatives conducted for Land Carers 2 387 people with improved capacity and skill levels benefiting from capacity building initiatives 78
 awareness campaigns conducted and attended by Land Carers 5 880 people more aware of sustainable use of natural resources 12 119.21 hectares of land where weeds and invader plants are under control 3 862 hectares of land where bush encroachment is controlled 9 1 kilometres of fencing erected 1 033.54 green jobs created expressed as FTEs 90 LandCare committees established This grant will be aligned with changes in the EPWP, national planning framework report and policy developments within government 2023/24: R86 million; 2024/25: R90 million and 2025/26: R94 million Allocation to provinces will be disbursed on a quarterly basis (April 2023, August 2023, October 2023 and January 2024) Responsibilities of the national department Host national assessment panel to assess the projects with the provincial departments in line with grant objectives for 2024/25 Review guidelines and standards for the implementation of the grant Provide the guidelines and criteria for the development and approval of business plans Monitor implementation through project site visits, reports, quarterly meetings with provinces and provide support to provinces Submit quarterly performance reports to the National Treasury within 45 days after the end of each quarter Submit evaluation reports to the National Treasury within four months after the end
 of the financial year Responsibilities of provincial departments Ensure that procurement processes and procedures have been adhered to and plan in place to source service providers proactively for the implementation of LandCare projects to commence on 1 April 2023 Ensure that provinces’ organisational structure for programme 2 as prescribed by National Treasury is established and capacitated to manage LandCare and ensure adequate capacity of soil scientists, pasture scientists, land use
 planners, LandCare facilitators exists in the provinces to implement the LandCare projects Submit signed monthly financial report on the 15th day of every month Report jobs created to the DALRRD using the prescribed Expanded Public Works Programme reporting template/format within 15 days after the end of each month Submit signed quarterly reports (non-financial) with portfolio of evidence 30 days after the end of each quarter on the progress of the projects 131 LandCare Programme Grant: Poverty Relief and Infrastructure Development Province should further adhere to agreements approved quarterly meetings on performance reporting and any other matter related to natural resource management Implement projects according to the approved business plans.
Deviation affecting outputs and budgets should first be communicated to the transferring officer in writing and approved before implementation Hold provincial assessment panels use multidisciplinary team to assess individual projects plans, use LandCare standard assessment criteria before submission of preliminary individual and provincial business plans to DALRRD by 31 October 2023 Monitor project implementation and evaluate the impacts of projects in achieving LandCare goals Submit evaluation reports to DALRRD within two months after the end of the financial year Ensure and support the upscaling of conservation agriculture practices within communities Assist farmers with soil testing to improve and maintain soil health Conduct training for farmers and officials on soil fertility and testing, veld survey tools and veld management DALRRD must provide provincial departments with business plan formats and guidelines by July 2023 Engagement by DALRRD with provinces on business plans submission before provincial assessment panel and submission of signed business plans prior to the national assessment panel Evaluation and recommendation of business plans by the national assessment panel before the end of March 2024 Interactions with provinces on the national assessment panel comments and final submission of signed individual and provincial business plans by the provinces prior to approval by accounting officer
 Notify provinces of the approval of business plans before implementation Process for approval of 2024/25 business plans 132 BASIC EDUCATION GRANTS Early Childhood Development Grant Transferring department Grant schedule Strategic goal Grant purpose Basic Education (Vote 16) Schedule 5, Part A To increase access to quality early childhood development (ECD) services for poor children To increase the number of poor children accessing subsidised ECD services through centre and non-centre based programmes To support ECD providers delivering an ECD programme to meet basic health and safety requirements for registration Outcome statements Outputs To pilot the construction of new low-cost ECD centres The provision of ECD services to poor children contributing towards universal access Improving health and safety conditions in which stimulation and early learning takes place This grant has two components with detailed outputs, conditions and responsibilities for each component Priority of government that this grant primarily contributes to Details contained in the business plan specified in separate frameworks.
The two components are: o o subsidy component infrastructure component Priority 3: Education, skills and health The provincial departments will use a single business plan issued by the national Department of Basic Education (DBE) for the two grant components which contains the following: o project background o project objectives o scope of the work o deliverables and outputs to be achieved o risk assessment with mitigation plan Conditions Conditional grant funding cannot be used to replace funding that provinces have previously allocated for ECD Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer subsidies Each province may use a maximum of R4 million of their total conditional grant allocation (subsidy plus infrastructure components) for administrative management of the grant which includes capacity to manage the grant and funding for assessments of ECDs.
Provinces may choose to use this amount from the allocation for either one of the components or both As specified in the two grant component frameworks To allow DBE to better ring-fence expansion of ECD in the country and to facilitate compliance to the National Integrated ECD Policy approved by Cabinet on 9 December 2015 ensuring that the delivery and maintenance of any capital investment is coordinated in an efficient manner that is consistent with norms, standards and guidelines ECD is a national priority and requires uniform implementation in order to achieve the minimum coverage of 60 per cent of all poor children and to have the desired impact of achieving universal access by 2030 2021/22 audited financial outcomes Of the total grant allocation of R1.6 billion, including the rollover amount of R386 million, 100 per cent was transferred to provinces.
Expenditure of R1.2 billion (76 per cent) was spent by the end of the financial year 2021/22 service delivery performance 469 995 children benefitted from the subsidy Given the nature of the programme and the drive to expand provision of ECD services, the grant will be needed for the medium-term expenditure framework period, subject to review 2023/24: R1.2 billion; 2024/25: R1.9 billion and 2025/26: R2.3 billion, allocated as follows: Subsidy Component: 2023/24: R1.1 billion; 2024/25: R1.7 billion and 2025/26: R2.2 billion Infrastructure Component: 2023/24: R102 million; 2024/25: R157 million and 2025/26: R161 million Quarterly instalments based on the approved payment schedule Responsibilities of the national department Review the standardised reporting framework and monitoring tool Review the standardised format for the business plans Assist the provincial departments of basic education with their planning Assess and approve the business plans submitted by provinces Monitor project progress and compliance to conditional grant framework Provide continuous monitoring and support to provinces Submit a monthly financial report to National Treasury 20 days after the end of the reporting month Consolidate and submit quarterly performance reports to National Treasury within 45 days after the end of each quarter Monitor the utilisation of the grant against the set
 outcomes and take appropriate action in cases of non- compliance with the framework Submit an annual evaluation report four months after the end of the 2022/23 financial year Facilitate approval of the payment schedule and approval of in-year adjustments to the payment schedule The Department of Basic Education will develop ECD infrastructure grant guidelines be issued to the provinces by 31 March 2023 DBE and National Treasury to support provinces to improve
 infrastructure delivery capacity and systems Provide guidance to provinces in planning and prioritisation 133 Early Childhood Development Grant Responsibilities of provincial departments Submit approved business plans signed-off by the head of department to the DBE by 2 March 2023 Implement the business plan as approved by the DBE Submit monthly financial reports to national DBE 15 days after the end of the reporting month Provinces must upload all ECD maintenance projects on the infrastructure reporting model and update it monthly Submit quarterly performance reports to DBE within 30 days after the end of each quarter Submit an evaluation report two months after the end of the 2022/23 financial year Engagement with provincial departments on submission of business plans between September 2023 and February 2024 Submit final provincial business plan, including cash flow projections and compliance certificates signed-off by heads of departments for 2023/24 financial year to DBE by 14 February 2023 The transferring officer must approve provincial business plans by 2 April 2024 Process for approval of 2024/25 business plans 134 Early Childhood Development Grant: Infrastructure Component Transferring department Grant schedule Strategic goal Grant purpose Basic Education (Vote 16) Schedule 5, Part A To increase access to quality early
 childhood development (ECD) services for poor children To support ECD providers delivering an ECD programme to meet basic health and safety requirements Outcome statements Outputs Priority outcome(s) of government that this grant primarily contributes to Details contained in the business plan for registration To pilot the construction of new low cost ECD centres The provision of ECD services to poor children contributing towards universal access Improving health and safety
 conditions in which stimulation and early learning takes place Number of ECD centres assessed for infrastructure support and health and safety standards Number of ECD centres whose registration status improved as a result of the infrastructure component within 24 months of receiving the grant Number of low cost ECD centres constructed Priority 3: Education, skills and health The provincial departments will use a single business plan issued by the national Department of Basic Education (DBE) for the two grant components (subsidy and infrastructure) which contains the following: o project background o project objectives o scope of the work o deliverables and outputs to be achieved o risk assessment with mitigation plan Conditions Maintenance and upgrading This allocation may be used for: o unregistered ECD centres to do minor infrastructure maintenance works and upgrades to enable conditional registration o conditionally registered ECD centres to do minor infrastructure maintenance works and upgrades to enable them to improve their registration status The following conditions apply in respect of the above: o all ECD sites whether conditionally registered or unregistered may only benefit from this fund if they are eligible as per the requirements in the guideline issued by DBE o all projects must be selected, planned and implemented in a manner consistent with the guideline o issued by the DBE infrastructure units in the provinces must receive a list of selected ECD centres for maintenance or for new construction from program o o provinces must conduct assessments of conditionally registered and eligible unregistered ECD sites and cost them in order to qualify for funding in 2024/25 and submit by 29 September 2023 for unregistered centres, a maximum amount of R150 000 per ECD centre may be spent for maintenance improvements, inclusive of all costs (VAT, disbursements etc) for conditionally registered centres a maximum
 amount of R300 000 centre may be spent for maintenance improvement and upgrades, inclusive of all costs (VAT, disbursements etc) o o prior approval for any amount exceeding R150 000 or R300 000 respectively should be obtained from the head of department or the chief financial officer with a detailed assessment and cost analysis to justify the additional amount o once the budget is allocated per province, a revised approved list for maintenance should be submitted by province to DBE together with business plans.
o all projects must be recorded on the infrastructure reporting model before the start of the financial year o provinces must update the infrastructure project details for each funded project in the infrastructure reporting model.
This must be approved and submitted to National Treasury and DBE within 22 days after the end of each quarter New centre construction New centre construction funding is for the construction of new low-cost ECD centres where existing structures have to be replaced or to address new demand in areas where the need is the greatest A maximum of R3 million may be used for the construction of new ECD centres, inclusive of all costs.
Prior approval for any amount exceeding R3 million should be obtained from the head of department or the chief financial officer with a detailed assessment and cost analysis to justify the additional amount The construction of centres must be consistent with the guideline issued by the DBE Every province may construct at least one ECD centre in 2023/24 Each province must include the number of ECD centres to be constructed and the costs for the construction in the business plan 2023/24 135 Early Childhood Development Grant: Infrastructure Component All projects must be recorded on the infrastructure reporting model General conditions DBE will develop guidelines for each of the areas listed above that must be issued to the provinces by 31 March 2023 ECD centres must sign SLAs with the Provincial Department before maintenance or construction of new centre ECD centres that benefited from the maintenance allocation must then make provision for continued maintenance of ECD centre Provinces shall include all projects in the final Infrastructure Asset management Plan to be submitted at the end of March 2023 Allocation criteria The provincial infrastructure allocations are determined based on: Reasons not incorporated in equitable share Past performance o the number of ECD centres assessed in each province that meet the criteria for the maintenance and upgrading The amount for low-cost construction of ECD centres is a standard allocation for each province To allow DBE to manage the expansion of ECD in the country and to facilitate compliance to the National Integrated ECD Policy approved by Cabinet on 9 December 2015 ensuring that the delivery and any capital investment is coordinated in an efficient manner that is consistent with norms, standards and guidelines ECD is a national priority and requires uniform implementation in order to achieve the minimum coverage of 60 per cent of all poor children and
 to have the desired impact of achieving universal access by 2030 2021/22 audited financial outcomes Of the maintenance grant allocation of R87 million, 100 per cent was transferred to provinces R63 million (72 per cent) was spent by the end of the financial year 2021/22 service delivery performance 181 ECD centres benefited from the maintenance grant and 92 were rolled over into the 2022/23 financial year Projected life Given the nature of the programme and the drive to expand provision of ECD services, the grant will be needed for the medium term expenditure framework period, subject to review MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 2023/24: R102 million; 2024/25: R157 million and 2025/26: R161 million Quarterly instalments according to approved payment schedule Responsibilities of the national department DBE will develop ECD infrastructure grant guidelines for each of the two areas listed above that must be issued to the provinces by 31 March 2023 DBE will conduct monitoring on the grant and consolidate quarterly reports Responsibilities of provincial departments Provinces must submit a draft list of all eligible ECD sites that have been assessed to benefit from the grant in 2024/25 to DBE by 29 September 2023 Provinces shall include all projects in the final infrastructure asset management plan to be submitted
 to the DBE at the end of March 2023 Provinces must provide a procurement plan on how they will implement their projects in the 2023/24 financial year by 30 November 2023 The reasons for the centre being unregistered or conditionally registered including the Environmental Health Report must be kept in the file for each ECD centre by the ECD programme manager Maintain a database of all ECD centres that have been assisted through the infrastructure component of the grant by the
 ECD infrastructure project manager The ECD programme manager must maintain a database of all ECD centres that have improved their registration status Provinces must record all infrastructure projects on the National Treasury’s infrastructure reporting model Provinces must adhere to the requirements in the ECD infrastructure grant guidelines issued by DBE in the implementation of the grant Provincial education departments must comply with the framework for infrastructure delivery and procurement management in the planning and implementation of projects Engagement with provincial departments on submission of business plans between September 2023 and February 2024 Submit final provincial business plan, including cash flow projections and compliance certificate signed-off by HoDs for 2024/25 financial year to the DBE by 13 February 2024 The transferring officer must approve provincial business plans by 2 April 2024 Process for approval of 2024/25 business plans 136 Early Childhood Development Grant: Subsidy Component Transferring department Grant schedule Strategic goal Grant purpose Basic Education (Vote 16) Schedule 5, Part A To increase access to quality early childhood development (ECD) services for poor children To increase the number of poor children accessing subsidised ECD services through centre and Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions non-centre based progammes The provision of ECD services to poor children contributing towards universal access Number of eligible children subsidised, as agreed in the service level agreements (SLA) Number of all children attending ECD services in fully registered ECD centres Number of all children attending ECD services in conditionally registered ECD centres Number
 of children subsidised from the conditional grant in fully registered ECD centres Number of children subsidised from the conditional grant in conditionally registered ECD centres Number of days subsidised for centre based programmes Number of children subsidised through provincial own revenue including equitable share that are benefiting from the top-up grant Number of all children attending in fully registered non-centre based programmes Number of all children attending in conditionally registered non-centre based programmes Number of children subsidised from the conditional grant in fully registered non-centre based programmes Number of children subsidised from the conditional grant in conditionally registered non-centre based programmes Number of ECD practitioners and other staff employed in registered ECD centres benefiting from the conditional grant Priority 3: Education, skills and health The provincial departments will use a single business plan issued by the national Department of Basic Education (DBE) for the two grant components (i.e.
subsidy and infrastructure) which contains the following: o project background o project objectives o scope of the work o deliverables and outputs to be achieved o risk assessment with mitigation plan Only fully and conditionally registered ECD programmes (centre and non-centre-based) will be eligible for the subsidy The subsidy is targeted for children from birth until the year before children enter formal school or in case of children with developmental difficulties and disabilities, until the year before the calendar year they turn seven, which marks the age of compulsory schooling or special education The PEDs and ECD service providers will enter into service level agreements (SLAs) which stipulate the purpose of the subsidy, the amount of the subsidy, conditions of the subsidy and obligations of both PEDs and ECD service providers with regards to the payment of the subsidy, compliance to fundings and the reporting requirements The value of the subsidy paid to each ECD centre will be calculated as follows: o R17.00 multiplied by the number of days (264), multiplied by the number of qualifying children attending the ECD centre as agreed to in the SLA The value of the subsidy paid to each registered non-centre based ECD programme will be calculated as follows: o R6.00 multiplied by the number of sessions, multiplied by the number of qualifying children attending as agreed to in the SLA The full value of the subsidy will be paid in equal parts in line with the SLA and any changes to the payment schedule must be aligned to a determination of non-compliance as defined in the SLA Once funds are transferred to ECD service providers the department may not pre-approve how the funds are to be utilised other than what is stipulated in the SLA All allocations must be aligned to the number of children as per the SLA and can only be reduced as per the process outlined in the SLA.
Allocations must not be changed in-year, based on how many children attend The subsidy must target qualifying children in centre and non-centre based programmes in line with the process set out below: o an ECD centre programme is eligible to be subsidised if it is located in a designated municipal ward that has been identified for universal targeting of subsidies.
Children attending these ECD 137 Early Childhood Development Grant: Subsidy Component o centres and non-centre based programmes will not be subjected to an individual means test and all children in these programmes must be taken into account when calculating the subsidy if the child is attending an ECD centre or non-centre based programme falling outside of those municipal wards that have been identified for universal targeting of the subsidy, the subsidy will be targeted to an individual child using the means test criteria o a child is eligible to be subsidised if her/his parents’ income falls below the following prescribed test Income-based means test: income of parents or caregivers may not exceed the means test values applied for the receipt of the child support grant for a single parent and married parents as gazetted by Department of Social Development (DSD) in 2023.
This is updated each year with an increase in the grant value in the case of children receiving a child related social assistance grant; original, reprinted or certified copies of proof of receipt of the child related grant (child support grant or the foster care grant) as issued by South African Social Security Agency must be submitted In the case of children who are not beneficiaries of a child related grant the following must be submitted: o proof of income of parents (or caregivers) o o affidavit declaring status of income three months bank statement of parents or guardians; or Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer o o The provincial subsidy allocations are determined based on the gap between: the number of poor children that should be accessing ECD subsidy the number of poor children currently accessing the ECD subsidy To allow DBE to better facilitate expansion of ECD services in the country ECD is a national priority and requires uniform implementation in order to achieve the minimum coverage of 60 per cent of all poor children and to have the desired impact of achieving universal access by 2030 2021/22 audited financial outcomes Of the subsidy expansion grant allocation of R1.2 billion, 100 per cent was transferred to provinces and R1 billion (83 per cent) was spent by the end of the financial year 2021/22
 service delivery performance 469 995 children benefitted from the subsidy The grant will be allocated over the 2022 medium term expenditure framework period, subject to review 2023/24: R1.1 billion; 2024/25: R1.7 billion and 2025/26: R2.2 billion Quarterly instalments according to approved payment schedule Responsibilities of the national department Review standardised SLAs to be entered into between provincial departments of basic education and ECD service
 providers Review the standardised business plan Responsibilities of provincial departments Conclude SLAs with ECD service providers in a format prescribed by the DBE Ensure that payments are made in line with the payment schedule as per the SLAs with ECD service providers Subsidies must be made into the ECD service providers designated bank accounts, which must be with a registered deposit taking institution in the Republic of South Africa Subsidies may only be reduced in cases of non-compliance as outlined in the prescribed SLA Use the information reported in the quarterly reports from ECD service providers to develop and maintain a master list of all children benefitting from the ECD subsidy Maintain a database on the status of registration of all ECD centres in the province that is inclusive of the following basic information: o registration status o capacity of the centre o number of children in attendance o number of children subsidised o number of children with disabilities subsidised o number of children with disabilities in attendance Process for approval of the 2024/25 business plans Engagement with provincial departments on submission of business plans between September 2023 and February 2024 Submit final provincial business plans for 2024/25 including cash flow projections and compliance certificates signed-off by heads of departments to DBE by 15 February 2024
 The transferring officer must approve provincial business plans by 2 April 2024 Transferring department Grant schedule Strategic goal 138 Basic Education (Vote 16) Education Infrastructure Grant Schedule 4, Part A To supplement provinces to fund the provision of education infrastructure in line with the regulations relating to minimum uniform norms and standards for public school infrastructure Grant purpose To help accelerate construction, maintenance,
 upgrading and rehabilitation of new and existing Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions infrastructure in education including district and circuit accommodation To address achievement of the targets set out in the minimum norms and standards for school infrastructure To address damages to infrastructure To enhance capacity to deliver infrastructure in education Improved quality of education service delivery by provincial departments as a result of an improved and increased stock of school infrastructure Aligned and coordinated approach to infrastructure development at the provincial sphere Improved education infrastructure expenditure patterns Improved response to the rehabilitation of school infrastructure Improved rates of employment and skills development in the delivery of infrastructure Improved safety in school facilities through occupational health and safety Number of new schools, additional education spaces, education support spaces and administration facilities constructed as well as equipment and furniture provided Number of existing schools’ infrastructure upgraded and rehabilitated including schools constructed of asbestos material and other inappropriate material Number of new and existing schools maintained Number of disaster damaged school rehabilitated Number of schools provided with water, sanitation, and electricity Number of work opportunities created Number of new special schools provided, and existing special and full-service schools upgraded and maintained Priority 3: Education, skills, and health This grant uses an infrastructure plan that includes: the infrastructure programme management plan the procurement strategy the capacitation strategy the infrastructure
 reporting model the year-end evaluation report o o o o o Provinces may utilise a portion of grant funding for the appointment of public servants on a permanent basis to their infrastructure units in line with human resource capacitation circular published by National Treasury (including maximums set in the circular) The flow of each instalment of the grant depends upon provinces submitting to national Department of Basic Education (DBE) and provincial treasuries non-financial performance reports on programmes partially and fully funded by the grant The flow of the first instalment of the grant depends upon receipt by the DBE and provincial treasuries of: o approved and signed-off infrastructure plan with tabled prioritised project lists for the 2023 medium- term expenditure framework (MTEF) by no later than 24 March 2023.
The infrastructure plan must, where applicable, also include the implementation plans for schools affected by natural disasters o preventative and corrective maintenance plan for all maintenance programmes over the MTEF period accompanied by a project list no later than 24 March 2023 The flow of the second instalment depends upon receipt by DBE and provincial treasuries of the approved and signed-off: o monthly infrastructure reports in a format determined by the National Treasury and DBE o a summary report on all projects that have reached practical completion and captured on the Education Facilities Management System Mobile Application for the fourth quarter of the 2022/23 financial year no later than 28 April 2023 o a report on the filling of posts on the approved establishment for the infrastructure unit in the format approved by National Treasury for the fourth quarter of the 2022/23 financial year within 22 days after the end of the fourth quarter The flow of the third instalment is dependent upon receipt by DBE, the relevant provincial treasuries, and the National Treasury, on a date and in a format determined by National Treasury, of the approved and signed-off: o infrastructure plans for all infrastructure programmes for a period of 10 years (including the initial list of prioritised projects) on a date specified in the performance-based approach guidelines o the 2023/24 project list must be drawn from the prioritised project list for the MTEF tabled in 2021/22 o preventative and corrective maintenance plans for all maintenance programmes over the MTEF period accompanied by a project list on a date specified in the performance-based approach guidelines o monthly infrastructure reports in the format determined by National Treasury and the DBE o a summary report on all projects that have reached practical completion and captured on the Education Facilities Management System Mobile Application for the first quarter of 2023/24 by 27 July 2023 139 Education Infrastructure Grant o a report
 on the filling of posts on the approved establishment for the infrastructure unit in the format approved by National Treasury for the first quarter of the 2022/23 financial year within 22 days after the end of the first quarter the conditional grant year-end evaluation report on financial and non-financial performance no later than 26 May 2023 o The flow of the fourth instalment is conditional upon receipt by the DBE and relevant provincial treasury of the approved and signed off: o monthly infrastructure reports in the format determined by National Treasury and the DBE o a summary report on all projects that have reached practical completion and captured on the Education Facilities Management System Mobile Application for the second quarter of 2023/24 by 26 October 2023 infrastructure programme management plans for infrastructure programmes envisaged to commence within the period for the medium-term expenditure framework on a date specified in the performance- based approach guidelines o o procurement strategy for infrastructure programmes envisaged to commence within the period of the medium-term expenditure framework on a date specified in the performance-based approach guidelines o a report on the filling of posts on the approved establishment for the infrastructure unit in the format approved by National Treasury for the second quarter of the 2023/24 financial year within 22 days after the end of the second quarter The flow of the fifth instalment is conditional upon receipt by the DBE and the relevant provincial treasuries, on a date determined by National Treasury, of the approved and signed-off: o monthly infrastructure reports in the format determined by National Treasury and the DBE o a summary report on all projects that have reached practical completion and captured on the Education Facilities Management System (EFMS) Mobile Application for the third quarter of 2023/24 to DBE not later than 19 January 2024 o a report on the filling of
 posts on the approved establishment for the infrastructure unit in the format approved by National Treasury for the third quarter of the 2023/24 financial year within 22 days after the end of the third quarter Provincial education departments must ensure that a programme and project management system is in place for planning, management and monitoring of infrastructure delivery funded from the grant Provincial education departments must comply with the framework for infrastructure delivery and procurement management Provincial education departments must provide school governing bodies with maintenance guidelines to conduct minor maintenance.
This should be in accordance with the sector maintenance strategy Provincial education departments should allocate no less than 60 per cent of the Education Infrastructure Grant (EIG) allocation to address preventative and corrective maintenance at schools Provincial education departments to prioritise, and fund from the grant, the eradication of pit latrines and other unacceptable forms of sanitation Provincial education departments to prioritise the rehabilitation of storm damaged schools, schools built of asbestos and other inappropriate material In implementing the three streams model, provincial education departments to prioritise the planning for construction of technical schools and schools of skill as well as conversion of academic stream schools to vocational and occupational streams in 2023/24, for commissioning of projects in 2024/25 Provincial education departments may use multiple implementing agents when implementing projects funded from the grant To promote conducive teaching and learning within the acceptable occupational, health and safety standards, provincial education departments must implement maintenance projects in all education facilities In schools without section 21 responsibilities, provincial education departments should put in place the necessary measures to ensure that planned maintenance at these schools occurs as per the scheduled maintenance plan for such schools Provincial education departments must
 provide all the necessary equipment and furniture in the spaces provided when constructing new projects Provincial education departments must submit their plans for the procurement of mobile classrooms to the DBE and any deviation from these plans should be approved in writing by the DBE Provincial education departments to ensure cost-effectiveness as they implement infrastructure projects Non-compliance with any of the above conditions may result in the withholding and subsequent stopping of transfers The following amounts per province must be used in 2023/24 for the repair of infrastructure damaged by the natural disaster in KwaZulu-Natal and in Eastern Cape as declared in respective provincial gazettes, and as verified by the National Disaster Management Centre (NDMC): Eastern Cape o 2022 disaster: R14 million KwaZulu-Natal o o 2019 disaster: R326 million 2022 disaster: R269 million An amount of R495 million is allocated to Gauteng through the Budget Facility for Infrastructure (BFI) for the construction of schools.
These funds may only be used for this project and are subject to the conditions set out in the 2023 MTEF preliminary allocation letter to the Department of Basic Education 140 Education Infrastructure Grant Business plans for allocated disaster funds must be in line with the post disaster verification assessment reports submitted to the NDMC Disaster reconstruction and rehabilitation funds may only be utilised for approved projects as listed in the post disaster verification assessment reports and approved business plans Quarterly performance reports on disaster allocations must be submitted to the NDMC and DBE Allocations for 2023/24 are based on historical allocations for this grant Allocations also include incentive-based allocations as described in part 4 to Annexure W1 of the 2023 Division of Revenue Bill Funding infrastructure through a conditional grant enables the national department to ensure the delivery and maintenance of education infrastructure in a coordinated and efficient manner, consistent with national norms and standards for school buildings 2021/22 audited financial outcomes Of the R11.7 billion allocated, R11.7 billion (100 per cent) was transferred to provinces of which R11.5 billion (97 per cent) was spent by the end of the national financial year 2021/22 service delivery performance 2 075 teaching spaces, 163 administrative spaces provided 703 maintenance projects, 494 water, 708 sanitation, 44
 electricity and 115 fencing infrastructure projects Completed 2 boarding facilities The sector has provided a total of 40 new and replacement schools in provinces Grant continues until 2025/26, subject to review 2023/24: R13.9 billion; 2024/25: R13.8 billion and 2025/26: R14.4 billion Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Visit selected infrastructure sites in
 provinces DBE and National Treasury to support provinces to improve infrastructure delivery capacity and systems Provide guidance to provinces in planning and prioritisation Issue guidelines on the capacitation process of infrastructure units as well as the conditions attached to the utilisation of the funding DBE and National Treasury to jointly evaluate progress with the capacitation of provincial infrastructure units and provide feedback to all provinces in terms of the guidelines DBE and National Treasury must jointly evaluate and provide feedback to all provinces on the assessment of all documents as outlined on the performance-based approach system guidelines Assess the reports submitted by provincial education departments and provide feedback before transferring the instalment Submit reports to the National Treasury in terms of quarterly achievements by provincial education departments Comply with the conditions of this grant framework and the relevant clauses within the stipulated timeframes of the 2023 Division of Revenue Act Responsibilities of provincial departments Approve monthly provincial infrastructure reports on infrastructure programmes within 15 days after the end of each month and submit to the relevant provincial treasury and DBE Submit a signed-off monthly provincial infrastructure report on infrastructure programmes within 22 days after the end of each month to the relevant provincial treasury and DBE Comply with the conditions of this grant framework and the relevant clauses within the stipulated timeframes in 2023 Division of Revenue Act Submit quarterly capacitation reports within 22 days after the end of each quarter Ensure that section 42 transfers as per the Public Finance Management Act are affected The process for approval for the 2024 MTEF allocations will be in line with the performance-based
 incentive approach guidelines published by National Treasury Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 141 Transferring department Grant schedule Strategic goal Basic Education (Vote 16) Schedule 5, Part A Addressing social and structural drivers on HIV, sexually transmitted infections (STIs) and HIV and AIDS (Life Skills Education) Grant Tuberculosis (TB) prevention, care and impact Contribute to preventing new HIV, STIs, TB and COVID-19 infections To increase access to sexual and reproductive health services including HIV as well as TB services for learners and educators, with a specific focus on schools that are located in high priority areas Grant purpose To support South Africa’s HIV prevention strategy by: o providing comprehensive sexuality education and access to sexual and reproductive health services to learners o supporting the provision of employee health and wellness programmes for educators To mitigate the impact of HIV and TB by providing a caring, supportive and enabling environment for learners and educators To reduce the vulnerability of children to HIV, TB and STIs, with a particular focus on orphaned children and girls Outcome statements Increased HIV, STI, TB
 and the COVID-19 knowledge and skills amongst learners, educators and Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions officials Decrease in risky sexual behaviour among learners, educators and officials Decreased barriers to retention in schools, in particular for vulnerable learners (girls and boys) 8 798 educators trained to implement comprehensive sexuality education and TB prevention programmes for
 learners to be able to protect themselves from HIV and TB, COVID-19 and the associated key driversincluding alcohol and drug use, leading to unsafe sex, learner pregnancy and HIV infection, prioritising schools located in areas with a high burden of HIV and TB infections 5 154 school management teams and governing bodies trained to develop policy implementation plans focusing on keeping mainly young girls in school, ensuring that comprehensive sexuality education and TB education is implemented for all learnersin schools, access to comprehensive sexual and reproductive health and TB services.
A provision for training will also address multiple sexual partnerships among boys and learner pregnancy prevention Co-curricular activities on provision of comprehensive sexuality education, access to sexual and reproductive health and TB services implemented in secondary schools including a focus on prevention of alcohol and drug use and learner pregnancy and COVID-19, targeting 63 484 learners.

Priority will be in schools located in high priority areas.
Co-curricular activities in primary schools will focus on raising awareness of social issues and vulnerabilities such as how to report abuse and support affected learners Care and support programmes implemented to reach 52 659 learners and 4 204 educators.
Expand the appointment of Learner Support Agents to 3 135 to support vulnerable learners prioritising primary schools, using the care and support for teaching and learning framework 218 370 copies of curriculum and assessment policy statement and COVID-19 compliant material, including material for learners with barriers to learning, printed and distributed to schools.
Printing of the school policy pack will be prioritised over learner teacher support material to ensure that all schools have a copy of the Department of Basic Education’s (DBE) National Policy on HIV, STIs and TB for learners, educators, support staff and officials in all primary and secondary schools in the basic education sector Host advocacy and social mobilisation events with 167 891 learners, educators and school community members on the new DBE National Policy on HIV, STIs and TB to review and change societal norms and values on the provision of comprehensive sexuality education and access to sexual and reproductive health and TB services, including a focus on key risk behaviours such as alcohol and drug use, learner pregnancy, inter-generational and transactional sex amongst girls, multiple concurrent sexual partnerships, power relations, respect for girls and other issues that compel negative behaviour amongst boys, as well as to advocate for the integrated school health programme including provision of sexual and reproductive health services such as contraception, STIs, pregnancy and HIV testing, condom distribution and information on safe circumcision in secondary schools 5 600 schools will be reached through monitoring and support visits Priority 3: Education, skills and health Outcome indicators Output indicators Inputs Key activities Provincial education departments (PEDs) must distribute the grant allocation in
 accordance with the following weights for the key performance areas: o support for COVID-19 prevention and management (to be integrated in existing focal areas) o Training and development (15 per cent) 142 HIV and AIDS (Life Skills Education) Grant learning and teaching support material (10 per cent) o Co-curricular activities (10 per cent) o care and support (35 per cent) o o advocacy and social mobilisation (15 per cent) o monitoring and support (8 per cent) o management and administration (7 per cent) PEDs must report on implementation and expenditure according to the above seven key performance areas per quarter Instalments are dependent on the DBE receiving these reports, adherence to approved business plans and attendance at the biannual inter-provincial meetings The above percentages are guidance and may be deviated from in accordance with provincial needs with the approval of the national transferring officer.
However, provinces must prioritise areas with high rates of HIV, TB and learner pregnancy Deviations should be informed and motivated by achievements and/or critical challenges relating to the trends in the epidemic as relevant to respective PEDs PEDs must ensure they have the necessary capacity and skills to manage the implementation of the grant First Aid Kits may no longer be funded from the conditional grant.
In addition, condoms and sanitary pads must also not be funded from this conditional grant In response to the COVID-19 pandemic and other disease outbreaks, grant funds may be used to support catch-up activities and to provide education on measures to prevent and respond to the pandemic.
Provinces must submit revised business plans for these activities and request deviations from the grant allocation weights listed above, where possible The education component of the provincial equitable share formula, as explained in part 4 of Annexure W1 of the 2023 Division of Revenue Bill, is used to allocate the grant amongst provinces To enable the DBE to provide overall guidance, to ensure congruency, coherence and alignment with: o National Strategic Plan for HIV, TB and STIs (2017–2022) o DBE National Policy on HIV, STIs and TB for Learners, Educators, School Support Staff in all Primary and Secondary Schools in the Basic Education Sector This enables DBE to exercise an oversight role on the implementation of the HIV and AIDS Life Skills Education Programme in schools 2021/22 audited financial outcomes Of the R242 million allocated to provinces, R242 million (100 per cent) was transferred to provinces, of which R240 million (99 per cent) was spent by the end of the financial year.
Under- expenditure was noted in Gauteng, Limpopo and North West 2021/22 service delivery performance 5 560 life orientation educators and 3 940 educators trained in integration of life skills in the curriculum 12 769 functional peer education programmes were undertaken, 31 133 learners trained on the learner retention and learner pregnancy programme, 37 450 learners trained in the substance abuse programme 14 867 school-based support teams established, 4 773 learner support agents in schools, 14 689 school management teams trained to develop policy implementation plans, and 210 747 vulnerable learners identified and referred for services 334 507 sets of learning and teaching support material delivered to 23 785 schools Advocacy reached 236 128 learners and educators as well as 39 154 members of the school communities on the new DBE national policy on HIV, STIs and TB to review and change societal norms and values on the provision of comprehensive sexuality education and access to sexual and reproductive health and TB services and reaching 6 103 learners through advocacy activities focusing on the prevention of TB and COVID-19 prevention 5 773 schools reached through monitoring and support visits Grant will be reviewed on an ongoing basis to respond to nature and trends in the HIV and TB epidemics 2023/24: R242 million; 2024/25: R253 million and 2025/26: R264 million Four instalments: 14 April 2023; 28 July 2023; 27 October
 2023 and 26 January 2024 Responsibilities of the national department To provide evidence-based guidance towards the development of a standardised annual conditional grant framework and nine provincial specific annual business plans for the HIV and AIDS life skills education programme Identify risks and challenges impacting on provincial implementation Develop risk management strategies to address these risks Ensure synergy with national strategies and processes aimed
 at reducing HIV and related chronic illnesses, such as TB infection together with the associated risk factors, such as alcohol and drug use, prevention of unbecoming behavior and teenage pregnancy in schools Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 143 HIV and AIDS (Life Skills Education) Grant Agree on outputs and targets with PEDs in line with grant objectives and national imperatives for 2024/25 from 22 September 2023 Monitor implementation of the programme and provide support to provinces Establish partnerships with key stakeholders Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter (including monthly and annual reports on the implementation of the Programme and expenditure against the allocated budget) Responsibilities of the provincial departments Ensure synergy with national strategies and processes aimed at reducing HIV and TB infections and other related issues including the associated risk factors such as alcohol and drug use, prevention of unbecoming behavior and teenage pregnancy in schools Identify risks and challenges impacting on implementation Develop risk management strategies and implementation plans to address these risks Submit monthly reports, quarterly and annual performance evaluation reports to the DBE in line with the 2023 Division of Revenue Act and Public Finance Management Act Agree with the DBE on outputs and targets to ensure effective implementation and expenditure of the Programme Monitor implementation of the Programme and provide support to districts and schools PEDs to implement the projects according to the approved business plans Any deviation should first be communicated to and approved by the DBE before
 implementation Evaluate and submit a provincial evaluation report on the performance of the conditional grant to the DBE in May/June 2023 (date will be determined by the national department) Communication and meeting with provinces to inform targets for 2024/25 from 27 October 2023 PEDs submit draft business plans to DBE for evaluation from 30 November 2023 DBE evaluates provincial business plans from 8 December 2023 Comments sent to PEDs to amend the plans from 11 January 2024 PEDs submit amended and signed plans to DBE from 23 February 2024 DBE approves provincial business plans from 2 April 2024 Process for approval of 2024/25 business plans 144 Transferring department Grant schedule Strategic goal Basic Education (Vote 16) Schedule 5, Part A To ensure that learners with severe to profound intellectual disabilities access quality, publicly funded Learners with Profound Intellectual Disabilities Grant education and support Grant purpose To provide the necessary support, resources and equipment to identified special care centres and schools for Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions the provision of education to children with severe to profound intellectual disabilities Improved access to quality basic education for children with severe to
 profound intellectual disabilities in conditions that ensure dignity, promote self-reliance and facilitate active participation in the community Nine deputy chief education specialists as provincial grant managers and 245 transversal itinerant outreach team members appointed to provide support in special care centres and targeted schools 483 special care centre data captured and managed using the South African School Administration and Management System 245 transversal itinerant
 outreach team members, 2 970 caregivers, trained on the learning programme for learners with profound intellectual disability and other programmes that support the facilitation of the learning programme Number of caregivers trained on accredited training 9 669 children with severe to profound intellectual disability supported through a range of services Number of learners from special care centres placed in schools Priority 3: Education, skills and health Outcome indicators Output indicators Inputs Key activities Annual budget and resource allocation schedules Monitoring and reporting Risk management plan Cash flow projections Participating centres and schools list (separate annexure) Organogram for transversal itinerant outreach team within the district Grant structure and allocation The grant is utilised on an interventional basis and is not a general source of funding for all special care centres and schools The focus of the grant is children with severe to profound intellectual disabilities who are currently not accessing publicly funded education in special care centres Learners with severe, mild and moderate intellectual disabilities and with specific learning difficulties enrolled in special care centres should be assessed for placement in schools Schools that have enrolled learners
 with profound intellectual disability from special care centres in schools should be supported The learning programme for learners with profound intellectual disability should be used to guide the teaching of learners with profound intellectual disability in special care centres and targeted schools The allocation of funds per provincial education department (PED) should be divided as follows: o 9 per cent for the training of caregivers o 17 per cent for assistive devices, storage
 containers and top-up learning and teaching support materials (LTSM), LTSM and classroom furniture and equipment for newly on-boarded special care centres and designated schools for the benefit of learners with severe to profound intellectual disabilities from special care centres o 65 per cent for compensation of transversal itinerant outreach team members and provincial grant managers o 9 per cent for administration including travel, vehicles, accommodation and subsistence Provinces may deviate from the prescribed allocations only after having complied with the conditions of the framework and obtained the relevant approval from the transferring officer.
The request for deviations must be submitted to the transferring officer no later than 17 November 2023 Business planning process The transferring and receiving departments must appoint or identify qualified and experienced person/s to administer, manage and coordinate the activities of the grant in accordance with the provisions of the framework and business plan In order to ensure the effective management of the grant, receiving departments should not allocate other responsibilities to a staff member appointed to manage the grant The receiving department must appoint outreach teams, as part of the district-based support team, made up of one senior education specialist (learning support - post level 3), one chief education occupational therapist, one chief education speech therapist, one chief education physiotherapist and an educational psychologist 145 Learners with Profound Intellectual Disabilities Grant In order to ensure effective and adequate support to learners, receiving departments should not allocate other responsibilities to a staff member appointed to manage the grant Outreach teams must be appointed and compensated in accordance with post levels as agreed upon with the national Department of Basic Education (DBE) Outreach team members must be appointed as part of the district-based support team and be based at the district, circuit or school level, in order to ensure integration of the services they provide into district plans and efficiency when they facilitate and support the implementation of the learning programme and provide psycho-social and other therapeutic support to learners enrolled in special care centres and targeted schools Where in-service therapists are not available, outreach team members should provide therapeutic, including any other, support to learners with profound intellectual disabilities enrolled in schools The receiving department must facilitate and support the implementation of the learning
 programme for learners with profound intellectual disability in special care centres and schools The transferring department must train outreach team members on the implementation of the learning programme for learners with profound intellectual disability and other programmes that enhance accountability in the implementation of the learning programme for learners with profound intellectual disability The receiving departments, using outreach team members and other officials, must conduct on-site on-the- job coaching and mentoring of caregivers, teachers, in-service therapists, and officials on the learning programme for learners with profound intellectual disability, and other programmes that directly enhance accountability in the implementation of the learning programme and provision of outreach services to targeted special care centres and schools The receiving department must work with the DBE and ensure that caregivers receive accredited training that results in recognised qualifications Administrative support will include purchasing or leasing appropriate vehicles in cases where cars have not been purchased (one car per team), purchasing tools of the trade (in line with the DBE guidelines), fuel costs, and subsistence and accommodation costs when visiting special care centres and schools with the travel distance of more than 200 km or in instances where the teams will spend more than one day in an area providing outreach services Transport is provided for in the grant framework and hence costs incurred from the use of own cars must be avoided The receiving department should advocate for the placement of learners from special care centres in schools at all levels of the education system as well as in the broader community Procurement In order to expedite the delivery of assistive devices and LTSM, PEDs must utilise transversal contracts where available, unless they can demonstrate gains from
 an exemption in their business plans To effectively use finances the use of implementing agency to procure items must be avoided In order to address the buying of inappropriate equipment and LTSM, PEDs must consult with the DBE by sharing and discussing the specifications of the items to be bought The receiving departments must procure relevant and adequate learning and teaching support materials, classroom furniture and equipment, equipment for basic non-accredited skills programmes for learners with severe intellectual disabilities that cannot be placed in schools and assistive devices for learners in special care centres as per the minimum specifications defined by DBE The receiving department must procure specialised tools of trade and storage equipment in special care centres and where storage is inadequate Procurement should include training of caregivers, teachers and end-users in the utilisation of all resources provided Transfer of the first tranche to PEDs will be done on submission of approved business, procurement and training plans This framework must be read in conjunction with the practice note as agreed to with National Treasury Allocations consider the number of special care centres, children with severe or profound intellectual disabilities (CSPID) in special care centres, schools that have enrolled learners with profound intellectual referred from special care centres per province as well as the urban and rural nature of each province In order to address the needs of this marginalised population of children with severe or profound intellectual disabilities that are not in school and not accessing educational subsidies through the educational norms applied at schools, the funding is ring-fenced in the form of a conditional grant.
This enables the DBE to provide overall guidance to ensure congruence and coherence in programme implementation 2021/22 audited financial outcomes Of the R243 million allocated to provinces, R243 million (100 per cent) was transferred to provinces R225 million (93 per cent) was spent by the end of the financial year 2021/22 service delivery performance Seven of the targeted nine provincial grant managers were retained to manage the grant 217 of the targeted 245 transversal itinerant outreach team members were retained to provide outreach services to learners in special care centres and selected schools 9 797 learners were provided with a range of services Allocation criteria Reasons not incorporated in equitable share Past performance 146 Learners with Profound Intellectual Disabilities Grant 217 transversal itinerant outreach team members, 1 789 caregivers, 940 teachers, 125 in-service therapists and 510 officials were trained 4 347 learners with profound intellectual disability (3 875 in special care centres 472 in schools) were taught using the learning programme for learners with profound intellectual disability 1 811 learners with severe to profound intellectual disability received therapy 394 special care centres and 44 selected schools were provided with learning and teaching support materials 511 received assistive devices for personal use The grant framework will be reviewed on an ongoing basis to
 respond to the nature and trends in the education of learners with severe to profound intellectual disabilities 2023/24: R260 million; 2024/25: R272 million and 2025/26: R284 million Transfer payments shall be effected in April 2023; August 2023; November 2023 and January 2024 Responsibilities of the national department Evaluate, approve and submit provincial business plans to National Treasury Refine monitoring and evaluation guidelines tools that will be used to monitor
 and evaluate the implementation of the grant Refine Standard operation procedures and tools that will be used to enhance performance management and accountability Work with PEDs in developing a guiding document to guide PEDs with the appointment of practitioners in 2024/25 on a 12-month contract to implement the Learning Programme in special care centres and the appointment of class assistants in 2023/24 on a 12-month contract to support teachers in schools that have enrolled learners from special care centres Train provincial grant managers and transversal itinerant outreach team members on programmes that will ensure effective implementation of the grant including the Learning Programme for learners with profound intellectual disabilities Monitor and support the implementation of the grant by PEDs Collaborate with other government departments and ensure the provision of integrated services to CSPID Responsibilities of provincial departments Develop and submit approved business, procurement and training plans to the DBE Manage the implementation of business plans in line with the 2023 Division of Revenue Act and the Public Finance Management Act to ensure that expenditure is on track and there is no withholding of transfers by transferring officer Ensure systems, capacity and controls are in place to ensure the successful implementation of the grant Facilitate the appointment of outreach team members and grant managers in permanent posts as per the grant conditions Work with the DBE in developing a document to guide PEDs on the appointment of practitioners in 2024 on a 12-month volunteer contract to implement the learning programme in special care centres Work with the DBE in developing a document to guide PEDs on the appointment of class assistants in 2024 on 12-month contracts to support teachers in schools that have enrolled learners with profound
 intellectual disability from special care centres Ensure grant activities are implemented as approved in the business plans.
Any deviation should first be communicated to the DBE in writing and approved by the transferring officer before implementation Monitor, support and quality assure the provision of outreach services to special care centres and school on a monthly and quarterly basis or as and when required Use the Department of Basic Education systems to manage special care centre data Ensure that children enrolled in special care centres are enrolled in schools Ensure compliance with reporting requirements by providing consolidated quality-assured and approved quarterly reports 30 days after the end of the quarter Facilitate collaboration with key government departments in the delivery of services to C/LSPID.
This will entail the establishment of inter-departmental structures that will ensure integrated service delivery of services to C/LSPID Meeting with provinces to review and discuss grant framework for the next financial year by 31 August 2023 DBE uses inputs from meeting with PEDs and drafts the grant framework by 29 September 2023 PEDs submit draft business plans to DBE for evaluation by 27 October 2023 DBE evaluates draft provincial business plans by 24 November 2023 Comments sent to PEDs to amend the plans by 14 December 2023 PEDs submit amended and signed-off plans to DBE by 16 February 2024 DBE approves provincial business plans by 15 March 2024 Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 147 Transferring department Grant schedule Strategic goal Grant purpose Maths, Science and Technology Grant Basic Education (Vote 16) Schedule 5, Part A To strengthen the implementation of the National Development Plan and the Action Plan to 2019 by increasing the number of learners taking mathematics, science and technology subjects, improving the success rates in the subjects and improving teachers’ capabilities To provide support and resources to schools, teachers and learners in line with the Curriculum Assessment Policy Statements (CAPS) for the improvement of mathematics, science and
 technology teaching and learning at selected public schools Outcome statements Outputs Improved learner participation and success in mathematics, science and technology subjects in the country School support o 485 schools supplied with subject specific computer hardware and related software in accordance with the minimum specifications prescribed by CAPS including coding and robotics pilot schools o 232 technical (including pilot schools for the vocationally oriented curriculum) and
 agricultural schools’ workshop tools, machinery, equipment and consumables for technology subjects repaired, maintained and/or replaced in accordance with the minimum specifications o 1 256 laboratories supplied with apparatus and consumables for mathematics, science and technology subjects in accordance with the minimum specifications including coding and robotics kits Learner support o 50 000 learners technology olympiads/fairs/expos and other events based on a structured annual calendar including support through learner camps and additional learning, teaching and support material such as study guides for participation in mathematics, registered science and Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Teacher support o 1 500 participants attending specific structured training and orientation for teachers and subject advisors in subject content and teaching methodologies on CAPS for electrical, civil and mechanical technology, technical mathematics, and technical sciences o 1 000 teachers and subject advisors attending targeted and structured training in teaching methodologies and subject content either for mathematics, physical, life, natural and agricultural sciences, technology, computer applications technology, information technology, agricultural management and technology subjects Priority 3: Education, skills and health Outcome indicators Output indicators Inputs Key activities Annual budget and resource allocation schedules Monitoring and reporting Risk management plan Cash flow projections Participating schools list (separate annexure) Grant structure and allocations The grant is utilised on an interventional basis and is not a general grant for all schools Schools’ needs and allocation of funds must be identified through criteria indicated in the
 framework in partnership with provinces and districts in the preceding financial period The grant will support a total of 1 256 schools across all provinces covering all mathematics, science and technology subjects from grades R-12 The grant will support the Department of Basic Education (DBE)-Cuba Mathematics, Science and Technology Subjects Support Programme in the Eastern Cape, Gauteng, Limpopo and KwaZulu-Natal provinces The allocations should be divided in accordance with the following guideline for Eastern Cape, Gauteng, Limpopo and KwaZulu-Natal: o 34 per cent for information communication technologies including coding and robotics resources o 15 per cent for the supply, repair/replacement and maintenance of workshop machinery, equipment and tools for technical (including pilot schools for vocationally oriented curriculum) and agricultural schools o 15 per cent for laboratory equipment/apparatus, manipulatives and consumables including coding and robotics o 15 per cent for teacher support including teacher support for coding and robotics and vocationally oriented curriculum pilots o 14 per cent for learner support including learners in teaching mathematics for understanding pilot schools o 1 per cent for grant administration, monitoring, support and evaluation o 6 per cent for the DBE-Cuba Mathematics, Science and Technology Subjects Support Programme, including remuneration 148 Maths, Science and Technology Grant The allocations should be divided in accordance with the following guideline for Free State, Northern Cape, Mpumalanga, North West and Western Cape: o 40 per cent for information communication technologies including coding and robotics resources o 15 per cent for the supply, repair/replacement and maintenance of workshop machinery, equipment and tools for technical (including pilot schools for vocationally oriented curriculum) and agricultural schools o 15 per cent for laboratory equipment/apparatus,
 manipulatives and consumables including coding and robotics o 15 per cent for teacher support including teacher support for coding and robotics and vocationally oriented curriculum pilots o 14 per cent for learner support including learners in teaching mathematics for understanding pilot schools o 1 per cent for grant administration, monitoring, support and evaluation Priorities All the grant outputs are prioritised in accordance with the allocation percentages unless the province has requested a deviation and this is approved by the transferring officer Outputs ICT resource items should be procured as per the minimum specifications defined by the DBE and in line with CAPS.
Subject specific ICT resources refer to hardware and software, which are compulsory and required by the curriculum.
The grant also supports the training of all end-users in the utilisation of all ICT resources provided to a school Workshop equipment and machinery items should be supplied, repaired, maintained and/or replaced where appropriate in order to meet the minimum specifications defined by the DBE and in line with CAPS Laboratories’ workshop equipment, apparatus and consumables should be procured as per the minimum specifications as defined by the DBE and in line with CAPS.
This should be prioritised in line with the budget allocated to this item.

These resources are provided to improve practical teaching and learning in all mathematics, science and technology subjects with special attention to mathematics and physical science Learner support is provided to all identified learners in line with provincial needs in support of curriculum delivery based on a structured annual calendar.
This includes competition participation expenses, learner coaching, printing, delivery and mediation of study materials.

This support includes study camps for identified learners as per the provincial programme including a focus on girl learners.

Teaching Mathematics for Understanding support material Learner Activity Book Teacher support is provided to all identified teachers in line with provincial needs in support of curriculum delivery.
Teacher training or development should be based on a structured programme, which must be submitted to the transferring department as and when required.

No ad-hoc training will be supported from the grant Grant administration, monitoring and evaluation All provincial grant managers are supported to manage, administer, monitor and evaluate the implementation of the grant in line with the business plan.
The support includes payment for expenses such as travelling, accommodation, stationery, flight fares, subsistence and other incidental costs Procurement Provinces must participate in DBE’s 3 year transversal contract to enable PEDs to secure 3 year contracts, but may request permission for exemption if they can demonstrate gains from such exemption.
In the absence of a DBE transversal tender, provinces must continue to procure on their own The grant funds and implementation (procurement, delivery and payment) must be managed at provincial level unless a transversal tender has been issued or the school has demonstrated capacity, systems and controls to efficiently manage the processes of the grant Before funds can be transferred to schools, there should be assurance that systems, controls and capacity to manage the funds, implementation and delivery processes of the grant are in place Provinces will be required to submit approved deviations before submitting amended business plans on or before last week of January every year Allocation criteria Participating schools should be identified according to the following criteria: o priority should be given to schools classified in quintiles 1-3 o provinces may include schools in quintiles 4 and 5, as per provincial needs.
The approval of the transferring officer (provided the average learner performance in all subjects including mathematics, science and technology is at a level below 60 per cent at Grade 12) o primary schools will be supported as feeder schools to secondary schools participating in the grant based on the provincial needs analysis in line with the outputs of the grant o at least 30 learners are enrolled for each grade in mathematics and science subjects at a general education and training, and further education and training (FET) band, and 15 learners are enrolled for technology subjects in further education and training band o agricultural schools, technical schools including pilot schools for vocationally oriented curriculum o pilot schools for coding and robotics curriculum Reasons not incorporated in equitable share The grant is a targeted systemic capacity improvement programme.
The number of schools requiring support is not proportionally distributed across the provinces.

The level of support required by schools differs across provinces Past performance Projected life MTEF allocations Payment schedule the Responsibilities transferring officer and receiving officer of 149 Maths, Science and Technology Grant 2021/22 Audited Financial Outcomes Of the R333 million allocated to provinces, R333 million (100 per cent) was transferred to provinces.
R347 million (104 per cent) was spent by the end of the financial year.
Overspending of R14 million was covered from the approved rollovers for 2019/20 financial year 2021/22 service delivery performance Information, communication and technology (ICT) o 1 075 schools (60: Eastern Cape, 116: Free State, 207: Gauteng, 8: KwaZulu-Natal, 42: Limpopo, 201: Mpumalanga, 135: Northern Cape, 100: North West and 206: Western Cape) Workshop equipment, machinery and tools o 234 schools (27: Eastern Cape, 37: Free State, 59: Gauteng, 12: KwaZulu-Natal, 0: Limpopo, 57: Mpumalanga, 10: Northern Cape, 0: North West and 32: Western Cape) Laboratories and workshop equipment, apparatus and consumables o 896 schools (72: Eastern Cape, 168: Free State, 149: Gauteng, 54: KwaZulu-Natal, 0: Limpopo, 165: Mpumalanga, 135: Northern Cape, 33: North West and120: Western Cape) Learner support o 122 635 learners (5 580: Eastern Cape, 43 200: Free State, 23 323: Gauteng, 5 957: KwaZulu-Natal, 1 761: Limpopo, 15 100: Mpumalanga, 6 420: Northern Cape, 659: North West and 20 635: Western Cape) Teacher support o 11 206 Teachers (2 457: Eastern Cape, 300: Free State, 0: Gauteng, 452: KwaZulu-Natal, 1 496: Limpopo, 2 722: Mpumalanga, 1 138: Northern Cape, 1 026: North West and 1 615: Western Cape) Grant continues until 2025/26, subject to review 2023/24: R433 million; 2024/25: R453 million and 2025/26: R473 million 5 May 2023; 11 August 2023; 10 November 2023 and 2 February 2024 Responsibilities of the national department
 Identify and analyse areas requiring support in mathematics, science and technology Evaluate, approve and submit provincial business plans to National Treasury Provide the administrative services for the grant (manage, coordinate, monitor and support programme implementation at all levels) Develop and distribute planning, implementation, monitoring and evaluation guidelines and/or templates including minimum specifications for school resources The transferring officer must
 develop centralised procurement processes that provinces can participate in Ensure compliance with reporting requirements in line with the provisions of the Division of Revenue Act Monitor implementation at provincial, district and school level on a quarterly basis or as and when required, in line with the grant framework Evaluate the performance of the conditional grant and submit an evaluation report to National Treasury as per the requirements of the Division of Revenue Act Responsibilities of provincial departments Identify and analyse areas requiring support in mathematics, science and technology Develop and submit approved business plans to DBE Submit lists of schools to DBE as per the timeframes set in the grant framework Develop and submit an approved procurement plan in line with the business plan targets by the end of the financial year Ensure compliance with reporting requirements by providing consolidated monthly expenditure reports 15 days after the end of the month, and quarterly reports 30 days after the end of the quarter including other monitoring or diagnostic reports and reviews as required from time to time Manage and implement the programme in line with the Division of Revenue Act and the Public Finance Management Act Where applicable, participate in transversal tenders issued by the DBE or other provinces in order to procure goods and services related to the outputs of the grant Monitor and provide support to districts/regions, circuits and schools on a monthly and quarterly basis or as and when required Provide human resource capacity at all relevant levels including the appointment or identification of a qualified and experienced person/s to administer, manage and co-ordinate the activities of the grant in accordance with the provisions of the framework and compliance certificates Evaluate the performance of the
 grant and submit evaluation reports to DBE within two months after the end of the financial year Implement projects according to the approved business plan.
Any deviation should be communicated in writing and approved by the transferring officer before implementation Submit school’s business plans to DBE by the end of June every year if funds are being transferred to schools Responsibilities of schools Submit school’s needs on mathematics, science and technology to the districts as required by the province Submit school’s business plans to provinces before funds can be transferred to schools Submit quarterly mathematics, science and technology activity reports on equipment, machinery, consumables, maintenance, learner and teaching support material and training support 150 Submit learner performance data for all grades in mathematics, science and technology subjects to the district Maths, Science and Technology Grant and grant manager Ensure that capacity, systems and controls are in place to implement the grant, to receive funds where a transfer to a school has been agreed upon Receive funds from provincial departments of education and manage the procurement, delivery and payment processes where necessary Participate in relevant structures that have been put in place to support implementation of the grant such as annual principals’ meetings Monitor and ensure the quality of work of the service providers and sign-off on the completeness of the service delivery processes The first draft of the consolidated provincial business plans and revised school lists to be submitted to DBE for appraisal by 27 October 2023 The DBE team will meet to evaluate the consolidated business plans by 10 November 2023 The comments on the business plans will be sent to provinces for amendments by 14 December 2023 Provinces will be required to submit the provincially approved amended business plans to DBE by 23 February 2024 DBE will approve the final business plans by 8 March 2024 DBE’s transferring officer approves business plans to be submitted to the
 National Treasury by 18 March 2024 Process for approval of 2024/25 business plans Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions 151 National School Nutrition Programme Grant Basic Education (Vote 16) Schedule 5, Part A To enhance learning capacity and improve access to education To provide nutritious meals to targeted schools Enhanced learning capacity and improved access to education 21 000 schools that prepare nutritious meals for learners Priority 3: Education, skills and health Outcome indicators Output indicators Inputs Key activities Risk management plan Spending must be in line with national and provincial business plans The budget allocation must be distributed in terms of the following weightings for both secondary and primary schools and such weightings may be amended to enable compliance with COVID-19 requirements: o school feeding: minimum of 97 per cent o kitchen facilities, equipment and utensils: minimum of 0.3 per cent and not exceeding R10 million o administration: maximum of 2.5 per cent o nutrition education (including deworming and hygiene practices): maximum of 0.2 per cent Minimum feeding requirements: o provide nutritious meals to learners in quintile 1 - 3 primary and secondary schools, as well as identified special schools on all school days o provide nutritious meals to targeted learners in identified quintile 4 and 5 schools in line with available resources o meal costs per learner will increase at a minimum of 5 per cent in all benefiting primary schools and 3 per cent for all secondary schools.
Far-flung/low enrolment farm and rural schools that are receiving funds directly should be allocated a higher meal cost to cover higher transport costs o pay honorarium of a minimum of R1 712 per person plus R17.12 UIF per person o Food handlers must be allocated in line with approved sliding scales submitted with provincial business plans o comply with approved food specifications and menu guidelines consisting of meals containing: starch, protein and fresh vegetable/fruit fresh vegetables/fruits must be served daily and vary between green, yellow and red o o a variety of protein-rich foods must be served in line with approved menu options o Grade 1 and 2 raw sugar beans must be packed separately from samp, not mixed in one packet o soya mince should not be served more than once a week and must meet approved specifications.
Soya may not be used as seasoning/thickening for other dishes o canned pilchards/mackerel/sardines must be served at least once a week.

High quality protein products can replace pilchards in areas where these are not socially acceptable o ultra-high temperature (UHT) treated full cream milk or pasteurised maas must be served once a week.
Milk must be approved in line with dairy standards set by Milk South Africa o seasoning should be provided for all meals except on days when milk is served Provinces must support and promote sustainable food production and nutrition education in schools Provinces must promote local economic empowerment, including procurement of fresh produce from smallholder farmers.
The farmers should be registered with the Department of Agriculture, Land Reform and Rural Development and adhere to good agricultural practices feeding days reduced to a minimum number of days determined on the basis of the gazetted school calendar feeding cost below the minimum requirements, provided the quality of meals is not compromised reduction in the number of learners due to learner verification Provincial business plans will be approved in line with the above minimum requirements and available resources.
The following variations may be approved by the transferring officer based on achievements and/or critical challenges in each province: o o o o number of learners that exceed the gazetted quintiles o serving of processed vegetables or fruit in remote areas o quintile 1-3 schools that do not feed all learners (Gauteng and Western Cape) need to approve letters from schools requesting a deviation from whole school feeding.
These letters must be provided to the provincial office and kept on record o deviation requests from approved business plan activities must be submitted to the transferring officer not later than 30 November 2023 Provinces must update and submit databases on kitchen facilities (specifying those with Certificates of Acceptability), equipment and utensils by 24 August 2023 The flow of the first instalment of the grant depends upon receipt by the Department of Basic Education (DBE) of: o submission of quarterly performance (narrative and indicators) and financial reports 152 National School Nutrition Programme Grant The flow of the November 2023, December 2023 and the January 2024 instalments of the grant depends upon receipt by the DBE of: o evidence (copies of orders, invoices, etc.)
of procured kitchen facilities, equipment and utensils including the names of benefiting schools o evidence of procurement of resources to district offices in line with approved business plans o submission of quarterly performance (narrative and indicators) and financial reports Non-compliance with any of the above conditions may result in the withholding and subsequent stopping of budget transfers Provinces reserve the right to withhold funds from schools in case of financial mismanagement, non- compliance to guidelines and excessive surplus funds.
If schools are closed due to a declared state of disaster, funds from the grant that would have been spent on providing meals in schools may instead be used to provide meals to learners through alternative means The distribution formula is poverty-based in accordance with the poverty distribution table used in the national norms and standards for school funding as gazetted by the Minister of Basic Education on 17 October 2008 Unallocated amounts will be distributed to provinces on the basis of identified programme priorities The National School Nutrition Programme (NSNP) is a government programme for poverty alleviation, specifically initiated to uphold the rights of children to basic food and education The conditional grant framework enables the DBE to play an oversight role in the implementation of all NSNP activities in schools 2021/22 audited financial outcomes Of the allocated R8.1 billion budget, 101 per cent was spent (preliminary) 2021/22 service delivery performance 10.1 million learners were provided with meals in 20 497 primary, secondary and special schools 60 589 volunteer food handlers prepared meals for learners and received a stipend A food safety video series was developed and released to provinces to support effective training of implementers ranging from schools, districts and provinces 1 361 primary and secondary schools received catering equipment and utensils from provinces It is envisaged that, given the high poverty and unemployment rates in the country, the need for such a grant will persist for at least another 10 years.
The programme ensures that learners from the poorest communities have decent opportunities to learn Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule 2023/24: R9.3 billion; 2024/25: R9.8 billion and 2025/26: R10.3 billion The payment schedule will be in line with respective provincial procurement models as follows: Responsibilities of the transferring officer and receiving officer o provinces that transfer funds directly to all schools (Eastern Cape, Free State, North West and Northern Cape) receive five instalments as follows 6 April 2023; 14 June 2023; 7 September 2023; 8 November 2023 and 7 December 2023 o provinces that procure from service providers on behalf of schools receive five instalments as follows: o 6 April 2023; 20 July 2023; 12 October 2023, 08 November 2023 and 23 January 2024 the 08 November 2023 budget transfer is for kitchen facilities, equipment and utensils as per equipment specifications provided by the DBE o payment schedules may be revised in line with implementation and spending trends Responsibilities of the national department Evaluate, approve, and submit provincial business plans to the National Treasury Manage, monitor and support programme implementation in provinces and districts Ensure compliance with reporting requirements and National School Nutrition Programme guidelines Transfer funds to provinces in line with the approved payment
 schedule Consolidate and submit quarterly performance reports to the National Treasury within 45 days after the end of each quarter Evaluate performance of the conditional grant and submit an evaluation report to the National Treasury four months after the end of the financial year Responsibilities of provincial departments Develop and submit approved business plans to the DBE.
The business plans should include databases reflecting distribution of volunteer food handlers and cooking fuel per school Monitor and provide support to districts/regions/area project officers and schools Manage and implement the programme in line with the 2023 Division of Revenue Act and the Public Finance Management Act Ensure that districts are resourced in line with provincial business plans to conduct effective monitoring and support to schools in line with Goal 27 of the Action Plan to 2019, Towards the Realisation of Schooling 2030 Consult districts on the development and implementation of their provincial business plans Implement monitoring and evaluation plans Provide human resource capacity at all relevant levels Evaluate the performance of the conditional grant annually and submit evaluation reports to the DBE two months after the end of the financial year Submit quarterly financial and performance reports including consolidated monitoring, reporting and response system reports to DBE after the end of each quarter Provinces that are transferring funds to schools are required to: 153 National School Nutrition Programme Grant o reconcile expenditure by schools against budget transfers on a quarterly basis.
Reports for June 2023 and December 2023 on actual expenditure by schools should be submitted six weeks after the end of the quarter Responsibilities of districts Monitor and support schools Submit monthly and quarterly reports (narrative and expenditure reports to the provincial department, as well as reports on expenditure by schools, where applicable).
This should include consolidated monitoring, reporting and response system reports, where applicable Coordinate all National School Nutrition Programme activities in the district Responsibilities of schools Implement the programme in line with the conditions of the National School Nutrition Programme framework Submit reports to districts as per the provincial reporting requirements, i.e.

performance and expenditure reports Safeguarding of programme resources, i.e.
cooking facilities, equipment and utensils First inter-provincial meeting by 30 May 2023 Consultation with district officials, provincial treasuries, provincial finance sections and the National Treasury on business plans in June 2023 Provinces submit first draft business plans to the DBE by 31 July 2023 DBE evaluates first draft business plans and sends comments to provinces by 31 August 2023 Provinces submit final approved business plans and requisite attachments to DBE by 12 December 2023 The transferring national officer to approve national and provincial business plans by 2 April 2024 Process for approval of 2024/25 business plans 154 School Infrastructure Backlogs Grant Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Basic Education (Vote 16) Schedule 6, Part A The eradication of inappropriate education structures and backlogs in basic services Eradication of all inappropriate school infrastructure Provision of water, sanitation and electricity to schools Improved access to enabling learning and teaching environments Build the capacity of provinces benefiting from an indirect grant allocation to carry out this function in the Outputs Priority of government that this grant primarily contributes to Details contained in the business plan future Number of inappropriate schools replaced and provided with related school furniture
 Number of schools provided with water Number of schools provided with sanitation Final Accounts for the accelerated school infrastructure delivery initiative and sanitation appropriate for education (SAFE) projects Section 42 transfer of assets developed under the accelerated school infrastructure delivery initiative and SAFE Update of infrastructure information on the national education infrastructure system/Education Facilities Management System
 Priority 3: Education, skills and health This grant uses an infrastructure programme management plan (IPMP) that includes the following: institutional framework o o procurement and contract management plan o scope management o time management plan o cost management plan o risk management plan o quality management plan o monitoring and reporting details o budgeting and programme accounting details o performance management plan o communication management plan Conditions This is an in-kind grant administered by the national Department of Basic Education (DBE) that may be transferred to a province through the Education Infrastructure Grant (EIG) if the province is able to demonstrate through a proven track record, that it has the capacity to implement the projects DBE must submit to National Treasury an infrastructure programme management plan by 11 February 2023 Programme governance will be conducted by the following committees established to ensure that various technical committee processes are initiated within the programme: o national steering committee o o project steering committee o o infrastructure bid specification and evaluation committee infrastructure bid adjudication committee The provincial planning and monitoring teams or equivalent in each province should meet monthly to ensure information flows between the stakeholders, unblock processes, monitor progress, and enhance cooperation DBE must load all infrastructure funded projects in the Infrastructure Reporting Model before the start of the financial year (01 April 2023) DBE must submit monthly project reports with cash flows to National Treasury 15 days after the end of each month, that show how actual payments and cash flows reconcile with the projected cash flow schedule and explain any deviations from the original projected cash flow DBE must update the infrastructure project details for each funded project in the infrastructure
 reporting model.
This must be approved and submitted to National Treasury within 22 days after the end of each quarter Assets will be transferred to custodians in the respective provinces at final completion.
The provincial education departments must report in their annual report how the schools have been considered in their future maintenance plans The DBE must agree in writing with the provinces on projects that they will administer on behalf of each province DBE and/or implementing agents must ensure skills transfer takes place as part of the implementation of projects Allocation criteria The grant allocation is based on the distribution of inappropriate structures and schools without access to water and sanitation across provinces Final allocations will be based on the finalised infrastructure programme management plan of the DBE as approved by the transferring officer Reasons not incorporated in equitable share This is a specific purpose grant to eradicate the basic safety norms backlogs in schools without water, sanitation and electricity, and to replace those schools constructed from inappropriate material, including Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 155 School Infrastructure Backlogs Grant mud schools, to contribute towards improved learning and teaching.
The grant will be administered by the DBE to achieve maximum impact in the shortest time possible 2021/22 audited financial performance Allocated and transferred R2.3 billion of which R2.3 billion (100 per cent) was spent by the end of the national financial year 2021/22 service delivery performance 21 new schools built, 112 schools provided with water, 1 019 schools provided with sanitation and nil schools provided with electricity (electricity sub-programme has been completed) The grant will continue to be reviewed to respond to the nature of the infrastructure projects 2023/24: R2.1 billion; 2024/25: R2.2 billion and 2025/26: R2.3 billion Payments will be made according to verified invoices from service providers or advance payments in line with approved memoranda of agreement, implementation plans and reviewed monthly cash flow projections from implementing agents Responsibilities of the national department Undertake planning of processes, activities, and accelerated school infrastructure delivery initiative programme policies required to realise the outputs and identify required resources Undertake the necessary procurement measures to secure the services of implementing agents, professional service providers, contractors and secondary procurement objectives to respond to the scope of work identified in the infrastructure programme management plan Monitor and evaluate performance of the programme support unit, implementing
 agents, conduct project site inspections at selected sites to verify progress and quality of the works to secure programme outputs and deliverables DBE must report infrastructure projects implemented with voted funds in the National Infrastructure Reporting Model (IRM) within 22 days after the end of the quarter Harness the opportunities offered through the programme to contribute towards skills development DBE must submit an annual assessment of progress against its skills transfer and capacity building plan to National Treasury two months after the end of the national financial year DBE will convene and chair meetings of the national steering committee which will: o provide strategic direction to the accelerated school infrastructure delivery initiative programme o provide general oversight on the programme o ensure that the management of the programme brings together those players responsible for different elements of project success and ensure a holistic approach in support of the programme o ensure that standards are in line with different prescripts e.g.
norms and standards for school infrastructure are adhered to o facilitate the establishment of sub-programme management, their membership, reporting modalities and their interaction with the steering committee o establish the modalities linking the targeted provincial education departments with DBE o supervise the programme and ensure appropriate coordination and cooperation between different agencies and departments involved o facilitate the linkages between national stakeholders such as the National Treasury (infrastructure delivery improvement plan), Construction Industry Development Board, and the national departments of Human Settlements, Water and Sanitation, Minerals and Energy, and Public Works and Infrastructure o ensure accelerated school infrastructure delivery initiative strategies and targets are in line with national goals and targets o monitor progress in terms of national goals and targets o assist the management of the programme in solving particular issues that may arise and that may require the intervention of the committee o report to the Minister of Basic Education, the Council for Education Ministers, the heads of education departments committee, and senior management DBE must ensure that a programme and project management system is in place for planning, management and monitoring of infrastructure delivery Develop a sector procurement strategy and procurement strategy for this grant in terms of the practice guide prescribed by the infrastructure delivery management toolkit DBE will develop a procurement strategy for this grant that will lead to the quickest possible achievement of the grant objectives which may require the clustering of projects across provincial boundaries Submit an approved infrastructure programme management plan including projects list to the National Treasury Ensure compliance with reporting requirements and adherence to projected cash flow schedules Consolidate and submit quarterly reports to National
 Treasury and the National Council of Provinces within 45 days after the end of each quarter Conduct site visits to selected projects to assess performance Create the necessary organisational structures and build capacity within the department to oversee and monitor the implementation of the grant DBE must ensure that the heads of education departments committee meets at least once a month and is provided with sufficiently detailed reports to assess project implementation and projected cash flow schedules reconciled at the end of the month preceding the monthly meetings Provide an operations and maintenance manual to the provincial education departments 156 School Infrastructure Backlogs Grant Responsibilities of provincial departments Provide the list of schools to be included in the accelerated school infrastructure delivery initiative programme Ensure that the list of schools identified includes all the schools that were not constructed of appropriate materials in their entirety Ensure that the list of schools identified includes all the schools that never had basic sanitation, water and electricity Ensure that, where schools are identified for rationalisation and mergers, DBE is made aware on time, in writing, and that all necessary supporting documents are provided Establish provincial planning and monitoring teams that will provide support to the DBE when implementing projects funded by this grant Convene the provincial planning and monitoring teams and report to the national steering committee Generate a maintenance plan from the operations and maintenance manual provided Submission to National Treasury by DBE of the infrastructure programme management plan for 2024/25 projects by 15 February 2024 Process for approval of 2024/25 business plans 157 COOPERATIVE GOVERNANCE GRANT Provincial Disaster Response Grant Transferring department Grant schedule
 Strategic goal Cooperative Governance (Vote 3) Schedule 7, Part A To enable timely response to address community needs regarding impending or disastrous events classified by the National Disaster Management Centre Grant purpose To provide for the immediate release of funds for disaster response if an occurrence cannot be adequately Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria addressed in line with section 2(1)(b) of the Disaster Management Act Immediate consequences of disasters are mitigated or alleviated Emergency repair of critical infrastructure Emergency provision of critical goods and services Priority 5: Spatial integration, human settlements and local government Applications for funding from this grant use the National Disaster Management Centre (NDMC) disaster grant guideline which includes the following: o o o o o o o o o o o o copy of the applicable contingency plan and emergency procedures in use by the provincial department (in terms of section 35(1)(d) of the Disaster Management Act) prevention and mitigation strategies as per the disaster management plan documentation linked to Sections 56 and 57 of the same Act details of insurance and insured infrastructure including factors outlined in Sections 56 and 57 of the same Act as well proof from the insurance company on the matter number of people, households, livestock and infrastructure affected and the extent of damages and losses sectors affected total funds required for disaster response and relief measures resources (both financial and in-kind) allocated by the province to respond and mitigate the effects of the disaster resources (both financially and in-kind) committed by other role players, including municipalities, national departments, state owned entities and non-government organisations the
 affected provincial sector department must indicate funds spent or contributed towards dealing with the disaster support received from non-government organisations and businesses or any other stakeholder cost-benefit analysis of the projects to be implemented An implementation plan with the following: o o o details of the projects to be repaired including Global Positioning System (GPS) coordinates costs of the projects consolidated projects cash flow over six-month period as an annexure to the implementation plan An application for funding contribution from the Provincial Disaster Response Grant may be based on the rapid assessment and preliminary versions of the supporting documentation required above may be accepted for the funding application Specifics on the rapid response capacity to implement the projects and account for allocated funding An occurrence should be classified as a disaster by the NDMC in terms of the Disaster Management Act and documentation linked to conditions within sections 56 and 57 of the above mentioned Act submitted to the NDMC This grant may only be used to fund expenditure in the event that the responsible line function organ of state is unable to deal with the effects of the disaster utilising their own legislation, guidelines and available resources The grant may not be utilised for insured infrastructure.
In case of inadequate insurance, reasons for inadequate insurance to be provided as well as proof from the insurer on the amount paid/ to be paid Funds from this grant must be utilised within six calendar months following the date of the transfer of the funds to the province A provincial department may request the NDMC through their Provincial Disaster Management Centre (PDMC) that an allocation be utilised more than six calendar months after the date of transfer in terms of section 25(3)(d) of the Division of Revenue Act.
The request to be made within the first four months in which the funds are transferred.

NDMC to notify National Treasury of any approved extensions The emergency procurement system as provided for in the Public Finance Management Act should be invoked by the provincial department to ensure immediate response and relief measures to support affected communities Funds may only be used in line with the approved implementation plan.
Any amendments to the implementation plan must be submitted to the NDMC for approval at least 3 months prior to end of 6 months implementation period.
Copies of the approved amendments to be shared with National Treasury The provincial department must provide details of their capacity in implementing emergency projects and accounting for allocated funding The grant is allocated for classified disasters based on reports from assessments conducted by the NDMC and the relevant PDMC and affected sectors for immediate disaster response and relief needs.
This should include implementation of Sections 56 and 57 of the Disaster Management Act.
Additionally, it must be Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 158 Provincial Disaster Response Grant established that there are immediate disaster response and relief needs that cannot be met by the province through the contingency arrangements already in place The Accounting Officer for the relevant organ of state must indicate in their application that the total funds required from the grant for disaster response exceed the available resources and/or resources already allocated for disaster response Funding may be released in tranches, with the first tranche based on the rapid assessment, verification of the immediate disaster response and relief needs and the submitted cash flow projection.
The next tranches will be released once proof is submitted that the first tranche has been fully spent or committed and all grant conditions have been met This grant caters for response and relief measures from unforeseen and unavoidable disasters where the provincial departments are unable to cope with the effects of the disaster only utilising own resources 2021/22 audited financial outcome R48 million was transferred to the Western Cape provincial departments of Agriculture for drought response to Western Cape Department of Agriculture for drought response measures and 100 per cent expenditure has been reported 2021/22 service delivery performance 1 450 affected farming communities were supported through drought interventions in the form of fodder provision This grant is expected to continue over the medium-term subject to review 2023/24: R146 million; 2024/25: R152 million and 2025/26: R159 million Transfers are made subject to approval by National Treasury Responsibilities of the National Disaster Management Centre Verify the applications for funding as per the requirements of the Disaster Management Act and submit funding request to National Treasury for consideration within 14 days following the receipt of the assessment report and written funding request from the sector departments through the PDMCs and when all grant conditions have been met Confirm support to be provided by relevant national sector departments to prevent duplication of support and resources Notify the relevant PDMC and provincial treasury of a transfer at least three days before transfer.
Funds must be transferred no later than five days after notification Provide National Treasury with written notification of the transfer within 14 days of a transfer of the grant Submit financial report to National Treasury within 20 days of the end of each month Provide a performance report, within 45 days of the end of the quarter in which the funds were spent, to the National Treasury using the disaster allocation monitoring template agreed to with the National Treasury Together with the PDMC, monitor the implementation of disaster funded projects Responsibilities of Provincial Disaster Management Centres Together with the affected provincial departments, conduct rapid assessments of disaster impacts to verify the applications for initial funding within 14 days following the occurrence of a reported incident that meets the conditions Conduct assessments of disaster impacts together with the NDMC and the affected provincial departments, to verify applications for funding, within 35 days of the incident while adhering to the requirements of the Disaster Management Act Confirm support to be provided by relevant provincial sector departments to prevent duplication of support and resources Submit requests for disaster funding, monitor projects and provide reports to the NDMC, and provincial treasury Provide financial reports to NDMC within 15 days of the end of each month Provide a performance report which includes evidence on progress implementation of the projects to the NDMC within 35 days of the end of the quarter in which funds are spent using the relevant disaster grant allocation-reporting template The PDMC should activate a project task team comprising of affected municipalities and sector departments Monitor the implementation of funded disaster project by sectors Establish provincial project steering committees to coordinate the monitoring and reporting of implementation of
 projects Responsibilities of provincial sector departments Conduct damage assessment and costing of emergency repair work Together with required supporting documentation, submit disaster assessment reports and funding requests signed-off by the Accounting Officer to the PDMC within 14 days following the classification of a disaster Consult with the relevant national sector departments and provincial treasury for support on existing resources to address the disasters Consult with the relevant national sector department on a funding request before submission to the PDMC, request to be accompanied by proof of engagement and response from relevant national department Notify provincial treasury of all requests for funding submitted Invoke emergency procurement processes to implement the immediate disaster response and relief projects Activate a provincial departmental task team to monitor, report and evaluate the impact of projects Monitor implementation of projects and report on their impact 159 Provincial Disaster Response Grant Provide a financial report to the PDMC and relevant national sector department within 10 days of the end of each month, signed off by the Accounting Officer.
Include evidence (invoices, payment certificates and pictures of the projects) as annexures Provide a performance report which includes evidence, and progress on implementation of the projects, to the PDMC and relevant national sector department within 20 days of the end of the quarter in which funds are spent, signed off by the Accounting Officer.
Sector departments to submit the relevant contingency plans Responsibilities of national sector departments Provide support and guidance in resource mobilisation to provincial sectors before a funding request is lodged to the NDMC through the PDMC Provide support and guidance to provincial sector departments and NDMC regarding line function related matters on assessments and costing verifications Sector departments to submit the relevant contingency plans Provide support and guidance to provincial sector departments and the NDMC in the preparation of funding requests Provide support and guidance to provincial sector departments in the preparation of reports, performance and realisation of the impacts of the projects as well as ensure compliance to the grant framework and relevant guidelines Monitor, report and evaluate implementation of projects by provincial sectors Activate an internal departmental task team to monitor, report and evaluate the impact of projects Not applicable Process for approval of 2024/25 business plans 160 HEALTH GRANTS District Health Programmes Grant Transferring department Grant schedule Strategic goal Health (Vote 18) Schedule 5, Part A The implementation of the National Strategic Plan on the HIV, sexually transmitted infections (STIs) and tuberculosis (TB) and implementation of the National Strategic Plan on Malaria Elimination To improve access to community based primary care services through ward based primary health care outreach Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations teams There are two components to this grant that allow for the achievement of the stated strategic goal: o Comprehensive HIV/AIDS component (with a separate
 framework) o District Health component (with a separate framework) To enable the health sector to develop and implement an effective response to HIV/AIDS To enable the health sector to develop and implement an effective response to TB To ensure provision of quality community outreach services through ward based primary health care outreach teams To improve efficiencies of the ward based primary health care outreach teams programme by harmonising and standardising services and strengthening performance monitoring To enable the health sector to develop and implement an effective response to support the effective implementation of the National Strategic Plan on Malaria Elimination To enable the health sector to prevent cervical cancer by making available human papillomavirus (HPV) vaccinations for grade five school girls in all public and special schools and progressive integration of HPV into the integrated school health programme As specified in the two component frameworks As specified in the two component frameworks Priority 3: Education, skills and health As specified in the two component frameworks As specified in the two component frameworks As specified in the two component frameworks As specified in the two component frameworks 2021/22 audited financial performance As specified in the two component frameworks 2021/22
 service delivery performance As specified in the two component frameworks As specified in the two component frameworks 2023/24: R26.9 billion; 2024/25: R28.1 billion and 2025/26: R29.3 billion, of which the two components are allocated: o Comprehensive HIV/AIDS component: 2023/24: R23.9 billion; 2024/25: R25 billion and 2025/26: R26.
1 billion o District Health component: 2023/24: R2.9 billion; 2024/25: R3.1 billion; and 2025/26: R3.2 billion Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans Monthly instalments based on the approved payment schedule Responsibilities of the national department As specified in the two component frameworks Responsibilities of provincial departments As specified in the two component frameworks As specified in the two component frameworks Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions 161 District Health Programmes Grant: Comprehensive HIV/AIDS Component Health (Vote 18) Schedule 5, Part A The implementation of the National Strategic Plan on the HIV, sexually transmitted infections and tuberculosis (TB) To enable the health sector to develop and implement an effective response to HIV/AIDS Prevention and protection of health workers from exposure to hazards in the workplace To enable the health sector to develop and implement an effective response to TB Improved coordination and collaboration in the implementation of HIV/AIDS programme between national and provincial government Improved quality of HIV/AIDS response through provision of access to prevention,
 treatment, care and support services Improved coordination and collaboration in the TB response between national and provincial governments Improved quality of TB (including drug resistant-TB) services including access to prevention, screening, testing, treatment and adherence monitoring and support Number of new patients started on antiretroviral therapy (ART) Total number of patients on antiretroviral therapy remaining in care Number of male condoms
 distributed Number of female condoms distributed Number of infants tested through the polymerase chain reaction test at 10 weeks Number of clients tested for HIV (including antenatal) Number of medical male circumcisions performed Number of clients started on Pre-Exposure Prophylaxis Number of HIV positive clients initiated on TB preventative therapy Number of patients tested for TB using Xpert Number of eligible HIV positive patients tested for TB using urine lipoarabinomannan assay Drug sensitive TB treatment start rate (under five years and five years and older) Number of rifampicin resistant/ multi drug resistant TB patients started on treatment Priority 3: Education, skills and health Outcome indicators Output indicators Inputs Key activities The following priority areas must be supported through the grant: o antiretroviral therapy related interventions o care and support o condom distribution and high transmission area interventions o prevention of mother to child transmission o post exposure prophylaxis & pre exposure prophylaxis o programme management strengthening o regional training centres o HIV counselling and testing o medical male circumcision Allocation criteria Allocations are based on antenatal HIV prevalence, estimated share of AIDS cases and population numbers Reasons not incorporated
 in equitable share Past performance post-demarcation Allocation is based on TB workload cases and population numbers post-demarcation HIV, AIDS and TB are key national priorities and require a coordinated response for the country as a whole and this is effectively achieved through a conditional grant TB, multi-drug resistant, and extremely drug resistant strains, are key national priorities and require a countrywide coordinated response which is best achieved through a
 conditional grant 2021/2022 audited financial performance HIV/AIDS component: allocated and transferred R22.5 billion to provinces of which R21.9 billion (96.4 per cent) was spent by provinces by the end of the national financial year TB component: allocated and transferred R506 million to provinces (100 per cent), of which R513 million (101.4 per cent) was spent by provinces 2021/2022 service delivery performance HIV/AIDS Component: 457 073 new patients that started on ART 207 831 patients on ART remaining in care 544 244 376 male condoms distributed 17 488 935 female condoms distributed 190 066 exposed infants HIV positive at 10 weeks polymerase chain reaction test 162 District Health Programmes Grant: Comprehensive HIV/AIDS Component 17 598 704 clients tested for HIV (including antenatal) 440 419 medical male circumcision performed 301 367 patients on antiretroviral therapy initiated on isoniazid preventative therapy TB Component: 90.2 per cent TB symptoms client screened in facility (under 5 years and 5 years and older) 2 123 202 of patients tested for TB using Xpert 32 026 eligible HIV positive patients tested for TB using urine lipoarabinomannan assay 93.2 per cent of all TB clients (5 years and older) started on treatment 80.3 per cent of confirmed TB rifampicin resistant started on treatment 979 eligible
 clients initiated on delamanid containing regimen Ongoing in line with National Strategic Plan on the HIV, Sexually Transmitted Infections and TB 2023 – 2027 2023/24: R23.9 billion; 2024/25: R25 billion and 2025/26: R26.1 billion Monthly instalments based on the approved payment schedule Responsibilities of the national department Visit provinces twice a year to monitor implementation and provide support Report to the National Treasury on an additional set
 of indicators on progress against the 95-95-95 targets Meet with National Treasury to review grant performance twice annually Responsibilities of provincial departments Quarterly performance output reports to be submitted within 30 days following the reporting period using standard formats as determined by the national department.
Submit an electronic version to be followed by a hard copy signed by the provincial grant receiving manager Clearly indicate measurable objectives and performance targets as agreed with the national department in the provincial departmental business plans for 2023/24 and over the medium term expenditure framework period Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans Submission of draft business plans to the national Department of Health by 31 October 2023 Submission of final business plans to the national Department of Health by 28 February 2024 Submission of final business plans to the National Treasury by 2 April 2024 163 District Health Programmes Grant: District Health Component Transferring department Grant schedule Strategic goal Health (Vote 18) Schedule 5, Part A Prevention and treatment of malaria, including the implementation of National Strategic Plan on Malaria Elimination To reduce the incidence of cancer of the cervix through the provision of the human papillomavirus (HPV) vaccination to grade five school girls in all public schools and special schools To improve access to community based primary care services through ward based primary health care outreach teams Grant purpose To enable the health sector to develop and implement an effective malaria response in support of the Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions implementation of the National Strategic Plan on Malaria Elimination To enable the health sector to prevent cervical cancer by making available HPV vaccinations for grade five school girls in all public and special schools and progressive integration of HPV into integrated school health programme.
To ensure provision of quality community outreach services through ward based primary health care outreach teams by ensuring community health workers receive remuneration, tools of trade and training in line with scope of work Improved implementation of malaria strategies in support of malaria elimination efforts Increased access to HPV vaccines by grade five school girls in all public and special schools Improved access to quality primary care services at community level with a focus on preventive and promotive care, screening for health conditions and referral for relevant services Number of malaria-endemic municipalities with 95 per cent or more indoor residual spray coverage Percentage of confirmed malaria cases notified within 24 hours of diagnosis in endemic areas Percentage of confirmed malaria cases investigated and classified within 72 hours in endemic areas Percentage of identified health facilities with recommended malaria treatment in stock Percentage of identified health workers trained on malaria elimination Percentage of population reached through malaria information education and communication on malaria prevention and early health-seeking behaviour interventions Percentage of vacant funded malaria positions filled as outlined in the business plan Number of malaria camps refurbished and/or constructed 80 per cent of grade five school girls aged nine years and above vaccinated for HPV first dose in the school reached 80 per cent of schools with grade five girls reached by the HPV vaccination team with first dose 80 per cent of grade five school girls aged nine years and above vaccinated for HPV second dose in the schools reached.
80 per cent of schools with grade five girls reached by the HPV vaccination team with second dose Number of community health workers receiving a stipend Number of community health workers trained Number of HIV clients lost to follow-up traced Number of TB clients lost to follow traced Priority 3: Education, skills and health Outcome indicators Output indicators Inputs Key activities The business plan, signed by the receiving officer and in the prescribed format, must be submitted to the transferring officer by 28 February 2023.
The approved business plan must be submitted by national Department of Health (DoH) to National Treasury by 31 March 2023 The following priority areas must be supported through the grant: Malaria surveillance, prevention, treatment o mobile active testing units o testing and treating through active testing in the community o health promotion activities which address indoor residual spray importance, preventative measures taken during travel to endemic areas and treatment seeking behaviour Malaria vector control o indoor residual spraying o integrated vector management activities o Improvement of indoor residual spray camp infrastructure Programme management strengthening for malaria elimination through hiring of staff for approved malaria posts Provinces must maintain funding for malaria from their equitable share at 2016/17 levels, as adjusted for inflation A maximum of three percent of each allocation of this grant may be utilised to strengthen Malaria, HPV and community outreach services (COS) programmes (administration related cost) 164 District Health Programmes Grant: District Health Component Social mobilisation to promote the uptake of the HPV vaccination to prevent cervical cancer should be done as part of the integrated school health programme The grant must be used for the implementation of the ward based primary health care outreach teams policy framework and strategy All contracted non-governmental organisations receiving funding from this grant for community outreach services must have a service level agreement with the relevant provincial department of health including performance indicators.
This is applicable to Western Cape only as per the standing arrangement The province that contracts non-governmental organisations for community outreach services programme should make transfer payments as per the stipulations of section 8.4 of the Treasury Regulations and section 38(1)(j) of the Public Finance Management Act For community outreach services, the grant can only fund the maximum of the community health worker stipend and any adjustment in line with the cost-of-living adjustment as approved and gazetted by Department of Employment and Labour The following is the allocation for all the programmes funded from this grant: HPV Malaria Community Outreach Services o Eastern Cape R38 million R182 million o Free State R13 million R134 million o Gauteng R31 million R504 million o KwaZulu-Natal R51 million R16 million R572 million o Limpopo R31 million R65 million R368 million o Mpumalanga R20 million R27 million R284 million o Northern Cape R5 million R99 million o North West R15 million R258 million o Western Cape R22 million R196 million The above allocations must be linked to an objective segment on BAS Approval to shift funds between programmes is vested with the transferring officer and should be communicated with National Treasury Allocations are based on malaria incidence and provincial equitable share allocations in endemic provinces, the number of grade five girls and schools with grade five from the education management information
 system in each province, the population numbers post-demarcation, and assessment of the need in different provinces and the availability of funds Malaria is a key national priority, and a seasonal disease, and requires a coordinated response during defined periods for all endemic provinces which is most effectively achieved through a conditional grant and not all provinces are affected Cervical cancer is a high national priority and requires uniform implementation to achieve the minimum coverage of 80 per cent and have the desired impact of significantly reducing incidences of cervical cancer The approval of the policy in 2018 formalised the community health workers programme as a component of primary health care and a national priority.
The implementation of the policy requires focused approach to implementation and monitoring to achieve the desired outputs, outcomes on defined health indicators 2021/22 audited financial outcomes Community Outreach Services Programme: allocated and transferred R2.4 billion to provinces, of which R2.4 billion (98.4 per cent) was spent by the end of the national financial year HPV Programme: allocated and transferred R220 million to provinces, of which R220 million (100.1 per cent) was spent by the end of the national financial year Malaria Programme: allocated and transferred R104 million to provinces, of which R101 million (97.9 per cent) was spent by the end of the national financial year COVID-19 Programme: allocated and transferred R1.5 billion to provinces, of which R1.2 billion (81.4 per cent) was spent by the end of the national financial year 2021/22 service delivery performance Community Outreach Services Programme: o 49 020 community health workers receiving stipend o 20 877 community health workers trained o 2 530 outreach team leaders trained o 337 244 HIV defaulters traced o 34 795 TB defaulters traced HPV Programme: o 98.6 per cent schools with grade five girls reached by the HPV vaccination team with first dose o 82.5 per cent grade 5 schoolgirl learners vaccinated for HPV with first dose (however, Gauteng reached 78.3 per cent Northern Cape reached 79 per cent and Western Cape reached 74 per cent girls) o 82.3 per cent grade five
 schoolgirls aged nine and above vaccinated for HPV second dose (however, Northern Cape reached 65 per cent and Western Cape reached 72 per cent girls) o 94 per cent grade five schoolgirls aged nine and above vaccinated for HPV second dose Malaria Programme: o 16 (76 per cent) malaria endemic municipalities with > 95 per cent indoor residual spray coverage Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of
 the transferring officer and receiving officer 165 District Health Programmes Grant: District Health Component o 44 per cent confirmed cases notified with 24 hours of diagnosis in the endemic districts, 68 per cent of confirmed cases investigated and classified within 72 hours in the endemic districts o 100 per cent of confirmed cases receiving recommended treatment (severe cases), 74 per cent confirmed cases receiving recommended treatment (uncomplicated cases) o 63 per cent of identified health workers trained on malaria elimination o 31 per cent of social mobilisation information education and communication campaigns conducted o 89 per cent of vacant funded malaria positions filled Five malaria camps refurbished and/or constructed Grant will continue until 2025/26, subject to review 2023/24: R2.9 billion; 2024/25: R3.1 billion and 2025/26: R3.2 billion Monthly instalments based on the approved payment schedule Responsibilities of the national department Visit provinces twice a year to monitor implementation and provide support Report to the National Treasury on an additional set of indicators agreed upon between the two departments Meet with National Treasury to review grant performance on a quarterly basis Manage the contracts for HPV vaccines and the supporting information systems Monitor and support provincial planning and implementation and reporting Strengthen the capacity of provinces to deliver the HPV vaccination programme Submission of quarterly report to the National Treasury as prescribed by the Division of Revenue Act and monthly expenditure with variance explanations in terms of the Public Finance Management Act Responsibilities of provincial departments Quarterly financial and performance output reports to be submitted within 30 days following the reporting period using standard formats as determined by the national department,
 indicate measurable objectives and performance targets as agreed with DoH.
Reports must include budgets and expenditure under both provincial equitable share and the conditional grant Provincial health departments must provide DoH with full and unrestricted access to all records and data related to the programme Assign a dedicated official the responsibility of managing the grant and related components Where possible, utilise existing human resource and transport capacity at all relevant levels and augment capacity where needed on a contractual basis Provide a list of contracted non-governmental organisations that will provide services Include the indicators in the provincial annual performance plans and ensure compliance with the Division of Revenue Act Ensure that all national indicator data set related to community health workers are entered into the district health information system and that there is accordance between the metrics in the district health information system and the Division of Revenue Act reporting for community outreach services Process for approval of 2024/25 business plans Submission of a draft business plan to national Department of Health by 31 October 2024 Submission of final business plans to the national Department of Health by 28 February 2025 Submission of final business plans to National Treasury by 31 March 2025 166 Health Facility Revitalisation Grant Transferring department Grant schedule Strategic goal Health (Vote 18) Schedule 5, Part A To enable provinces to plan, manage, and transform health infrastructure in line with national and provincial policy objectives Grant purpose Outcome statements To help to accelerate maintenance, renovations, upgrades, additions, and construction of infrastructure in health To help on replacement and commissioning of health technology in existing and revitalised health facility To enhance capacity to deliver health infrastructure To accelerate the fulfilment of
 the requirements of occupational health and safety Improved service delivery by provincial departments as a result of an enhanced and better quality of health services Improved quality and quantity of well-maintained health infrastructure (backlog and preventative maintenance) Improved rates of employment and skills development in the delivery of infrastructure Value for money and cost-effective design of facilities in line with the framework for infrastructure procurement Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance and delivery management Number of primary health care facilities constructed or revitalised Number of hospitals constructed or revitalised Number of facilities maintained or refurbished Priority 3: Education, skills and health o o The business plan for this grant consists of the following: the user-asset management plan for at least 10 years infrastructure programme management plan over the 2022 medium term expenditure framework (MTEF) including a list of projects o annual implementation plan Projects should be initiated in terms of the control framework of the framework for infrastructure procurement and delivery management stage 0 which requires an initiation report.
Pre-feasibility and feasibility reports are required for all projects With the exception of funding for costs incurred on stages zero, one and two of framework for infrastructure procurement and delivery management, projects (business case, project brief and design) must be approved by the national transferring officer before funds can be released for such projects The management and procurement of all projects funded through this grant must follow the prescripts of the infrastructure delivery management system and framework for infrastructure procurement and delivery management Provinces may utilise a portion of grant funding for the appointment of public servants on a permanent basis to their infrastructure units in line with human resource capacitation circular published by National Treasury In instances where the capacity of the provincial departments of public works is deemed insufficient, the provincial department of health will be entitled to engage alternative implementing agents, provided that supply chain management processes as prescribed in the Treasury Regulations for appointment of service providers are followed Provincial departments of health must enter into a service delivery agreement with their implementing agents Appropriately qualified built environment representatives from the provincial departments’ infrastructure units must assist in the procurement of professional service providers and contractors by its implementing agent, through representation as a member on the specification, evaluation and adjudication committees of the implementing agent New facilities will only be funded from the grant if proof of operational budget that includes the approved organisational structure (stuff structure) is submitted prior to the approval of the clinical brief.
Endorsement of the operational budget by the provincial treasury will have to be acquired as part of the approval process The funding from this conditional grant may only be utilised for planned and unplanned maintenance of infrastructure, renovations, upgrading and additions of infrastructure, new and replacement of infrastructure, health technology provision and quality assurance interventions linked to infrastructure projects.
The conditional grant should not be used for day-to-day maintenance Allocations for 2023/24 are project and performance based Funding infrastructure through a conditional grant enables the national department to ensure the delivery, rehabilitation, maintenance and upgrading of health infrastructure in a coordinated and efficient manner and ensure consistency with national norms, standards and guidelines for health facilities 2021/22 audited financial outcomes Of the R6.4 billion made available R6.4 billion was transferred to provinces (100 per cent), of which R6.1 billion (89 per cent) was spent by provinces 2021/22 service delivery performance 62 facilities constructed or revitalised 21 hospitals constructed or revitalised 121 public health facilities (clinics, hospitals, nursing colleges, EMS base) maintained, repaired and/ or refurbished Projected life Health is a key government priority and given the need to continually maintain health infrastructure to ensure that norms and standards are maintained, the grant is expected to remain in place until at least the end of the MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 167 Health Facility Revitalisation Grant 2023 MTEF 2023/24: R7.1 billion; 2024/25: R7.4 billion and 2025/26: R7.7 billion Transfers are made on a quarterly basis in accordance with a payment schedule approved by National Treasury Responsibilities of the
 national department Coordinate and facilitate site visits Attend quarterly provincial infrastructure progress review meetings with National Treasury Provide guidance to provinces on planning, prioritisation and evaluating of user-asset management plan, infrastructure programme management plan, annual implementation plan, project proposals and concept reports that provinces develop and submit Capital transfers to provinces (planned, actual and revised) related to this
 conditional grant must be reported in the National Infrastructure Reporting Model (IRM) Review if provinces comply with the framework for infrastructure procurement and delivery management Issue guidelines on the capacitation process of infrastructure units, as well as the conditions attached to the utilisation of funds National Department of Health (DoH) and National Treasury must jointly evaluate progress with capacitation of provincial infrastructure units and provide feedback to all provinces DoH must submit quarterly infrastructure reports to National Treasury, according to the template agreed between National Treasury and DoH, within 45 days after the end of each quarter Responsibilities of provincial departments Provincial departments must hold progress review meetings with the relevant implementing agents Annual implementation plans signed-off by the Head of Department, sent to the DoH for approval by 3 March 2023 The 2023 MTEF project list as captured in the annual implementation plan for both current and capital budgets should cover: o planned and unplanned maintenance of infrastructure, except day-to-day maintenance o renovations, upgrading and additions of infrastructure o new and replacement of infrastructure o health technology provision o quality assurance interventions linked to infrastructure projects Provinces must submit to DoH quarterly reports for all projects funded in the 2023/24 financial year in this grant to the infrastructure reporting model through the project management information system Provinces must report infrastructure projects and related infrastructure support funded through this conditional grant in the provincial IRM monthly and quarterly Provincial departments of health must align infrastructure plans (user-asset management plan and infrastructure programme management plan) with their respective strategic plans and annual
 performance plans Provinces will include or transfer to Department of Public Works the list of completed projects to be part of their asset register Provinces should undertake life cycle maintenance as well as the full operation, staffing and management of the projects in facilities completed under this grant Process for approval of 2024/25 business plans The process for approval for the 2024 MTEF will be in line with the performance-based incentive approach guidelines published by National Treasury and DoH Submission of the user-asset management plan for 2024/25 by DoH to National Treasury and DoH by 30 June 2023 Submission of the infrastructure programme management plan for 2024/25 by DoH to National Treasury and DoH by 31 August 2023 Submission of the final 2024/25 project list aligned with the MTEF Allocations and annual implementation plan by 1 March 2024 168 Transferring department Grant schedule Strategic goal Human Resources and Training Grant Health (Vote 18) Schedule 5, Part A To contribute to the implementation of the national human resource plan for health through the clinical training and supervision of health science trainees in designated public health facilities in South Africa Effective implementation of the human resources for health strategy, and health workforce capacity development for sustainable service delivery Grant purpose To appoint statutory positions in the health sector for systematic realisation of the human resources for health strategy and the phase-in of National Health Insurance Support provinces to fund service costs associated with clinical training and supervision of health science trainees on the public service platform Outcome statements Progressive realisation of the national human resource plan for health Clinical training and supervision capacity established in designated
 developmental provinces (Northern Cape, North West, Limpopo, Mpumalanga and Eastern Cape) Outputs Enhanced access to healthcare services, by addressing critical skills shortages in underserved communities Number and percentage of statutory posts funded from this grant (per category and discipline) and other Priority of government that this grant primarily contributes to Details contained in the business plan Conditions funding sources Number and percentage of registrars’ posts funded from this grant (per discipline) and other funding sources Number and percentage of specialists’ posts funded from this grant (per discipline) and other funding sources Priority 3: Education, skills and health Non-financial business plan – number of specialists, registrars, medical officers, clinical supervisors/tutors per category in nursing, emergency medical services, allied health, pharmacy and grant administration staff funded from the grant Financial business plan – allocation by economic classification to each category of clinical trainer/supervisor Submission of an approved business plan in the prescribed format signed by the provincial Head of Department to the national Department of Health by 24 February 2023 and to the National Treasury by 31 March 2023 Cost of administration of the grant must not exceed 1 per cent of the total grant allocation This grant has two components Statutory Human Resources Component The statutory human resources component must only be utilised for funding of statutory posts Training Component The training component must prioritise all registrar posts and the balance of the allocation may be utilised for specialist (supervisors) and other approved categories Additional funds have been allocated for the developmental portion and the breakdown per province is as follows: o Eastern Cape R8 million o Limpopo R5 million o
 Mpumalanga R4 million o Northern Cape R3 million o North West R4 million The developmental allocation will be withheld and transferred to other developmental provinces if a province fails to spend these funds.
Developmental allocations are only applicable to the training and development component Allocation criteria Training component is based on historical allocations and spending patterns Statutory Human Resources component allocations are based on the following criteria: o provinces with greatest needs have been prioritised o number of statutory posts o future projections of professional production versus need Reasons not incorporated in equitable share Provinces give effect to the national human resource strategy through the clinical training and supervision of health science trainees on the public health service platform Past performance Projected life National coordination is needed for health science training To ensure that the additional human resources funded through this component address unmet health needs as opposed to perpetuating historical allocation patterns Allocation of medical interns and community service doctors is a national function 2021/22 audited financial outcomes Statutory Human Resources Component: allocated and transferred R1.5 billion to provinces, of which R1.5 billion (99.6 per cent) was spent by the end of the financial year Training Component: allocated and transferred R2.7 billion to provinces, of which R2.7 billion (98.3 per cent) was spent by the end of the national financial year 2021/22 service delivery performance 4 825 Statutory posts funded from this grant and other funding sources 1 476 Registrars posts funded from this grant and other funding sources 428 specialist posts funded from this grant and other funding sources The grant is subject to review at the end of 2025/26.
Its projected life will be guided by the need for health science trainees to be trained and supervised on the public health service platform 169 MTEF allocations Human Resources and Training Grant Total allocation is 2023/24: R5.5 billion; 2024/25: R5.4 billion and 2025/26: R5.6 billion of which o Training Component – 2023/24: R2.8 billion; 2024/25: R2.9 billion and 2025/26: R3 billion o Statutory Human Resources Component – 2023/24: R2.7 billion; 2024/25: R2.5 billion and 2025/26: R2.6 billion Payment schedule Responsibilities of the transferring officer and receiving officer Monthly instalments as per approved payment schedule Responsibilities of the national department Convene at least one annual meeting of national or provincial and facility programme managers Monitor the number of health science trainers/clinical supervisors that are responsible for health science training on the public health service delivery platform Conduct a minimum of one site visits to provinces and site visits to selected facilities on a rotational basis Submission of quarterly financial and non-financial performance reports to the National Treasury Meet with National Treasury to review the performance of the grant Responsibilities of provincial departments Provinces are encouraged to maintain a separate budget for each benefiting facility/cluster Monitor the implementation of the grant and report quarterly to national DoH Provincial
 health departments must provide DoH with full and unrestricted access to all records and data related to the programme and to facilities to implement systems All developmental provinces must ring-fence the developmental allocation and report on the implementation progress To report on the number of clinical supervisors associated with clinical training and supervision of students, funded on the public health service delivery platform: o number of specialists o number of registrars o
 number of medical officers o number of clinical associates o number of postgraduates o number of clinical supervisors/trainers per category in nursing, emergency medical services and allied health and pharmacy o number of grant administration staff Process for approval of 2024/25 business plans Draft business plans for 2023/24 must be submitted in the approved format by 27 October 2023 Completion of an approved business plans, in the prescribed format, signed by each receiving officer by 26 January 2024 and the transferring officer by 2 April 2024 170 National Health Insurance Grant Transferring department Grant schedule Strategic goal Health (Vote 18) Schedule 5, Part A To achieve universal health access through the phased implementation of National Health Insurance (NHI) and to improve access to quality healthcare services Grant purpose To expand the healthcare service benefits through the strategic purchasing of services from healthcare providers Outcome statements Implementation of strategic purchasing platform for primary healthcare providers Enhance access to healthcare services for cancer patients Strengthen mental healthcare service delivery in primary health care and community-based mental health services Outputs Improved forensic mental health services Number of health professionals contracted (total by discipline) Percentage increase
 in the number of clients of all ages seen at ambulatory (non-inpatient) services for mental Priority of government that this grant primarily contributes to Details contained in the business plan Conditions health conditions Percentage reduction in the backlog of forensic mental observations Number of patients seen per type of cancer Percentage reduction in oncology treatment including radiation oncology backlog Priority 3: Education, skills and health
 Number of health professionals to be contracted Process of accreditation of providers compliant with the requirements of the office of Health Standards Compliance (OHSC) A template of contracts between the Health Professionals (HP) and the Primary Health Care (PHC) institution in the case of HP Contracting Performance monitoring requirements Processes for the management and reimbursement of health professionals Output indicators, including: Target population Location of the PHC in the case of HP contracting Number of patients to access care Number of backlogs to be reduced Key milestones with projected dates when these will be achieved Key activities and resource schedule Monitoring and evaluation plan Risk management plans Cash flow projections Submission of completed and signed business plans by receiving officer to transferring officer on 24 February 2023 and submission to National Treasury by transferring officer on 31 March 2023 The funding will be used for the following services: o contracting of health practitioner services for primary health care units and where services are rendered at hospital level, it should be for the benefit of primary health care o with respect to addressing surgical backlogs, provincial health departments to supply verified data on backlogs o contracting of health professionals for forensic and general mental health services.
Psychiatrist, clinical psychologists, registered counsellors, social workers and occupational therapists are the only categories that are funded for general mental health and forensic mental health services o Establishment or improvement of oncology services with priority given to developmental provinces This grant may not fund the costs of drugs, materials, consumables and laboratory tests The management of the contracting of health practitioners by the provinces must be done in-house The following allocations are specifically and exclusively allocated for HP contracting and mental health services: HP Contracting Mental Health Services o Eastern Cape R43 million R19 million o Free State R21 million R8 million o Gauteng R52 million R40 million o KwaZulu-Natal R53 million R33 million o Limpopo R34 million R18 million o Mpumalanga R20 million R14 million o Northern Cape R21 million R3 million o North West R21 million R12 million o Western Cape R19 million R17 million The balance of the allocation is earmarked for oncology services in developmental provinces Approval to shift funds between programmes is vested with the transferring officer and any shift should be communicated with National Treasury Allocation criteria As identified in the business plan, allocations are based on the following criteria: National Health Insurance Grant 171 Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer o prevalence of identified conditions o provinces with greatest needs are prioritised o number of health care professionals contracted o defined reduction in specified backlogs o provinces currently referring oncology services to other provinces The principle of a single fund is articulated in the Cabinet approved White Paper on National Health Insurance.
This situation calls for dedicated funding which will allow for institutionalisation over time 2021/22 audited financial outcomes Of the R268 million made available for the NHI Direct Grant, R264 million (98.4 per cent) was spent 2021/22 service delivery performance Number of health care professionals contracted: 233 Expected to remain in place until the NHI Fund is created through legislation 2023/24: R695 million; 2024/25: R717 million and 2025/26: R749 million Payments will be made monthly in line with the approved payment schedule Responsibilities of national department Support provincial departments to ensure achievement of grant outcomes Conduct monitoring and evaluation of the grant Submission of quarterly financial and non-financial performance reports to the National Treasury in the prescribed format Responsibilities of provincial departments Development of business plans according to the allocated budget Facilitate the achievement of grant outputs Ensure that the provision and funding of existing programmes and services continues and is not substituted by the implementation of this grant Submission of quarterly financial and non-financial performance reports to the national DoH with respect to the continuation of provision and funding of existing and services Provincial health departments must provide the national DoH with full and unrestricted access to all records and
 data related to the programme and to facilities to implement systems Process for approval of 2024/25 business plans Provinces must submit business plans to the transferring officer by 31 January 2024 Submission of signed business plan by the transferring officer to the National Treasury by 2 April 2024 Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the
 business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations 172 National Health Insurance Indirect Grant Health (Vote 18) Schedule 6, Part A To strengthen the public healthcare system in preparation for National Health Insurance (NHI), design of NHI through innovative testing of new reforms and to improve quality of services at primary health care facilities To achieve universal health access through the phased implementation of NHI and to improve access to quality healthcare services To ensure appropriate health infrastructure that is in line with national and provincial policy objectives This grant has three components: o Non-Personal Services Component o Personal Services Component o Health Facility Revitalisation Component To create an alternative track to improve spending, performance as well as monitoring and evaluation on infrastructure in preparation for National Health Insurance (NHI) To enhance capacity and capability to deliver infrastructure for NHI To accelerate the fulfilment of the requirements of occupational health and safety To implement the centralised models for the dispensing and distribution of chronic medication Develop and roll-out new health information systems in preparation for NHI Enable the health sector to address the deficiencies in the primary health care facilities systematically through the implementation of the ideal clinic programme To expand the healthcare service benefits through the strategic purchasing of services from healthcare providers As specified in the three component frameworks As specified in the three component frameworks Priority 3: Education, skills and health As specified in the three component frameworks As specified in the three component frameworks
 As specified in the three component frameworks 2021/22 audited financial outcome As specified in the three component frameworks 2021/22 service delivery performance As specified in the three component frameworks Subject to policy developments that will be finalised as part of the implementation of NHI 2023/24: R2.1 billion; 2024/25: R2.3 billion and 2025/26: R2.5 billion of which the three components are: o Non-Personal Services Component: 2023/24: R621 million; 2024/25: R653 million and 2025/26: R683 million o Personal Services Component: 2023/24: R89 million; 2024/25: R103 million and 2025/26: R108 million o Health Facility Revitalisation Component: 2023/24: R1.4 billion; 2024/25: R1.5 billion and Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 2025/26: R1.7 billion As specified in the three component frameworks Responsibilities of the national department As specified in the three component frameworks Responsibilities of provincial departments As specified in the three component frameworks As specified in the three component frameworks 173 National Health Insurance Indirect Grant: Health Facility Revitalisation Component Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Health (Vote 18)
 Schedule 6, Part A To ensure appropriate health infrastructure that is in line with national and provincial policy objectives To create an alternative track to improve spending, performance as well as monitoring and evaluation on infrastructure in preparation for National Health Insurance (NHI) To enhance capacity and capability to deliver infrastructure for NHI To accelerate the fulfilment of the requirements of occupational health and safety
 Appropriate procurement of service providers for infrastructure delivery for NHI Improved spending, performance, monitoring and evaluation of infrastructure projects for NHI Improved employment and skills development in the delivery of infrastructure for NHI Value for money and cost-effectively designed facilities in line with the framework for infrastructure Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance delivery and procurement management Improved patient experience of care Number of primary health care facilities constructed or revitalised Number of hospitals constructed or revitalised Number of facilities maintained, repaired and/or refurbished Priority 3: Education, skills and health The infrastructure programme management plan for the 2023 medium term expenditure framework (MTEF) aligned to the infrastructure delivery management system and framework for infrastructure delivery and procurement management will be submitted on 26 May 2023 and will include the following: o costed project lists with annual cash flow projections per project for the full duration of the projects on the programme o projected milestones per project for framework for infrastructure delivery and procurement management control framework stages indicating current stage of the project o project allocation list to the various implementing agents The national Department of Health (DoH) must, in consultation with the provinces, have in place an intergovernmental protocol framework covering the 2023 MTEF and outlining how the grant will operate as well as the responsibility and functions of each sphere.
Project sheets will form part of the agreement Should there be an amendment to an existing protocol agreement, the amended agreement should be submitted to the National Treasury by 30 June 2023 Prior to submitting the infrastructure programme management plan, each provincial department must have signed-off a project sheet for all projects funded from the grant which lists program name, sub programme or project name, facility associated, current status, projected status for the MTEF, expected stage at handover to the province and any high level comments associated With all new projects, DoH must comply with framework for infrastructure delivery and procurement management processes For projects with a total project cost exceeding R500 million, DoH must notify National Treasury when framework for infrastructure delivery and procurement management stage 3 is reached The grant component must only be spent on projects included in the infrastructure programme management plan and project lists signed by provinces.
Projects can only be added as after approval by the National Treasury Appropriately qualified built environment representatives from the national department must assist in the procurement of professional service providers and contractors by its implementing agent DoH may utilise a portion of grant funding for the appointment of public servants to their infrastructure units.
The amount that can be used for this is determined in terms of the conditions set in terms of the 2022 Appropriation Act All completed projects must have a close-out report with a documented maintenance plan New facilities will only be funded from the grant if proof of operational budget that includes the approved organisational structure (staff structure) is submitted prior to the approval of the clinical brief.
Endorsement of the operational budget by the provincial treasury must be acquired as part of the approval.

 An amount of R350 million is allocated to Limpopo through the Budget Facility for Infrastructure (BFI) for the construction of the Limpopo Academic Hospital.
The amounts earmarked for Limpopo Academic Hospital may only be used for this project and are subject to the conditions set out in Annexure B of the 2018 MTEF allocation letter of the Department of Health Allocations for 2023/24 are project based Allocation is dependent on the existence of a signed and agreed to Implementation Protocol Agreements Allocation for budget adjustment is dependent on project performance and associated priority Funding infrastructure through an indirect conditional grant enables the national department to ensure the delivery and maintenance of health infrastructure in a coordinated and efficient manner that is consistent with national norms, standards and guidelines for health facilities 2021/22 audited financial outcomes Allocated R803 million of which R795 million (99 per cent) was spent by the end of the financial year (Excluding Limpopo Academic which was ringfenced) 174 National Health Insurance Indirect Grant: Health Facility Revitalisation Component 2021/22 service delivery performance 0 primary health care facilities constructed or revitalised 0 hospitals constructed or revitalised 3 facilities maintained, repaired and/or refurbished NHI is a key government priority and given the need to continually maintain health infrastructure and ensure that norms and standards are maintained, the grant will continue over the 2023 MTEF, subject to review 2023/24: R1.4 billion; 2024/25: R1.5 billion and 2025/26: R1.7 billion Estimated monthly cashflow forecast available on all projects implemented via the grant Monthly payments made according to verified and approved invoices from the services providers for projects that are implemented by the department.
Quarterly tranche payments are made to implementing agents responsible for other projects Responsibilities of the national department Build and demonstrate the capacity necessary to manage this grant Ensure alignment between the infrastructure programme management plan and the annual performance plan Undertake the infrastructure development cycle as per the framework for infrastructure delivery and procurement management Convene progress review committees with appropriate reporting and invite National Treasury and Provinces DoH must maintain an up-to-date database (project management information system), with all contracts that are fully or partially funded by this grant DoH must report infrastructure projects implemented with voted funds in the National Infrastructure Reporting Model (IRM) within 22 days after the end of the quarter.
Collaboration and coordination with provincial departments of health for the full development cycle of infrastructure development in respect of projects funded by this grant In instances where the capacity of the DoH and the provincial department are deemed insufficient, DoH is entitled to engage alternative implementing agents, provided that supply chain management processes as prescribed in the Treasury Regulations for the appointment of service providers are followed.
In those cases, service level agreements between DoH and the implementing agent must be in place DoH must convene quarterly progress review committee meetings with all project managers, implementing agents and National Treasury for monitoring and oversight of the performance of all funded projects Provide provincial departments of health with progress of the projects under this grant for inclusion in provincial annual reports DoH must submit quarterly infrastructure reports to National Treasury, according to the agreed template between National Treasury and DoH, within 45 days after the end of each quarter Responsibilities of provincial departments Provide accurate and detailed clinical brief to projects defining the need of projects.
This should include any prefeasibility and feasibility works to obtain sufficient approval of projects Participate in design and delivery activities of projects implemented within their provinces as part of the grant.
This includes facilitation of issues and risks mitigation under their ambit of control Responsive and time conscious in the review and validation of project deliverables on the critical path of the projects undertaken via the Grant Ensure that sufficient budget is made available for the staffing, operationalisation and maintenance of facilities post works Ensure that the completed projects are included in the asset registers of the provincial custodian of state- owned facilities Undertake life cycle maintenance as well as the full operation, staffing and management of the facilities completed under this grant by the DoH All immovable asset management and maintenance responsibilities of the completed projects under this grant as prescribed by the Government Immovable Asset Management Act of 2007 rests with the provinces Provinces should report on progress of the projects under this grant in their annual reports and describe how these facilities have been considered in their future planning and budgeting.
The projects must be included in the provincial user-asset management plans Submission of a draft infrastructure programme management plan to the National Treasury by 31 August 2023 Submission of the final infrastructure programme management plan to the National Treasury by 2 April 2024 Submission of signed implementation protocol by 21 June 2024 Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 175 Transferring department Grant schedule Strategic goal Grant purpose National Health Insurance Indirect Grant: Non-Personal Services Component Health (Vote 18) Schedule 6, Part A To strengthen the public healthcare system in preparation for National Health Insurance (NHI) To strengthen the design of NHI through innovative testing of new reforms To improve the quality of services at primary health care facilities To improve the quality of services in health care facilities To expand the alternative models for the dispensing and distribution of chronic medication To develop and roll out new health information systems in preparation for NHI, including human resource for health information systems To enable the health sector to address the deficiencies in primary health care facilities systematically and to yield fast results through the implementation of the ideal clinic programme Outcome statements To implement a quality improvement plan Improved access to and quality of healthcare through: o expansion of the alternative dispensing and distribution model for chronic medication o improved quality health services in all primary health care facilities through the ideal clinic programme o building and implementation of the enterprise architecture design for national health insurance digital information systems o development and implementation of systems for medicines stock
 management and procurement o certification of all public health facilities by Office of Health Standards Compliance (OHSC) Alternative chronic medicine dispensing and distribution model implemented Intern community service programme system maintained and improvements effected Number of new and number of total patients registered in the programme, broken down by the following: o antiretroviral treatment o antiretroviral with co-morbidities o non-communicable diseases o number of pickup points (state and non-state) Number and percentage of primary healthcare facilities peer reviewed against the ideal clinic standards Number and percentage of primary healthcare facilities achieving an ideal status Number of public health facilities implementing the health patient registration system Number and percentage of the population registered on the health patient registration system National data centre hosting environment for NHI information systems established, managed and maintained The development and publication of the 2022 Normative Standards Framework for Digital Health Interoperability Development and implementation of the master facility list policy Number of primary healthcare facilities implementing an electronic stock monitoring system Number of hospitals implementing an electronic stock management system Number of fixed health establishments reporting medicines availability to the national surveillance centre Number of quality learning centres established Number of facilities improving their baseline OHSC scores (or other approved quality metrics) Priority 3: Education, skills and health Input, output indicators and outcome indicators Milestones with projected dates when this will be achieved Description of how the project will be managed including the roles and
 responsibilities of national and provincial departments Key activities and resource schedule Monitoring and evaluation plan Risk management plans and cash flow projections Completion of a business plan by the national Department of Health (DoH) signed by the transferring officer by 31 March 2023 and submitted to the National Treasury by 31 March 2023 All information systems developed and implemented under this grant component must comply with the interoperability norms and standards as approved by the National Health Council No more than 3 per cent of this grant component may be used for grant administration The alternative chronic care medication dispensing and distribution model allocations will be based on the volume of patients per province Ideal clinic sub-component allocation is based on the number of identified facilities and their needs in each province Information systems sub-component is not allocated per province and will be utilised towards the development and making sure that implementation is standardised across provinces, districts and public health facilities, and towards the establishment of unified health information and management of health commodities for the country The importance of central coordination in the development of models and the establishment of NHI to inform ongoing NHI designs Ideal clinic is a key national priority and requires a systematic implementation to achieve quality health care services Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share 176 National Health Insurance Indirect Grant: Non-Personal Services Component In line with the National Health Act sections 74(1) and 74(2), the national department has to develop and coordinate all Health Information Systems in the
 country.
This is a complex programme with many facets that requires an iterative process of testing and implementation in a phased manner.
This situation calls for dedicated funding which will allow for institutionalisation over time 2021/22 audited financial outcomes Of the R607 million made available, R499 million was spent (82.2 per cent) for the 2021/22 financial year 2021/22 service delivery performance Alternative chronic medicine dispensing, and distribution model implemented 5 013 074 new and total patients registered in the programme broken down 1 710 647 antiretroviral treatments 380 432 antiretroviral with co-morbidities 521 453 non-communicable diseases 2 980 pickup points (non-state) and 3 59 health establishments (state) rendering the CCMDD service 18 primary health care facilities peer reviewed against ideal clinic standards (replaced by peer review updates 183 facilities of which 51 achieved ideal status) 1 928 and 55 per cent of primary health care facilities achieving an ideal status 3 114 primary health care facilities and 52 hospitals implementing the health patient registration system 64 690 499 individuals from the population registered on the health patient registration system 3 320 primary health care facilities implementing an electronic stock monitoring system 396 hospitals implementing an electronic stock monitoring system National data centre hosting environment for NHI information systems established, maintained and operational First phase of the National Health
 Information Centre platform completed 3 873 fixed health establishments reporting medicine availability to the national surveillance centre Subject to policy developments that will be finalised as part of the implementation of NHI 2023/24: R621 million; 2024/25: R653 million and 2025/26: R683 million Payments will be made according to verified invoices or advance payments in line with approved programme implementation plans from the service providers Monthly
 instalments which may be altered at the discretion of National Treasury based on invoices paid Responsibilities of the national department To establish contracts with service providers for the delivery of goods and services as necessary in the four sub-components outlined above Establish the necessary organisational structures and build capacity within the DoH to implement, oversee and monitor the execution of all approved projects using the 3 per cent administrative costs provision Manage, monitor and support provincial programme planning and implementation Meet with the National Treasury to review the performance of the grant on a quarterly basis Strengthen the capacity of provinces to realise and maintain ideal clinic status Maintain the ideal clinic software Evaluate the impact of quality improvement activities and submit preliminary reports on progress to National Treasury and the Presidency by 28 July 2023 and 1 December 2023 and a final report by 2 April 2024 Responsibilities of provincial departments Facilitate the achievement of grant outputs Delegate a person responsible for managing the ideal clinic programme, health patient registration system programme, medicines information systems and central chronic medicine dispensing and distribution, respectively Provinces are responsible for ensuring medicines availability to service providers for the central chronic medicine dispensing and distribution programme aligned to the medicines formulary Ensure compliance with all reporting requirements and adherence to the provisions of service level agreements Provincial health departments must provide DoH with full and unrestricted access to all records and data related to the programme and to facilities to implement systems (storage space for filing cabinets etc.)
Include performance indicators related the four sub-components in the provincial annual performance plans Provinces must develop draft implementation plans to assume responsibility for the centralised chronic medicines dispensing and distribution, ideal clinic and information systems Submit quarterly performance reports to national DoH Submission of the business plan signed by the transferring officer on 2 April 2024 to National Treasury Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 177 Transferring department Grant schedule Strategic goal National Health Insurance Indirect Grant: Personal Services Component Health (Vote 18) Schedule 6, Part A To achieve universal health access through the phased implementation of National Health Insurance (NHI) and to improve access to quality healthcare services Grant purpose To expand the access to healthcare service benefits through the strategic purchasing of primary health care services from healthcare providers Outcome statements Implementation of the strategic purchasing platform for primary healthcare providers Implementation of a risk-adjusted capitation model for the reimbursement of primary healthcare (PHC) services Outputs Number of proof-of-concept contracting units for primary health care (CUPs) established Number
 of private primary healthcare providers participating in the CUPs and contracted through capitation Priority of government that this grant primarily contributes to Details contained in the business plan arrangements Priority 3: Education, skills and health Number of proof-of-concept contracting units for primary health care (CUPs), including o CUP area definition and which health establishments and services in the area are included o CUPs management of budget allocations and payments Number of private clinical care practitioners to be contracted and number of public establishments to be contracted, including: o content and process of accreditation of providers o performance monitoring requirements o processes for the management and reimbursement of all providers Output indicators of benefits to be provided by providers in CUPs including: target population o o number of patients to access care o o key milestones with projected dates when these will be achieved listed vertical programmes integrated into one healthcare delivery system Key activities and resource schedule Management capacity, reporting arrangements and monitoring and evaluation plan, including relationship with District Health Management Offices (DHMO) o implementation of digital systems (Health Patient Registration System, Stock Visibility System, Master Facility List etc.
and data management o project steering (Joint Coordinating Committee) and management Risk management plans Cash flow projections The funding will be used for the development and implementation of a capitation model and establishment of proof of concept contracting units for primary health care (CUPs) Submission of completed and signed-off business plan and implementation framework by the national transferring authority by 31 March 2023 to the National Treasury Conditions Allocation criteria As identified in the business plan, allocations will be based on the following criteria: Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer o number of health establishments (public and private) participating (OHSC certified and accrediting) o number of patients seen by all private clinical practitioners o number of vertical programmes integrated into the PHC benefits management o number of patients referred to the district hospital and other levels of care Capitation funding through the NHI Fund will be the reimbursement strategy used for PHC services under NHI 2021/22 audited financial outcomes Of the R18 million made available, R18 million (100 per cent) was spent 2021/22 service delivery performance 0 health professionals contracted through capitation arrangements 2 714 patients screened and treated for
 mental health problems 19 per cent reduction in the backlog of forensic mental observations 0 patients receiving radiation oncology 0 health professionals contracted through capitation arrangements Remain in place until the NHI Fund is created through legislation passed by Parliament 2023/24: R89 million; 2024/25: R103 million and 2025/26: R108 million Payments will be made according to verified invoices or advance payments in line with approved
 business plans Responsibilities of the national department Implementation of the activities funded under this component, including: o feasibility testing of contracting and strategic purchasing of personal health services from appropriately accredited health care providers on behalf of the covered population at PHC level o develop mechanisms for purchasing of PHC services 178 National Health Insurance Indirect Grant: Personal Services Component o develop payment strategies for contracted providers at PHC level o process utilisation transactions received from contracted service providers o collate utilisation data, and implement information management systems o develop contracting and payment policies Submission of quarterly financial and non-financial performance reports to the National Treasury Responsibilities of provincial departments Support the achievement of grant outputs Ensure that the provision and funding of existing programmes and services continues and is not substituted by the implementation of this grant Provincial health departments must provide the national DoH with full and unrestricted access to all records and data related to the programme and to facilities to implement systems Submission of signed business plan by the transferring officer to the National Treasury by 2 April 2024 Process for approval of 2024/25 business plans 179 National Tertiary Services Grant Transferring department Grant schedule Strategic goal Health (Vote 18) Schedule 4, Part A To enable provinces to plan, modernise, rationalise and transform the tertiary hospital service delivery platform Grant purpose Outcome statements Ensure the provision of tertiary health services in South Africa To compensate tertiary facilities for the additional costs associated with the provision of these services Modernised and transformed tertiary services that allow for improved
 access and equity to address the burden of disease Accelerated modernisation of tertiary services in developmental provinces (Eastern Cape, Limpopo, Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Mpumalanga, Northern Cape and North West) Number of inpatient separations Number of day patient separations Number of outpatient first attendances Number of outpatient follow-up attendances Number of inpatient days Average length of stay by facility (tertiary) Bed utilisation rate by facility (all levels of care) Priority 3: Education, skills and health This grant uses business plans which are signed between the national Department of Health (DoH) and each province and contain the following: o provincial and institutional allocations o o annual targets for inpatient separations, inpatient days, day patient separations, outpatient first visits, tertiary services specifications (approved YES list) funded by the grant, by facility by province outpatient follow up visits per facility per province per year o monitoring and reporting responsibilities o validation and revision of data o deviations or changes to tertiary services o referral responsibilities o approved business plan o approved specialists funded from the grant (approved specialist detail list) o national guidelines on definitions of tertiary services that may be funded by the grant o description of the planned use of the developmental allocations (only provinces who receive these) Submission of an approved business plan in the prescribed format signed by the provincial Head of Department to the national DoH by 28 February 2023, and the National Treasury by 31 March 2023 The grant allocation to each central/provincial tertiary facility must not exceed a maximum of 65 per cent of the total facility budget
 To facilitate the acceleration of modernisation of tertiary services in developmental provinces, up to 10 per cent of the provincial grant allocation should be used for the development of tertiary services currently not provided in the province or expansion of critical services where there is currently a backlog of untreated patients, where an existing service requires the appointment of a Health Professionals Council of South Africa registered specialist and in accordance with nationally approved business plans Additional funds have been allocated for the developmental portion for four provinces.
The breakdown per province is as follows: o Eastern Cape R38 million o Limpopo R16 million o Mpumalanga R5 million o North West R12 million All developmental provinces must ring-fence the developmental allocation and report on their implementation progress Cost of administration of the grant must not exceed one per cent of the total grant allocation The following amounts in the allocation to Gauteng are earmarked to fund the operations of the Nelson Mandela Children’s Hospital: o R315 million in 2023/24 o R329 million in 2024/25 Total remuneration packages for the staff at the Nelson Mandela Children's Hospital, paid from this grant and any other sources, may not exceed Department of Public Service and Administration approved remuneration rates; total remuneration packages must be captured and submitted to both the provincial, and the national departments of Health The services offered by the Nelson Mandela Children’s Hospital should be integrated into the service delivery platform in collaboration with relevant provinces, particularly Gauteng The grant does not fund the leasing of capital equipment Based on historical allocations and spending patterns, with additional allocations for four developmental provinces Reasons not incorporated in equitable share There are significant cross-provincial flows of patients needing tertiary services and the grant compensates provinces with greater tertiary capacity for treating patients from
 other provinces Past performance 2021/22 audited financial outcomes Allocated and transferred R13.7 billion to provinces, of which R13.3 billion (95 per cent) was spent by the 180 National Tertiary Services Grant Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer end of the financial year 2021/22 service delivery performance 661 228 Inpatient separations 520 109 day patient separations 1 314 049 Outpatient first attendances 2 818 533 Outpatient follow up attendances 5 142 989 Inpatient days ‒ 6.5 average length of stay by facility (tertiary) and 76 days psychiatric average length 100 per cent bed utilisation rate Support for tertiary services will continue because of the need to sustain and modernise tertiary services 2023/24: R14 billion; 2024/25: R14.7 billion and 2025/26: R15.3 billion Monthly instalments as per the payment schedule approved by National Treasury except for the Nelson Mandela Children’s Hospital where the first payment will be made in April 2022.
Additional payments will be made in July and October 2022 based on evidence of satisfactory performance Responsibilities of the national department Convene at least one annual meeting of national, provincial and facility programme managers Monitor expenditure by economic classification, and patient activity and provide on-site support to facilities/complexes and provinces Conduct a minimum of two site visits to provinces and a minimum of one site visit to facilities/complexes.
Provincial visits to include facilities Identify the national need for service delivery and facilitate the development of those services through business plan planning processes Responsibilities of provincial departments Completion of provincial service level agreements/memoranda of understanding signed by the receiving officer and the benefiting institutions by 31 March 2023 and submission to the national DoH by 28 April 2023 (due date for Nelson Mandela Children’s Hospital is 26 March 2023) Provinces must provide the allocated amounts for each funded facility/cluster to the relevant provincial treasury for gazetting as per the number of agreed-upon business plans per province and facility/cluster by 21 April 2023 Provinces must maintain a separate budget for each benefiting facility The receiving officer must supply the head of each benefiting facility/complex with a budget letter which includes their conditional grant and equitable share allocation by 28 April 2023 Conduct a minimum of two site visits to each budgeted facility/complex per annum and submit reports of these site visits to the national DoH Submission of updated specialist details funded by the equitable share at facility level by 30 November 2023 Submission of updated specialist details funded by the grant at facility level by 30 November 2023 Submission of service specifications funded at each facility (new YES list) by 30 November 2023
 Submission of quarterly reports in the approved expenditure areas in the prescribed format Provide patient utilisation data (inpatient separations, inpatient days, day case separations, outpatient first visits, outpatient follow up visits and patient-day equivalents) average length of stay (tertiary) and bed utilisation rates (all levels of care) as per the prescribed format Provide the number of inpatient separations and inpatient days for intensive care units (ICU) and neonatal ICU quarterly Provinces intending to develop a new service area need to submit a separate business plan outlining the investment case to the national DoH for approval Provinces may request, in writing to the transferring officer, approval to amend their approved business plan.
Requests must be submitted no later than 13 October 2023.

This will be the only time that provinces can request amendments to their approved business plan.
Revised plans will be approved or rejected by 28 October 2023 Process for approval of 2024/25 business plans Submission of draft business plans (provincial and facility) by 27 October 2023 Completion of a business plan, in the prescribed format, signed by each receiving officer by 28 February 2024 and by the transferring officer by 2 April 2024 181 HUMAN SETTLEMENTS GRANTS Human Settlements Development Grant Transferring department Grant schedule Strategic goal Grant purpose Human Settlements (Vote 33) Schedule 5, Part A The creation of sustainable and integrated human settlements that enable improved quality of household life To provide funding for the progressive realisation of access to adequate housing through the creation of Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions sustainable and integrated human settlements The facilitation and provision of adequate housing opportunities and improved quality living environments A functionally equitable and integrated residential property market Enhanced institutional capabilities for effective coordination of spatial investment decisions Tenure security for all recipients of government subsidised houses Improved quality of life Number of residential units delivered in relevant housing programmes Number of serviced sites delivered in relevant
 housing programmes Number of informal settlements upgraded in situ and/or relocated Number of title deeds registered to beneficiaries Hectares of well-located land acquired for development of housing opportunities Hectares of well-located land acquired (and zoned) Number of socio-economic amenities delivered in human settlements Number of integrated residential development projects planned, approved, funded and implemented Number of township
 registers opened in respect of pre and post 1994 Title Deeds Backlog Number of beneficiaries confirmed as legitimate in registered townships in respect of pre and post 1994 Title Deeds Backlog Number of ownership disputes logged and resolved in respect of pre and post 1994 Title Deeds Backlog Number of implementation programmes for Priority Housing Development Areas Priority 5: Spatial integration, human settlements and local government Medium-term strategic framework targets and budgets Project planning and implementation aligned to the project readiness matrix Annual and quarterly planned targets and budgets per project Monthly cash flow projections (payment schedule) Project information (district municipalities, project description and GIS co-ordinates) Title deeds project addendum in accordance with the compliance and reporting framework Planned bulk infrastructure projects, budget and spending per province in a prioritised municipality with distressed mining communities Professional fees and bulk infrastructure projects Number of jobs and training opportunities to be created Implementation agreement between national, provincial and local government Procurement plan confirming the appointment of requisite service providers in accordance with Government Procurement Preferential Plan and Policies as part of the
 project readiness matrix (to be attached as an Annexure to the Business Plan) Projects, targets and budgets in Priority Housing Development Areas Funds for this grant should be utilised for the priorities set out in the 2019-2024 Medium-Term Strategic Framework for human settlements The transfer of the first tranche of funds is conditional upon the national Department of Human Settlements (DHS) approving provincial business plans consistent with the provisions of the Housing Act and
 in compliance with the National Housing Code The transfer of subsequent tranches is conditional on provinces capturing the targets and budget, delivery statistics, and expenditure monthly on the Housing Subsidy System and the Basic Accounting System at a sub-programme level and project level, and submitting monthly reconciliations within the required time frames Provinces must ensure reconciliation and alignment of financial and non-financial outputs between the Housing Subsidy System and Basic Accounting System on a monthly basis All projects in the approved business plan must be aligned with the Integrated Development Plan (IDP) and the Spatial Development Framework of municipalities.
In pilot areas for the District Development Model, business plans must be aligned to the One Plan Draft and final business plans must be aligned to provincial annual performance plans When the Business Plan is adjusted, it must still align to approved provincial annual performance plans Provinces are allowed to shift budgets between projects in the business plan provided that: o no new projects are introduced into the business plan in-year without approval by the transferring officer o the delivery targets in the approved business plan are not reduced 182 Human Settlements Development Grant Provincial heads of departments must sign-off and confirm that the procurement processes is concluded of the projects captured in their business plans prior to the start of the new financial year and that projects captured in their business plans are assessed and approved for implementation in the 2023/24 financial year Provinces may utilise up to a maximum of five per cent of the provincial allocation for the operational capital budget programme to support the implementation of the projects contained in the business plan Provinces must indicate budget allocations consistent with provincial and related municipal backlogs for adequate housing Where municipalities have been accredited for the housing function, the provincial business plans must reflect relevant allocations, targets and outputs as agreed and approved with the respective municipalities Provinces must gazette planned allocation for three years for the accredited municipalities in terms of the 2023 Division of Revenue Act by no later than 26 May 2023.
This should also specify the amount of operational funding to be transferred to accredited municipalities.
The purpose of the accreditation funding must be clear and aligned with the delegated function Provinces may utilise a portion not exceeding five per cent of their grant allocations for the provision of bulk infrastructure projects for basic services in non-metropolitan municipalities to unlock human settlement projects The DHS in consultation with the National Treasury must, within 14 days after the 2023 DoRA takes effect, have developed the framework to systematically allow provinces to use up to 30 per cent of their allocation for bulk infrastructure.
This framework must include the following minimum requirements: o projects must be contained in the IDP of municipalities o the applicable land use regulatory approvals including but not limited to township establishment and environmental approvals o provinces must submit project lists that have been verified against projects that are funded through other conditional grants, including but not limited to the Municipal Infrastructure Grant, the Integrated Urban Development Grant, the Urban Settlements Development Grant, the Water Services Infrastructure Grant and the Regional Bulk Infrastructure Grant the long-term financial implications of the bulk infrastructure on municipal budgets o o projects approved by the national transferring officer must be included in the amended business plans of provinces and be submitted to the national department for approval by 13 October 2023 o projects will be separately earmarked in an amended grant framework and presented as part of the o Division of Revenue Amendment Bill the province and relevant municipality have signed a memorandum of understanding with regard to the construction, ownership, operations and maintenance of the infrastructure The provision above is not applicable to distressed mining towns Provinces may request, in writing to the transferring officer, approval to amend their approved business plan.
A once-off request must be submitted by no later than 13 October 2023 The payment schedules must be derived and be aligned to the cash flows contained in the approved business plan Provinces must include the nationally approved human priority projects in their business plans as per the gazetted Priority Human Settlements and Housing Development Areas Provinces must allocate a reasonable percentage of their grant allocation to the approved national priority projects in line with their project readiness status At least two per cent of the Human Settlements Development Grant (HSDG) grant may be allocated to programmes and projects for the implementation of innovative building technologies approved by the South African Bureau of Standards with a detailed cost analysis for the housing sector (subject to the consultation of local authorities and beneficiaries) Provinces should ensure that the allocation for land acquisition and related purposes is included in the business plans Provinces must agree with municipalities on a plan for the provision of basic services to all households served in new housing developments Any malicious use of, or non-compliance to the Housing Subsidy System will result in funds being withheld or stopped in terms of the 2023 Division of Revenue Act including provinces not performing according to the approved business plan Provinces are to set aside funds that should fund title deeds for housing projects completed
 before 28 March 2014 and submit a detailed report on the delivery and expenditure of the previous transfer and should include: o agreed deliverables supported by evidence o actual expenditure against the planned cash flows or the same period o compliance with the housing subsidy o cash flows for the remainder of the financial year Provinces must prioritise the implementation of projects that are in the Priority Human Settlements and Housing Development Areas Provinces must prepare and submit a separate land assembly programme with clear details of budget allocation for land acquisition, location of land and other related activities by not later than 28 April 2023 Distressed mining towns component The following ring-fenced funds are earmarked to support the development of integrated human settlements in municipalities with distressed mining communities as approved in the provincial business plans.
The following funds are ring-fenced within provincial allocations and are earmarked to support the development Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 183 Human Settlements Development Grant of integrated human settlements (prioritising bulk infrastructure provision in terms of the Housing Code) in identified municipalities with distressed mining communities: o Gauteng o Mpumalanga o Northern Cape o North West R90 million R66 million R4 million R93 million R475 million in 2023/24 is earmarked for the reconstruction and rehabilitation of the infrastructure damaged by natural disasters in Kwazulu-Natal in 2019 which have been assessed and declared in the government gazette by the National Disaster Management Act (NDMC) Business plans for allocated disaster funds must be in line with the post disaster verification assessment reports submitted to the NDMC Disaster reconstruction and rehabilitation funds may only be utilised for approved projects as listed in the post disaster verification assessment reports and approved business plans Quarterly performance reports on disaster allocations must be submitted to the NDMC and DHS The grant is allocated through the HSDG allocation formula approved by the Human Settlements MINMEC and Budget Council.
The formula is based primarily on the share of inadequate housing in each province but also accounts for population size and the extent of poverty in each province.
Further details of the formula are set out in Annexure W1 to the Division of Revenue Bill A conditional grant enables the national department to provide effective oversight and ensure compliance with the National Housing Code 2021/22 audited financial outcomes Of the R13.8 billion made available, R13.4 billion (100 per cent) was transferred, of which R13.3 billion was spent by the end of the financial year 2021/22 service delivery performance 28 351 housing units completed 37 823 serviced sites completed This is a long-term grant as the government must assist the poor with the provision of human settlements in terms of the Constitution 2023/24: R14.9 billion; 2024/25: R15.1 billion and 2025/26: R15.8 billion Monthly instalments as per the payment schedule approved by National Treasury Responsibilities of the national department Finalise and ensure the approval of the applicable subsidy quantum per programme and the allocation formula for the delivery of sustainable and integrated human settlements Approve the final national and provincial business plans and issue national compliance certificates Assess and make recommendations on the credibility of provincial business plans and the readiness of projects captured therein Ensure that provinces align financial and non-financial information in terms of reporting in Basic Accounting System, Housing Subsidy System, provincial business plans and provincial
 quarterly reports Monitor provincial financial and non-financial grant performance and control systems related to the HSDG Ensure provinces comply with the reporting requirements for the Housing Subsidy System in terms of frequency and quality of the input Provide support to provinces and accredited municipalities with regard to human settlements delivery as may be required Undertake structured and other visits to provinces and metropolitan municipalities as necessary
 Facilitate regular interaction between DHS and provincial departments of human settlements and accredited municipalities Submit an annual evaluation report for 2022/23 on the financial and non-financial performance of the grant to National Treasury by 27 July 2023 Evaluate the audited provincial annual reports for submission to National Treasury by 14 December 2023 Submit quarterly performance reports to National Treasury within 45 days after the end of each quarter Provide systems including Housing Subsidy System that support the administration of the human settlements delivery process Comply with the responsibilities of the transferring officer outlined in the 2023 Division of Revenue Act Ensure provinces only implement programmes that are contained in the approved business plans Provide a detailed list of all bulk infrastructure projects to the National Treasury that provinces are planning to implement in terms of their business plans Prioritise the finalisation of the White Paper on the Housing Policy and Strategy for South Africa Responsibilities of provincial departments Provinces must conclude implementation protocols with the Housing Development Agency for the preparation and programme management of national priority projects Submit 2022/23 annual evaluation reports to DHS by 26 May 2023 Submit 2022/23 audited annual reports to the DHS by 29
 September 2023 Prioritise funds in order to build houses to meet the quota set for military veterans Support accredited municipalities in carrying out delegated functions as per the accreditation framework 184 Human Settlements Development Grant Provinces must utilise the Housing Subsidy System for the administration and related performance reporting of all the human settlement delivery programmes and processes Projects to be funded and included in the business plan
 must be registered on the Housing Subsidy System and the Housing Subsidy System project number and GIS coordinates must be included in the business plan and the Infrastructure Reporting Model (IRM) Provinces must ensure alignment of financial and non-financial reporting in terms of reporting in Basic Accounting System, Housing Subsidy System, approved provincial business plans and provincial quarterly reports Ensure effective and efficient utilisation of and access to the Housing Subsidy System by municipalities Comply with the Housing Act, 2023 Division of Revenue Act, Housing Code and the national delivery agreements that have been concluded The monthly expenditure report, as contemplated the 2023 Division of Revenue Act and section 40(4)(c) of the Public Finance Management Act, must be submitted by the 15th of every month for the preceding month with work in progress inclusive of expenditure, outputs, monthly Basic Accounting System and Housing Subsidy System reconciliation as stipulated on the Practice Note dated 24 April 2015 Monthly expenditure and quarterly reports must be signed-off by both the provincial human settlements and provincial treasuries’ heads of departments There should be an alignment of the business plan with the gazetted allocations to accredited municipalities Provinces should ensure alignment between projected cash flows in the business plans and inputs into the payment schedule Provinces should ensure that they only implement the programmes in the approved business plans Provinces are allowed to implement the Finance Linked Individual Subsidy Programme within the Integrated Residential Reporting Programme Provinces should prioritise revitalisation of the distressed mining towns programme within their funding Consult with municipalities on the programme and projects submitted for approval in terms of the HSDG business plan including
 all bulk infrastructure projects Ensure all projects to be implemented are aligned to the municipal IDP and Spatial Development Frameworks of municipalities Ensure that a memorandum of understanding is signed with all municipalities prior to the commencement of any bulk infrastructure project Ensure that the relevant amounts to be applied and transferred to municipalities are gazetted by no later than 26 May 2023 Provinces to align their business plan with provincial annual performance plans and Infrastructure Reporting Model On completion of units for military veterans, provincial departments should forward the claims to Department of Military Veterans for the top-up, as agreed in terms of the memorandum of understanding between national Department of Military Veterans and DHS In addition to legislated reporting requirements, quarterly Provincial reports must include: o the percentage of their allocations awarded to companies owned by designated groups on quarterly basis o progress relating to blocked projects in line with the targets and expenditure as per the approved business plan o quarterly information relating to number of job opportunities created o progress on performance on the implementation of asbestos removal Draft consolidated provincial business plans for 2024/25 financial year, project readiness matrix and multi- year housing development plan (aligned with the business plan and project readiness matrix) to be submitted to the national department by 31 August 2023 Submit final consolidated provincial business plans, project readiness matrix, multi-year housing development plan (including cash flow projections and compliance certificates for 2024/25 financial year) to the DHS by 8 February 2024 Specific approval from the transferring officer should be sought for rectification (pre- and post-1994), IDP chapters, blocked projects, community residential units
 (upgraded), project linked consolidation subsidies (blocked projects) and allocations for these must appear in the draft and final business plans Programmes that require ministerial approval (in terms of ministerial directives) must be submitted in the first draft of the business plan Process for approval of 2024/25 business plans 185 Informal Settlements Upgrading Partnership Grant: Provinces Transferring department Grant schedule Strategic goal Human Settlements (Vote 33) Schedule 5, Part A The creation of sustainable and integrated human settlements that enable improved quality of household life Grant purpose To provide funding to facilitate a programmatic and inclusive approach to upgrading informal settlements Outcome statements Outputs Adequate housing in improved quality living environment The grant shall fund the outputs defined in Phases 1 – 3 of the Upgrading of Informal Settlements Programme (IUSP) in the National Housing Code of 2009: Phase 1 Number of pre-feasibility studies conducted Phase 2 Feasibility studies o number of environmental impact assessment undertaken o number geotechnical studies conducted o number of any other relevant studies conducted Land Acquisition o hectares of land acquired for in-situ upgrading o hectares of land acquired for relocation o hectares of land transferred and registered o hectares of land availed in terms of land availability/development agreement Number of settlements supplied with bulk infrastructure Number of settlements benefitting from temporal and interim municipal engineering services and/or any alternative technology Number of settlements provided with rudimentary services Phase 3 Number of settlements provided with permanent municipal engineering services and/or any other alternative engineering services Number of serviced sites developed Number of
 social and economic amenities.
The specific types of amenities must only be provided in collaboration with municipality and the community Number of sites transferred to end users Number of households provided with secure tenure Number of engineering designs: water, sewer, roads and storm water drainage concluded Number of layout plans approved Priority 5: Spatial integration, human settlements and local government This grant requires provinces to attain both municipal council and MEC approval on informal settlements to be upgraded in 2023/24 financial year A province must submit a business plan prepared in terms of the requirements of the national Department of Human Settlements’ (DHS) business planning for informal settlements upgrading Provinces must submit an informal settlement upgrading plan in line with UISP in the National Housing Code for each settlement to be upgraded which includes: o project description o settlement name and GIS coordinates o project institutional arrangements o sustainable livelihood implementation plan o outputs and targets for services to be delivered o cash flow projections (payment schedule) o details of the support plan o risk management plan o prioritisation certificate issued by the MEC in consultation with relevant mayors For those settlements where upgrading plans have not yet been completed, an interim or comprehensive plan with clear deliverables in terms of the UISP Phases contained in the National Housing Code must be submitted Procurement plan confirming appointment of requisite service providers in accordance with government procurement preferential plans and policies (as annexure to the business plan) Number of jobs and training opportunities to be created Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Funds for this grant should be utilised for the priorities as set out in the 2019-2024 Medium Term Informal
 Settlements Upgrading Partnership Grant: Provinces 186 Strategic Framework for human settlements Funds must be utilised as per the UISP as defined in the National Housing Code The provincial informal settlements upgrading business plans must be aligned to the Provincial Informal Settlement Upgrading Strategy All projects in the approved business plans must be aligned with the Integrated Development Plan and the Spatial Development Framework of municipalities Draft and final business plans must be aligned to provincial annual performance plans Provincial Heads of Departments (HoDs) must sign-off and confirm that projects captured in their informal settlements upgrading business plans are assessed and approved for implementation in the 2023/24 financial year Provinces should implement projects in the approved plans and any deviation from the approved plans should be sought from the DHS Provinces must indicate the amounts of their annual allocations for spending on the identified national priority projects Provinces must prioritise the implementation of projects that are in the gazetted Priority Human Settlements and Housing Development Areas Where there are no upgrading plans and spending is approved in terms of an interim plan, funding will only be transferred to a province provided that confirmation is provided to the national department that individual upgrading plans are being developed for these projects and will be completed by the end of 2023/24 The transfer of the first tranche of funds is conditional upon the Minister of national DHS approving business plan and informal settlements upgrading plans per settlement consistent with the provisions of the Housing Act, and in compliance with the National Housing Code The transfer of subsequent tranches is conditional on provinces capturing the targets and budget, delivery statistics, and expenditure
 monthly on the Housing Subsidy System (HSS) and the Basic Accounting System (BAS) at a sub-sub-programme level and project level, and submitting monthly reconciliations within the required time frames Provinces must ensure reconciliation and alignment of financial and non-financial outputs between the HSS and BAS on a monthly basis The payment schedule submitted by provinces should be derived from the cash flows contained in the approved upgrading plans Provinces may request, in writing to the transferring officer and also seeking concurrence of the Minister, approval to amend their approved business plan.
A once off request must be submitted by no later than 13 October 2023 together with the aligned payment schedule If a province is allocated additional funding or funds have been stopped and reallocated to another province, a revised business plan must be submitted for subsequent reporting Provinces may request, in writing to the transferring officer, approval to amend their approved business plan.
Requests must be submitted between 11 August 2023 and 13 October 2023 If a province is allocated additional funding or its funds are stopped and reallocated to another province, a revised business plan must be submitted for subsequent reporting The payment schedules submitted by municipalities should be derived from the cash flows contained in the approved upgrading plans Provinces should spend at least 70 per cent of their allocations on infrastructure A maximum of 5 per cent of the of the allocation may be utilised for the Operational Support Capital Programme as per the Operational Support Capital Programme Policy of the DHS A maximum of 3 per cent of a province’s allocation may be used for social facilitation Quarterly and monthly performance reports must be submitted to the DHS in line with DoRA prescripts Provinces must report monthly and quarterly on projects funded through this grant using the template prescribed by DHS.
Reporting must include financial and non-financial detailed performance report per settlement (project level performance) report for phase 1-3 aligned to the business plan Allocation criteria The grant is allocated to all provinces.
These funds are also allocated in line with the HSDG allocation Reasons not incorporated in equitable share Past performance formula approved by Human Settlements MINMEC and National Treasury A conditional grant enables the national department to provide effective oversight and ensure compliance with the National Housing Code 2021/22 audited financial outcomes R3.9 billion was allocated and transferred to provinces and only R408 million was spent 2021/22 service delivery performance 21 075 serviced sites 1 284 informal settlements in various stages of upgrading Phase 1: 165 pre-feasibility studies conducted Phase 2: 309 settlements provided with temporal/interim municipal engineering services and/or any alternative technology 187 Informal Settlements Upgrading Partnership Grant: Provinces Phase 3:136 settlements provided with permanent municipal engineering services and/or any other alternative engineering services This grant will continue until 2025/26, subject to review 2023/24: R4.3 billion; 2024/25: R4.5 billion and 2025/26: R4.7 billion Monthly instalments as per the payment schedule approved by National Treasury Responsibilities of the national department Receive, assess and make determinations on the credibility of provincial informal settlements upgrading plans and the implementation readiness of projects captured therein Maintain the policy and programme, and assist with
 interpretation Develop a reporting template for provinces on ISUPG outputs and publish it 28 March 2023 Monitor and evaluate provincial financial and non-financial grant performance and control systems including quarterly summary reports on performance related to the ISUPG Provide implementation assistance support to provinces as may be required Undertake structured and other visits to projects as is necessary Facilitate regular interaction between DHS and provinces
 Submit a report on the status of informal settlements and their categorisation in terms of the National Upgrading Support Programme’s methodology, to the National Treasury by 01 August 2023 Use the ISUPG to leverage other forms of funding Responsibilities of provincial departments Initiate, plan and formulate applications for projects relating to the upgrading of informal settlements, which in the case of municipalities that are not accredited, must be in collaboration with the relevant provincial department Request assistance from the relevant national department on any of the matters concerned if the province lacks the capacity, resources or expertise Provinces must align their business plan with provincial annual performance plans and Infrastructure Reporting Model (IRM) in terms of section 13(1)(a) of this Act Implement approved projects in accordance with ISUP methodology approved by the national department Work with municipalities to fast track the planning approval processes for informal settlements upgrading projects Agree with municipalities on how settlement areas developed under this programme will be managed, operated and maintained Coordinate with municipalities and facilitate the provision of bulk and connector engineering services Provinces must adhere to section 16 of the Division of Revenue Act if they are planning to appoint any other organ of state to implement human settlements projects on their behalf Provinces must report on a monthly basis the amount transferred and the expenditure including the non-financials thereof to any organ of state in line with section 12 of DoRA Provinces must report on the percentage of their allocations awarded to companies owned by designated groups on monthly and quarterly basis Provinces to use the ISUP grant to leverage other forms of funding DHS will, during the third
 quarter of the 2023/24, advise on the date of submission of the draft ISUP business plan as well as final business plans Each informal settlement should have an upgrading plan available upon request by the transferring officer Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 188 PUBLIC WORKS AND INFRASTRUCTURE GRANTS Expanded Public Works Programme Integrated Grant for Provinces Transferring department Grant schedule Strategic goal Public Works and Infrastructure (Vote 13) Schedule 5, Part A To provide funding for job creation efforts in specific focus areas, where labour intensive delivery methods Grant purpose can be optimised To incentivise provincial departments to expand work creation efforts through the use of labour intensive delivery methods in the following identified focus areas, in compliance with the Expanded Public Works Programme (EPWP) guidelines: o road maintenance and the maintenance of buildings o low traffic volume roads and rural roads o other economic and social infrastructure o tourism and cultural industries o sustainable land based livelihoods o waste management Outcome statements Improved quality of life of poor people and increased social stability through engaging the previously Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions unemployed in paid and productive activities Reduced level of poverty Contribute towards increased levels of employment Improved opportunities for sustainable work through experience and learning gained Number of people employed and receiving income through the EPWP Number of days worked per work opportunity created Number of Full-Time Equivalents (FTEs) to be created through the grant Priority 2:
 Economic transformation and job creation The programme is implemented through provinces using grant agreements that contain project lists and targets for eligible provincial departments on the creation of full-time equivalents (FTEs) and work opportunities EPWP projects must comply with the project selection criteria determined in the EPWP grant manual, the EPWP guidelines set by Department of Public Works and Infrastructure (DPWI), the Ministerial Determination for EPWP workers, the EPWP Recruitment Guidelines and the National Minimum Wage Act 9 of 2018 including applicable gazettes Provincial departments must report on all projects via DPWI’s EPWP reporting system Project data reports must be loaded on the EPWP reporting system every month.
The system closes 15 days after the end of every quarter in order for progress to be assessed The grant cannot be used for departmental personnel costs, however a maximum of five per cent of the grant can be used to fund contract-based capacity required to manage data capturing and on-site management costs related to the use of labour intensive methods The grant can only be utilised for EPWP purposes and for the projects approved in each eligible provincial department’s EPWP project list To receive the first tranche disbursement, eligible provincial departments must: o submit a signed-off EPWP project list by 14 April 2023 o sign a grant agreement with DPWI Subsequent grant disbursements are conditional upon eligible provincial departments: reporting on EPWP performance within the required time frames o o compliant reporting on EPWP Integrated Grant funded projects o implementing their approved EPWP projects on the project list, as planned towards the agreed work opportunity targets o submitting, on a quarterly basis, non-financial reports by the timelines stipulated in the clauses of the 2023 Division of Revenue Act reporting on EPWP Integrated Grant expenditure monthly, within the required time frames o Provincial departments must ensure that EPWP branding is included as part of the project cost in line with the corporate identity manual Provincial departments must maintain participant payroll records as specified in the audit requirements in the EPWP grant manual and the Ministerial Determination for EPWP and make these available to DPWI for data quality assessment tests Allocation criteria To be eligible for an EPWP grant allocation in 2023/24, a provincial department must have reported at least 26 FTEs in either the infrastructure or environment and culture sector in the 2021/22 financial year Newly reporting provincial departments must have reported at least 13 FTEs in either the infrastructure or environment and culture sector
 in the 2022/23 financial year by 15 October 2022 The EPWP grant allocations are based on EPWP performance reported in the past 18 months, number of FTEs created per million rand, and the duration of the work opportunities created Penalties are applied to provincial departments with negative audit findings and non-compliance in terms of submission of the quarterly non-financial reports and monthly expenditure reports Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 189 Expanded Public Works Programme Integrated Grant for Provinces This grant is intended to fund expansion in specific focus areas as well as incentivise increased EPWP performance The grant is based on performance, the potential to expand and the need for EPWP work in key focus areas 2021/22 audited financial outcomes Of the total grant allocation of R420 million, 99.6 per cent was transferred to provinces.
R404 million (96 per cent) of the transferred funds was spent by the end of the financial year 2021/22 service delivery performance 205 103 work opportunities reported and 80 151 FTEs created Average duration of the work opportunities created is 85 days Grant continues until 2025/26, subject to review 2023/24: R435 million; 2024/25: R454 million and 2025/26: R475 million Transfers are made in accordance with a payment Schedule approved by National Treasury Responsibilities of the national department Determine eligibility and set grant allocations and FTE targets for eligible provincial departments Publish on the EPWP website all documents relevant for provincial departments to understand and implement the grant, such as a grant manual, EPWP Recruitment Guidelines, the EPWP Ministerial Determination for EPWP workers, the EPWP Infrastructure guidelines and the National Minimum Wage Act 9 of 2018 including applicable gazettes Support provincial departments, in the manner agreed to in the grant agreement, to: o identify suitable EPWP projects, develop EPWP project lists in accordance with the EPWP project selection criteria, o apply the EPWP project selection criteria and EPWP guidelines to project design, o report using the EPWP reporting system Monitor the performance and spending of provincial departments and assess progress towards their implementation of EPWP project lists Disburse the grant to eligible
 provincial departments that comply with the DoRA requirements Report to National Treasury progress against FTE targets and spending against the grant allocation on a quarterly basis Conduct data quality assessments on a continuous basis to support good governance and identify areas for administrative improvement Manage the EPWP coordinating structures in collaboration with provincial coordinating departments to support implementation, identify blockages and facilitate innovative
 solutions Support the sector to collect the required data, align monitoring and reporting frameworks and to report on key outputs on the EPWP reporting system Conduct site visits to verify existence of projects and identify where support is needed Responsibilities of provincial departments Develop and submit an EPWP project list to DPWI by 14 April 2023 Sign the standard grant agreement with DPWI by 14 April 2023, agreeing to comply with the conditions of the grant before receiving any grant disbursement Agree on the areas requiring technical support from DPWI upon signing the grant agreement Register and report all EPWP projects on the EPWP reporting system and update progress monthly in accordance with the reporting requirements and timelines stipulated in the grant agreement Process for approval of 2024/25 business plans Provincial departments must report on performance of EPWP projects for the 2022/23 financial year by 28 April 2023 or report on 2023/24 performance by 16 October 2023 to be eligible for a grant allocation Provincial departments must submit draft 2024/25 EPWP project lists to DPWI by 26 April 2024 Eligible provincial departments must sign the standard funding agreement with an approved 2024/25 EPWP project list by 26 April 2024 Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant
 primarily contributes to Details contained in the business plan Conditions 190 Social Sector Expanded Public Works Programme Incentive Grant for Provinces Public Works and Infrastructure (Vote 13) Schedule 5, Part A To contribute towards job creation through the expansion of the social sector Expanded Public Works Programme (EPWP) To incentivise provincial social sector departments, identified in the EPWP social sector plan, to increase work opportunities by focusing
 on the strengthening and expansion of social sector programmes that have employment potential Improved service delivery to communities by expanding the reach and quality of social services Contribute towards increased levels of work opportunities Strengthened capacity of non-government delivery partners through increased access to funds for wages and administration Number of Full-Time Equivalents (FTEs) funded through the grant Number of people employed and receiving income through the EPWP grant Average duration of person days for work opportunities created Number of beneficiaries provided with social services Priority 2: Economic transformation and job creation Outcome indicators Output indicators Inputs Key activities Provincial departments must report EPWP expenditure on the monthly in-year management, monitoring and reporting tool in accordance with section 32 of the Public Finance Management Act Financial and non-financial performance must be reported onto the EPWP reporting system Provincial departments must adhere to the audit requirements stipulated in the social sector EPWP incentive grant manual The incentive grant allocation must be used to expand work opportunity creation programmes in the social sector The incentive grant allocation must be used to fund the following priority areas: o o to provide wages to unpaid volunteers at a minimum of the EPWP rate prescribed by the National Minimum Wage Act 9 of 2018 and its amendments including applicable gazettes depending on which is more favourable according to the prescripts of the Department of Employment and Labour to expand social sector EPWP programmes as identified in the EPWP social sector plan for creation of additional work opportunities A minimum of 80 per cent of the total incentive allocation must be used to pay wages
 The balance of the overall incentive allocation must be used for reporting and capacity building at the implementation level To receive the first grant disbursement, eligible provincial departments must: o submit a signed business plan by 31 March 2023 o sign a grant agreement with the Department of Public Works and Infrastructure (DPWI) by 31 March 2023 Subsequent grant disbursements are conditional upon eligible provincial departments: o reporting grant funded projects in the EPWP reporting system, and reporting expenditure of at least 25 per cent and 50 per cent (of the transferred amount) for the second and third tranches, respectively Provincial departments must submit quarterly non-financial reports in the prescribed template as per the timelines stipulated in the clauses of the 2023 Division of Revenue Act EPWP branding must be included as part of the project cost as per the corporate identity manual Relevant documents in accordance with the Ministerial Determination for EPWP should be retained by public bodies Allocation criteria To receive an incentive allocation in 2023/24, a provincial department must have: o o reported performance in 2021/22 and the first two quarters of 2022/23 into the EPWP reporting system by 17 October 2022 reported performance of at least 30 FTEs per R1 million in 2021/22.
The previous performance data on social sector should show that provincial departments have created at least 30 FTEs per R1 million on average o used its own funding in addition to the Social Sector Incentive Grant.
Provincial departments that are not utilising their own funding will not be considered for eligibility Allocations are calculated in two parts as follows: o 90 per cent of the allocation is based on provincial department’s contribution towards the total FTEs reported over 18 months o 10 per cent of the allocation is based on compliance to sector standards (for persons with disability, women, youth, training days, duration and wages) The following penalties are applied where there was non-compliance to conditions of the grant in 2021/22: o 1 per cent for non-compliance in submission of planning documents Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 191 Social Sector Expanded Public Works Programme Incentive Grant for Provinces o 0.5 per cent for late submission for each quarterly non-financial report o 0.5 per cent for each tranche withheld o 1 per cent for less than 100 per cent expenditure reported in the assessment period o 1 per cent for non-achievement of FTE target in the assessment period The incentive allocation is based on the performance of programmes in a prior financial years and use of the allocation is specifically earmarked for EPWP programme expansion 2021/22 audited financial outcomes Of the total grant allocation of R414 million, 99 per cent was transferred to provincial departments of which R403 million (97 per cent) of was
 reported spent by provinces 2021/22 service delivery performance 16 913 FTEs were created 18 774 work opportunities created Average duration of 200 person days for work opportunities created 311 766 beneficiaries received social services Grant continues until 2025/26, subject to review 2023/24: R426 million; 2024/25: R446 million and 2025/26: R466 million Transfers are made in accordance with a payment Schedule approved by National
 Treasury Responsibilities of the national department Determine the eligibility of provincial departments, set work opportunity targets, performance measures and calculate incentive allocations Revise the incentive manual that will provide provincial departments with standard information on the rules of the incentive programme, its application, monitoring and evaluation information and audit regulations Develop an incentive agreement outlining the requirements of the incentive grant and ensure that each provincial department signs the agreement by 31 March 2023 Reach agreements with national sector departments on their roles in ensuring effective implementation of the incentive grant by 31 March 2023 Support provincial departments to develop plans to meet work opportunity targets Support sector departments to collect the required data, align monitoring and reporting frameworks and to report on key outputs on the EPWP reporting system Monitor the performance of provincial departments on the use of the incentive grant against the conditions in the framework and report to National Treasury on a monthly and quarterly basis Evaluate the final performance of provincial departments after the end of the financial year Issue guidelines to provincial departments on how to report expenditure, by 31 March 2023 Analyse reported data and provide feedback to sector stakeholders Responsibilities of provincial departments Compile and sign business plans on how they will achieve the incentive grant targets by 31 March 2023 By 31 March 2023, sign the standard incentive agreement with national DPWI agreeing to comply with the conditions and obligations of the grant before receiving any incentive payment Report EPWP performance onto the EPWP reporting system and update progress monthly in accordance with the reporting requirements in the incentive agreement
 Submit financial and non-financial reports on the use of the incentive grant on a monthly and quarterly basis in the format and manner prescribed by National Treasury and DPWI Submit an annual evaluation report on the use of the incentive grant in the format and manner prescribed by National Treasury and DPWI Process for approval of 2024/25 business plans Provincial departments must have reported EPWP performance by 28 April 2023 to be eligible for an allocation Provincial departments participate in the planning exercise from December to January each year and submit their business plans and targets to DPWI during this process, in the format prescribed DPWI to distribute the incentive agreements for endorsement by provincial heads of departments by the end of February every year Provincial heads of departments to sign the incentive agreement with DPWI by 2 April 2024 and agree to comply with the conditions and obligations of the incentive grant 192 SPORT, ARTS AND CULTURE GRANTS Community Library Services Grant Transferring department Grant schedule Strategic goal Sport, Arts and Culture (Vote 37) Schedule 5, Part A To enable the South African society to gain access to knowledge and updated information that will Grant purpose improve its socio-economic status To transform urban and rural community library infrastructure, facilities and services (primarily targeting previously disadvantaged communities) through a recapitalised programme at provincial level in support of local government and national initiatives Outcome statements Improved coordination and collaboration between national, provincial and local government on Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions library services Equitable access to library and information services delivered to all rural and urban
 communities Improved library infrastructure and services that meet the specific needs of the communities they serve Improved staff capacity at urban and rural libraries to respond appropriately to community knowledge and information needs Improved culture of reading and literacy development 310 000 library materials (books, periodicals, toys etc.)
purchased Library information and communication technology infrastructure and systems software installed and maintained in all provinces New services established for the visually impaired at 15 identified community libraries in all provinces 27 new library structures completed Five new dual-purpose library structures completed 11 upgraded library structures completed 34 maintained library structures completed 2 500 existing contract library staff maintained in all provinces Number of new staff appointed for dual-purpose libraries 33 new staff appointed at public libraries to support the shifting of the function to provinces Capacity building programmes for public librarians Litres of sanitisers procured Priority 6: Social cohesion and safe communities Outcome indicators Output indicators Inputs Key activities The provincial business plans must be developed in accordance with identified priority areas Provincial departments may only request (in writing, to the transferring officer) to amend the business plan before the end of October 2023 Provinces may not exceed the 20 per cent threshold provided for variation orders on infrastructure projects without the approval of the transferring officer To qualify for allocations in 2024/25 provinces must submit progress reports that detail a phased approach towards the full funding of the function, either by assignment to municipalities, or preparation of provinces to take over the function, or a combination of both.
This process must be completed by the end of the 2022 Medium Term Expenditure Framework (MTEF) provided funding is available Grant funding must not be used to replace funding for items that provinces have previously allocated to community libraries Provinces may use a maximum of 5 per cent of the total amount allocated to them for capacity building and provincial management of the grant at the provincial department and the details of how these funds will be used must be included in their respective business plans Provinces must include in their business plans, the scope of work for upgrades, including the budget to be committed to the upgrading of existing libraries Provinces must include in their business plans the scope of work and budget for maintenance of existing libraries and those being built Funds earmarked to support Schedule 5 function shift in category B municipalities and to establish dual purpose service points may only be used for that purpose.
Provinces may use up to 80 per cent of their earmarked allocations in 2023/24 to address the Schedule 5 function shift imperative in category B municipalities.

At least 20 per cent of the earmarked allocations must be used to establish and sustain dual purpose service points in collaboration with provincial departments of basic education.

The detail of how these funds will be used by provinces must be included in their respective business plans.
The total earmarked allocations per province are as follows: o Eastern Cape R71 million o Free State R43 million o Gauteng R128 million 193 Community Library Services Grant o KwaZulu-Natal R93 million o Limpopo R30 million o Mpumalanga R73 million o Northern Cape R69 million o North West R47 million o Western Cape R90 million Service level agreements (SLAs) determining reporting protocols must be signed with receiving municipalities within three months after the start of the Municipal financial year The SLAs must include financial commitments over the MTEF in addition to the payment schedules to municipalities and reporting protocols which outline measurable performance targets for each municipality The allocations from this conditional grant funding must only be used for items that are provided for in the conditional grant framework and in line with the approved business plan Allocations are based on an evaluation report for 2021/22 conducted by the national Department of Sport, Arts and Culture (DSAC) which identified community library needs and priorities for 2023 This funding is intended to address backlogs and disparities in the provision and maintenance of community library services across provinces, and enable the DSAC to provide strategic guidance and alignment with national priorities 2021/22 audited financial outcomes Allocated R1.4 billion and 100 per cent of the allocation was transferred to provinces.
R1.3 billion was spent by provinces by the end of the financial year, 89.2 per cent of the total after including provincial roll-overs 2021/22 service delivery performance 11 new libraries built 89 libraries upgraded/maintained 4 120 new staff appointed 276 031 library materials procured The projected life will be informed by evaluation reports.
Allocations may become part of the provincial equitable share in 2023/24 if provinces have completed the function shift and completed a process that leads to the full funding of the service 2023/24: R1.6 billion; 2024/25: R1.6 billion and 2025/26: R1.7 billion Four instalments: 14 April 2023; 14 July 2023; 13 October 2023 and 19 January 2024 Responsibilities of the national department Establish an intergovernmental forum with provinces that meets at least twice a year to discuss issues related to the provision of community library services Participate in at least one intergovernmental forum meeting per province between provinces and municipalities per year Identify challenges and risks and prepare mitigation strategies Monitor and evaluate implementation Evaluate annual performance of the grant for the previous financial year, for submission to National Treasury within four months after the end of the financial year Submit monthly financial and quarterly performance reports to the National Treasury Determine outputs and targets for 2024/25 with provincial departments Responsibilities of provincial departments Provinces must establish intergovernmental forums with municipalities within their province that are funded through this grant, that meet quarterly to discuss issues related to the provision of community library services Provincial departments must establish capacity to monitor and evaluate SLAs
 with municipalities Provinces must maintain the number of staff appointed using this conditional grant Submit evaluation reports to the DSAC within two months after the end of the financial year Submit signed monthly financial reports to DSAC within 15 days after the end of every month Submit quarterly performance reports to the DSAC within 30 days after the end of the quarter Provinces must complete the conversion of contract staff to permanent staff by end
 of April 2024 Provinces must submit function shift progress report to DSAC by 30 November 2023 Progress reports must detail at least the following: o criteria that will be used to evaluate the capacity of municipalities to administer the function on behalf of the province o a policy framework for funding municipalities that administer the service with details of this funding for a three-year time period Provinces to submit draft business plans to DSAC by 6 September 2023. Business plans must be aligned to their strategies for full funding of the function DSAC to evaluate provincial business plans and provide feedback to provinces by 29 September 2023 Provinces to submit final provincial business plans to DSAC by 31 January 2024 DSAC approves business plans and submits them to National Treasury by 2 April 2024 Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 194 Mass Participation and Sport Development Grant Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Sport, Arts and Culture (Vote 37) Schedule 5, Part A Increasing citizens’ access to sport and recreation activities To facilitate sport and active recreation participation and empowerment in partnership with relevant stakeholders Increased and sustained participation in sport and active recreation Improved sector capacity to deliver sport and active recreation School sport learners supported to participate in the National School Sport Championships learners participating in school sport tournaments at a provincial level learners participating in school sport tournaments at a district level o o o o schools provided with equipment and/or attire o educators
 trained o school sport coordinators remunerated o school sport structures supported o sport Ambassador’s Programme supported Community sport and active recreation Active recreation (Siyadlala): Hubs o people actively participating in organised sport and active recreation events o indigenous games clubs supported per code o hubs provided with equipment and/or attire o active recreation coordinators remunerated o number of learners attending the youth camp o people trained in Siyadlala to implement and coordinate active recreation programmes Club development local leagues supported o o people trained to deliver club development programmes o club coordinators remunerated o clubs provided with equipment and/ or attire o women boxing bout support provided (where province supports professional boxing) Sport academies o athletes supported by the sport academies o sport academies supported (equipment and personnel) o people trained for sport academies support o sport focused schools supported Netball World Cup 2023 o preparations for Netball World Cup 2023 supported o Netball World Cup 2023 Legacy Project supported Transversal matters o sport and active recreation projects implemented by the provincial sports confederation o sport development projects implemented by the provincial sport confederation o provincial programmes contributing to “I choose 2B Active” campaign implemented o branding for sport and recreation events provided Management o staff appointed on a long-term contract o administration standards met Priority 6: Social cohesion and safe communities Grant purpose Outcome indicators Grant outputs Output indicators Key activities Provinces must ensure that: o All structures at all levels are aligned to the 16 Department of Sport, Arts and Culture (DSAC) priority codes to contribute to seamless service delivery (football, netball,
 rugby, cricket, athletics, basketball, volleyball, goalball, swimming, gymnastics, hockey, softball, chess, table tennis, tennis, amateur boxing) o 50 per cent of hubs, and clubs, and the support required must be submitted with the business plan o performance evidence in prescribed format must be timeously submitted, irrespective of the status of the o project, as per the technical indicator descriptors funds from this grant are not used on projects falling outside the scope of the grant unless, following a written request, approval to such effect is granted by the transferring officer The provincial allocation must be utilized as follows: o school sport: 40 per cent o community sport and active recreation: 39 per cent o sport academies: 9 per cent o o management: 8 per cent transversal matters: 4 per cent Priority of government that this grant primarily contributes to Details contained in the business plan Conditions 195 Mass Participation and Sport Development Grant Provinces, based on their provincial dynamics, may apply to the transferring officer to change the above sub- allocations School sport: 40 per cent Provinces must ring-fence R8 million to provide transport, accommodation, attire and delivery of provincial teams to the various segments of the national school sport championships R2 million will be ring-fenced as a contribution to hosting Championships and will be allocated to the host provinces and will include meals and other costs associated with staging of the championships The remaining school sport allocation must be allocated as follows: o 10 per cent for training of people to deliver school sport o 20 per cent to purchase equipment and or attire for schools below quintile 3 to support participation in schools sport leagues o 40 per cent to deliver district and provincial competitions of which an amount of R200 000 per province must be set-a-side for the Sport Ambassador’s programme o 15 per cent to
 remunerate coordinators who coordinate, support, monitor and evaluate school sport at district and local levels o 15 per cent to support school sport structures Community sport and active recreation: 39 per cent Active recreation: 19 per cent Provinces must ring-fence R3 million per province for the National Youth Camp to provide transport, accommodation, meals, attire, security, public liability, medical support, stationery, and the costs associated with plenary meetings The remaining active recreation allocation must be allocated as follows: o 40 per cent for people actively participating in organised sport and active recreation events.
o 20 per cent to purchase equipment and attire o 20 per cent for remuneration of community sport coordinators o 5 per cent for ministerial outreach programmes o 15 per cent for training Club development: 20 per cent The portion of the grant ring-fenced for club development must be allocated as follows: o 65 per cent to support leagues and the clubs that are in the rural development programme of which R350 000 must be ringfenced for the provision of women’s boxing bouts where the province supports professional boxing o 15 per cent for accredited training in sport administration, team management, coaching and technical officiating o 15 per cent to purchase sport equipment and attire o 5 per cent for remuneration of club development coordinators Sport academies: 9 per cent The allocation must be used for the support and resourcing of district and provincial academies in line with sport academies framework and guidelines of DSAC o 40 per cent for resourcing of district and provincial academies (equipment and remuneration of personnel) o 40 per cent for athlete support as documented in the academy framework o 5 per cent for sport focus schools o 15 per cent training The allocation for Sport Focus School must be used to provide support to accredited sport focus schools that meet the specified requirements outlined in the sport academies framework.
Provision of support to schools includes: o upgrading sport facilities o o establishing a basic medical facility/room with basic equipment o providing sport code specific equipment resourcing them with a gymnasium Provinces may transfer funds to the provincial sport academies provided: o a transfer plan has been developed and submitted together with a signed business plan approved by provincial DSAC o a service level agreement has been entered into between the provincial department and the provincial sport academies stating clearly what is expected of the provincial sport academies o a monitoring mechanism is in place to monitor expenditure and performance by the sport academies as per the SLA Transversal matters: 4 per cent Provincial sport confederation: 2 per cent Provinces may transfer funds to the provincial sport confederation provided that: o a transfer plan has been developed and submitted together with a signed business plan approved by provincial DSAC o a service level agreement has been entered into between the provincial department and the provincial sport confederation stating clearly what is expected of the provincial sport confederation o a monitoring mechanism is in place to monitor expenditure and performance by the sport confederation as per the SLA 196 Mass Participation and Sport Development Grant Provincial programmes: 1 per cent These are specific provincial programmes that contribute to the “I Choose 2B Active” Campaign and Recognition programme Branding: 1 per cent o branding for the sport and recreation events Management: 8 per cent Appointing staff: 7 per cent Provinces are expected to utilise this portion of the allocation for the appointment of staff Staff must be appointed on a three-year contract to implement conditional grant programmes.
The allocation is not for support staff in programmes such as finance, planning, monitoring and evaluation or research Administration: 1 per cent Provinces are expected to use this portion of the allocation to ensure that all their submissions are packaged properly (including business plans, project implementation plan, monthly, quarterly and annual reports) and for logistical arrangements relating to the administration of the grant Each province is allocated a baseline of R20 million, thereafter the equitable share formula proportions are applied to determine the remaining amount The Northern Cape’s allocation is increased to ensure an increase in participation due to the vastness of the province.
R2 million and R3 million has been deducted from Gauteng and KwaZulu-Natal respectively to fund this Each province must ringfence R800 000 of the grant to deliver on preparations for Netball World Cup 2023 and support the Netball World Cup 2023 Legacy Projects.

This must include support for the World Cup Trophy tour, fan parks, mobilisation of communities and towards the development of netball in the province.
Should the province require further funding, approval of the transferring officer is required and should not exceed R1million inclusive of the above The School Sport Championships allocation will be R10 million, of which provinces will use R8 million to organize own accommodation and other logistics to deliver the teams to the National Championships.
The other R2 million will be used by the LOC to prepare and stage the National Championships and will be allocated to the host province to source services for the hosting of the games The conditional grant is assisting the sport sector in implementing the National Sport and Recreation Plan objectives 58 439 people actively participating in organized sport and active recreation events 120 345 learners participating in school sport tournaments at district level 5 324 schools, hubs and clubs provided with equipment and/ or attire 2 249 athletes supported by the sport academy 55 sport academies supported 2021/22 audited financial outcomes R591 million was allocated and R591 million (100 per cent) was transferred to provinces.
R599 million was available for provinces to spend (including provincial roll-over of R5 million).
R538 million (90 per cent) was spent by provinces 2021/22 service delivery performance Grant continues until 2025/26, subject to review Responsibilities of the national department Evaluate annual reports for the 2022/23 grants for submission to the National Treasury by 28 July 2023 Agree on outputs and targets with provincial departments in line with grant objective for 2024/25 by 2023/24: R604 million; 2024/25: R631 million and 2025/26: R659 million Four instalments: 26 May 2023; 25 August 2023; 24 November 2023 and 26 January 2024 Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 31 August 2023 Provide the guidelines and criteria for the development and approval of business plans Submit approved business plan for 2023/24 to the National Treasury by 28 April 2023 Submit quarterly performance reports to National Treasury 45 days after the end of each quarter Ensure that all the conditional grant practice notes issued by National Treasury are adhered to Monitor implementation and provide support Desktop monitoring: analysis of monthly and quarterly reports received by provinces Hold quarterly review sessions with all conditional grant role players from the provinces May implement internal
 mechanisms to manage the quarterly disbursements of the grant where there is non- compliance with the conditions of the grant.
This may include withholding and reallocation of tranche payments Submit the 2022/23 annual evaluation report to DSAC by 26 May 2023 Submit monthly reports as per the requirements contained in the 2023 Division of Revenue Act Responsibilities of provincial departments Monitor progress of programmes delivered through the conditional grant Ensure that conditional grant managers attend all national conditional grant meetings Ensure that capacity exists to manage the grant and that there is a grant manager responsible for the grant framework, planning, implementation and reporting Ensure Organisational capacity to deliver on the programmes that are implemented through the grant Process for approval of 2024/25 business plans 197 Mass Participation and Sport Development Grant Provinces submit draft business plan to DSAC by 8 December 2023 DSAC evaluates draft business plans by 15 December 2023 Comments sent to provinces by 16 January 2024 Head of department approves business plan by 2 April 2024 DSAC submits business plans to National Treasury by 26 April 2024 Provinces submit revised business plans to DSAC by 9 February 2024 198 TRANSPORT GRANTS Provincial Roads Maintenance Grant Transferring department Grant schedule Strategic goal Transport (Vote 40) Schedule 4, Part A To ensure efficient and effective investment in provincial roads to implement the Road
 Infrastructure Strategic Framework for South Africa in line with the S’hamba Sonke road programme and other related road infrastructure asset management programmes Grant purpose To supplement provincial investments for road infrastructure maintenance (routine, periodic and special maintenance) To ensure that all roads are classified as per the Road Infrastructure Strategic Framework for South Africa and the technical recommendations for highways, and the Road Classification and Access Management
 guidelines To implement and maintain road asset management systems To supplement provincial projects for the repair of roads and bridges damaged by unforeseen incidents including natural disasters Outcome statements To improve road safety with a special focus on pedestrian safety in rural areas Improve the condition and lifespan of provincial roads and level of service backed by a periodic five-year review of the road network conditions Improved rates of employment and community participation through labour-intensive construction methodologies and skills development through the delivery of roads infrastructure projects Outputs Final road asset management plan and tabled project list for the 2023 medium term expenditure framework (MTEF) in a table B5 format finalised by 31 March 2023 Network condition assessment and determination of priority projects list from the road asset management systems The following actual delivery related measures against 2023/24 targets defined in the final road asset management plan and annual performance plan for each province: o number of m² of surfaced roads rehabilitated (quarterly) o number of m² of surfaced roads resurfaced (overlay or reseal) o number of m² of blacktop patching (including pothole repairs) o number of kilometres of gravel roads re-gravelled o number of kilometres of gravel roads bladed o number of kilometres of gravel roads upgraded (funded from provincial equitable share) The following performance, based on national job creation indicators: o number of jobs created o number of full time equivalents created o number of youths employed (age 18 – 35) o number of women employed o number of people living with disabilities employed Number of small, medium micro enterprises contracted on the provinces’ contractor development programme Updated road condition data (paved and unpaved) including
 instrumental/automated road survey data, traffic data, safety audit or assessment report and bridge conditions Number of modular steel bridges completed under Welisizwe Rural Bridges programme o number of m² of surfaced roads rehabilitated using refurbishment funds Priority 2: Economic transformation and job creation This grant uses a road asset management plan which contains the following details: o network hierarchy o performance management framework o gap analysis o o current and future demand o o monitoring, reviewing and continual improvements information and systems, and lifecycle planning financial plan Priority of government that this grant primarily contributes to Details contained in the business plan Conditions This grant funds routine, periodic and special maintenance road infrastructure projects This grant may fund visual condition inspections, and not more than R6500/km and R2500/km may be used for paved and gravel roads respectively Provinces may use a maximum of 25 per cent of the allocation for rehabilitation activities, which includes the surfacing or block paving of gravel roads Any other improvements to roads and new facilities must be funded from the provincial equitable share The framework must be read in conjunction with the practice note issued by the Department of Transport (DoT) as agreed with National Treasury Provinces must show commitment by budgeting from the provincial equitable share to match or exceed grant allocations The payment of the first instalment is dependent upon submission to the national DoT and the relevant provincial treasury of the following: o planning for the infrastructure reporting model for the 2023 MTEF by 21 April 2023 199 Provincial Roads Maintenance Grant o o final road asset management plan and tabled project list for the 2023 MTEF in a table B5 format by 31 January 2023 submission to DoT of all the quarterly
 performance reports that have become due for the 2022/23 financial year, in terms of the Division of Revenue Act and the requirements of this framework, prior to date of release of payment Payment of subsequent instalments is dependent upon the submission of the following: o o previous quarter’s monthly infrastructure reporting model reports all quarterly performance reports that have become due, in terms of the Division of Revenue Act, prior to date of release of payment The signed-off annual grant performance evaluation report and signed off draft road asset management plan and project list in table B5 format will remain a requirement for the second instalment as required by the Division of Revenue Act and the requirements of this framework The infrastructure programme management plan and road asset management systems data submission will be a requirement for the third tranche The infrastructure programme implementation plan and 2024/25 project list will be a requirement for the fourth tranche For the Road Infrastructure Strategic Framework class R1, R2 and R3 roads, the data collection requirements are: o o o o visual condition data according to technical methods for highway nine for pavements no older than two years, and technical methods for highway 19 for bridges no older than five years instrumental pavement data for roughness, rut depth and macro texture according to technical methods for highway 13 no older than two years instrumental pavement data for deflections according to technical methods for highway 13 no older than five years traffic data according to technical methods for highway three, technical methods for highway eight and technical methods for highway 14 no older than three years Provinces must submit to the DoT, updated road condition data, (for paved and unpaved) including instrumental/ automated road survey data, traffic data, safety audit report and bridge conditions by 29 September
 2023 The Provincial Road Maintenance Grant (PRMG) allocation can be allocated to the following projects as identified and prioritised through the provincial road asset management systems: o o o o routine maintenance (operating expenditure): includes day-to-day routine activities such as cleaning drains and culverts, vegetation control, line marking, guard rail repair, road sign repair, crack sealing, patching, edge repair, spot regraveling, and blading periodic maintenance (operating expenditure): includes periodically scheduled activities such as fog sprays/diluted emulsions/rejuvenators, surface seals and functional asphalt overlays < 50 mm in thickness.
For gravel roads it includes re-gravelling up to 100 mm thick special maintenance (operating expenditure): includes the repair of selected pavement areas up to maximum of 25 per cent of project length followed by application of surface seal or functional asphalt overlay < 50 mm.
Also includes reinstatement of slope stability, repairs to existing structures and the repair of damage caused by floods or accidents rehabilitation (capital expenditure): includes increasing the structural capacity of an existing pavement through the recycling of existing layers and/or addition of new granular layers or structural asphalt overlays > 80mm thick and upgrading or block paving of gravel roads with more than 300 vehicles per day.
These rehabilitation activities are however limited to a maximum of 25 per cent of the PRMG allocation The PRMG Maintenance component allocation cannot be allocated to the following projects: o o o o o any costs associated with feasibility studies, tendering & programme management support the hire, purchasing, repairs, maintenance and operational costs of construction plant & equipment improvements (capital expenditure): this comprises works that aim to improve the quality of service on roads with an unacceptable quality of service.
These include measures of improving quality of service on existing roads such as increases the width in selected areas (i.e.

addition of climbing/passing lanes), increases in the width over the total length of the project i.e.

addition of paved shoulder and localized geometric and intersection improvements.
These activities could in some instances include complete rehabilitation of the existing pavement structure the upgrading of gravel roads to surface roads, the construction of new roads and new interchanges do not qualify for funding under this grant new facilities (capital expenditure: this comprises works that aim to improve network capacity and includes the upgrading of earth (dirt) road to an engineered gravel road, the upgrading of a gravel road to a surfaced road and upgrading of single carriageway road to four-lane or dual carriageway road.
The construction of new gravel or surfaced road where previously no road existed (brown/green fields construction).
The construction of new bridge to replace existing bridge or new interchange to replace intersection The PRMG Refurbishment: component allocation may only be allocated to: o new facilities which comprises works that aim to improve network capacity and includes the upgrading of earth (dirt) road to an engineered gravel road, the upgrading of a gravel road to a surfaced road and upgrading of single carriageway road to four-lane or dual carriageway road.
The construction of new gravel or surfaced road where previously no road existed (brown/green fields construction).

200 Provincial Roads Maintenance Grant o The construction of new bridge to replace existing bridge or new interchange to replace intersection.
all projects under the refurbishment component must be included in business plans, and with approval from the department of transport The following allocations are specifically and exclusively allocated for the construction of additional surfaced roads rehabilitated, and Welisizwe Rural Bridges Programme (allocated through Budget Facility for Infrastructure): Rehabilitation o Eastern Cape R280 million o Free State R279 million o Gauteng o KwaZulu Natal R385 million o R333 million Limpopo o Mpumalanga R312 million o o o Western Cape R418 million Northern Cape R270 million North West R292 million R379 million Welisizwe Rural Bridges R190 million R130 million R190 million R190 million R190 million R130 million The following amounts per province must be used in 2023/24 for the repair of infrastructure damaged by the natural disaster in KwaZulu-Natal and in Eastern Cape as declared in respective provincial gazettes, and as verified by the National Disaster Management Centre (NDMC): Eastern Cape o 2022 disaster: R122 million KwaZulu-Natal o o 2019 disaster: R294 million 2022 disaster: R185 million Should the cost of repairing the disaster affected infrastructure exceed the amounts earmarked above province must fund that shortfall from their provincial equitable share Business plans for the allocated disaster funds must be submitted to the NDMC and DoT prior to the transfer of the allocation Business plans for the Welisizwe programme allocation must
 be submitted to the DOT and DPWI prior to the transfer of allocations Disaster reconstruction and rehabilitation funds may only be utilised for approved projects as listed in the post disaster verification assessment reports and approved business plans Welisizwe funds may only be utilszed for projects as listed in the approved DPWI-provincial departments of transport Memorandum of Understanding and business plans Quarterly performance reports on disaster allocations must be
 submitted to the NDMC and DoT Monthly performance reports on the Welisizwe allocations must be submitted to the DOT and DPWI Detailed monthly progress must be reported on the IRM Allocations are based on the PRMG formula, which takes into account the extent of the provincial road network (gravel/paved), the traffic volumes, the visual condition indices on the network and geo-climatic and topographic factors A separate component for the Welisizwe rural bridges programme exits outside of the PRMG allocation and allocations are based on projects submitted to and approved by DPWI and DoT Unallocated amounts in 2024/25 and 2025/26 will be allocated as an incentive based on the level of service efficiency achieved in road project investments undertaken This grant is intended to ensure that provinces give priority to road infrastructure and promote efficiency in road investment 2021/22 audited financial outcomes Of the R11.9 billion allocated, R10.5 billion, (88 per cent) was spent by provinces by the end of the national financial year _ 2021/22 service delivery performance Provinces developed and updated the road asset management plan 37 021 kilometers of surfaced roads visually assessed as per the applicable technical methods for highway manual 57 561 kilometers of gravel roads visually assessed as per the applicable technical methods for highway manual 5 289 231of m2
 of surfaced roads rehabilitated (effectively km) 4 097 490 of m2 of surfaced roads resurfaced (overlay or reseal) (effectively 1 171km) 1 362 043 of m2 of blacktop patching (including pothole repairs) (effectively 389 km) 5 366 kilometres (km) of gravel roads re-gravelled 352 104 kilometres (km) of gravel roads bladed 311 106 number of jobs created 49 300 number of full-time equivalents created 67 765 number of youths employed (18-35)
 222 123 number of women employed 1 544 number of people living with disabilities employed The grant is ongoing, but will be subject to periodic review 2023/24: R15.9 billion; 2024/25: R17.1 billion and 2025/26: R19 billion Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Payment will be made in accordance with a payment schedule agreed to with provinces and approved by Provincial Roads Maintenance Grant 201 Responsibilities of the transferring officer and receiving officer National Treasury Responsibilities of the national department Submit quarterly performance reports to National Treasury 45 days after the end of each quarter Submit annual National Road Assessment Management Plan to National Treasury by 28 March 2024 Submit a grant evaluation report to National Treasury four months after the end of the financial year Review the performance-based allocation mechanism for use in determining future allocations Confirm the correctness of data submitted by provinces by assessing a representative sample Ensure that road asset management plan project list and infrastructure reporting model are updated and aligned Upload submitted road condition data into a central repository Monitor project implementation through on-going engagements, quarterly through bilateral and site inspections Implement internal mechanisms to monitor adherence to grant conditions and manage the disbursements of the grant where there is non-compliance.
Measures to address non-compliance include withholding transfers, as provided for in the Division of Revenue Act.
If matters are still unresolved, this may result in the stopping and reallocation of tranche payments in of the Division of Revenue Act Put in place national transversal appointments and internal mechanisms to assist the identified provinces to implement the projects submitted by the provinces through the use of the national transversal appointments Responsibilities of provincial departments Provincial departments must submit monthly infrastructure reports that comply with the infrastructure reporting model to DoT and the relevant provincial treasury 22 days after the end of each month Provinces must align the road asset management plan, project list and ensure the infrastructure reporting model the ERS and eQPR systems are kept up to date Identification and preparation of project profile reports in partnership with the DoT Identification and submission of projects to be implemented by the DoT Reports from provinces shall also have information on job creation and contractor development programme Ensure that table B5 project list is tabled at the provincial legislature before being gazetted by the member of the executive council Submit completed and signed off quarterly performance report templates 30 days after the end of each quarter, together with a separate and signed off report on safety projects as per the requirements of the performance incentive allocation Submit completed and signed-off annual grant performance evaluation reports two months after the end of each financial year, together with a separate chapter/report on safety projects as per the requirements of the performance incentive allocation Provincial departments must implement their projects in line with the S’hamba Sonke and the Expanded Public Works Programme guidelines Ensure that approved grant funded projects are published as part of the Estimates of Provincial Revenue and Expenditure through the provincial legislative processes
 Ensure projects are selected using road asset management system as the primary source of information Design and implement projects in compliance with the S’hamba Sonke principles and Expanded Public Works Programme guidelines Submit updated road condition data (for paved and unpaved roads) including instrumental/ automated road survey data, traffic data, safety audit report and bridge condition data by 29 September 2023 Process for approval of 2024/25 business plans Provinces must submit a draft 2024/25 road asset management plan with a minimum of five years of planned projects selected using road asset management system as the primary source, by 30 June 2023 Provinces must submit the Infrastructure Programme Management Plan including 2024 MTEF project list by 31 August 2023 Road asset management plans, including 2024 MTEF prioritised project lists (the Infrastructure Programme Management Plan) must be reviewed by DoT and feedback provided by 29 September 2023 Provinces must submit the Infrastructure Programme Implementation Plan including 2024/25 delivery project list by 30 November 2023 and must be reviewed by DoT and feedback provided by 29 December 2023 Provinces to submit final 2024/25 road asset management plan and table B5 to DoT, the relevant provincial treasury and National Treasury by 31 January 2024 indicating all the required planned targets 202 Transferring department Grant
 schedule Strategic goal Grant purpose Transport (Vote 40) Schedule 4, Part A Subsidised road based public transport services To provide supplementary funding towards public transport services provided by provincial departments of Public Transport Operations Grant transport Outcome statements The provision of public transport services in terms of contracts which are kilometre based and affordable to Outputs Priority of government that this grant primarily
 contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance the users of the services Improved efficiencies in public transport spending Number of vehicles subsidised Number of vehicles subsidised (cumulative annual number) Number of scheduled trips Number of trips operated Number of passengers Number of kilometres Number of employees Priority 2: Economic transformation and job creation Priority 5: Spatial integration, human settlements and local government Not applicable This conditional grant provides supplementary funding to subsidise service contracts entered into between the provincial departments of transport and public transport operators for the provision of affordable subsidised transport services If the contracting function is devolved to any municipality before the 2023/24 adjustment budget, the appropriate portion of the grant will also be devolved to the municipality.
The implementation of the devolution should be managed in terms of section 16 of the 2023 Division of Revenue Act Where contracts are not devolved, provinces must continue performing the contracting function until this function is assigned to a municipality in terms of the provisions of the National Land Transport Act (Act 5 of 2009).

The municipality and province will have to make transitional arrangements to ensure payments to operators to meet contractual commitments.
A service level agreement between the province and the municipality must be signed and funds must flow in line with 2023 Division of Revenue Act requirements.
Provinces must take all reasonable measures to assist the transition within a framework to be prescribed by the national Department of Transport (DoT) and National Treasury In cases where a contract, or part thereof, is transferred in terms of any applicable legislation or legal provision as part of the integrated public transport network of the municipality, the funds allocated to such a contract or part thereof must be ring-fenced and transferred to the municipality taking over the contract from the province For the purpose of planning provinces must establish public transport integration committees.
The provinces must share relevant information with municipalities relating to this grant, where services link to integrated public transport networks All new contracts, including designs and operators’ business plans detailing subsidised services, must be approved by the public transport integration committee, and be in line with relevant legislation and in compliance with the public transport strategy.
Where an intermodal planning committee is established at municipal level, in terms of the National Land Transport Act, the functions of the two committees must be consolidated to ensure integration of planning, services and modes Provinces must ensure that public transport integration committees are established and functional and that no new contracts are paid from the grant if they are not considered by the public transport integration committee In order to ensure efficient usage of grant funds, the DoT in consultation with the National Treasury can instruct that contracting authorities to utilise national transversal appointment for items such as professional services for service design, vehicles and information technology (including automated fare collection), and vehicle tracking Arrangements for the IC52/97 (Moloto Road Bus Contract): Part of Gauteng’s allocation is ring-fenced for the introduction of a new contract to replace IC52/97 (Moloto Road Bus Contract) in 2023/24as determined by National Treasury after consultation with the DoT and the province To respond to the COVID-19 pandemic, provinces may use grant funds for the sanitisation of public transport vehicles and other public transport facilities, including the provision of personal protective equipment for public transport workers, hand washing facilities and provisions for physical distancing Allocations are based on 2009 Division of Revenue Act allocation baseline, weighted for the average shares of historical contributions that supplement the grant.
Provinces/contracting authorities should determine individual operator’s budgets and ensure that the operation stays within the allocation or provide supplementary funds from their provincial budget Subsidies are earmarked for the provision of public transport services 2021/22 audited financial outcome Allocated and transferred R7.1 billion to provinces of which R6.5 billion was spent by the end of the national financial year Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 203 Public Transport Operations Grant 2021/22 service delivery performance Number of vehicles subsidised: 6 377 Number of kilometres subsidised: 210 701 153 Subsidy per passenger: R6.67 Subsidy per kilometre operated: R7.08 Passengers per vehicle: 2 933 Passengers per trip operated: 41.1 Employees per vehicle: 2.0 As provided for in the National Land Transport Act 5 of 2009 2023/24: R7.4 billion; 2024/25: R7.7 billion and 2025/26: R8.1 billion Monthly instalments according to a payment schedule approved by National Treasury Responsibilities of the national department Disburse allocations to provinces Collect and evaluate operational and financial data from provinces and consolidate for submission to National Treasury Maintain a national database with key performance indicators of public transport services as per data received
 from provinces Submit quarterly and annual reports to National Treasury in line with Division of Revenue Act requirements and time frames Advise provinces/contracting authorities regarding the design of contracted services In the event that a service level agreement is signed between Gauteng province and the national department for the management of the IC52/97 contract, the service level agreement must include provision for capacity and resources needed to administer the contract Implement internal mechanisms to monitor adherence to grant conditions and manage the disbursements of the grant where there is non-compliance.
Measures to address non-compliance include withholding transfers, as provided for the Division of Revenue Act.
If matters are still unresolved, this may result in the stopping and reallocation of tranche payments in terms of the Division of Revenue Act Responsibilities of provincial departments Any contractual agreement entered into in relation to this grant will be the responsibility of the contracting authority Provincial departments remain responsible for funding any shortfall experienced on this grant from their provincial equitable share Ensure that contracted operators’ certified claims are paid within 30 days from the date of receipt Provinces must monitor and verify the correctness of the operators’ claims in terms of the kilometres of service provided and provide a monthly summary report to the transferring officer Certify and submit monthly performance reports to DoT within 25 days after the end of the month, and quarterly performance reports within 30 days after the end of each quarter using the reporting format developed by DoT The PTOG reports must be signed by the Accounting Officer or delegated official in terms of Public Finance Management Act Provinces must inform the transferring officer of any disputes or challenges that may lead to service disruptions Provinces must ensure that public transport integration committee are established and f new public transport contracts are to be considered by the public transport integration committee for approval Process for approval of 2024/25 business plans Not applicable 204 Annexure W3: Frameworks for Conditional Grants to Municipalities Detailed frameworks on Schedule 4, Part B; Schedule 5, Part B; Schedule 6, Part B; and Schedule 7, Part B grants to municipalities Introduction This annexure provides a brief description for each grant in Schedule 4, Part B; Schedule 5, Part B; Schedule 6, Part B; and Schedule 7, Part B of the 2023 Division of Revenue Bill.
The following are key areas considered for each grant: Strategic goal and purpose of the grant Outcome statements and outputs of the grant Priority(ties) of government that the grant primarily contributes to Conditions of the grant (additional to what is required in the Bill) Criteria for allocation between municipalities Rationale for funding through a conditional grant Past performance The projected life of the grant 2023 MTEF allocations The payment schedule Responsibilities of transferring national department and receiving municipalities Process for approval of business plans for 2024/25 The attached frameworks are not part of the Division of Revenue Bill but are published in order to provide more information on each grant to parliament, legislatures, municipal councils, officials in all three spheres of government and the public.
Once the Division of Revenue Bill, 2023 is enacted, these frameworks will be gazetted in terms of the Act.

The financial statements and annual reports for 2023/24 will report against the Division of Revenue Act, Division of Revenue Amendment Act and their schedules, and the grant frameworks as gazetted in terms of the Act.

Such reports must cover both financial and non-financial performance, focusing on the outputs achieved.
205 COOPERATIVE GOVERNANCE GRANTS Transferring department Grant schedule Strategic goal Cooperative Governance (Vote 3) Schedule 5, Part B To support spatially aligned public infrastructure investment that will lead to functional and Integrated Urban Development Grant Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions efficient urban spaces and ultimately unlock growth To provide funding for public investment in infrastructure for the poor and to promote increased access to municipal own sources of capital finance in order to increase funding for public investment in economic infrastructure To ensure that public investments are spatially aligned and to promote the sound management of the assets delivered Improved access to municipal infrastructure Improved quality of municipal services through infrastructure that is in better condition Improved spatial integration Number of new water connections meeting minimum standards Number of new sewer connections meeting minimum standards Number of dwellings provided with connections to the main electricity supply by the municipality Percentage of known informal settlements receiving integrated waste handling services during the financial year Additional square meters of parks provided during the financial year Additional square meters of outdoor sports facilities provided during the financial year Additional square meters of public open space provided during the financial year Number of additional community halls provided during the financial year Number of additional libraries provided during the financial year Percentage of unsurfaced roads graded within the financial year Percentage of surfaced municipal road lanes which has been resurfaced and resealed Length of
 non-motorised transport paths built over the financial year Number of work opportunities and Full-Time Equivalents (FTEs) created using the Expanded Public Works Programme (EPWP) guidelines for the above outputs Number of specialised vehicles for waste management (as defined in annexures A and B of the norms and standards for specialised waste vehicles) purchased to service the poor Priority 5: Spatial integration, human settlements and local government This grant uses a three-year capital programme that is aligned with a 10-year Capital Expenditure Framework The three-year capital programme must demonstrate alignment with the Capital Expenditure Framework The three-year capital programme must provide the following detail for each sub-programme that is partially or fully funded by the Integrated Urban Development Grant (IUDG): o classification of sub-programme as informal settlement upgrading, other new infrastructure or renewal o anticipated outputs o indication of the proportion of outputs that will be delivered in priority areas as identified in the Spatial Development Framework indication of the proportion of outputs that will benefit low-income households, high income households or non-residential customers o The three-year capital programme must demonstrate appropriate co-funding for the portion of the programme that does not benefit low-income households This grant uses the Municipal Infrastructure Grant-Management Information System (MIG- MIS) registration requirements for ongoing projects that were previously funded from the Municipal Infrastructure Grant IUDG funds may only be spent on: o basic residential infrastructure for the poor for water, sanitation, roads, waste management, street lighting, community facilities as well as associated municipal bulk and connector infrastructure o new infrastructure, upgrading existing infrastructure or renewing existing
 infrastructure o maintenance of roads infrastructure mainly serving the poor o specialised waste management vehicles servicing the poor o undertaking specified planning and programme management activities Before newly participating municipalities can receive their first tranche, their three-year capital programme and 10-year Capital Expenditure Framework must have been approved through processes led by the Department of Cooperative Governance (DCoG) A maximum of 5 per cent of a municipality’s IUDG allocations may be used for programme management costs related to grant funded projects, only if a business plan for their Programme 206 Integrated Urban Development Grant Management Unit is approved by the transferring officer before the start of the municipal financial year.
If these funds (5 per cent) are not planned or spent for this purpose they must revert back to capital projects in the IUDG Municipalities that have non-compliance pre-directives or directives with the Department of Water and Sanitation may spend up to 10 per cent of their allocations for the urgent repairs and refurbishment of water and sanitation infrastructure to restore functionality.
This is subject to prior approval from DCoG Local municipalities investing in roads infrastructure must utilise data from the Rural Roads Asset Management System (RRAMS), where available, to identify and prioritise their investment on roads projects; including maintenance IUDG funds can be used for road maintenance only if projects are planned and prioritised using RRAMS data Ring-fenced sport infrastructure allocation: o municipalities that have allocations gazetted as part of the ring-fenced allocation for specific sport infrastructure projects may only spend these allocations on the projects identified by the Department of Sports, Arts and Culture (DSAC) o municipalities must make use of framework contracts approved by DSAC when implementing projects funded from this allocation unless an exemption from this requirement is approved by DSAC initial transfers of funds from the ring-fenced funds will be subject to signing of a memorandum of understanding between DSAC and the beneficiary municipalities o o subsequent transfers funded through the ring-fenced amount will also be subject to approval by DSAC Municipalities that are already part of the IUDG but do not continue to meet all of the qualification criteria for the grant must adopt and implement a Performance Improvement Plan (PIP) and meet the qualification criteria within 2 years of the implantation of the PIP if they are to remain part of this grant.
DCoG will continue to monitor the PIPs for Polokwane Local Municipality and Sol Plaatje Local Municipality Municipalities implementing a PIP must submit quarterly reports on its progress to DCoG Municipalities using IUDG funding to purchase specialised vehicles for waste management must prepare a technical assessment report (TAR) which must comply with the norms and standards for specialised waste management vehicles.
The TAR must demonstrate that IUDG funds will only be used for the expansion of waste management services to poor households not previously served.

The purchase will only be done through the National Treasury’s RT57 transversal contract and the TAR must include a recommendation from the provincial Department of Environment, Forestry and Fisheries (DEFF) and a final approval from the national DEFF before it is considered.
Vehicles may not be purchased with IUDG funds for other purposes Allocation criteria Allocations are focused on municipalities whose circumstances align with the IUDG’s criteria, these include: higher urban population densities and high economic activity The IUDG includes a base component, a performance-based component and a 3 per cent planning component A large portion of the total IUDG allocation is the base allocation derived from the Municipal Infrastructure Grant (MIG) formula explained in part five of annexure W1 of the 2023 Division of Revenue Bill.
The formula incorporates household backlogs in basic services and access to socio-economic services and poverty-weighted data A portion of the total IUDG allocation is allocated as a performance incentive.

The performance- based component is also weighted according to the allocations in the MIG formula.
This allocation is then adjusted based on performance against the following weighted indicators: repairs and maintenance expenditure (30 per cent) o non-grant capital as a percentage of total capital expenditure (40 per cent) o o asset management plan (30 per cent) o land use applications in priority areas (0 per cent - this factor is dormant in 2023/24) o building plan applications in priority areas (0 per cent - this factor is dormant in 2023/24) An equivalent of 3 per cent of the MIG formula allocation for participating municipalities is allocated to undertake specified planning activities, provided that these conform to the list of eligible activities identified by the transferring officer, including: o a detailed three-year capital programme and a 10-year Capital Expenditure Framework o property market empirical and diagnostic studies o o o municipal systems and/or measures to improve ease of doing business such as construction integrated infrastructure and spatial planning for identified integration zones investment pipeline development permits and land use applications o development or review of infrastructure asset management plans o identified priority areas for spatial transformation in line with the Spatial Development Framework and Capital Expenditure Framework o development of infrastructure financing strategies and instruments including finance strategy for green and climate resilient infrastructure implementation of an agreed performance improvement plan o Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 207 Integrated Urban Development Grant o private sector engagement strategy and programme indicating how the municipality will partner with different stakeholders on the delivery of the Capital Expenditure Framework o development of climate change mitigation and adaptation plan or strategy This is a specific purpose grant with conditions, objectives and
 distribution criteria different from that of the equitable share 2021/22 audited financial outcome The IUDG allocation for 2021/22 was R1 billion and R989 million was spent in 2021/22 2021/22 service delivery performance Number of poor households impacted through the construction of new infrastructure and upgrading and renewal of existing infrastructure for: o 6 804 households provided with basic water o 4 762 households provided with sanitation services o 1 138 households provided with electricity Community infrastructure constructed (new infrastructure and upgrading and renewal of existing infrastructure): o 3 landfill solid waste disposal sites developed o 2 sport and recreation facilities developed o 30 kilometres of municipal roads developed 2 388 FTEs created using the EPWP guidelines for the above outputs The programme will continue up to 2025/26, subject to review 2023/24: R1.2 billion; 2024/25: R1.2 billion and 2025/26: R1.3 billion The grant will be paid in three instalments: July 2023, December 2023 and March 2024, in line with the payment schedule approved by National Treasury Responsibilities of the national departments DCoG administers the IUDG and co-ordinates its activities with all stakeholders, through appropriate structures.
DCoG must: o monitor expenditure and non-financial performance in collaboration with provincial departments of cooperative governance o coordinate overall programme implementation The Municipal Infrastructure Support Agent must support municipalities that have been identified collaboratively by DCoG and its provincial counterparts as needing assistance The Department of Environment, Forestry and Fisheries must make the final recommendation on the TAR for the purchasing of specialised waste management vehicles In addition to the sector-specific support and advice, the Department of Water and Sanitation, Department of Environment, Forestry and Fisheries, Department of Transport, Department of Mineral Resources and Energy and DSAC will be expected to: o provide sector policies and plans to municipalities as informants to the preparation of Capital Expenditure Frameworks o participate in processes to approve the 10-year Capital Expenditure Framework and three- o year capital programme fulfil a sectoral monitoring and guidance role on relevant sectoral outputs.
National sector departments will be invited to participate in IUDG in-year monitoring meetings in order to facilitate this role Responsibilities of the provincial departments Provincial departments responsible for local government must: o coordinate technical support to municipalities o provide assistance to municipalities in managing municipal infrastructure projects o participate in processes to approve the 10-year Capital Expenditure Framework and three- year capital programme o participate in in-year monitoring meetings o verify outputs and outcomes reported by municipalities on a sample of projects annually Provincial treasuries must: o participate in processes to approve the 10-year Capital Expenditure Framework and three- year capital programme o participate in in-year monitoring meetings Provincial departments of environment, forestry and fisheries are responsible for providing recommendations on the TAR for the purchasing of specialised waste management vehicles to the national Department of Environment, Forestry and Fisheries Responsibilities of the municipalities Municipalities must ensure appropriate programme and project planning and implementation readiness prior to the year of implementation and this must be informed by the Integrated Development Plan, three-year capital programme and the 10-year Capital Expenditure Framework Municipalities must monitor projects during the year and use this monitoring to inform reporting to DCoG
 Municipalities must report monthly, quarterly and at the end of the financial year in the prescribed format(s) and timelines Monthly, quarterly and annual reports must be signed-off by the Accounting Officer or the delegated official and submitted directly to DCoG Process for approval of 2024/25 business plans 208 Integrated Urban Development Grant Eligibility for the IUDG and minimum conditions for qualification are outlined in Annexure W1 to the 2023 Division of Revenue Bill If a Category B municipality wishes to apply for the IUDG for 2024/25 and is not already classified as an intermediate city municipality, it must submit an application to be classified as an intermediate city municipality by 2 May 2023.
The municipality will receive notification of the outcome of its application by the 30 June 2023 Category B municipalities that have been classified as intermediate city municipalities and wish to be considered for qualification for the IUDG must submit an application form indicating compliance with minimum conditions by 31 July 2023 Municipalities that will be receiving the IUDG for the first time in 2024/25 must submit a first draft of the three-year capital programme and 10-year Capital Expenditure Framework to the transferring officer by 31 March 2023 and the final versions of the three-year capital programme and 10-year Capital Expenditure Framework must be adopted by respective councils by 31 May 2023 The adopted three-year capital programme and 10-year Capital Expenditure Framework must be submitted to DCoG with council resolution no later than 10 days after adoption by council Municipalities that are already on the IUDG do not need to submit CEFs to DCoG annually unless they embarked on a process to review/ amend their CEF and 3-year Capital Programme in the prior year or advised by DCoG upon conducting a gap analysis on the existing CEF Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan 209 Municipal Disaster Recovery Grant Cooperative Governance (Vote 3) Schedule 5, Part B To restore
 functionality of municipal infrastructure following a disaster To rehabilitate and reconstruct municipal infrastructure damaged by a disaster Municipal infrastructure damaged by a disaster rehabilitated and reconstructed Municipal infrastructure damaged by a disaster reconstructed and rehabilitated Priority 5: Spatial integration, human settlements and local government This grant uses the template/framework developed by the National Disaster Management Centre
 (NDMC) which must include a project implementation plan, highlighting: o o o o o o o copy of the applicable contingency plan and emergency procedures in use by the municipality (in terms of section 49(1)(d) of the Disaster Management Act) linked to Sections 56 and 57 of the same Act details of insurance and insured infrastructure, where applicable including factors outlined in Sections 56 and 57 of the same Act as well as proof from the insurance company on the matter list of projects to be implemented timeframes within which the projects will be implemented costs of reconstruction and rehabilitation projects disaster risk reduction measures for the proposed reoccurrence of disaster related damage in the future number of households to benefit from the projects and estimated jobs to be created Conditions A business plan and project implementation plan signed by the Accounting Officer aligned to the post disaster verification assessment report must be submitted to the NDMC Disaster reconstruction and rehabilitation funds must only be utilised for approved projects as listed in the post disaster verification assessment reports and approved business plans The grant may not be utilised for insured infrastructure.
In case of inadequate insurance, reasons for inadequate insurance to be provided as well as proof from the insurer on the amount paid/ to be paid Funds may only be utilised for approved projects within affected provinces, for the reconstruction and rehabilitation of infrastructure damaged by disaster incidents Monthly and quarterly financial and non-financial performance reports on disaster allocations must be submitted to the NDMC through the relevant Provincial Disaster Management Centre (PDMC) Annual performance evaluation report on financial and non-financial performance to be submitted to the NDMC through the relevant PDMC Municipalities must liaise and align the disaster recovery projects with the Municipal Infrastructure Grant projects to ensure proper monitoring and reporting on the progress for implementation of the projects To receive the first tranche, municipalities must have submitted a business plan identifying projects to be implemented through approved allocation confirming project planning and implementation readiness including cash flow projections Municipalities must spend at least 60 per cent of their previous transfers and comply with all grant conditions before subsequent tranches can be transferred Allocation criteria The grant is allocated based on approved post-disaster reconstruction and rehabilitation assessment reports Reason not incorporated in equitable share Past performance Projected life MTEF allocations
 Payment schedule Responsibilities of the transferring officer and receiving officer This grant caters for recovery after unforeseen disasters 2021/22 audited financial outcomes Not applicable 2021/22 service delivery performance Not applicable This grant will continue until 2023/24, subject to review 2023/24: R321 million Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of National Disaster Management Centre Advise municipalities about the existence of the grant and its conditions Provide municipalities with a final post-disaster verification assessment report that includes a project list and projected costs for all infrastructure to be reconstructed or rehabilitated.
This report must be provided through the relevant PDMC Monitor the implementation of projects together with the affected municipalities and provinces Make payments to municipalities in accordance with the approved payment schedule Transfer funds only when evidence on project performance and expenditure reports are submitted Responsibilities of Provincial Disaster Management Centres Advise municipalities about the existence of the grant and its conditions Assist municipalities with the rapid assessment reports to be submitted to the NDMC Provide support to municipalities with regard to the final post-disaster verification report Ensure that the final post-disaster verification report is signed-off by both the accounting officer in the municipality and the provincial department Provide a copy of the final post-disaster verification report to municipalities Assist municipalities with business plans incorporating the implementation plan and disaster risk reduction measures for the proposed projects to prevent reoccurrence of disaster related damages in future Monitor the performance of municipalities and recommend relevant measures required for under-performance to NDMC 210 Municipal Disaster Recovery Grant Conduct on-site visits to monitor and report on the implementation of projects and provide reports of progress to the NDMC Provide financial and non-financial reports to the NDMC within 15 days after the end of each month.
Photographs depicting the projects progress should be included as an annexure Provide expenditure and project performance reports including evidence to the NDMC within 35 days after the end of the quarter in which funds are spent Responsibilities of municipalities Undertake disaster assessments, prepare assessment report, funding request and submit to the PDMC Develop and submit business plans incorporating implementation plans and disaster risk reduction measures for the proposed projects to prevent reoccurrence of disaster related damages in future Activate municipal project task teams for implementation of approved disaster projects Conduct on-site visits to monitor and evaluate the impact of projects and provide reports which include evidence to the NDMC through the relevant PDMC Utilise the funds in line with the approved post-disaster verification assessment report Submit reports on financial and non-financial information to the PDMC within five days of the end of each month in which funds are spent.
Photographs depicting the project progress should be included as annexures Submit a quarterly non-financial performance report signed-off by the Municipal Manager to the PDMC within 30 days after the end of each quarter in which funds are spent (in line with section 12(2)(c) of the 2023 Division of Revenue Act), together with supporting documentation such as certificate of payment, pictures, invoices, etc Evaluate the financial and non-financial performance of the municipality and submit such evaluation signed- off by the Municipal Manager to relevant provincial treasury and the NDMC through the PDMC within two months after the end of the financial year (in line with section 12(5) of the 2023 Division of Revenue Act), together with supporting documentation such as certificate of payment, pictures, invoices, etc Process for approval of 2024/25 business plans Not applicable 211 Municipal Disaster Response Grant Transferring department Grant schedule Strategic goal Cooperative Governance (Vote 3) Schedule 7, Part B To enable timely response to address community needs regarding impending or disastrous events classified by the National Disaster Management Centre Grant purpose To provide for the immediate release of funds for disaster response if an occurrence cannot be adequately Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria addressed in line with section 2(1)(b) of the Disaster Management Act Immediate consequences of disasters are mitigated or alleviated Emergency repair of critical infrastructure Emergency provision of critical goods and services Priority 5: Spatial integration, human settlements and local government Applications for funding from this grant use the National Disaster Management Centre (NDMC) disaster grant guideline which includes the following: o copy of the
 applicable contingency plan and emergency procedures in use by the municipality (in terms of section 49(1)(d) of the Disaster Management Act) o prevention and mitigation strategies as per the disaster management plan o documentation linked to Sections 56 and 57 of the same Act o details of insurance and insured infrastructure, where applicable including factors outlined in Sections 56 and 57 of the same Act as well as proof from the insurance company on the matter o number of people, households, livestock and infrastructure affected and the extent of damages and losses o sectors affected o o resources (both financial and in-kind) allocated by the municipality to respond and mitigate the effects total funds required for disaster response and relief measures of the disaster o resources (both financial and in-kind) committed by other role players, including provinces, the private sector, national departments, state owned entities and non-government organisations o cost-benefit analysis of the projects to be implemented An implementation plan with the following: o details of the projects to be repaired including Global Positioning System (GPS) coordinates o costs of the projects o consolidated projects cash flow over six-month period as an annexure to the implementation plan An application for funding contribution may be based on the rapid assessment (preliminary versions of the supporting documentation required above may be accepted for the funding application) Specifics on the rapid response capacity to implement the projects and account for allocated funding An occurrence should be classified as a disaster by the NDMC in terms of the Disaster Management Act and documentation linked to conditions within sections 56 and 57 of the above-mentioned Act submitted to the NDMC This grant may only be used to fund expenditure in the event that the municipality responsible for the provision of the affected basic service is unable
 to deal with the effects of the disaster utilising own legislation, guidelines and available resources The grant may not be utilised for insured infrastructure.
In case of inadequate insurance, reasons for inadequate insurance to be provided as well as proof from the insurer on the amount paid/ to be paid Municipalities must fund a portion of the costs of the disaster response and relief measures from their own budget, if unable to do so, proof must be provided together with the funding request Funds may only be used in line with the approved implementation plan.
Any amendments to the implementation plan must be approved by Council and submitted at least three months prior to end of 6 months implementation period, supported and recommended by the PDMC and approved by the NDMC and copies of the approved amendments shared with National Treasury Funds from this grant must be utilised within six calendar months following the date of the transfer of the funds to the municipality A municipality may request through the PDMC, that the NDMC approve that an allocation be utilised more than six calendar months after the date of transfer in terms of section 25(3)(d) of the 2023 Division of Revenue Act.
The request to be made within the first four months that the funds are transferred.
NDMC to notify National Treasury of any approved extensions The emergency procurement system provided for in Treasury Regulations should be invoked by the affected municipalities to ensure immediate response and relief measures within their areas of jurisdiction A copy of the contingency plan for the relevant hazard is to be submitted with the funding request The grant is allocated for classified disasters, based on reports from assessments conducted by the NDMC and PDMC and affected sectors for immediate disaster response and relief needs.
This should include implementation of Section 56 and 57 of the Disaster Management Act.
Additionally, it must be established that there are immediate disaster response and relief needs that cannot be met by the municipality through the contingency arrangements already in place The Accounting Officer for the affected municipality must indicate in their application that the total funds required from the grant for disaster response and relief exceed the available resources and/or resources already allocated for disaster response and relief Funding may be released in tranches, with the first tranche being based on the rapid assessment and verification of the disaster relief needs.
The next tranches will be released once proof is submitted that the first tranche has been fully spent or committed and all grant conditions have been met Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 212 Municipal Disaster Response Grant This grant provides funding for responding to and providing response and relief measures for unforeseeable and unavoidable disasters where municipalities are unable to cope with the effects of the disaster from own resources 2021/22 audited financial outcomes R330 million has been allocated to 26 municipalities in the six provinces for Eloise (R157 million, 16 municipalities) and Drought (R173 million, 10 municipalities) intervention measures 2021/22 service delivery performance MDRG funds transferred to municipalities to provide funding to address damages due to tropical storm “Eloise” and Drought intervention measures.
This funding was used to repair damaged municipal infrastructure, enhance critical water infrastructure and provide livestock feed to farming communities.
This funding was disbursed as follows: o R32 million to KwaZulu-Natal for 1 municipality o R88 million to Limpopo for 7 municipalities o R22 million to Northern Cape for 5 municipalities o R15 million to North West for 3 municipalities o R126 million to Eastern Cape for 9 municipalities o R47 million to Western Cape for 1 municipality This grant is expected to continue over the medium-term subject to review 2023/24: R373 million; 2024/25: R389 million and 2025/26: R407 million Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the National Disaster Management Centre Advise and guide municipalities and PDMCs about the existence of the grant and how grant funding can be applied for and the criteria to qualify for the grant Verify the applications for funding as per the requirements of the Disaster Management Act and submit funding request to National Treasury for consideration within 14 days following the receipt of the assessment report and written funding request from the municipalities through the PDMCs and when all grant conditions have been met Confirm what support the relevant national sector departments are providing and ensure there is no duplication of support Notify the relevant municipality of a transfer at least three days before the transfer is made Notify the relevant PDMC together with the relevant sector departments, National Treasury and the relevant provincial
 treasury of a transfer and reason for transfer within five days of the transfer of funds to municipalities Provide National Treasury and the relevant provincial treasury with written notification of the transfer within 14 days of a transfer of this grant Provide expenditure reports to National Treasury in line with the 2023 Division of Revenue Act and the Public Finance Management Act (PFMA) within 20 days after the end of each month Provide a performance report to National
 Treasury in the disaster allocation monitoring template agreed to with the National Treasury within 45 days after the end of the quarter in which funds are spent, with invoices and certificate of payments as annexures to the report Together with the relevant PDMC monitor the implementation of disaster response and relief projects Share with the National Treasury, approvals to utilise more than six calendar months after the date of transfer Responsibilities of the Provincial Disaster Management Centres Together with the affected municipalities and the relevant sector departments, conduct rapid assessments to verify the impact of the disaster within 14 days following the occurrence of the incident and compliance to all grant conditions Assist municipalities to compile funding applications in the required format, the reports and funding applications for funding from municipalities following the occurrence of the disaster as per the requirements of the Disaster Management Act and grant conditions and sign-off the applications Confirm what support provincial sector departments and other stakeholders are providing and ensure there is no duplication of support Activate a project task team comprising of affected municipalities and relevant sector departments Monitor projects to ensure that the funds are used for intended purposes and provide reports to the NDMC and relevant provincial treasury Coordinate, analyse and submit expenditure reports signed-off by the head of the PDMC on progress regarding the implementation of the projects by the municipalities to NDMC within 15 days after the end of each month in which funds are spent, with invoices and certificate of payments as annexures to the reports Coordinate, analyse and submit performance reports signed-off by the Head of the PDMC, which include evidence, on progress with implementation of the projects by the municipalities to the NDMC
 within 35 days after the end of the quarter in which funds are spent Monitor the implementation of disaster funds and related projects Responsibilities of the municipalities Conduct damage assessment and costing of emergency repair work Together with the required supporting documentation, submit disaster assessment reports and funding requests signed-off by the Accounting Officer to the PDMC within 14 days following the classification of a disaster Municipalities must invoke emergency procurement processes provided for within the Treasury Regulations when spending the funds allocated, to ensure immediate assistance to the affected areas and must provide 213 Municipal Disaster Response Grant proof that measures were put in place to mitigate the occurrence in the form of a contingency plan for the specific hazard Municipalities must implement all projects approved and ensure that the funds allocated are spent for their intended purposes Activate project task teams during the implementation of disaster projects at a municipal level Submit expenditure reports signed-off by the Accounting Officer which include evidence such as Certificate of payment, pictures, invoices, of implementation progress on the projects to the relevant PDMC within 10 days after the end of each month in which funds are spent Submit a performance report signed-off by the Accounting Officer which includes evidence (such as certificate of payment, pictures, invoices) of implementation progress on the projects to the PDMC within 30 days after the end of the quarter in which funds are spent Process for approval of 2024/25 business plans Not applicable 214 Municipal Infrastructure Grant Transferring department Grant schedule Strategic goal Grant purpose Cooperative Governance (Vote 3) Schedule 5, Part B and Schedule 6, Part B Subsidise the capital costs of providing basic services
 to poor households Subside the development of asset management plans for infrastructure servicing poor households To provide specific capital finance for eradicating basic municipal infrastructure backlogs for poor households, microenterprises and social institutions servicing poor communities Outcome statements To provide specific funding for the development of asset management plans for infrastructure servicing the poor Improved access to basic services infrastructure for poor communities, through the use of labour-intensive construction (LIC) methods where it is technically feasible Outputs Improved reliability of basic services infrastructure for poor communities Number of poor households impacted through the construction of new infrastructure and the upgrading and Priority of government that this grant primarily contributes to Details contained in the business plan Conditions renewal of existing infrastructure for: o basic water and sanitation services o central collection points for refuse, transfer stations, recycling facilities and solid waste disposal sites o sport and recreation facilities o street and community lighting o public facilities Number of poor households impacted through the urgent repairs and refurbishment of water, sanitation and solid waste management existing infrastructure Number of kilometres of municipal roads developed, upgraded and maintained servicing the poor Number of specialised vehicles for waste management (as referenced in annexures A and B of the norms and standards for specialised waste vehicles) purchased for servicing the poor Number of work opportunities and Full-Time Equivalents (FTEs) created using the Expanded Public Works Programme (EPWP) guidelines for the above outputs Number of Infrastructure Asset Management Plans developed Priority 5: Spatial integration, human settlements and local government
 This grant uses the Municipal Infrastructure Grant (MIG) registration form for both schedule 5, part B and 6, part B as agreed with sector departments, which includes: o project title o sector o o funder (municipalities in the case of schedule 5, part B and the Department of Cooperative Governance timeframes for implementation (DCoG) in the case of schedule 6, part B) o cost of the project o LIC component of the project, with targets and processes to be used Schedule 5, Part B To receive the first tranche, municipalities must have followed the process for approval of 2023/24 projects and have confirmed by 2 May 2023 with DCoG, their programme, project planning and implementation readiness in the form of a council approved implementation plan that includes cash flow projections as well the procurement plan Municipal allocations must be fully committed to registered projects prior to the year of implementation and be informed by the Integrated Development Plans (IDPs) and three-year capital plans which are aligned to the relevant One Plan of districts areas developed under the District Development Model MIG priorities set by municipalities (as stated in their MIG implementation plans) can only be changed in-year with other MIG registered projects, after municipal council approval and confirmation that the projects will be awarded and implemented in the same year Projects not implemented within three years of approval by the relevant appraisal committee will be deregistered by MIG Appraisal Committees Stalled projects where MIG funds have already been spent and not completed should be prioritised for implementation before any new projects are considered for registration, provided the municipality is not fully committed for the MTEF period Stalled projects can only be deregistered on confirmation that they are functional and benefiting the intended beneficiaries as per the project registration and within
 approved itemised cost MIG must be allocated and transferred directly to a category B or C municipality that has the powers and functions for basic services referred to in section 84 of the Municipal Structures Act, to enable the municipality to provide basic municipal infrastructure to the poor, in line with their functions Municipalities must prioritise MIG funds for infrastructure that services eligible beneficiaries, such as: o basic residential infrastructure for the poor for water, sanitation, roads and stormwater, waste management, street lighting and community facilities o new or upgrading of municipal bulk infrastructure to support existing areas, the formalisation of informal settlements and to support economic development o renewal of eligible infrastructure servicing the poor subject to the confirmation by the relevant sector department of the state of infrastructure and a commitment from the municipality of how on-going operations and maintenance of the renewed infrastructure will be funded and performed o maintenance of roads infrastructure mainly servicing the poor o specialised waste management vehicles servicing the poor 215 Municipalities must spend at least 60 per cent of their previous transfers and comply with reporting provisions Municipal Infrastructure Grant before subsequent tranches are transferred By 2 January 2024, municipalities must spend: o at least 40 per cent of their total MIG allocation, where allocations are equal or less than R100 million o at least 45 per cent of their total MIG allocation, where allocations are more than R100 million Municipalities must comply with sector norms, standards and legislation as confirmed by sectors during the MIG project registration processes Local municipalities investing in roads infrastructure must utilise data from Asset Management Plan to identify and prioritise their investment on roads maintenance projects Ring-fenced sport
 infrastructure allocation: o municipalities that have allocations gazetted as part of the ring-fenced allocation for specific sport infrastructure projects may only spend these allocations on the projects identified by the Department of Sports, Arts and Culture (DSAC) initial transfers of funds from the ring-fenced sport infrastructure allocation to identified projects will be subject to signing of a memorandum of understanding between DSAC and the beneficiary municipalities o subsequent transfers for projects funded through the ring-fenced amount will also be subject to approval by o DSAC Sport infrastructure as part of the P-component: o municipalities must submit technical reports for spending 33 per cent of their P-component allocation on sport and recreation infrastructure projects o all sport infrastructure plans and technical reports must be submitted as part of the normal MIG planning process but will be reviewed and approved by DSAC to ensure they comply with norms and standards before construction can begin Municipalities must ensure compliance to EPWP infrastructure guidelines in aligning their projects and reporting the work opportunities created on the EPWP reporting system Municipalities must ensure that a minimum of 20 per cent of their budget applies LIC methods and complies to EPWP infrastructure guidelines as part of the feasibility phase of the project Municipalities using MIG funding to purchase specialised vehicles for waste management must complete a Technical Assessment Report (TAR) which must comply with the norms and standards for specialised waste management vehicles.
The TAR must demonstrate that MIG funds will only be used for the expansion of waste management services to poor households not previously serviced.

The purchase will only be done through the National Treasury’s transversal contract RT57 and the TAR must include a recommendation from the Provincial Department Forestry, Fisheries and the Environment (DFFE) and a final approval from the National DFFE before being appraised for registration.
Vehicles may not be purchased with MIG funds for other purposes Municipalities with non-compliance pre-directives or directives from the Department of Water and Sanitation may use up to 10 per cent of their MIG allocations for urgent repairs and refurbishments, provided data is based on asset management plans Funds may only be used for disaster relief interventions based on a plan approved by the transferring officer Municipalities must submit monthly and quarterly reports in the prescribed national template and signed-off by the Municipal Manager or delegated official Municipalities must utilise the Municipal Infrastructure Grant Management Information System (MIG-MIS) to facilitate programme and project management and reporting The cost for the Project Management Unit (PMU) does not exceed 5 per cent of a municipality’s MIG allocation and may be used for programme/project management costs related to all schedule 5, part B grant-funded projects and only if a business plan for the PMU is approved by 1 May 2023.
If these funds are not committed for this purpose or spent for this purpose they must revert back for MIG capital projects At least 95 per cent of municipalities’ allocation must be used on eligible MIG funded projects, including maintenance on roads mainly servicing the poor A maximum of 5 per cent of a municipality’s allocation may, subject to submitting a business plan for approval by DCoG, be used to fund activities related to the development of an Infrastructure Asset Management Plan.
The business plan must be: o recommended by the relevant sector department o accompanied by an Excel copy of the municipality’s audited asset register o submitted by 31 March 2023 Schedule 6, Part B DCoG will assess municipalities on the following criteria by February 2023: o municipalities with DWS and DFFE directives/ non-compliance on the poor state of water, sanitation and solid waste management infrastructure o actual expenditure reported by municipalities on repairs and maintenance from the previous financial year is lower than 1 per cent of the value of the municipality’s Property, Plant and Equipment (PPE) o extent of non-revenue water as reported in the audited municipal annual financial statements (AFS).
Where non-revenue water is in excess of 30 per cent and not decreasing from year-to-year, the municipality shall be determined to be failing to manage its water supply low MIG expenditure performance over the last four municipal financial years (spent on average 70 per cent and less against the originally annually allocated MIG (before adjustments) over the last four years (2018/19 – 2021/22) o DCoG will notify relevant municipalities by March 2023 on the analysis results, DCoG and relevant municipalities must enter into a memorandum of understanding and agree on a capacity building plan before any project is implemented 216 Municipal Infrastructure Grant DCoG to prepare an implementation plan based on the converted funding specifying the agreed projects to be implemented per municipality by 2 May 2023.
The affected municipalities will align their 2023/24 implementation plans in line with their converted 2023/24 MIG allocations to be submitted to DCoG by 2 May 2023 DCoG may use indirect MIG allocations to fund the urgent repairs and refurbishment of water, sanitation and solid waste management infrastructure Allocation criteria Payments will be made to DCoG’s contracted implementing agents based on invoices for work done Part 5 of Annexure W1 to the 2023 Division of Revenue Bill sets out the MIG formula in detail, showing how Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer the formula incorporates backlog and poverty data The funds ring-fenced for sport infrastructure are allocated based on estimated costs of projects that: o fill identified gaps and are confirmed with the provincial departments responsible for sport and the municipalities o align to the National Sport and Recreation Plan, National Sport Facilities Plan and transformation imperatives o align to priority sport codes This is a specific purpose grant with conditions, objectives and distribution criteria different from that of the equitable share 2021/22 audited financial outcomes The MIG programme was allocated R15.6 billion and the entire amount was transferred and spent by municipalities at the end of the 2021/22 financial year 2021/22 service delivery
 performance Number of poor households impacted through the construction of new infrastructure and upgrading and renewal of existing infrastructure for: o 43 174 households provided with basic water and 53 528 households provided with sanitation services o 25 459 households provided with street and community lighting Community infrastructure constructed (new infrastructure and upgrading and renewal of existing infrastructure): o 32 central collection points for refuse, transfer stations, recycling facilities and solid waste disposal sites developed o 35 sport and recreation facilities developed o 223 public facilities developed o 942 kilometres of municipal roads developed 150 452 FTEs created using the EPWP guidelines for the above outputs This grant continues until 2025/26, subject to review 2023/24: R17.5 billion; 2024/25: R18.3 billion and 2025/26: R19.1 billion Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national departments DCoG administers the MIG and co-ordinates its activities with all stakeholders, through appropriate structures.
DCoG must: o report to sector departments on outputs o monitor expenditure and non-financial performance in collaboration with provincial DCoGs o coordinate overall programme implementation o provide support to municipalities in the utilisation of the MIG-MIS For Schedule 6B allocations, DCoG must: o enter into an MoU with municipalities regarding the construction, ownership, funding arrangements, and operations and maintenance of proposed infrastructure prior to the commencement of construction o provide to National Treasury, detailed information on the selection criteria, and evidence of the approved capacity building plan o ensure that implementing agents submit monthly financial and quarterly non-financial reports on stipulated dates o make payments to contracted Municipal Infrastructure Support Agent (MISA) based on invoices for work done MISA must: o provide technical support and advice to municipalities that have been identified collaboratively with DCoG and its provincial counterparts as needing assistance o on behalf of and in collaboration with national and provincial DCoG’s, conduct detailed municipal assessments of the municipalities identified for assistance, including innovative solutions, investigative lifecycle assessments of MIG projects, municipal MIG and sector performance, and municipal project management functions, to identify detailed reasons for challenges affecting the implementation of MIG o report all findings and recommendations for improvement to the identified municipalities, national and provincial DCoGs o assist the municipal manager of each identified municipality, in collaboration with appropriate structures, including sector departments, to implement recommendations identified by MISA, for improvement, and supply formal progress reports o recommendations may include improvements to municipal processes for planning, project prioritisation and selection.
Recommendations may also include detailed planning, scoping, designing, scheduling, costing and procurement implementation o provide and facilitate assistance, technical advice and expertise to identified municipalities for the use of alternative technology and good practices for MIG projects, including for feasibility studies, operations and maintenance and integrated infrastructure asset management 217 Municipal Infrastructure Grant o partake in the assessment of the business plans for the asset management planning provision and make recommendations to the transferring officer o support DCoG in the identification of projects to be funded from DCoG as a schedule 6, Part B In addition to their sector-specific responsibilities, each national sector department will be expected to: o provide information on service delivery priorities per municipality as expressed within sectoral plans and municipal IDPs o fulfil a sectoral monitoring and guidance role on relevant sectoral outputs o evaluate reports and provide final recommendations to the municipality by 2 October 2023 o Frequently update sector norms and standards and confirm adherence thereto for MIG funded projects through the MIG registration process, which includes participation in the district appraisal processes o confirm the current state of maintenance where municipalities have applied for funding of renewal projects o advise which sphere (provincial or national – even if different across provinces) should sign-off MIG projects and participate in MIG workflow processes o sign-off on project close-out reports, thereby acknowledging the projects have been completed as intended Department of Water and Sanitation must: o support and monitor municipalities to prepare and implement water services development plans o ensure alignment between the MIG programme, Human Settlement Development Grant (HSDG), Informal Settlement Upgrading Partnership Grant: Municipalities (ISUPG), Regional Bulk Infrastructure Grant (RBIG) and the Water Services
 Infrastructure Grant (WSIG) o for the MIG funding stream, monitor and oversee progress on water and sanitation projects implemented through the MIG o promote the use of Innovative solutions in Pre-Feasibility, Feasibility studies and in Technical Report(s) o support the process of the development of water and sanitation infrastructure asset management plans and the updating and verification of asset registers o support DCoG in the identification of projects to be funded from DCoG as a schedule 6, Part B The Department of Human Settlements must ensure alignment between the MIG programme, HSDG, ISUPG: Municipalities, RBIG and WSIG Department of Forestry, Fisheries and the Environment (DFFE): o must support municipalities with planning and implementation of solid waste management projects and o monitor their performance and compliance with conditions applicable to this sector the provincial DFFEs will be responsible for providing recommendations on the TAR for the purchasing of specialised waste management vehicles and national DFFE will provide final approval before submitting projects for registration in the MIG appraisal process o support the process of the development of waste management infrastructure asset management plans and the updating and verification of asset registers o support DCoG in the identification of projects to be funded from DCoG as a schedule 6, Part B Department of Mineral Resources and Energy must: o support municipalities with planning and implementation of public lighting and monitor municipalities’ performance and compliance with conditions applicable to this sector o support the process of the development of electricity community infrastructure asset management plans and the updating and verification of asset registers Department of Transport must support municipalities with planning and implementation of municipal roads projects in terms of the RRAMS data and monitor municipalities’ performance and compliance
 with conditions applicable to this sector Department of Sports, Arts and Culture must: o evaluate reports and provide final recommendations to the municipality by 2 October 2023 that will allow municipalities to submit project registrations for appraisal by 13 October 2023 o support municipalities with planning and implementation of municipal sport and recreation facilities and monitor municipalities’ performance and compliance with conditions applicable to this sector o review, approve and sign-off all MIG projects before recommendation by the provincial sports departments to the MIG appraisal committee o support the process of the development of sport infrastructure asset management plans and the updating and verification of asset registers Department of Public Works and Infrastructure must: o monitor compliance with the EPWP infrastructure guidelines and advise municipalities on the use of labour- intensive processes, systems, techniques and approaches o monitor the number of work opportunities and FTEs created on MIG funded projects that contribute towards EPWP and assist municipalities in meeting their set targets o ensure that municipalities register their projects on the EPWP reporting system and monitor compliance with norms and standards applicable to this sector Responsibilities of provincial departments Coordinate technical support to municipalities Monitor performance of municipal Programme/Project Management Units and recommend relevant sanctions for under-performance to DCoG Provide assistance to municipalities in managing municipal infrastructure projects Provide support to municipalities in the utilisation of the MIG-MIS Provide support to municipalities with the development of Infrastructure Asset Management Plans Monitor and reconcile reported expenditure with proof of payment signed-off by the municipality Monitor the accuracy of project registration forms and
 coordinate monthly, quarterly and annual reports from municipalities and forward them to DCoG 218 Municipal Infrastructure Grant Coordinate district appraisal and progress committee meetings ensuring that DCoG and relevant sector departments are invited Issue registration letters for projects approved by the district appraisal committees to municipalities, copying DCoG Monitor project implementation in collaboration with sectors coordinate project spot checks with relevant stakeholders and compile relevant spot check reports Monitor the capturing of site visit reports by municipalities on the MIG-MIS Monitor compliance with provincial legislation and alignment to provincial growth and development strategies through project registration Responsibilities of provincial sector departments Each provincial sector department must fulfil a sectoral monitoring and guidance role on relevant sectoral outputs Provide technical advice as required by a municipality through the feasibility, planning, design, tender and construction phases of a MIG project Provide support to municipalities with the development of Infrastructure Asset Management Plans Participate in district appraisal and progress committee meetings Evaluate and provide recommendations on sector technical reports before projects are appraised Provincial departments of environment, forestry and fisheries are responsible for providing recommendations on the TAR for the purchasing of specialised waste management vehicles and the national DFFE must provide final approval before submitting projects for registration in the MIG appraisal process Responsibilities of municipalities Municipalities must ensure appropriate programme and project planning and implementation readiness prior to the year of implementation and this must be informed by the IDP and three-year capital programme Municipalities
 must certify compliance to the provision of 2023 DoRA after the schedule of transfers has been communicated by DCoG and before the first transfer is made to the municipality by DCoG Municipalities must have appropriate capacity to implement the MIG, this must be supported by the human resource plan of the municipality Municipalities must monitor each project and ensure that MIG funds are spent for the intended purpose as registered on the MIG-MIS The municipality must comply with the submission of monthly and quarterly reports through the MIG-MIS and the annual reports in the prescribed formats and timelines, reports must be signed-off by the Municipal Manager or the delegated official and submitted to national government via the provincial department responsible for local government Compulsory use of the MIG-MIS to inform the content of the reports mentioned above Municipalities must capture project site visit reports as part of the portfolio of evidence to support claims Schedule 5, Part B Municipalities must submit all technical reports to the sector departments responsible for water, sanitation, solid waste, sport and recreation, roads and transport by 31 July 2023 for all projects to be implemented in 2024/25 The responsible sector department must evaluate reports and provide final recommendations to the municipality by 2 October 2023 When projects are registered for 2024/25, the municipality must identify how each MIG infrastructure project is aligned to and/or supports their local economic development strategy The municipality must submit all project registration forms by 2 October 2023, for the projects to be implemented in 2024/25, to the provincial department responsible for local government The provincial departments must provide final recommendations to municipalities by 30 November 2023 Municipalities must submit to DCoG by 30 January 2024, detailed
 project implementation plans for all the projects to be implemented in the 2024/25 and 2025/26 financial years Such plans should include timelines regarding project designs, initiation of procurement, and environmental impact assessment (EIA) and/or relevant permit/license approvals in the prescribed format Municipalities must submit updated implementation plans (as described above) by 29 April 2024, justifying any changes from the 30 January 2024 submission MISA must review and sign-off on technical and business plan reports [before submission to sector departments or Acquisition Committees], thereby acknowledging the appropriate use of alternative technology and good practices for MIG projects, including for feasibility studies, labour-intensive construction, operations and maintenance and integrated infrastructure asset management Schedule 6, Part B DCoG will engage with identified municipalities by February 2024 for possible conversion of their 2024/25 MIG allocations to a schedule 6, Part B after applying the following criteria: o Municipalities with DWS and DFFE directives/ non-compliance on the poor state of water, sanitation and solid waste management infrastructure o actual expenditure reported by municipalities on repairs and maintenance from the previous financial year is lower than 1 per cent of the value of the municipality’s Property, Plant and Equipment (PPE) o extent of non-revenue water as reported in the audited municipal annual financial statements (AFS).
Where non-revenue water is in excess of 30 per cent and not decreasing from year-to-year, the municipality shall be determined to be failing to manage its water supply low MIG expenditure performance over the last four municipal financial years (spent on average 70 per cent and less against the originally annually allocated MIG (before adjustments) over the last four years (2019/20 – 2022/23) o Process for approval of 2024/25 business plans 219 Municipal Infrastructure Grant DCoG will notify affected municipalities by March 2024 on the analysis results, DCoG and relevant municipalities must enter into a memorandum of understanding and/or support plan before any project is implemented DCoG to prepare an implementation plan based on the converted funding specifying the agreed projects to be implemented per municipality by April 2024.
The affected municipalities will align their 2024/25 implementation plans in line with their converted 2024/25 MIG allocations to be submitted to DCoG by 30 April 2024 220 Municipal Systems Improvement Grant Transferring department Grant schedule Strategic goal Grant purpose Cooperative Governance (Vote 3) Schedule 6, Part B An efficient and developmental sphere of government capable of delivering services to local communities To assist municipalities to perform their functions and stabilise institutional and governance systems as required in the Municipal Systems Act and related local government legislation Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions A responsive, accountable, effective and efficient local government Support municipalities on governance and institutional matters through the District Development Model (DDM) approach, with District Hubs as central points of integration and coordination of support and capacity building interventions including amongst others, support on the following outputs: development of comprehensive institutional diagnostic analysis/assessments to determine skills, systems, performance, institutional gaps and main constraints impeding effectiveness and sound municipal performance development of institutional improvement plans guiding all capacity building grants and municipal support initiative Support municipalities in the implementation of the Integrated Urban Development Framework (IUDF) Support municipalities in the improvement of their records management Support municipalities in the improvement of their Information and Communications Technology (ICT) infrastructure Support municipalities to promote ethical conduct through the development and maintenance of a web- based-case management system to institutionalise measures to expeditiously address incidents of unethical conduct,
 breach of the Code of Conduct for Municipal Staff, substandard performance and to strengthen enforcement measures Support to municipalities on Human Resource and Organisational Development as well as Disciplinary Management Support Support to municipalities through the rollout of prototype staff establishment project Support municipalities in the rollout of training on municipal staff regulations Support municipalities in the preparation of an institutional recovery plan and the implementation thereof, where appropriate (including assisting municipalities to review and prepare: organograms, policies and by- laws) Support municipalities in improving their recruitment and selection systems by strengthening assessment mechanisms such as competencies, exams, group exercises Assess and evaluate the readiness in terms of adoption and implementation of the Smart Cities Framework at the selected municipalities and develop a Support Program for Smart City Initiatives as per the Smart Cities Framework Support municipalities on cost of supply studies for water and electricity (municipal tariff data management) and related matters Support municipalities in the improvement of their data management Support municipalities in the implementation of the Municipal Property Rates Act Priority 5: Spatial integration, human settlements and local government This grant uses a support plan.
The support plan has an appendix or annexure which details: roles and responsibilities outcome indicators output indicators key activities inputs details of how the systems and practices developed will be sustained over the long-term o o o o o o The Department of Cooperative Governance and the benefitting municipality must enter into a support plan with an annexure that must include details of the activities and deliverables being funded, responsibilities of each stakeholder, protocols for engagements and feedback, the budget for each activity, and timeframes for implementation Funds from this grant may be spent on building the capacity of municipalities with respect to the purpose and outputs listed for this grant ICT infrastructure bought with this grant must be compatible with the minimum standards for the municipal Standard Chart of Accounts (mSCOA) Allocation criteria Technical support to municipalities must include the transfer of skills to municipal officials Priority is given to the local municipalities in the 21 Water Service Authority (WSA) districts and these districts in 2023/24 Priority is given to municipalities with challenges/shortcomings in processes, procedures and systems to effectively implement the Municipal Systems Act and related local government legislation including municipalities with governance and institutional challenges Municipalities identified for support in 2021/22 on municipal tariff data management and related matters, improvement of their data management, records management and ICT infrastructure and training on staffing regulations and competency frameworks are targeted in 2023/24 Other outputs may be funded through reallocations in-year and over the MTEF Intermediate cities are targeted for programmes in support of the Integrated Urban Development Framework Funds may be reallocated if the support plan is not signed by the municipal manager(s) Reasons not incorporated
 in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 221 Municipal Systems Improvement Grant The grant is aimed at building the capacity of targeted municipalities to implement sound institutional and governance systems required in terms of the Municipal Systems Act and related local government legislation The grant was allocated R135 million, of which R46 million was spent by the end of the financial year 2021/22 audited financial outcomes 2021/22 service delivery performance R46 million was spent over the year ending March 2022 through the District Development Model (DDM) approach in respect of the costs associated with the eThekwini Metropolitan District Hub, OR Tambo District Hub and Waterberg District Hub This grant continues until 2025/26, subject to review 2023/24: R147 million; 2024/25: R153 million and 2025/26: R160 million Schedule 6 grant, payments to the service provider made in accordance with the signed service level agreement, implementation plan and project milestones or deliverables Responsibilities of the national department Agree and sign municipal support plans with participating municipalities Management, monitoring and reporting of the programme Coordinate with the National Treasury to ensure that the capacity building activities of the two departments
 are complimentary Participate in the review of the municipal capacity support system during 2023/24 Responsibilities of municipalities Agree and sign a memorandum of understanding with the transferring officer Identify municipal officials that will be recipients of skills transfer Ensure that municipal officials participate actively in all activities funded through this grant Ensure systems and practices developed through this grant are sustained as part of
 the operations of the municipality Process for approval of 2024/25 business plans Municipalities must submit a detailed report upon the completion of the project, in the format prescribed Targeted municipalities must sign a municipal support plan in support of this Municipal Systems Improvement Grant programme Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions 222 MINERAL RESOURCES AND ENERGY GRANTS Energy Efficiency and Demand Side Management Grant Mineral Resources and Energy (Vote 34) Schedule 5, Part B To reduce electricity consumption by promoting energy efficient practices To provide subsidies to municipalities to implement energy efficiency and demand side management (EEDSM) initiatives within municipal infrastructure in order to reduce electricity consumption and improve energy efficiency Reduced demand for electricity Increased awareness of energy saving Skills development in energy efficiency Energy management capability enhanced Amount of electricity saved in kilowatt hours (KWh) Number of energy efficient street lights installed Number of energy efficient traffic lights installed Number of buildings retrofitted Number of units of water services
 infrastructure retrofitted Priority 5: Spatial integration, human settlements and local government Outcome indicators Output indicators Projected energy savings Key activities Inputs Funds can only be used to implement electricity-saving projects in municipal infrastructure The focus for implementation of energy efficiency interventions is limited to municipal buildings, streetlights, traffic lights, wastewater treatment works and pump
 stations Municipalities must determine a detailed and extended electricity consumption baseline in line with South African Standards (SANS 5002 and SANS 50010) Municipalities must respond to the request for proposals issued by the Department of Mineral Resources and Energy (DMRE) in the format provided Municipalities must commit to energy savings (in KWh) to be achieved through the retrofits to the DMRE A performance agreement with specific conditions shall be entered into between the municipality and the DMRE The municipality shall prepare a project work plan and business plan in the templates provided by the DMRE The municipality shall procure the streetlight luminaires as per the standardised technical specifications developed by the transferring officer A municipality may apply to the transferring officer, by no later than 31 July 2023 to utilise a maximum of 15 per cent of the total annual allocation to undertake specified planning activities to embed the Vertically Nationally Appropriated Mitigation Action (V-NAMA) project, provided that these conform to the list of eligible activities identified by the transferring officer, including: o o development of infrastructure financing strategies and instruments o utilisation of a minimum of 50 per cent capital expenditure as co-funding for the Vertically Nationally investment pipeline development (excluding direct project preparation) Appropriated Mitigation Action projects Allocation criteria Reasons not incorporated in equitable share Past performance The following criteria are used for selecting municipalities to receive allocations from the grant: o municipalities that have responded to the request for proposals as issued by the DMRE o municipalities with higher electricity consumption and higher electricity saving potential o municipalities with clearly defined objectives on energy efficiency improvements o proposals that use proven
 energy efficient technologies with low pay-back periods o municipalities that are participating in the Vertically Nationally Appropriated Mitigation Action Support Project and SA-EU General Support Programme o municipalities that show readiness and capacity to implement EEDSM projects o good past performance if a municipality has previously participated in the programme o quality, viability and financial feasibility of proposed projects This is a specific conditional transfer in support of the EEDSM programme 2021/22 audited financial outcomes R221 million was allocated and transferred to participating municipalities, and R207 million was spent 2021/22 service delivery performance A total electricity saving of 17 873 MWh per annum was reported by municipalities against the total projected electricity consumption baseline of 19 426 MWh per annum Projected life MTEF allocations Payment schedule The grant will continue until 2025/26, subject to review 2023/24: R224 million; 2024/25: R243 million and 2025/26: R253 million Transfers are made in accordance with a payment schedule approved by the National Treasury 223 Energy Efficiency and Demand Side Management Grant Responsibilities of the national department Monitoring and evaluation of the EEDSM programme including measurement and verification of energy savings Make available to municipalities, the lighting technology technical specifications
 guideline and support them through capacity building workshops on best practices and pricing for EEDSM projects Communicate to municipalities the process and requirements for obtaining EEDSM grant funds in 2024/25 Develop a fair and open process to accredit and establish a panel of competent service providers with technical expertise and suppliers of energy efficient technology to support municipalities during the implementation of EEDSM projects Provide technical support to
 municipalities participating in the Vertically Nationally Appropriated Mitigation Action Support Project of South Africa Responsibilities of municipalities Submit proposals as per the request for proposals issued by DMRE Ensure that proposals are in the format and template provided by DMRE Implement the EEDSM programme as per the framework and contractual agreement In the implementation of EEDSM projects, use service providers and/or energy efficient technology suppliers accredited by DMRE Submit to the DMRE detailed energy consumption baseline data and a business plan signed by the municipal manager before the start of the 2023/24 municipal financial year Submit to the DMRE the monthly and quarterly reports approved by the municipal manager In a case where a municipality delegates the implementation of the programme to its entity (i.e.
Johannesburg City Power, Mangaung CENTLEC, etc.)

such an entity shall enter into an implementation contract with the municipality for the purposes of reporting and accountability.
A copy of this implementation contract must be shared with DMRE Proposals must be submitted by 15 September 2023 and shall be evaluated against the criteria set out in this framework and the request for proposals issued by DMRE Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 224 Integrated National Electrification Programme (Eskom) Grant Mineral Resources and Energy (Vote 34) Schedule 6, Part B To increase access to electricity through funding of alternative energy technologies, household connections and bulk infrastructure (substations and medium voltage lines) to ensure constant supply of electricity To implement the Integrated National Electrification Programme (INEP) by providing capital subsidies to Eskom to increase access to electricity, existing and planned residential dwellings (including informal settlements, farm dwellers, new and existing dwellings) and the installation of relevant bulk infrastructure in Eskom licenced areas A reduction in household electrification backlogs Universal access to electricity and improvement in distribution infrastructure reliability The number of household connections per annum The number of installations with alternative energy technologies per annum The number of substations completed Kilometres of medium voltage lines completed Implementation of labour-intensive delivery methods, in compliance with the Expanded Public Works Programme (EPWP) guidelines on electrification projects and the work opportunities created Priority 5: Spatial integration, human settlements and local government Outcome indicators Inputs Output indicators Key activities Plans need to have undergone pre-engineering and project feasibility and be approved by the Director- General of the Department of Mineral Resources and Energy (DMRE) prior to
 implementation Projects must be prioritised by municipalities in their Integrated Development Plans (IDPs) before being approved for INEP (Eskom) Grant funding To receive the first tranche, Eskom must submit to DMRE letters signed by municipal accounting officers to demonstrate that the municipalities are in agreement with the projects to be undertaken Eskom to comply with the DMRE’s requirements to provide approved bulk projects in their business plans Eskom must spend at least 50 per cent of their previous transfers and comply with reporting provisions before subsequent tranches are transferred By 29 December 2023, Eskom must have spent: at least 60 per cent of their total INEP allocation, where allocations are equal or less than R3.6 billion All assets constructed through this grant must be ring-fenced on Eskom’s asset register as government assets and Eskom will be responsible for the operations and maintenance of these assets Eskom must adhere to labour-intensive construction methods in terms of the EPWP guidelines for activities such as trenching and planting of poles including the promotion of companies owned by vulnerable groups Allocations to Eskom are made on behalf of municipalities based on applications from Eskom to the Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Department for all municipalities (licensed and non-licensed) according to the following criteria: o high backlogs o rural bias o integration with other programmes such as the district development model, the National Development Plan, catalytic projects, and mining towns the cost of a project is within benchmarked norms and standards the project is aligned with the IDP for a particular municipality o o Reasons not incorporated in
 equitable share Past performance This is a specific conditional capital transfer for electrification of households and bulk infrastructure 2021/22 audited financial outcomes The grant was allocated R2.8 billion and the entire amount was transferred to Eskom, of which R1.7 billion was spent by the end of the financial year 2021/22 service delivery performance 97 948 connections were completed at the end of the financial year (includes connections funded from roll- Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer overs) The grant will continue until 2025/26, subject to review 2023/24: R3.8 billion; 2024/25: R4 billion and 2025/26: R4.2 billion Payments are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Review and approve Eskom’s outputs and targets Continuously monitor implementation Provide central coordination for bulk infrastructure Approve submissions for refurbishment of critical infrastructure 225 Integrated National Electrification Programme (Eskom) Grant Responsibilities of Eskom The maximum size of supply is 2.4 kVA, after diversity maximum demand, 20 Amp per household connection, in line with the Suite of Supply Guideline (2022) Implement INEP according to the approved implementation guidelines Report to
 the DMRE and the National Treasury on monthly and quarterly progress on financial and non-financial performance of the grant Report accurately and timeously on EPWP information Eskom and the DMRE must ensure that all planned projects are in line with municipal IDPs and priority lists Eskom and the DMRE must ensure that planned projects are feasible and have gone through the pre- engineering process by 31 October 2023 Process for approval of 2024/25 business plans
 Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions 226 Integrated National Electrification Programme (Municipal) Grant Mineral Resources and Energy (Vote 34) Schedule 5, Part B To increase access to electricity through funding of alternative energy technologies, household connections and bulk infrastructure (substations and medium voltage lines) to ensure constant supply of electricity To implement the Integrated National Electrification Programme (INEP) by providing capital subsidies to municipalities to increase access to electricity, existing and planned residential dwellings (including informal settlements, farm dwellers, new and existing dwellings) and the installation of relevant bulk infrastructure A reduction in household electrification backlogs Universal access to electricity The number of connections to households per annum The number of installations with alternative energy technologies per annum The number of substations completed Kilometres of medium voltage lines completed Implementation of labour-intensive delivery methods, in compliance with the Expanded Public Works Programme (EPWP) guidelines on electrification projects and the work opportunities created Priority 5: Spatial integration, human settlements and local government Outcome indicators Output indicators Key activities Inputs (resources) Municipalities must register electrification business plans for bulk infrastructure with INEP and abide by the advice or guidance of the Department of Mineral Resources and Energy (DMRE) regarding the central planning and co-ordination for such bulk infrastructure Municipalities must provide the DMRE with a detailed project
 implementation plan during the first quarter of the municipal financial year Municipalities must appoint service providers during the first quarter of the municipal financial year before subsequent tranches are transferred Bulk infrastructure can only be funded for infrastructure serving poor households (where infrastructure serves tariff-funded areas and poor households, costs should be shared) No bulk infrastructure project will be funded without submitting the business plan INEP funds may be used for the refurbishment of critical infrastructure, only upon approval of a business plan submitted to the DMRE Municipalities must utilise their own funding if the subsidy is insufficient Projects should be implemented as per the contract agreed between the DMRE and the municipality, any deviations from the contract must be communicated to the DMRE for approval No contracts will be signed unless all the annexures are submitted No reimbursement will be made for projects that have been implemented without the prior approval by the DMRE Municipalities must spend at least 50 per cent of their previous transfer and comply with reporting provisions before the second and subsequent transfers are made The maximum size of supply is 2.4 kVA after diversity maximum demand, standard installation of 20 Amp per household connection, in line with the Suite of Supply Guideline (2022) For projects that the municipality is planning to execute in the outer year, the DMRE will fund the pre- engineering amount equivalent to 6 per cent of the total project value as per the ECSA guidelines Municipalities must adhere to labour intensive construction methods in terms of the EPWP guidelines for activities such as trenching and the planting of poles, including the promotion of companies owned by vulnerable groups Municipalities creating assets under the Eskom area of
 supply should enter into a Service Level Agreement with respect to the operations and maintenance of the asset Allocation criteria Allocations are based on an assessment of applications from local municipalities based on: o high backlogs o rural bias o number of planned households per project o past performance o integration with other programmes such as the district development model, the National Development Plan, catalytic projects, and mining towns the financial, technical and staff capabilities to distribute electricity and expand and maintain networks o o consultation with communities through the Integrated Development Plan (IDP) process o ensuring that universal access objectives are fast-tracked o connecting informal settlements where service delivery has been prioritised o new and upgrading of bulk infrastructure projects that support future electrification needs, and for refurbishment projects, where distribution network reliability adversely impacts economic activity and cannot sustain current electrification Reasons not incorporated in equitable share This is a specific conditional capital transfer for electrification of households 227 Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans Integrated National Electrification Programme (Municipal) Grant 2021/22 audited financial outcomes R2 billion was allocated and transferred to municipalities; and R1.5 billion was spent 2021/22 service delivery performance 49 065 households were connected including connections funded from roll-overs This grant continues until 2025/26, subject to review 2023/24: R2.2 billion; 2024/25: R2.3 billion and 2025/26: R2.4 billion Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Agree with
 municipalities on outputs and targets Continuously monitor implementation and provide support to municipalities Verify reports from municipalities Ensure that the payment schedule is aligned to the timelines for projected expenditure on each project Responsibilities of municipalities Ensure that projects are implemented in line with what is reflected in the IDP of the municipality Report accurately and timeously on the management of this grant and include invoices and EPWP information on their monthly reports, when reporting to the DMRE Appoint service providers during the first quarter of the municipal financial year to implement their projects Maintain and operate electricity infrastructure in line with licence conditions Application forms are sent to municipalities and the evaluation of all applications and business plan proposals received from municipalities is completed by 31 October 2023 228 Transferring department Grant schedule Strategic goal Informal Settlements Upgrading Partnership Grant: Municipalities Human Settlements (Vote 33) Schedule 5, Part B The creation of sustainable and integrated human settlements that enable improved quality of household life Grant purpose To provide funding to facilitate a programmatic, inclusive and municipality-wide approach to upgrading informal settlements Outcome statements Outputs Adequate
 housing in improved quality living environment The grant shall fund the outputs defined in Phases 1 – 3 of the Upgrading of Informal Settlements Programme (UISP) in the National Housing Code of 2009: Phase 1 Number of pre-feasibility studies conducted Phase 2 Feasibility studies: o number of environmental impact assessments undertaken o number of geotechnical studies conducted o number of any other relevant studies conducted Land acquisition: o hectares of land
 acquired for in-situ upgrading o hectares of land acquired for relocation o hectares of land transferred and registered o hectares of land availed in terms of land availability/development agreement Number of settlements supplied with bulk infrastructure Number of settlements benefitting from interim municipal engineering services and/or any other alternative engineering services Number of settlements provided with rudimentary services Phase 3 Number of settlements provided with permanent municipal engineering services and/or any other alternative engineering services Number of serviced sites developed Number of social and economic amenities.
The specific types of amenities must only be provided in collaboration with municipality and the community Number of sites transferred to end users Number of households provided with secure tenure Number of engineering designs: water, sewer, roads and storm water drainage concluded Number of layout plans approved Priority 5: Spatial integration, human settlements and local government This grant requires municipalities to use the human settlements chapter of their IDPs to prioritise and attain municipal council approval on informal settlements to be upgraded in the 2023/24 financial year A municipality must submit a business plan prepared in terms of the requirements of the DHS business planning for informal settlements upgrading Municipalities must submit a informal settlement upgrading plan in line with the UISP in the National Housing Code for each settlement to be upgraded which includes: o project description o settlement name and global positioning system coordinates o project institutional arrangements o sustainable livelihood implementation plan o outputs and targets for services to be delivered o cash flow projections (payment schedule) o details of the support plan o risk management plan o prioritisation certificate issued by the municipal council in consultation with relevant mayors Procurement plan confirming appointment of requisite service providers in accordance with government procurement preferential plans and policies For those settlements where upgrading plans have not yet been completed, an interim or comprehensive plan with clear deliverables in terms of the UISP phases contained in the National Housing Code must be submitted Number of jobs and training opportunities to be created Funds for this grant should be utilised for the priorities as set out in the 2019-2024 Medium Term Strategic Framework for human settlements Funds should be utilised as per the UISP as
 defined in the National Housing Code The municipal ISUP business plan must be informed by the Municipal Informal Settlements Upgrading Strategy, which has to be aligned to the Provincial Informal Settlement Upgrading Strategy Municipalities should only implement projects in the approved upgrading plans and any deviation from the approved upgrading plans should be sought from the DHS Where there are no upgrading plans and spending is approved in terms of an interim plan, funding will only be transferred to a metro provided that confirmation is provided to DHS that individual upgrading plans are being developed for these projects and will be completed by the end of 2023/24 Priority of government that this grant primarily contributes to Details contained in the business plan Conditions 229 Informal Settlements Upgrading Partnership Grant: Municipalities Municipalities should ensure alignment between the infrastructure grants (provision of bulk) and the ISUPG Municipal managers must sign off and confirm that projects captured in their informal settlements upgrading plans are assessed and approved for implementation in the 2023/24 financial year The transfer of the first tranche of funds is conditional upon the approval of the business plan by the Minister of national Department of Human Settlements (DHS) and concurrence of the Accounting Officer The flow of the second tranche will be conditional upon the: o submission of the first quarter report, in line with the requirements of the Municipal Finance Management Act (MFMA) circular 88, signed-off by the accounting officer of the municipality o submission of the report with financial and non-financial information aligned to the approved upgrading plans The flow of the third tranche will be conditional upon submission of second quarter (both financial and non-financial) performance information, in line with the requirements of MFMA circular 88
 Municipalities may request in writing to the transferring officer, approval to amend their business plans during the municipal adjustment period If a municipality is allocated additional funding or its funds are stopped and reallocated to another municipality, a revised business plan must be submitted for subsequent reporting The payment schedules submitted by municipalities should be derived from the cash flows contained in the approved upgrading plans Municipalities must spend at least 70 per cent of their allocations on infrastructure A maximum of 5 per cent of a municipality’s allocation may be utilised for the Operational Support Capital Programme as per the Operational Support Capital Programme Policy of the DHS A maximum of 3 per cent of the total allocation should be earmarked for social facilitation The grant is allocated to all metropolitan municipalities These funds are determined through the USDG allocation formula This is a conditional grant with a specific purpose to provide for the upgrading of informal settlements R3.9 billion was allocated and transferred to municipalities; and R1.8 billion was spent 2021/22 audited financial outcomes 2021/22 service delivery performance 3 596 serviced sites 1 284 informal settlements in various stages of upgrading Phase 1: 137 pre-feasibility studies conducted Phase 2: 366
 settlements provided with temporal/interim municipal engineering services and/or any alternative technology Phase 3: 171 settlements provided with permanent municipal engineering services and/or any other alternative engineering services This grant will continue until 2025/26, subject to review 2023/24: R4.4 billion; 2024/25: R4.6 billion and 2025/26: R4.8 billion Transfers will be made in accordance with a payment schedule approved by National Treasury
 Responsibilities of the national department Receive, assess and make determinations on the credibility of municipal informal settlements upgrading plans and the implementation readiness of projects captured therein Maintain the policy and programme and assist with interpretation Develop a reporting template for municipalities on UISP outputs and publish it by 30 May 2023 Monitor and evaluate municipal financial and non-financial grant performance and control systems including quarterly summary reports on performance related to the UISP Provide implementation assistance support to municipalities as may be required Undertake structured and other visits to municipalities as is necessary Facilitate structured intergovernmental forums for regular interaction with municipalities Submit a report on the status of informal settlements and their categorisation (in terms of the National Upgrading Support Programme’s methodology) to National Treasury by 01 August 2023 Identify lessons from the preparation and implementation of this window and use these to inform the design of the proposed new grant for informal settlement upgrading The transferring officer should design and distribute a template to be signed by a municipal manager or a delegated officer to be submitted with monthly and quarterly reports by metropolitan municipalities Use the ISUP grant to leverage other forms of funding Prioritise the gazetted priority projects Responsibilities of municipalities Initiate, plan and formulate applications for projects relating to the upgrading of informal settlements, which in the case of municipalities that are not accredited, must be in collaboration with the relevant provincial department Develop long term municipal wide informal settlements upgrading strategy that will influence the annual business plan Allocation criteria Reasons not
 incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 230 Informal Settlements Upgrading Partnership Grant: Municipalities Request assistance from the provincial department on any of the matters concerned if the municipality lacks the capacity, resources or expertise Submit informal settlement upgrading plans by 29 May 2023 Implement approved projects in accordance with UISP plans approved by the national department Fast-track the planning approval processes for informal settlements upgrading projects Assume ownership of the engineering services installed Manage, operate and maintain settlement areas developed under this programme Coordinate and facilitate the provision of bulk and connector engineering services (including through funding from the main USDG) Submit a report on the status of informal settlements in their municipal area and their categorisation (in terms of the National Upgrading Support Programme’s methodology) to DHS by 29 May 2023 Identify lessons from the implementation of this grant and share these with DHS Municipalities should submit a signed letter by a municipal manager or a delegated person, as an attachment to the monthly and quarterly reports Detailed performance report per settlement (i.e., project level performance) report for phase 1-3 aligned to the business plan must be submitted quarterly Municipalities must adhere to section 16 of the Division of Revenue Act if they are planning to appoint any other organ of state to implement human settlement projects on their behalf Municipalities must report quarterly on projects funded, in line with the requirements of the MFMA circular 88.
Reporting must include financial and non-financial performance on progress against the UISP plans, using the template prescribed by the DHS Municipalities must report on the percentage of their allocations awarded to companies owned by designated groups on a monthly and quarterly basis Municipalities must submit financial performance reports by no later than 10 working days after the end of each month Process for approval of 2024/25 business plans DHS will, during the third quarter of 2023/24, advise on the date of submission of the draft as well as final business plans Each informal settlement should have an upgrading plan available upon request by the DHS 231 Urban Settlements Development Grant Transferring department Grant schedule Strategic goal Grant purpose Human Settlements (Vote 33) Schedule 4, Part B The creation of sustainable and integrated human settlements that enable improved quality of household life To supplement the capital revenues of metropolitan municipalities in order to implement infrastructure projects that promote equitable, integrated, productive, inclusive and sustainable urban development Outcome statements The outcomes to be realised in order to promote integrated sustainable urban settlements and improved quality of living environments are as follows: o supporting inclusive densification and transit-oriented urban development, integrating existing and new urban developments o provision of
 adequate bulk and link infrastructure for mixed-income and mixed-use urban developments o provide opportunities for leveraging of public funding within partnerships that promote integrated mixed- income and mixed-use urban development projects and funding for broader urban development o provision of resources for sustainable community development for social and economic infrastructure and meaningful participation Outputs The following outputs should be funded by the grant to support the improvement of the overall built Priority of government that this grant primarily contributes to Details contained in the business plan Conditions environment: o o construction/provision of internal engineering services, including backyarders and densification overlay increase in municipal bulk and link infrastructure zones increase in the number of serviced sites increase in the provision of individual connections increase in land provision for informal settlement upgrading subsidised housing, or mixed-use developments in support of approved human settlements and other urban developments increase in access to public and socio-economic amenities increase in the number of interim basic services increase in number of community agreements o o o o o o Priority 5: Spatial integration, human settlements and local government This grant uses the USDG plan (containing a project list with project names, project descriptions, infrastructure classification, Geographic
 Information System (GIS) coordinates and wards in which projects are being developed.
The USDG plan is consistent with the Integrated Development Plan (IDP), including the human settlements chapter of the IDP, and the Service Delivery and Budget Implementation Plan (SDBIP) of the receiving municipality Municipalities must submit a USDG plan that is aligned to the SDBIP, IDP and the One Plan in pilot areas for the District Development Model to the national Department of Human Settlements (DHS) and National Treasury The annual USDG plan must contain a project list with project names, project descriptions, classification of infrastructure, GIS coordinates and wards in which projects are being developed.
The submission should include motivations of how the projects will benefit poor households and information on spatial targeting, co-funding and other associated investments Municipalities must prioritise the critical service delivery projects and at least 50 per cent of the USDG should be allocated to water, sanitation, roads, storm water and street lightning The flow of the first tranche is conditional upon: o approval of the municipal USDG plans by the national Department of Human Settlements o submission of the 2022/23 third quarter financial performance signed off by the municipal accounting officer or duly delegated official and non-financial information in line with the requirements set out in the Municipal Finance Management Act (MFMA) circular 88 o submission of a USDG plan that is aligned to the municipal IDP, SDBIP and national priorities by 29 May 2023 The flow of the second tranche will be conditional upon the submission of the 2022/23 fourth quarter financial performance signed off by the municipal accounting officer and or duly delegated authority and non-financial information as per the requirements set out in the MFMA 88 The flow of the third tranche will be conditional upon submission of second quarter financial performance signed off by the municipal accounting officer or duly delegated authority and non-financial information as per the requirements set out in the MFMA circular 88 A maximum of 3 per cent of the USDG may be used to procure
 capacity to support the implementation of USDG human settlements programme outputs as contained in the Medium-Term Strategic Framework (MTSF) and in line with the capacity building guideline issued by DHS Municipalities must indicate the amounts of their annual allocations for spending on the identified national priority projects as approved by the municipal council Municipalities must prioritise the implementation of projects that are in the gazetted Priority Human Settlements and Housing Development Areas Municipalities may request in writing to the transferring officer to amend the approved business plans during the mid-term adjustment period.
Approval is subject to the Minister’s concurrence.
The following factors must be taken into consideration in the amendment of the business plans: Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 232 Urban Settlements Development Grant o the total grant allocation should be maintained unless have been stopped or reallocated in terms of sections 18 and 19 of 2023 DoRA o no new projects are to be introduced into the business plan without approval by the Transferring Officer o delivery targets in the approved business plan are not to be reduced unless funds have been stopped or reallocated in terms of sections 18 and 19 of 2023 DoRA With approval by the transferring officer, municipalities may utilise funding for the procurement of specialised waste management vehicles servicing the poor.
Municipalities must complete a technical assessment report (TAR) which must comply with the norms and standards for specialised waste management vehicles.

The TAR must demonstrate that funds will solely be used for the expansion of waste management services to poor households not previously serviced An amount of R473 million in 2023/24 is ring-fenced for projects approved through the Budget Facility for Infrastructure.
The following amounts per municipality must be used in 2023/24, as approved by the BFI committee: o R88 million for eThekwini Metropolitan Municipality for the implementation of phase 1 of the Avoca Node Programme o R385 million for the City of Johannesburg for the implementation of the Lufhereng Mixed Use Development Programme Should there be cost variations of more than 10 per cent on a Budget Facility for Infrastructure funded projects, the relevant municipality is required to inform the National Treasury and the transferring officer within 30 days of confirming the cost variations The grant is allocated to all metropolitan municipalities The base allocation is derived from the Municipal Infrastructure Grant formula explained in part 5 of annexure W1 of the 2023 Division of Revenue Bill.
The formula incorporates household backlogs in basic services and access to socio-economic services and poverty-weighted data This is a supplementary capital infrastructure grant with conditions, objectives and distribution criteria (including infrastructure backlogs) different to those of the equitable share 2021/22 audited financial outcomes The total available funds including rollovers amounted to R7.5 billion and the expenditure was R7.1 billion 2021/22 service delivery performance Delivery performance is indicated in the performance evaluation reports for 2021/22 This grant continues until 2025/26, subject to review 2023/24: R8.1 billion; 2024/25: R8.8 billion and 2025/26: R9.3 billion Transfers will be made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Develop indicators for the outcomes and outputs Convene a structured forum to meet with municipalities on a quarterly basis Monitor and evaluate the municipal financial and non-financial performance of the grant, including quarterly summary reports on performance across municipalities Provide support to municipalities with regard to human settlement programmes Publish a guideline by 29 May 2023 on how municipalities should use capacity funds from this grant Ensure collaboration between provinces and municipalities to promote area-based planning, budgeting and funding
 alignment as well as implementation support, where applicable Undertake oversight visits to municipalities as may be necessary Facilitate strategic and spatial planning support related to human settlements development Provide systems, including the Housing Subsidy System that support the administration of the human settlements delivery process Coordinate and facilitate interaction between national departments, state-owned enterprises, other relevant entities of the state,
 provincial departments of human settlements and participating municipalities, on a quarterly basis When under expenditure and under performance is identified, the department may recommend the stopping and reallocation of funds in terms of sections 18 and 19 of the 2023 Division of Revenue Act Participate in the municipal budget benchmarking process as and when indicated by the National Treasury The transferring officer should design and distribute a template to be signed by a municipal manager or a delegated officer to be submitted with monthly and quarterly reports by metropolitan municipalities Use this grant to leverage alternative financing Responsibilities of other national sector departments The Department of Mineral Resources and Energy, Department of Water and Sanitation, Department of Environment, Forestry and Fisheries and the Department of Transport must all provide technical advice and support relevant to their sectors and monitor the performance of municipalities in line with the requirements set out in the MFMA circular 88 Responsibilities of municipalities Metropolitan municipalities may replace non-performing projects with performing projects providing a similar infrastructure that fulfils the same policy objectives.
The performing projects should be from the approved business plans and the replacement should not jeopardise the achievement of the overall MTSF targets committed to by the municipality 233 Urban Settlements Development Grant Changes to the project list of the approved business plan and within same and related function may only be made once a quarter and the metro must notify the DHS in writing and provide all the relevant details of the new project within 30 days after the end of the quarter.
Such changes can only be made after the second quarter Comply with the terms and conditions of the receiving officer outlined in the Division of Revenue Act Ensure effective and efficient utilisation of the grant and alignment to the purpose and outputs of the grant Ensure compliance with required intergovernmental forums, reporting, and accountability frameworks for human settlements Ensure that the USDG is used to meet municipality MTSF targets Municipalities should submit a signed letter by a municipal manager or a delegated authorised person as an attachment to the monthly and quarterly reports Municipalities must report on the percentage of their allocations spent on service provided by companies owned by designated groups on a quarterly basis Municipalities must adhere to section 16 of the Division of Revenue Act if they are planning to appoint any other organ of state to implement Human Settlements projects on their behalf Municipalities must report quarterly on projects funded, in line with the requirements of the MFMA circular 88.
Reporting must include financial and non-financial performance on progress against UISP plans, using the template prescribed by the DHS Municipalities must submit the financial performance reports within 10 working days after the end of the month Process for approval of 2024/25 business plans Municipalities must submit a comprehensive USDG plan (based on circular 88 indicators) with targets aligned to the MTSF, IDP and SDBIP and a draft and/or approved municipal budget Municipalities must submit their first draft of the USDG plan to the transferring officer by 25 March 2024 and the final USDG plan should be submitted by 15 May 2024 234 NATIONAL TREASURY GRANTS Transferring department Grant schedule Strategic goal Infrastructure Skills Development Grant National Treasury (Vote 8) Schedule 5, Part B To improve infrastructure delivery management capacity within municipalities by developing a long-term and sustainable pool of registered professionals with built environment and related technical skills in engineering, town and regional planning, quantity surveying, geographic information systems and project management Grant purpose To recruit unemployed graduates into municipalities to be trained and professionally registered as per the requirements of the relevant statutory councils within the built environment Outcome statements Developed technical capacity within local government to enhance infrastructure provision, and service delivery, through improved infrastructure planning, implementation, operations and maintenance Registered professionals with built environment qualifications (national diploma and/or degree) as per the statutory councils’ requirements Increased number of qualified and registered professionals employed within local government Outputs Number of built environment graduates registered as candidates for training and professional development as per Priority of government that this grant
 primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance requirements of the relevant statutory councils Number of graduates recognised as registered professionals by the relevant statutory councils Number of graduates employed as registered professionals within the built environment in local government Priority 5: Spatial integration, human settlements and local government Outcome indicators Output indicators Key activities The business plan must demonstrate that the municipality has projects in which the graduates can be trained, Inputs and provide the relevant complexity of work and responsibility that can support graduates to meet the registration requirements of the relevant statutory councils and the budget must be clearly outlined Municipality must have a Project Management Unit The business plan must be signed by the Municipal Manager Graduates must be seconded to an entity (public or private) if no relevant training is available to develop the necessary competence of the graduates Where graduates are placed in another entity (public or private) a memorandum of agreement must be developed and signed between the municipality and the entity, according to Infrastructure Skills Development Grant (ISDG) guidelines.
The memorandum of agreement must clearly demonstrate the supervision requirements and the roles and responsibilities of all parties associated with the training of graduates Graduates must have a national diploma or degree in the built environment from higher education institutions i.e.
universities or universities of technology recognised by the statutory council Municipalities must provide training as per the road-to-registration requirements of the relevant statutory council Mentoring must be provided by registered professionals in the same field as the graduates in training.
The full names and proof of registration of the mentor must be submitted to the National Treasury, and a contract must be entered into with each mentor, in accordance with the ISDG guidelines The ISDG funding is to be utilised exclusively for costs associated with the training and professional development process of graduates (refer to ISDG guidelines) The business plan of a municipality must include an absorption strategy for the graduates within the municipality or any other municipality A project administrator may be appointed per municipality for the purpose of the ISDG administration if approved by National Treasury (refer to ISDG guidelines) Graduates are to be placed in units to support the management, maintenance and/or implementation of infrastructure, infrastructure related projects and accelerated service/infrastructure delivery Graduates must be assigned to a supervisor with experience in the same field as the graduates-in-training Graduates’ training progress is to be evaluated by professionally registered mentors on a quarterly basis and development of the required competencies of graduates is to be evaluated bi-annually Municipalities must submit monthly and quarterly reports timeously Graduate reports and/or log books must be completed in the format of the statutory council and must be signed by the registered mentor/supervisor as required by statutory councils Municipal Managers must sign a service level agreement (SLA) with the National Treasury and such an agreement must be adhered to Non-compliance with the above conditions can result in the funds being withheld, stopped or re-allocated Allocations are based on business plans submitted and the ability of municipalities to provide training and professional development to graduates for the duration of the candidacy phase as stipulated by statutory councils This conditional grant is meant to develop technical skills within
 municipalities 2021/22 audited financial outcomes R155 million was allocated and transferred to 15 municipalities and R116 million was spent 235 Infrastructure Skills Development Grant 2021/22 service delivery performance The grant has created employment and training opportunities Currently 361 graduates are in training Since inception of the grant, 310 graduates have been professionally registered with the relevant statutory councils 270 graduates are professionally registered and absorbed by the municipalities In 2021/22 the following municipalities hosted graduates through the grant: Buffalo City (20 graduates); Nelson Mandela Bay (37 graduates); eThekwini (62 graduates); City of Johannesburg (15 graduates); Polokwane (18 graduates); Govan Mbeki (66 graduates); Gert Sibande (31 graduates); Alfred Nzo (19 graduates); Sol Plaatje (13 graduates); John Taolo Gaetsewe (9 graduates); King Sabata Dalindyebo (10 graduates); City of Cape Town (23 graduates); George (17 graduates); Alfred Duma (11 graduates); Thulamela (10 graduates) Issue guidelines and supporting documentation for the implementation of the ISDG The grant is expected to continue up to 2025/26, subject to review 2023/24: R160 million; 2024/25: R167 million and 2025/26: R175 million Transfers are made in accordance with a payment schedule approved by the National Treasury Responsibilities of the national department
 Rollout the ISDG in municipalities in compliance with the ISDG framework, guidelines and relevant prescripts Manage, monitor and report on the programme Ensure professional development is aligned to statutory council requirements Monitor the registration progress of graduates with the relevant statutory councils by municipalities Monitor financial and non-financial performance of the ISDG Maintain graduates’ database for the ISDG
 Work with relevant stakeholders on policies, strategies and guidelines to recruit graduates into permanent positions in local government after they have registered as professionals Participate in the review of the municipal capacity support system during 2023 Responsibilities of municipalities Comply with the requirements of the 2023 Division of Revenue Act, ISDG guidelines, service level agreement and the requirements of the relevant statutory councils Municipalities must prepare a structured training plan, indicating how graduates will be exposed to suitable projects, to ensure that graduates achieve competencies in relevant activities and are developed professionally to meet the outcome(s) requirements for professional registration Seek and provide secondment opportunities/agreements with professional service providers, appointed by the municipality, when there is no more relevant work with adequate responsibility for the candidate to progress Provide the candidate with the requisite workspace, supervisor, tools of profession/trade and logistics to perform the recommended activities within their training plans Continuously review and assess the candidates’ work and progress on the road-to-registration and make recommendations for corrective action Ensure that candidates attend professional development activities in accordance with their training plans, progress and the requirements of their respective statutory councils Attend all meetings and workshops convened by the National Treasury relating to this grant Support and supervise graduates on the road-to-registration training Recruit professionally registered mentors who are able to provide the skills training required and ensure that they are adequately orientated on the registration process and its requirements Manage the programme and provide progress reports on a monthly and quarterly basis in
 the standard reporting templates provided by the National Treasury Manage the utilisation of ISDG funds and report to the National Treasury The municipality must provide, and update, the list of business tools procured with ISDG funds.
The business tools must be procured in accordance with ISDG guidelines Municipalities must submit applications for graduates to register as candidates with the relevant statutory councils within six months, and where not initially eligible, must complete the additional requirements for acceptance as a candidate within 12 months of intake Municipalities must submit evidence of the graduates’ registration to National Treasury when graduates have registered as professionals Interested municipalities must submit a three-year business plan by 31 August 2023 for assessment by the National Treasury Participating municipalities must submit revised business plans to the National Treasury by 31 August 2023 Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 236 Local Government Financial Management Grant National Treasury (Vote 8) Schedule 5, Part B To secure sound and sustainable management of the fiscal and financial affairs of municipalities To promote and support reforms in financial management by building capacity in municipalities to implement the Municipal Finance Management Act (MFMA) Strengthen capacity in financial management of municipalities Improved and sustained skills development, including appointment of interns supporting the implementation of financial management reforms focusing on the gaps
 identified in the Financial Management Capability Maturity Assessments and as reflected in the Financial Management Grant (FMG) support plans Appropriately skilled financial officers appointed in municipalities with the financial management competencies beyond the minimum competencies’ regulations Timely submission of all in year reports, including the financial statements and improved audit outcomes Improvement in municipal financial governance and oversight decisions Reduction in unauthorised, irregular, fruitless and wasteful expenditure incurred by municipalities Number of municipal officials registered for financial management training Number of interns serving on the internship program, and progression to permanent appointments in municipalities Number of municipalities that have assessed their Financial Management Capability Maturity (FMCMM) using the web-enabled FMCMM & Audit Action Plan tools, and developed plans to address weaknesses.
Number of municipalities with established internal audit units and audit committees Number of municipalities that submitted the FMG support plans that prioritise gaps identified from the FMCMM assessments Number of municipalities with disclaimers and adverse opinions that developed audit action plans Submission of FMG support plans Number of municipalities that are municipal Standard Chart of Accounts (mSCOA) complaint Number of disciplinary boards established Priority 1: A capable, ethical, and developmental state Priority 5: Spatial integration, human settlements, and local government This grant uses an FMG support plan to direct resources towards addressing weaknesses in financial management Transferring department Grant schedule Strategic goal Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions FMG funds can be used towards the following to improve institutional sustainability: o strengthen capacity and up-skilling officials in the budget and treasury office, internal audit and audit committees o a total of five interns in local municipalities and three interns in metropolitan and district municipalities must be appointed over a multi-year period.
Municipalities must submit a plan for the retention of skills developed through the internship programme o acquisition, upgrade and maintenance of financial management systems to produce multi-year budgets, in-year reports, service delivery and budget implementation plans, annual financial statements, annual reports and automated financial management practices o support the training of municipal financial management officials working towards attaining the minimum competencies, as regulated in Government Gazette 29967 of June 2007 amended through Gazette 41996 of October 2018 o support the preparation of the assets register, focusing on skills transfer to municipal officials o any technical support to municipalities must include the transfer of skills to municipal officials o support the implementation of corrective actions to address the root causes of audit findings in municipalities that received adverse and disclaimer opinions o support the implementation of the financial misconduct regulations and promote consequence management to reduce unauthorised, irregular, fruitless and wasteful expenditure incurred by municipalities o support to strengthen financial governance and oversight, as well as functioning of Internal Audits and o Audit Committees implementation of financial management reforms and overall compliance with the MFMA to address shortcomings identified in the Financial Management Capability Maturity assessments for that municipality o on-going review, revision and submission of FMG support plans to the National Treasury that address weaknesses in financial management FMG support plan must be consistent with the conditions of the grant and be submitted timeously Timely submission of reports with complete information as prescribed in the 2023 Division of Revenue Act Expenditure must be maintained at appropriate levels All municipalities benefit from allocations to augment their own resources in support of implementation of the financial management reforms
 Allocation criteria 237 Local Government Financial Management Grant Priority is given to municipalities: o with challenges/shortcomings in processes, procedures and systems to effectively implement the MFMA, as identified in the Financial Management Capability Maturity assessment o with adverse and disclaimer audit opinions Grant provides direct support to municipalities to develop financial management and technical capacity for the implementation of the MFMA, its regulations and associated financial reforms 2021/22 audited financial outcomes R552 million was allocated to 257 municipalities and R539 million was spent by municipalities 2021/22 service delivery performance All 257 municipalities submitted FMG support plans 1 202 graduate finance interns were serving on the internship programme in municipalities as at 30 June 2022 3 161 interns have been permanently appointed since 2004 in municipalities The grant supported the following outputs: o 1 525 officials received a statement of results for attaining minimum competencies o 188 municipalities utilised the FMG to develop audit action plans and implement corrective actions to address 2020/21 audit findings o 177 (69 per cent) municipalities have established disciplinary boards as at 30 June 2022 200 (78 per cent) of municipalities submitted AFS by the extended deadline as at 31 October 2021 This grant continues until 2025/26, subject
 to review 2023/24: R569 million; 2024/25: R594 million and 2025/26: R621 million Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Management, monitoring and reporting of the programme Transfer funds to municipalities in terms of the 2023 Division of Revenue Act Undertake on-going monitoring of the municipalities Participate in the review of the municipal capacity
 support system during 2023 With respect to the provision of support for the preparation of asset registers, there will be collaboration with the Department of Cooperative Governance Responsibilities of municipalities Submit support plans which are consistent with the conditions of the grant Submit reports consistent with the reporting requirements in the 2023 Division of Revenue Act There must be an assessment of the needs and requirements that confirms that, the municipality does not have the requisite skills or resources in its full -time employment to perform the function Develop consultancy reduction plans to reduce the reliance on consultants On-going review, revision and submission of the FMG support plans to address weaknesses in financial management The programme is based on the FMG support plans which municipalities must submit to the National Treasury before the start of the municipal financial year Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 238 Transferring department Grant schedule Strategic goal National Treasury (Vote 8) Schedule 5, Part B and Schedule 6, Part B Eradicating spatial inequality towards the creation of liveable, sustainable, resilient, efficient, and integrated towns Neighbourhood Development Partnership Grant Grant purpose Outcome statements and cities To plan, catalyse, and invest in targeted locations in order to attract and sustain third party capital investments aimed at spatial transformation, that will improve the quality of life, and access to opportunities for residents in South Africa’s targeted locations, under-served neighbourhoods, generally townships and rural towns Spatially integrated cities and towns Diversity of public and
 private capital investments leveraged into targeted locations Improved ratio of Neighbourhood Development Partnership Grant (NDPG) to third-party capital investment into strategic locations Improved municipal capacity to support infrastructure investment planning, prioritisation, and ability to drive long- Outputs term spatial transformation Improved social cohesion and strengthened social safety net Targeted locations with catalytic projects, defined as either: Priority of government that this grant primarily contributes to Details contained in the business plan Conditions o urban hub precincts with secondary linkages and rural regional service centres o catalytic programmes within integration zones o built environment upgrade projects in urban townships and rural towns o leveraged third-party capital investment into targeted locations The production and dissemination of toolkits, guidance and/or good practice notes and supporting knowledge sharing events Enhanced municipal strategic competencies in investment targeting, implementation, and urban management Number of work opportunities and full-time equivalents created through the city-led public employment programme (PEP) Priority 2: Economic transformation and job creation Priority 5: Spatial integration, human settlements, and local government Outcome indicators Output indicators Inputs Key activities Compliance with the aims and objectives outlined in the investment plans between the municipality and the transferring officer Submission of cash flow schedules with budgets and timeframes for technical assistance and capital grant (project) implementation as requested by the transferring officer Programme execution is dependent on a sequential and formal acceptance/approval by the transferring officer of NDPG-related municipal plans or deliverables
 Municipalities must commit to forging partnerships with businesses, investors, communities, national and provincial government, and state-owned entities in order to leverage the third-party capital investment required to ensure long-term and sustainable outcomes for each precinct Response to the COVID-19 pandemic: City-led PEP R855 million has been allocated to the eight metros from the Public Employment Stimulus for 2023/24.
The breakdown per municipality is as follows: o Buffalo City o City of Cape Town o City of Ekurhuleni o City of Johannesburg o City of Tshwane o eThekwini o Mangaung o Nelson Mandela Bay R 21 million R 230 million R 165 million R 113 million R 146 million R 141 million R 20 million R 20 million Funds may be used to implement new or upscale existing city-led PEPs that contribute to: upgrading informal settlements, township economic development, maintenance, development and management of public space and assets within human settlement and economic nodes, greening and cleaning; food safety; innovative service delivery; sharing and management of local knowledge and information; community safety; environmental services and management; and community tourism Metropolitan municipalities must submit a business plan for approval by National Treasury on the date stipulated by National Treasury, outlining the key PEP initiatives, activities, inputs, output indicators and outcome indicators and delivery and reporting mechanisms Project implementation and spending can only commence on approval of the business plan by National Treasury 90 per cent of the funds may be used for the operating costs of running a public employment programme: o o the basic minimum wage should be used as a guideline for costing the PEP employment opportunities supervisory, project management and operational-related materials costs should be budgeted for A maximum of 10 per cent of the PEP allocation can be used for the purchasing of capital equipment Cities can shift funds between city-led PEP projects National Treasury must be notified of such shifts in the monthly reports Metropolitan municipalities must report on the use of these funds in line with the reporting requirements of section 12 of the 2023 Division of Revenue Act Allocation criteria The grant funds the following activities in targeted locations that are defined as urban hubs and regional service
 Neighbourhood Development Partnership Grant 239 Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer centres: o planning and the development of catalytic programmes and projects o the development of built environment upgrade projects in townships and rural towns Schedule 6, Part B: technical assistance allocations support planning and professional programme management costs for programmes and projects in targeted locations in order to attract and sustain third party capital investments based on the NDPG’s allocation criteria Schedule 5, Part B: capital grant allocations are determined via a pipeline of prioritised projects that have been identified through the planning process, in targeted locations Allocations are focused on municipalities whose circumstances align with the NDPG’s criteria, these include: higher population densities, diverse nature of economic activity, concentrations of poverty, inefficient spatial- historical development, improved connectivity and mobility (in particular through improved public transport networks) Rural towns are selected according to population or population growth, location, economic potential and/or growth and governance and financial health The city-led PEP allocations are limited to the eight metropolitan municipalities and are based on the business plans submitted by each municipality This grant has a strong focus on catalytic nodal and linkage investment in targeted township locations that is not the focus of the equitable share 2021/2022 audited financial outcomes R1.3 billion allocated in Schedule 5, Part B direct transfers to municipalities and R1.3 billion of this was transferred to municipalities and R509 million was spent by municipalities R181 million allocated in Schedule 6, Part B indirect transfers to
 municipalities and R179 million of this was spent by the end of the national financial year 88 NDPG projects under construction in 2021/ 22 R19 billion in estimated third party investment leveraged (cumulative since 2007/08) 667 catalytic projects approved (cumulative since 2007/08) 18 long-term urban regeneration programmes registered (cumulative since 2013/14) 6 234 jobs were created under PEP 2021/22 service delivery performance This grant is expected to continue over the medium term Direct transfers (Schedule 5, Part B): 2023/24: R1.5 billion; 2024/25: R647 million and 2025/26: R676 million Allocation-in-kind (Schedule 6, Part B): 2023/24: R101 million; 2024/25: R105 million and 2025/26: R110 million Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Funds plans and catalytic projects in targeted locations that are defined either as urban hubs, integration zones, catalytic programmes or as built environment upgrade projects in urban and rural towns, including: o notifying all municipalities of their allocation status, both directly and via the Neighbourhood Development Partnerships page on the National Treasury website o reporting in terms of the 2023 Division of Revenue Act o determining grant allocations for the Medium-Term Expenditure Framework period o governing the acceptance or approval
 milestones of NDPG-related municipal plans or deliverables o monitoring, managing and evaluating financial and non-financial performance o overseeing and enforcing the conditions of this grant o producing and disseminating toolkits, guidance and good practice notes that strengthen competencies in investment targeting, implementation and urban management Coordinate an advisory committee that includes the Department of Rural Development and Land Reform, Department of Cooperative Governance as part of
 the management of NDPG’s small town projects Participate in the review of the municipal capacity support system during 2023 Responsibilities of municipalities Compile and submit monthly and quarterly expenditure and progress reports in line with NDPG requirements and as stipulated in the 2023 Division of Revenue Act Submit a cash flow schedule with budgets and timeframes for technical assistance and/or capital grant implementation as requested by the transferring officer Provide adequate human resources capacity for the successful coordination and implementation of NDPG projects Coordinate the development of NDPG related municipal plans or deliverables and ensure that they are aligned with the grant objectives against which performance will be assessed Cities must form partnerships with relevant civil society or private sector implementing partners for the roll-out of City PEPs in line with City partnering policies Manage and monitor technical assistance and/or capital grant implementation ensuring sound financial management and value for money Maintain accurate and up to date grant and performance information as specified in NDPG management information formats and systems Engage stakeholders so as to develop partnerships that leverage funding into the targeted locations Enter and manage partnerships agreements to ensure that the desired project deliverables and objectives are met Collect and provide evidence of funding leveraged into each precinct Process for approval of 2024/25 business plans 240 Neighbourhood Development Partnership Grant Mainstream and reflect the NDPG development strategies and plans across the municipality, i.e.
through the municipal: o spatial development frameworks and capital investment frameworks (as a chapter in the municipal Spatial Development Framework) o Integrated Development Plans Submission of NDPG related municipal plans and/or deliverables within the timeframes defined in each municipality’s own work plans Plans and/or deliverables must include an indication of: o o o the ability to attract and report on third-party funding leveraged the quality of performance and progress reporting the level of NDPG alignment across all municipal development strategies and plans including coordination, targeting, and prioritisation with other related capital projects as reflected through municipal spatial development frameworks and capital investment frameworks 241 Transferring department Grant schedule Strategic goal National Treasury (Vote 8) Schedule 5, Part B The development of more inclusive, liveable, productive and sustainable urban built environments in Programme and Project Preparation Support Grant metropolitan municipalities Grant purpose Outcome statements Outputs To support metropolitan municipalities to develop a pipeline of investment ready capital programmes and projects through establishing and institutionalising an effective and efficient system of programme and project preparation and the allocation of a growing level of municipal resources to preparation activities Strengthened and effective system of programme and project preparation in the metropolitan cities Effective and transparent system for project approvals (clearly defined authorising environment) in the metropolitan municipalities Increased investment in programme and project preparation by the metropolitan municipalities Credible pipeline of projects developed by metropolitan municipalities Number of feasibility studies/strategies completed Long-term programmes/projects that will attract private investment and assist
 metropolitan municipality enhance revenue Priority 5: Spatial integration, human settlements, and local government Outcome indicators Output indicators Inputs Key activities Eligibility is restricted to metropolitan municipalities which have: o guidelines o committed to co-financing contributions The first transfer of the grant will only be released to a municipality that has, by 31 May 2023, submitted a work plan to National Treasury with programme and project preparation activities Transfers will be based on performance in line with the work plans and approved projects submitted to National Treasury Funds can only be spent on direct operating costs for programme and project preparation activities Metropolitan municipalities must commit to forging partnerships with businesses, investors, communities, national and provincial government and state-owned entities in order to leverage the third-party capital investment required to ensure long-term and sustainable outcomes Allocations will be made based on municipal submissions (work plan) Final allocations will be based on performance The grant provides funding to the metropolitan municipalities to enhance the performance of their urban built environment programmes by supporting programme and project preparation.
It reflects commitments contained in the National Development Plan to streamline funding for urban public investments to support the restructuring of the urban built environment 2021/2022 audited financial outcomes R314 million allocated in Schedule 5, Part B direct transfers to municipalities and R314 million was transferred to municipalities and R251 million was spent by municipalities 2021/22 service delivery performance 84 PPPSG projects were funded in 2021/22 96 Projects were approved in 2021/ 22 The grant will continue over the medium term 2023/24: R377 million; 2024/25: R394 million and 2025/26: R411 million Transfers are made in accordance with a payment schedule approved by National Treasury Responsibilities of the national department Review eligibility criteria and assess compliance with grant conditions prior to the transfer of each tranche of the allocations Provide operational guidelines, facilitate peer learning and provide capacity support through the Cities Support Programme and the Neighbourhood Development Programme Responsibilities of municipalities Submit a work plan of activities relating to the establishment and institutionalisation of programme and project preparation Compile and submit monthly expenditure reports in line with the requirements as stipulated in the 2023 Division of Revenue Act Compile and submit quarterly non-financial performance related information, including
 progress reports in line with the requirements as stipulated in the 2023 Division of Revenue Act Implement the work plan and report on progress The financing plan with associated co-funding agreements must be in place prior to implementation of the project unless exemption to co-funding requirements has been approved by National Treasury National Treasury will communicate further details of the requirements for project and programme preparation funding over the 2023 MTEF period by
 September 2023 Municipalities must submit a work plan of activities relating to the establishment and institutionalisation of programme and project preparation by November 2023 Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer Process for approval of 2024/25 business plans 242 PUBLIC WORKS AND INFRASTRUCTURE GRANT Transferring department Grant schedule Strategic goal Expanded Public Works Programme Integrated Grant for Municipalities Public Works and Infrastructure (Vote 13) Schedule 5, Part B To provide Expanded Public Works Programme (EPWP) incentive funding to expand job creation efforts in specific focus areas, where labour intensive delivery methods can be maximised Grant purpose To incentivise municipalities to expand work creation efforts through the use of labour-intensive delivery low traffic volume roads and rural roads methods in the following identified focus areas, in compliance with the EPWP guidelines: o road maintenance and the maintenance of buildings o o basic services infrastructure, including water and sanitation reticulation (excluding bulk infrastructure) o other economic and social infrastructure o o waste management o parks and beautification o sustainable land-based livelihoods o social services programmes o community safety programmes tourism and cultural industries Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions Allocation criteria Contribute towards increased levels of employment Improved opportunities for sustainable work through experience and learning gained Number of Full-Time Equivalents (FTEs) to be
 created through the grant Number of people employed and receiving income through the EPWP Number of days worked per work opportunity created Priority 2: Economic transformation and job creation The programme is implemented through municipalities using EPWP integrated agreements and project lists that specify the number of FTEs and work opportunities to be created EPWP projects must comply with the project selection criteria determined in the EPWP grant manual, the EPWP guidelines set by the Department of Public Works and Infrastructure (DPWI), the latest EPWP Ministerial Determination, the EPWP Recruitment Guidelines and the National Minimum Wage Act of 2018 including applicable gazettes Municipalities must report monthly on all EPWP projects via DPWI’s EPWP reporting system Project data reports must be loaded on the EPWP reporting system every month.
The system closes 15 days after the end of every quarter in order for progress to be assessed Municipalities must maintain participant and payroll records as specified in the audit requirements in the EPWP grant manual and the Ministerial Determination The EPWP grant cannot be used to fund the costs of permanent municipal personnel, however, a maximum of 5 per cent of the grant can be used to fund contract-based capacity required to manage data capturing and on-site management costs related to the use of labour-intensive methods The EPWP grant can only be utilised for EPWP purposes, for projects only approved in each municipality's EPWP project list To receive the first tranche of the allocations, eligible municipalities must submit a signed integrated agreement with a project list by 30 June 2023 Subsequent grant disbursements are conditional upon: o eligible municipalities reporting EPWP performance on the DPWI’s EPWP reporting system within the required timeframes o compliant reporting on EPWP Integrated Grant funded projects o submitting on a quarterly basis non-financial reports including for the last quarter of the previous financial year o reporting on EPWP Integrated Grant expenditure monthly within the required time frames Municipalities must implement their approved EPWP project list and meet agreed FTE targets Municipalities must ensure that EPWP branding is included as part of the project cost in line with the DPWI’s corporate
 identity manual To be eligible for an EPWP grant allocation in 2023/24, a municipality must have reported at least 13 FTEs in either the infrastructure sector, social sector or environment and culture sector in the 2021/22 financial year Newly reporting municipalities must have reported at least 6.5 FTEs in either the infrastructure sector, social sector or environment and culture sector in the 2022/23 financial year by 15 October 2022 The EPWP grant allocations are based on: the number of FTE jobs created in the prior 18 months o past EPWP performance o o past performance with regard to labour intensity in the creation of EPWP work opportunities o service delivery information from 2016 Community Survey used as an adjustment factor Penalties are applied to municipalities with negative audit findings and non-compliant in terms of submission of the non-financial reports Allocation criteria include a rural bias Rural municipalities will also be prioritised in terms of technical support for implementation provided by DPWI Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 243 Expanded Public Works Programme Integrated Grant for Municipalities This grant is intended to fund the expansion of labour intensity in specific focus areas as well as to incentivise increased EPWP
 performance.
The grant is based on performance, the potential to expand and the need for EPWP work in key focus areas 2021/22 audited financial outcomes The grant had an allocation of R759 million, 254 municipalities were eligible for the grant and 100 per cent of the allocation was transferred to these municipalities.
R708 million of the transferred funds was spent by the end of the financial year 2021/22 service delivery performance 234 758 work opportunities were reported by 254 municipalities and validated on the EPWP system 83 909 FTE jobs were reported by 254 municipalities and validated on the EPWP system Average duration of the work opportunities created has increased to 82 days Grant continues until 2025/26, subject to review 2023/24: R781 million; 2024/25: R816 million and 2025/26: R853 million Transfers are made in accordance with a payment schedule approved by the National Treasury Responsibilities of the national department Determine eligibility and set grant allocations and FTE targets for eligible municipalities Publish on the EPWP website all documents relevant for municipalities to understand and implement the grant, including a grant manual, the relevant EPWP guidelines, the EPWP Ministerial Determination and the National Minimum Wage Act including applicable gazettes Support municipalities in the manner agreed to in the grant agreement, to: o identify suitable EPWP projects and develop EPWP project lists in accordance with the EPWP project selection criteria o apply the EPWP project selection criteria and EPWP guidelines to project design o report using the EPWP reporting system project implementation information including project outputs and expenditure Monitor the performance and spending of municipalities
 according to the signed incentive agreement Conduct data quality assessments on a continuous basis, to support good governance and identify areas for administrative improvement Manage the EPWP coordinating structures in collaboration with provincial coordinating departments to support implementation, identify blockages and facilitate innovative solutions Conduct site visits to verify existence of the projects and identify where support is needed Responsibilities of the eligible
 municipalities Develop and submit an EPWP project list to DPWI by 30 June 2023 Sign the standard funding agreement with DPWI agreeing to comply with the conditions of the grant before receiving any grant disbursement Agree on the areas requiring technical support from DPWI upon signing the grant agreement Ensure that reporting is done within the timelines stipulated in the grant agreement and that compliant information is captured in the EPWP reporting system Municipalities must maintain participant payroll records as specified in the audit requirements in the EPWP grant manual, and make these available to DPWI for data quality assessment tests EPWP work opportunity reports must be captured on a monthly basis in order for progress to be assessed Submission of quarterly non-financial reports by the timelines stipulated in the clauses of the Division of Revenue Act, 2023 Process for approval of 2024/25 business plans Municipalities must report performance on EPWP projects for the 2023/24 financial year by 15 October 2023 to be eligible for a grant allocation Municipalities must submit a signed EPWP integrated agreement and project list by 01 July 2024 244 TRANSPORT GRANTS Public Transport Network Grant Transferring department Grant schedule Strategic goal Transport (Vote 40) Schedule 5, Part B To support the National Land Transport Act (Act No.
5 of 2009) and Public Transport Strategy (PTS) and Action Plan in promoting the provision of accessible, reliable, and affordable integrated municipal public transport network services Grant purpose To provide funding for accelerated construction and improvement of public and non-motorised transport infrastructure that forms part of a municipal integrated public transport network) To support the planning, regulation, control, management and operations of fiscally and financially sustainable municipal public transport network services Outcome statements Improved public transport network infrastructure and services that function optimally and are safe, Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions convenient, affordable, well managed and maintained Public transport systems that are accessible to an increasing percentage of the population of urban municipalities and contribute to more spatially efficient urban areas Network Operations Component Number of average weekday passenger trips carried on Public Transport Network Grant (PTNG) funded networks Number and percentage of municipal households within a 500m walk to an integrated public transport network (IPTN) station or stop that has a minimum peak period frequency of 15 minutes or better Percentage uptime for network operating systems as a proportion of the network’s public operating hours Passengers per
 network vehicle per average weekday Network Infrastructure Component Public transport network infrastructure including dedicated lanes; routes and stops/shelters; stations; depots; signage, audio and visual information displays; control centres and related information technology; fare systems and vehicles if the national Department of Transport (DoT) in consultation with National Treasury approves use of grant funds to purchase vehicles; non-motorised transport (NMT) infrastructure that supports network integration including but not limited to sidewalks, cycleways, cycle storage at stations Plans and detailed designs related to IPTN infrastructure and operations Priority 5: Spatial integration, human settlements and local government This grant uses IPTN operational and related plans that include financial modelling Projects must be based on, and form part of, a strategic, municipal wide, long-term IPTN plan and strategy approved by the municipal council Projects funded by this grant must be based on an operational and business plan, which must include a multi- year financial operational plan approved by the municipal council.
This multi-year financial operational plan must cover the full duration of any contracts for each phase funded by the PTNG and include operating and maintenance costs and universal design access plans Projects must support an integrated multi-modal network approach as defined in the National Land Transport Act (NLTA) and the Public Transport Strategy.
Municipalities must manage operations to progressively achieve the standard of service defined in the Public Transport Strategy within available resources Projects should follow an environmental strategy and consider energy efficiency and environmental aspects, such as emission standards; mandatory specifications regarding average fleet emissions should be considered The first tranche is subject to submission of milestones in terms of the template determined by DoT by 29 May 2023 or within seven working days upon adoption/approval by the municipal council, as part of the annual budget appropriation Subsequent payments will be conditional on the attainment of previously funded milestones as specified in the grant allocation letter to each municipality from the DoT.
Milestones are based on the approved IPTN operational plans of cities and are defined after consultation with municipalities All public transport infrastructure and services funded through this grant must ensure that there is provision for the needs of special categories of passengers in line with the requirements of section 11(c)(xiv) of the NLTA Allocations for this grant are made to fund the planning, development, implementation, and operations for specific network phase(s) through two components, with separate conditions applicable to each component as set out in the allocation criteria section below Allocations for the Network Operations Component will be determined by DoT once municipalities submit an annual operations plan including financial forecasts for 2023/24 by 29 May 2023 or within seven working days, upon adoption/approval by the municipal council, as a part of the annual budget appropriation, funds from either component can be shifted to the other if approved by DoT and National Treasury The second tranche is subject to cities submitting, by 31 July 2023, an updated multi-year financial operational plan (approved by council) for the duration of the vehicle operating contract/s pertaining to any phase on which 2023/24 grant funds will be spent 245 Public Transport Network Grant All new intelligent transport solutions (ITS) related contracts that will incur grant expenditure must be jointly approved by DoT and National Treasury before grant funds may be spent on them An amount of R874 million in 2023/24 is allocated to the City of Cape Town, as per the revised cash flow schedule for the MyCiti Phase 2A project, through the Budget Facility for Infrastructure (BFI) and may only be used for that purpose.
Should there be cost variations of more than 10 per cent on the BFI funded project, the municipality is required to inform National Treasury and the transferring officer within 30 days of confirming the cost variations To ensure efficient usage of grant funds, the DoT can instruct that municipalities utilise national transversal appointments for IPTN related items such as professional services, vehicles and information technology including automated fare collection and vehicle tracking, where such contracts exist.
For this purpose, up to 5 per cent of a municipality’s allocation shall be ringfenced for payment by the relevant municipality where the transferring officer deems it necessary The currently suspended municipalities are required to meet the readmission criteria set by the DoT and National Treasury in the readmission framework and all the requirements in this grant framework Network Operations Component Operating subsidies from this component can fund security, station management, fare collection services, control centre operations, information and marketing, network management, insurance, compensation for the economic rights of existing operators and maintenance of infrastructure and systems From the start of operations, IPTN systems must recover all the direct operating costs of contracted vehicle operators from fare revenue, other local funding sources and, if applicable, from any Public Transport Operations Grant contributions.
These direct operating costs consist of fuel, labour, operator administration and vehicle maintenance From the start of operations on a route, the grant can fund a portion of the per kilometre rate to subsidise up to 100 per cent of the capital cost (including interest and related fees) of vehicles purchased by the vehicle operating company IPTN operational plans and ongoing operations management must target improved farebox cost coverage, through minimising costs and maximising fare revenues.
Municipalities operating network services are required to supply detailed operating performance and operating cost and revenue reports quarterly in the formats prescribed by the DoT Operating subsidies for any new or existing service, line, route, or phase, will only be transferred after a municipality meets the requirements of DoT’s Operational Readiness Framework Municipalities must enforce rules and by-laws related to the IPTN and regarding usage of dedicated lanes, fare payment, and operator/supplier compliance with contractual provisions Municipalities are required to establish the specialist capacity to manage and monitor public transport system contracts and operations Verified data on operator revenue and profitability; and draft agreements based on credible passenger surveys) for the compensation of existing economic rights of affected operators must be submitted to DoT for concurrence before concluding agreements on compensation for economic rights Municipalities must enforce agreements that only legal operators operate on routes subject to compensation agreements Network Infrastructure Component The grant can fund all IPTN-related infrastructure, including non-motorised transport, upgrades of existing public transport infrastructure and new infrastructure Municipalities must demonstrate in their IPTN operational plans that they have attempted to give maximum priority to public and non-motorised transport while minimising costs through using existing infrastructure, road space and public land For each phase, final network routing, service design and related financial modelling must be submitted to DoT for review and approval before municipalities proceed with detailed infrastructure design IPTN projects must meet the minimum requirements of the South African Bureau of Standards (including Part S of the Building Regulations) Contracted operators should finance and own vehicles unless a case for the exceptional use of limited infrastructure funding for vehicle procurement is approved by DoT, in consultation with National Treasury.
If approval is granted, any vehicles purchased with grant funds must remain the property of the municipality Allocations are only made to municipalities that submit business plans in line with the above conditions, that demonstrate sufficient capacity to implement and operate any proposed projects, and credibly demonstrate the long-term fiscal and financial sustainability of the proposed projects 75 per cent of available funds are allocated according to the three public transport demand factors.
The three equally weighted demand factors are: o size of population o size of economy o number of public transport users 20 per cent of available funds are allocated through a base component shared equally between participating municipalities 5 per cent of available funds are allocated as a performance incentive to operating municipalities based on the following three indicators (with a minimum threshold that will be revised upwards periodically): Allocation criteria 246 Public Transport Network Grant o coverage of costs from farebox: fare revenue as a percentage of direct operating costs, which indicates a commitment to reducing operational costs, and is a measure of efficiency.
The minimum threshold is 35 per cent o passenger trips: average weekday passenger trips as a percentage of the population.

This indicates coverage of the system, in providing the services to residents.

The minimum threshold is 1 per cent.

The city should be operating for at least two months o skin in the game: city own funding as a percentage of the city’s total property rates used towards funding the IPTN construction and operation.

This is a measure of the cities' commitment to the system.
The minimum threshold is 2 per cent To be eligible for the incentive, municipalities must have spent at least 80 per cent of their PTNG allocation from the preceding year and exceed the minimum threshold in at least one of the three indicators.

This excludes expenditure on the development of planning of plans and detailed designs The information used for the incentive comes from cities’ multi-year financial plans.
If this information exceeds the audited numbers by more than 5 per cent, this will be corrected in the subsequent financial year by reducing the city’s allocation by the amount that is over the amount the city would have received if calculations were based on the audited numbers Allocations for the Network Operations Component are based on municipalities’ Annual Operations Plans (to be submitted to DoT by 29 May 2023) which indicate the amount of the 2023/24 total allocation to be used within the rules of this component Approval of these allocations is specified in the DoT allocation letter to municipalities and is based on the following rules: o DoT approval of the annual operations plan o o the annual operations plan must be costed to meet specific operating targets per network phase to be achieved within the 2023/24 financial year to qualify for eligibility into the 2024/25 formula the network operations component can be used in each phase and sub-phase of the introduction of services to fund up to 70 per cent of indirect operating costs for two years after the municipal financial year in which operations start.
Thereafter the grant can fund up to 50 per cent.
Non-PTNG sources must cover the remaining costs Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule o compensation for the economic rights of existing operators can be funded up to 100 per cent in each phase, however, any inflated compensation which is not supported by credible surveys and business valuation principles will not be funded from PTNG Infrastructure and operational costs associated with the implementation of the Public Transport Strategy and NLTA were not included in municipal budgets before the introduction of IPTN services 2021/22 audited financial outcomes R6.5 billion was allocated but only R5.2 billion was transferred to the respective municipalities implementing IPTN programmes.
This is due to the rescheduling of the cashflow projections for the City of Cape Town’s MyCiTi public transport network, which resulted in a reduction of R1.3 billion of the BFI funding in the 2021/22 Division of Revenue Amendment Act Of the transferred amount, R3.7 billion was spent 2021/22 service delivery performance: Cape Town: 49 708 average weekday passenger trips, 19 hours of operations were recorded throughout the year, relaunched N2 Express services, development of a Non-Motorised Transport (NMT) Design Guidelines Manual incorporating Universal Access (UA) design and incorporated into the City of Cape Town’s Standards and Guidelines for Roads & Stormwater Ekurhuleni: 5 623 average weekday passenger trips and 19 hours of operations were recorded throughout the year eThekwini: 10 stations constructed, 25.2km of ROW 100 per cent complete and 0.8 km ROW and 3 stations at the procurement stage Mangaung: Fort Hare A and Fort Hare B roads both completed, Chief Moroka Cres also completed and Bus Depot phase 1 at 89 per cent, Moshoeshoe A and B roads at 85 per cent and 55 per cent respectively, compensation agreements for phase 1C Brandwag corridor (pilot service) concluded, and ready to go live Nelson Mandela Bay: 2 499 average weekday passenger trips and 18 hours of operations were recorded throughout the year Polokwane: 131 average weekday passenger trips, 8 hours of operations were recorded during the last two quarters of 2021/22 as part
 of the pilot phase from Seshego to Polokwane CBD, completed 0.8 km of the trunk route increasing the dedicated bus route to 4.65 km Rustenburg: Completed 5km of dedicated lanes for Phase 1A, 4km of the CBD loop and 17km for Phase 1B and procured 10 (12m) buses (IPTN fleet) Tshwane: 7 124 average weekday passenger trips,15 hours of operations were recorded throughout the year, completion of Work Package 6: Capital Park Bridges and completed the following designs: Line 2B Designs, Line 2C
 Designs, Belle Ombre Depot Designs (Phase 2 – Remaining Scope) and the Denneboom Intermodal Facility Designs (Phase 1) This grant continues until 2025/26, subject to review 2023/24: R6.8 billion; 2024/25: R7.8 billion and 2025/26: R8.4 billion Transfers are made in accordance with an agreed payment schedule approved by the National Treasury 247 Public Transport Network Grant Responsibilities of the transferring officer and receiving officer Responsibilities of the national department Disburse PTNG funds and monitor PTNG expenditure Monitor IPTN implementation progress and operating performance in line with the NLTA and the public transport strategy Verify reports from municipalities by conducting at least one site visit per annum Allocate funds based on stated priorities through an allocation mechanism agreed to by the DoT and National Treasury Review and comment on draft compensation agreements for economic rights Review and comment on the network model submitted by each municipality Evaluate the performance of the grant annually Maintain the database of operational performance based on the indicators and continue to track, report, and evaluate the performance of the grant based on these measures Finalise the public transport subsidy policy for South Africa Develop cost norms for ITS and include these in the annual PTNG guidelines and
 requirements circulated to municipalities by DoT Submit copies of allocation letters and milestones to the National Treasury Review the Public Transport Strategy to ensure its requirements enable municipalities to develop fiscally sustainable IPTN systems Implement internal mechanisms to monitor adherence to grant conditions and manage the disbursements of the grant where there is non-compliance.
Measures to address non-compliance include withholding transfers, as provided for in section 17 of the 2023 Division of Revenue Act (DoRA).

If matters are still unresolved, this may result in the stopping and reallocation of tranche payments in terms of sections 18 and 19 of the 2023 DoRA Responsibilities of municipalities Ensure that projects are implemented in line with approved business plans and are also reflected in the integrated development plan of the municipality.
Additional plans that municipalities will need to complete include: o network operational plans, including universal design access plans o business and financial plans (including financial modelling, economic evaluation, and operator transition plans) institutional network management plans o o engineering and architectural preliminary and detailed designs o public transport vehicle and technology plans o marketing and communication plans Projects funded by this grant must promote the integration of the public transport networks in a municipality, through: o physical integration between different services within a single network o fare integration between different services o marketing integration with unified branding o institutional integration between the services o spatial integration, in conjunction with other grants directed at the built environment Provide budget proposals for the PTNG funding that: o are based on sound operational and financial plans that cover direct vehicle company operating costs o from local sources at a minimum indicate the intended allocations between the network operations component and network infrastructure component Establish a dedicated project team to plan, manage and monitor infrastructure development and maintenance, as well as operations with an emphasis on optimising vehicle kilometres through full use of procured Intelligent Transport System tools Compile and submit data that indicates the efficiency and effectiveness of operational services in the formats and use the indicators defined by the DoT Municipalities must submit business plans based on a fiscally and financially sustainable IPTN or an agreed plan to compile this, supported by credible multi-year financial operational plans by 31 July 2023.
The plans should include plans for how all municipal owned bus services will be integrated into the 10-year IPTN programme Suspended municipalities seeking readmission must submit their revised plans by 30 June 2023 DoT and National Treasury will jointly evaluate these plans – based on pre-determined criteria regarding financial and fiscal sustainability and sufficient capacity – for the municipality’s eligibility for an allocation in the 2024/25 financial year Municipalities that fail to pass the eligibility and readmission criteria will be informed by 28 August 2023 and may be asked to resubmit plans Process for approval of 2024/25 business plans 248 Transferring department Grant schedule Strategic goal Transport (Vote 40) Schedule 5, Part B Ensure efficient and effective investment in municipal roads through development of road asset management Rural Roads Asset Management Systems Grant Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan Conditions systems (RAMS), collection and analysis of data To assist district municipalities to set up rural RAMS, and collect road, bridges and traffic data on municipal road networks in line with the Road Infrastructure Strategic Framework for South Africa Improved data on municipal roads to guide infrastructure maintenance and investments Road condition data (paved and unpaved) as per
 prescribed Technical Methods for Highways (TMH-series) Traffic data Data on condition of structures (including bridges and culverts) as per prescribed Technical Methods for Highways (TMH 19 series) Borrow Pit Management data Safety assessments data Prioritised project list for roads to inform Municipal Infrastructure Grant project selection Priority 5: Spatial integration, human settlements and local government This grant uses Road Asset
 Management Plans (RAMPs)/business plans which contain the following details: information systems lifecycle planning o network hierarchy o performance management framework o gap analysis o o o current and future demand o o monitoring o reviewing o plans for continual improvements including sharing data with local municipalities financial plan Transfer of the first tranche is conditional on submission of an approved business plan by 29 May 2023 Transfer of the second tranche is conditional on submission of evidence of engagements and sharing of data with local municipalities and compliance with monthly and quarterly signed report submissions to the national Department of Transport (DoT), and the relevant provincial roads authorities Road authorities must conduct regular condition assessments for paved and unpaved roads, structure, traffic data and any other road inventory data District municipalities must provide local municipalities with validated information from the condition data collected to enable municipalities to identify and prioritise road maintenance requirements within their own budgets, to improve the condition and extend the lifespan of road infrastructure For Road Infrastructure Strategic Framework for South Africa Class R1, R2 and R3 roads, data collection requirements are: o visual condition data not older than two years for pavements and five years for bridges o o o instrumental pavement data for roughness, rut depth and macro texture not older than two years instrumental pavement data for structural strength not older than five years traffic data not older than three years For Road Infrastructure Strategic Framework for South Africa Class R4 and R5 roads, data requirements are: o visual condition data not older than three years for pavements and five years for bridges o instrumental pavement data for roughness, rut depth and macro texture not older than four years on paved roads only
 traffic data not older than five years o All road condition data collected must be submitted to the national DoT, and the relevant provincial roads authorities by 02 October 2023 This framework must be read in conjunction with the practice note as agreed to with the National Treasury District municipalities must participate in grant management structures, including attending monthly and/or quarterly RRAMS progress as well as national meetings A maximum of 5 per cent may be used for municipal costs incurred as part of coordination, project management and reporting by the district District municipalities must appoint an independent assessor to assess a representative sample of all roads assessed (which is about 10 per cent of their assessed network) to confirm the correctness of the assessments made by the municipality Municipalities must pass a council resolution in support of the technical assistance being provided Grant funds may be spent on building the capacity of municipalities with respect to the purpose and outputs listed for this grant Technical support to municipalities must include transfer of skills to municipal officials Graduates must attend a Spatial Intelligence Data Science Course Municipalities may use a maximum of 3 per cent of their allocations for planning, using RAMS outputs as guidance in municipal road infrastructure management and submit a portfolio of evidence to the national DoT Allocation criteria Allocations are based on the extent of road network and number of local municipalities within a district municipality Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer 249 Rural Roads Asset Management Systems Grant This is a specific purpose grant mainly for the provision of systems to collect data on
 traffic and conditions of municipal roads and structures 2021/22 audited financial outcomes Of the R109 million allocated and transferred to municipalities, R82 million was spent 2021/22 service delivery performance 16 933 kilometres of paved road network and 52 735 kilometres of unpaved road network were assessed 35 062 structures identified by the programme in the district municipalities receiving the grant 164 graduates were recruited into the programme This grant continues until 2025/26, subject to review 2023/24: R115 million; 2024/25: R121 million and 2025/26: R126 million Transfers are made in accordance with the payment schedule approved by National Treasury Responsibilities of the national department Monitoring implementation of RAMS together with provincial road authorities Data integrity will be checked by DoT and provincial road authorities Provide guidance on sustainable RAMS operations and standards Facilitate interaction between local municipalities and district municipalities in using RRAMS outputs as guidance in municipal road infrastructure management Management, monitoring and reporting of the programme Agree on RAMP with participating municipalities Coordinate with the National Treasury to ensure that the capacity building activities of the two departments are complimentary Submit reports which
 are consistent with the reporting requirements in the 2023 Division of Revenue Act Ensure that municipal road authorities conduct regular condition assessments for paved and unpaved roads, structure, traffic data and any other road inventory data DoT must support municipalities with planning and implementation of municipal roads projects in terms of the conditions, standards and specifications applicable to this sector Responsibilities of municipalities Municipalities must make
 provision to maintain RAMS after the lifespan of the grant Municipalities must submit monthly reports that comply with the DoT and Treasury financial template as well as performance report by the 15th of every month Submit completed quarterly performance report templates 30 days after the end of each quarter Data for all rural roads to be updated within two years Recruit unemployed youth graduates with a qualification in B. Eng.
Tech or Advanced Diploma in the civil engineering environment for data collection purposes Ensure human capacity at municipalities for the operation of RAMS is built Municipalities investing in roads infrastructure must utilise data from the rural RAMS where available, to identify and prioritise their investment on roads projects, including maintenance Identify municipal officials that will be recipients of skills transfer and attend a Spatial Intelligence Data Science Course Ensure that municipal officials participate actively in all activities funded through this grant Ensure systems and practices developed through this grant are sustained as part of the operations of the municipality Process for approval of 2024/25 business plans Submit updated RAMS data in TMH 18 format by 29 May 2023 District municipalities must submit a draft RAMP/business plan to DoT by 31 May 2023 District municipalities must submit the final RAMP/business plan signed off by the accounting officer and accompanied by a completed TMH22 checklist by 31 July 2023 RAMP must contain the following: the extent of the road network in the municipality the proportion of municipal roads with updated data captured on its RAMS the condition of the network in the municipality the maintenance and rehabilitation needs of the municipal road network the status of the municipality’s RAMS o o o o o o status of institutionalisation of RAMS in the district municipality
 TMH 22 RAMP guideline can be used as template 250 WATER AND SANITATION GRANTS Regional Bulk Infrastructure Grant Transferring department Grant schedule Strategic goal Water and Sanitation (Vote 41) Schedule 5, Part B and Schedule 6, Part B Facilitate achievement of targets for access to bulk water and sanitation through successful execution and Grant purpose Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in
 the business plan Conditions implementation of bulk projects of regional significance To develop new, refurbish, upgrade and replace ageing bulk water and sanitation infrastructure of regional significance that connects water resources to infrastructure serving extensive areas across municipal boundaries or large regional bulk infrastructure serving numerous communities over a large area within a municipality To implement bulk infrastructure with a potential of addressing water conservation and water demand management (WC/WDM) projects or facilitate and contribute to the implementation of local WC/WDM projects that will directly impact on bulk infrastructure requirements Access to water supply enabled through regional bulk infrastructure Proper wastewater management and disposal enabled through regional wastewater infrastructure Number of regional bulk water and sanitation projects phases under construction Number of projects/project phases completed Number of households targeted to benefit from bulk water and sanitation supply Number of municipalities benefitting from bulk water and sanitation projects Number of job opportunities created through implementation of bulk infrastructure projects Number of households provided with water and sanitation through local source development Priority 5: Spatial integration, human settlements and local government This grant uses approved implementation readiness studies (IRS) which include the following: inception/scoping report technical feasibility report o o o preliminary designs and cost estimates Schedule 6, Part B projects are implemented through a memorandum of understanding (MoU) which contains cash flow, implementation milestones and specific funding conditions related to the project The Regional Bulk Infrastructure Grant (RBIG) is intended to fund the social component of regional
 bulk water and sanitation projects approved by the Department of Water and Sanitation (DWS), unless exemptions based on affordability are recommended by DWS and approved by National Treasury All identified projects must be referenced to and included in the municipal Integrated Development Plan (IDP) and Water Services Development Plans (WSDP) and show linkages to projects under the Municipal Infrastructure Grant (MIG) and/or the Water Services Infrastructure Grant (WSIG) Funds may only be used for disaster interventions based on a business plan approved by DWS Feasibilities studies must consider the results of the green drop, blue drop and no drop assessments in prioritising projects An amount of R1.4 billion in 2023/24 is allocated to several municipalities through the Budget Facility for Infrastructure (BFI) and may only be used for the respective purposes of the projects approved: o R375 million for George Local Municipality for the implementation of the Potable Water Security and Remedial Works project o R86 million for Sol Plaatje Local Municipality for the implementation of the Integrated Bulk Supply System Intervention project o R305 million for Drakenstein Local Municipality for the implementation of the Sanitation Infrastructure project o R348 million for Nelson Mandela Bay Metropolitan Municipality for the implementation of the Water Security Programme - Part A For the BFI allocation to Nelson Mandela Metropolitan Municipality for the drought relief programme: o DWS must approve the final implementation plan for the project before the first tranche payment is made o the municipality and DWS must agree on the key deliverables and timelines before the municipal budget is approved Should there be cost variations of more than 10 per cent on BFI funded project, the relevant municipality is required to inform the National Treasury and the transferring officer within 30 days of confirming the cost
 variations Schedule 5, Part B allocations Municipalities must spend grant funds in line with the IRS and detailed designs approved by DWS Municipalities must submit monthly financial and quarterly non-financial reports to DWS on stipulated dates Municipalities must spend at least 25 per cent of their first transfer and comply with the reporting provisions before the second transfers are made Municipalities must spend at least 50 per cent of their total RBIG allocations transferred and comply with the reporting provisions before subsequent transfers are made Grant funds must be reflected in the capital budget of the municipality All sources of funding for the cost of the project must be clearly outlined in the approved IRS/conditional assessment of refurbishment of existing infrastructure 251 Regional Bulk Infrastructure Grant Schedule 6, Part B allocations This grant can be used to build enabling infrastructure required to connect or protect water resources over significant distances with bulk and reticulation systems The financing plan with associated co-funding agreements must be in place prior to implementation of the project unless exemption to co-funding requirements has been approved by National Treasury All sources of funding for the full cost of the project must be outlined in the IRS and the MoU The IRS and MoU must be approved by DWS All projects must be implemented and transferred in line with the approved IRS and detailed designs Allocation criteria Projects are assessed individually, and allocations are made by DWS on a project basis, taking into account Reasons not incorporated in equitable share Past performance Projected life MTEF allocations Payment schedule Responsibilities of the transferring officer and receiving officer the following factors: o demand and availability of water o the overall infrastructure needs o the strategic
 nature of the project o socio-economic importance of an area o impact of the project This grant is only allocated to Water Services Authorities (local and district municipalities) Regional bulk projects are closely linked to water resource planning and development, which is a DWS competency Projects may cross municipal boundaries 2021/22 audited financial outcome Of the budget allocation (Schedule 5, Part B) of R2.2 billion; R2.2 billion (100 per cent) was transferred and R1.3 billion was spent Of the revised budget allocation (Schedule 6, Part B) of R3.2 billion, R1.6 billion was spent 2021/22 service delivery performance Fourteen (14) projects and phases were completed: 1) Ngcebo BWSS Phase 1 of 1, (2) Empuluzi / Methula 4B of 8, (3) Empuluzi / Methula Phase 2B of 8, (4) Taung Naledi BWS Phase 2 of 3, (5) Middleburg BWS Phase 2 of 2, (6) Port Alfred RO plant (5ml) phase 1 of 1, (7) COVID_ Mangaung Sustainable Water Supply, (8) COVID_ Masilonyana Sustainable Water Supply, (9) Sheepmore/Amsterdam, (10) Xhora BWS phase 1 of 2 (Weir, WTW,dam Bulk pipeline), (11) Graaff Reinett emergency WSS phase 2 of 2 (augmentation of groundwater), (12) Jagersfontein Fauresmith BWS Phase 2 of 2, (13) Sibange Phase 3 of 5, (14) Sibange Phase 4 of 5 125 project phases were under construction This grant continues until 2025/26, subject to review Direct transfers (Schedule 5, Part B): 2023/24:
 R3.5 billion; 2024/25: R4.1 billion and 2025/26: R4 billion Allocations-in-kind (Schedule 6, Part B): 2023/24: R3.6 billion; 2024/25: R3.8 billion and 2025/26: R3.9 billion Transfers for Schedule 5, Part B allocations are made in terms of a payment schedule approved by National Treasury Payments for Schedule 6, Part B allocations are made after verification of work performed Responsibilities of the national department Ensure every municipality benefiting from a
 specific project or scheme is invited to participate in the feasibility study, IRS and construction Enter into an MoU with WSAs regarding the construction, ownership, funding arrangements, and operation and maintenance of proposed infrastructure prior to the commencement of construction If required, ensure the necessary authorisations including environmental impact assessment and water use licences are obtained Ensure that the land assessment is done prior to project implementation Provide detailed information on the selection criteria and conditions for the grant (RBIG Programme Implementation Framework) Ensure that suitable agreements in terms of operation and maintenance are in place Issue project funding approval letters to benefiting municipalities Ensure that implementing agents submit monthly financial and quarterly non-financial reports on stipulated dates Make payments of Schedule 6, Part B allocations to DWS’s contracted implementing agents based on invoices for work done Report separately on disaster response expenditure, in its reports submitted in terms of the requirements of section 10 of the Division of Revenue Act and share this information with the National Disaster Management Centre National department to actively monitor the Nelson Mandela Metropolitan Municipality drought relief programme in accordance implementation plan Responsibilities of water services authorities Submit monthly, quarterly and annual progress reports to DWS Ensure that projects are appropriately linked to the municipality’s IDP and WSDP and projects funded through the MIG and WSIG 252 Regional Bulk Infrastructure Grant Once a project is completed, ensure adherence to operations and maintenance plans and/or any other requirements agreed to as part of the funding agreement contained in the MoU, and ensure the sustainability of infrastructure
 Ensure integration of planning, funding, timing and implementation of bulk and reticulation projects Ensure provision of reticulation services and/or reticulation infrastructure to connect to the bulk infrastructure funded through this grant Municipalities to promote the inclusion of adopted innovative solution(s) in water and sanitation infrastructure project(s) development and management Process for approval of 2024/25 business plans Due to the long-term nature of projects, dates of the various processes are not fixed All proposed projects which comply with the RBIG criteria must be registered and listed in DWS’s bulk master plans At regional level, a coordination committee of key stakeholders to assist with planning of regional bulk projects and the assessment of the IRS and feasibility studies must be in place Pre-feasibility studies must assess potential for WC/WDM interventions IRS and feasibility studies will be evaluated and approved by the transferring officer Based on the outcome of the IRS, DWS will nominate the implementing agent for the construction phase of Schedule 6, Part B projects and designate the owner of the infrastructure.
National Treasury and benefitting municipalities will be informed of the decisions Projects requiring co-funding exemptions to be submitted to DWS by 31 July 2023 and DWS to make recommendations to the National Treasury by 31 August 2023 253 Water Services Infrastructure Grant Transferring department Grant schedule Strategic goal Grant purpose Water and Sanitation (Vote 41) Schedule 5, Part B and Schedule 6, Part B To provide water and sanitation services and reduce backlogs Facilitate the planning and implementation of various water and sanitation projects to accelerate backlog Outcome statements Outputs Priority of government that this grant primarily contributes to Details contained in the business plan reduction and enhance the sustainability of services especially in rural municipalities Provide basic and intermittent water and sanitation supply that ensures provision of services to identified and prioritised communities, including spring protection and groundwater development Support municipalities in implementing water conservation and water demand management (WC/WDM) projects Support the close-out of the existing Bucket Eradication Programme intervention in formal residential areas Support drought relief projects in affected municipalities An increased number of households with access to reliable, safe drinking water and sanitation services Number of households provided with water and sanitation through: o reticulated water supply o on site sanitation o bucket systems replaced with appropriate sanitation facilities for households identified by the Department of Water and Sanitation (DWS) in the 2015/16 verification process o source identification o water conservation/water demand management provision Number of Water Services Infrastructure Grant (WSIG) projects under construction Number of WSIG projects completed Number of job opportunities created through
 implementation of water and sanitation projects Priority 5: Spatial integration, human settlements and local government Outcome indicators Project overview Project costing Project milestones Impact declaration Schedule 6, Part B projects are implemented through a memorandum of understanding (MoU) which contains cash flow, implementation milestones and specific funding conditions related to the project Conditions All project scope funded must be aligned to and not duplicate, any existing or planned projects funded by other conditional grants or municipal own funds Municipalities must demonstrate in their business plans how they plan to manage, operate and maintain the infrastructure over the long term Projects should ideally be implemented over a year and the maximum period that a project can be implemented is three years Projects must be aligned to bulk infrastructure and must be at the scheme level Business plans must consider the results of the green drop, blue drop, and no drop assessments in prioritising projects Schedule 5, Part B allocations Municipalities must submit business plans signed-off by their Accounting Officer in line with their Water Services Development Plans (WSDPs) and Integrated Development Plans (IDPs) DWS must approve the business plans before projects can be implemented Water Service Authorities (WSAs) must only spend funds in line with approved business plans Municipalities must spend at least 25 per cent of their first transfer and comply with the reporting provisions before the second transfers are made Municipalities must spend at least 50 per cent of their total WSIG transferred and comply with the reporting provisions before subsequent transfers are made WSAs must submit monthly financial and quarterly non-financial reports to DWS Funds must be
 reflected in the capital budget of the municipality Grant funds must not be spent on operations and maintenance The Project Management Unit funded through the Municipal Infrastructure Grant should be utilised to manage the implementation of projects funded through this grant Funds may only be used for disaster relief interventions based on a plan approved by DWS Five per cent of the total project cost may be used for planning for the specific project Schedule 6, Part B allocations Municipal accounting officers must sign-off that business plans are in line with their WSDP/IDP DWS must approve the business plans before projects can be implemented DWS must enter into an MoU with the relevant municipality before any project is implemented Allocations are based on the number of households with water and sanitation backlogs, prioritising the 27 priority district municipalities identified by government The grant is earmarked for specific projects aimed at providing access to basic water and sanitation services Allocation criteria Reasons not incorporated in equitable share 254 Past performance Water Services Infrastructure Grant 2021/22 audited financial outcomes Water Services Infrastructure Grant (Schedule 5, Part B): o of the revised budget allocation of R3.6 billion, R3.6 billion (100 per cent) was transferred and R2.9 billion was spent Water Services Infrastructure
 Grant (Schedule 6, Part B): o of the revised budget allocation of R729 million, R383 million was spent 2021/22 service delivery performance 99 757 households served 504 jobs created This grant continues until 2025/26, subject to review Direct transfers (Schedule 5, Part B): 2023/24: R3.9 billion; 2024/25: R4 billion and 2025/26: R4.2 billion Allocations-in-kind (Schedule 6, Part B): 2023/24: R805 million; 2024/25: R841 million and 2025/26: R879 million For
 Schedule 5, Part B, transfers are made in accordance with a payment schedule approved by National Treasury Projected life MTEF allocations Payment schedule For Schedule 6, Part B, payments are made to contracted implementing agents (including water boards and private service providers) after verification of work performed Responsibilities of the transferring officer and receiving officer Responsibilities of the national department Evaluate and approve the business plans for each project before funds can be transferred Ensure that the conditions of the grant and approved business plans are adhered to Ensure that, if available, the results of the green drop, blue drop and no drop assessments are considered in the planning and prioritisation of projects Submit statutory reports (monthly financial, quarterly non-financial and annual performance) to National Treasury Ensure that implementing agents submit monthly financial and quarterly non-financial reports Ensure alignment of WSIG projects with projects approved in the MIG implementation plans In cases where DWS appoints a contractor, the contract between DWS and the appointed contractor must be signed before the project can commence All drought-related plans and expenditure must be shared with the National Disaster Management Centre Submit a water services capacity building plan for municipalities to National Treasury by 26 June 2023 Report separately on disaster response expenditure, in its reports submitted in terms of the requirements of section 10 of the Division of Revenue Act and share this information with the National Disaster Management Centre Responsibilities of water services authorities Compile and submit signed-off business plans for each project (for the relevant financial year) Sustainably operate and maintain funded water and sanitation projects over their lifetime
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/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( 263 - - - - - - - - - 0 0 0 8 0 1 0 0 4 3 0 1 7 4 9 6 3 1 - - - - - - - - - - - - - - - - - - -
3 3 7 7 1 4 0 4 7 1 4 0 4 7 0 0 9 0 6 0 0 9 0 6 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
0 0 0 0 5 0 0 0 0 5 0 0 0 0 2 0 0 0 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 8 6 5 8 6 2 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - 6 2 6 6 2 6 2 2 3 1 5 3 1 5 2 2 5 0 4 5 0 4 2 2 - - - - - - - - - - - - - - - - - - 5 4 4 3 5 4 4 3 7 9 2 3 7 9 2 3 6 1 1 3 6 1 1 3 - - - - - - 8 8 7 8 8 7 3 3 - - - 2 6 5 2 2 6 5 2 - - - - - - - - - - - 2 4 6 2 4 6 3 3 - - - 2 5 4 2 2 5 4 2 - - - - - 6 9 2 3 6 9 2 3 - - - - 9 6 5 9 6 5 2 2 - - - - - - 8 6 4 8 6 4 3 3 - - - 7 4 3 2 7 4 3 2 - - - - - 5 5 1 3 5 5 1 3 - - - - 0 5 4 0 5 4 2 2 - - - - - 2 8 4 6 8 - 0 0 0 0 0 0 5 9 0 0 0 7 2 0 0 0 1 4 - - 0 0 0 0 3 0 0 0 0 3 0 0 0 3 2 0 0 0 1 2 - - - - - 0 0 0 2 8 - 0 0 0 0 0 5 3 9 0 0 5 4 2 0 0 0 7 3 - 0 0 5 8 0 0 0 5 3 0 0 8 3 1 0 5 0 9 1 1 5 8 2 2 1 0 2 9 9
 - 0 0 5 2 3 0 0 0 1 3 0 0 5 3 2 0 0 8 9 1 - - - - - - 4 0 2 0 0 7 4 - - 4 0 9 4 0 6 7 4 0 0 7 0 1 5 2 6 5 - - 2 5 7 0 0 9 3 5 7 3 7 0 3 - 6 9 1 0 3 1 8 8 4 2 1 8 3 8 1 0 8 8 3 1 - - 8 3 3 7 8 9 5 7 7 1 - - - 9 5 7 7 1 8 1 6 2 8 6 7 6 2 3 1 3 3 2 1 6 3 3 1 - - 0 6 0 6 6 - - 0 0 0 8 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 6 0 0 0 6 - 0 0 0 0 1 - 0 0 0 5 - - - - 0 0 0 9 - 0 0 0 4 - - - 0 0 0
 5 0 0 0 4 - - 0 0 0 0 1 - - - - - - - - - - - - - - 0 0 0 6 - - 0 0 0 8 0 0 0 5 - - - - - - - - - - - - 0 0 0 5 0 0 0 5 0 0 0 6 0 0 0 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 1 5 5 5 1 5 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - : l a t o T 2 7 0 8 7 0 5 5 1 8 9 0 3 3 1 7 4 7 5 3 9 5
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/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R (
 ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( - - - - - - - - - - - - - - - - - - 0 0 0 7 5 - - - - - 0 0 0 7 5 - - - - - - - - - - - - - - - - - 6 9 8 8 6 9 8 8 - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 0 1 1 5 9 3 3 1 0 0 0 0 5 1 264 - 7 9 5 4 1 8 4 4 0 1 1 5 0 7 1 0 5 4 3 1 6 4 5 5 5 - 1 7 9 2 1 0 0 0 0 1 0 2 3 6 2 0 0 0 0 1 1 9 2 9 5 - 0 0 9 0 2 1 2 0 4 1 7 1 6 0 2 0 0 0 2 2 8 3 5 7 7 - - - - - - - - - - - 8 8 0 0 0 1 0 0 0 0 0 1 - - - - - - - - - - - - - 9 1 5 9 1 5 2 2 1 1 4 1 1 4 2 2 8 0 3 8 0 3 2 2 - - - - - - - - - - - - - - - 5 7 6 5 7 6 2 2 1 6 5 1 6 5 2 2 1 5 4 1 5 4 2 2 - - - - - - 0 2 8 0 2 8 2
 2 - - - - 5 6 5 2 5 6 5 2 - - - - - - 9 9 6 9 9 6 2 2 - - - - 5 5 4 2 5 5 4 2 - - - - - - 3 8 5 3 8 5 2 2 - - - - 0 5 3 2 0 5 3 2 - - - 0 0 0 4 - - - - 0 0 1 2 5 0 0 0 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5 1 5 3 5 - - - 2 3 3 8 3 - 0 0 0 0 0 5 7 8 0 0 0 0 1 0 0 0 0 1 - - - 8 2 5 6 3 4 4 1 9 6 9 3 2 3 3 9 8 3 - - 0 6 9 1 0 0 0 0 3 - 0 8 2 0 4 2 2 3 - - - 0 8 4
 5 0 0 0 5 - - 0 0 0 7 2 0 0 5 5 3 0 8 4 0 1 - 0 0 0 7 0 0 0 0 2 0 0 0 0 1 3 9 3 5 3 9 3 2 4 - - 0 2 4 0 5 2 2 6 - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 0 0 5 5 - - - - - - 0 0 0 5 0 0 0 4 0 0 0 5 0 0 0 4 - - - 0 0 0 5 0 0 1 0 0 0 4 5 0 0 1 4 1 - - - - - - - - - - - - - - - - - - 0 0 0 4 0 0 0 4 0 0 0 8 - - - - - - 0 0 0 0 0 0 4 4 - - - - - - - - - - - 9 1 5 1 2 8 1 2 0 2 7 3 7 1 4 - 9 4 9 0 5 7 7 2 5 4 7 3 6 4 7 - - - - - 9 9 5 0 2 4 5 3 9 1 3 5 9 9 3 - 1 7 7 8 4 2 4 3 3 4 7 4 4 1 7 - - - - - 2 1 7 9 1 8 0 8 8 1 0 2 5 8 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 5 8 5 5 8 2 2 - - - 1 4 0 3 1 4 0 3 6 9 8 5 - - - - - - 3 3 7 3 3 7 2 2 - - - 1 1 9 2 1 1 9 2 4 4 6 5 - - - - - - 6 1 6 6 1 6 2 2 - - - 6 8 7 2 6 8 7 2 2 0 4 5 - - - - 0 0 0 0 2 0 0 0 5 2 0 0 0 0 3 0 0 0 5 7 - 0 0 0 0 2 0 0 0 5 2 0 6 8 6 3 0 6 8 1 8 - - - - 0 0 0 0 2 0 0 0 0 3 0 0 0 0 3 0 0 0 0 8 - 0 0 0 5 1 0 0 0 5 2 4 3 1 0 3 4 3 1 0 7 - - - - 0 4 5 3 2 1 2 5 2 7 2 6 3 3 9 7 3 2 6 - - - - - - - - - - - - 0 0 0 9 0 0 0 0 1 0 0 0 6 -
 - - 0 0 0 6 - - - 0 0 0 4 0 0 0 4 0 0 0 8 - 0 0 0 8 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 4 1 1 2 0 5 6 5 2 3 6 2 2 2 6 5 0 9 6 - 8 7 4 9 2 2 5 3 0 2 5 6 2 0 2 8 4 7 7 3 3 7 5 6 5 1 - 1 0 4
 0 2 0 0 7 4 2 9 6 4 1 2 0 7 5 6 6 - 2 5 3 8 2 6 4 6 9 1 3 6 5 9 1 2 4 2 6 3 2 0 6 9 4 1 - 8 8 6 9 1 9 8 7 3 2 7 0 7 0 2 4 8 1 4 6 - : : l a t o T - - - - a - : l a t o T - 4 4 7 1 5 6 2 1 4 5 8 8 6 7 5 9 7 1 8 2 - 4 9 5 9 4 7 6 8 1 5 5 6 2 5 5 3 1 1 7 2 - 1 3 5 7 4 9 9 6 9 4 0 4 9 2 5 1 9
5 5 3 1 1 7 2 - - - - - 2 9 5 0 4 1 4 4 3 3 5 7 8 2 2 2 - - - - 5 5 9 8 3 3 3 1 2 3 5 5 8 2 1 2 - - - - : l a t o T s e i t i l a p i c i n u M e t a t S e e r F : l a t o T G N E T U A G y
u M e t a t S e e r F : : l a t o T - - 1 2 4 6 8 1 8 4 9 1 1 - - 7 7 6 2 8 5 1 2 4 1 1 - - : l a t o T s e i t i l a p i c i n u M g n e t u a G : l a t o T 265 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 8 5 3 7 5 0 4 0 7 0 0 0 0 5 - - - - - 6 1 1 4 9 7 9 6 7 6 1 - - - - - 4 5 0 0 9 9 5 4 0 6 1 - - - - - - - - - - - - - - - - - - - 1 9 3 2 1 1 8 7 3 5 6 1 - - 0 0 0 0 8 0 0 7 0 3 1 - - 0 0 0 0 5 0 0 0 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 7 6 9 2 7 6 9 2 - - - 7 1 9 2 7 1 9 2 - - - - 3 7 6 2 3 7 6 2 - - - 7 8 5 7 8 5 2 2 - - - - - - - - - - - - 3 6 0 1 8 3 6 0 1 8 - 0 0 0 2 6 - - - - - - - 4 6 5 7 7 4 6 5 7 7 - 0 0 5 9 5 - - - - - - - - - - 0 0 0 5 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 7 7 0 3 7 7 0 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 6 6 2 3 6 6 2 - - - - 0 1 6 2 0 1 6 2 - - - - - - - 0 4 8 0 4 8 2 2 - - - 2 9 7 2 2 9 7 2 - - - - 9 5 5 9 5 5 2 2 - - - 6 7 4 6 7 4 2 2 - - - - - 3 5 6 2 3 5 6 2 - - - - 5 4 9 2 5 4 9 2 - - - - - 7 3 8 7 3 8 2 2 - - - - 9 2 5 9 2 5 2 2 - - - - 8 9 4 8 9 4 2 2 - - - - - - - 8 1 7 8 1 7 2 2 - - - 2 7 6 2 2 7 6 2 - - - - 9 4 4 9 4 4 2 2 - - - 0 7 3 0 7 3 2 2 - - - - - 9 3 5 2 9 3 5 2 - - - - 9 1 8 2 9 1 8 2 - - - - - 5 1 7 5 1 7 2 2 - - - - 9 3 4 9 3 4 2 2 - - - - 1 9 3 1 9 3 2 2 - - - - - - - - - - - - - - - 2 2 1 3 2 2 1 3 8 8 9 8 8 9 2 2 9 5 8 9 5 8 2 2 - - - 0 0 0 8 0 0 0 0 1 0 0 0 8 - - 3 2 2 0 7 - 8 3 5 2 1 2 7 6 5 1 3 3 7 8 3 4 9 6 3 - 4 2 2 5 6 9 8 0 2 0 3 0 4 2 8 4 4 0 1 8 9 5 0 6 - 2 4 6 9 7 1 7 4 6 9 8 0 2 7 1 7 2 3 - 3 3 7 8 4 8 2 5 1 7 1 9 0 1 0 5 5 4 1 3 6 7 8 9 7 8 4 - 9 0 0 2 1 7 1 9 0 1 7 1 9 0 1 2 0 0 1 1 5 4 8 4 4 - 3 3 7 3 3 7 8 8 4 8 2 5 1 8 4 4 0 1 4 8 2 5 1 2 8 4 8
 5 - 7 7 2 5 1 2 7 6 5 1 1 0 1 3 1 2 7 6 5 1 2 2 7 9 5 - 8 4 4 0 1 4 6 4 1 1 4 1 3 4 1 3 7 7 0 4 5 6 3 - - 2 1 2 7 6 - 0 0 0 2 1 0 0 0 5 1 9 5 3 8 9 5 3 5 3 - 0 0 0 5 0 0 0 0 2 0 0 0 3 2 0 0 0 0 1 0 0 0 8 5 - 4 1 3 7 0 0 0 4 0 0 0 0 2 4 1 3 1 3 - 9 5 3 8 9 2 6 4 1 9 4 4 0 1 9 6 2 6 0 0 0 7 6 0 7 6 4 - 4 9 4 1 1 9 4 4 0 1 9 4 4 0 1 0 3 5 0 1 2 2 9 2 4 - 9 5 3 8 9 5 3 8 9 2 6 4 1 0 0 0 0 1 9 2 6 4 1 6 7
 9 5 5 - 2 2 6 4 1 0 0 0 5 1 9 3 5 2 1 0 0 0 5 1 1 6 1 7 5 - 0 0 0 0 1 1 7 9 0 1 0 0 0 7 0 0 0 7 1 7 9 4 3 - - 5 1 8 0 4 6 0 6 9 7 2 5 1 4 9 2 - - 6 7 4 1 2 2 9 6 2 4 0 0 0 7 0 2 9 9 5 5 5 2 2 - 3 4 6 3 0 1 - 0 0 0 0 1 0 0 0 5 1 4 4 2 1 4 4 2 6 2 - - 0 0 0 0 1 0 0 0 3 2 5 5 3 2 1 5 5 3 5 4 - 0 5 5 1 2 8 8 4 4 2 6 4 3 2 4 8 3 8 4 - 5 0 3 1 2 0 0 6 5 1 0 8 6 6 1 0 0 0 9 0 0 8 5 5 8 3 8 6 - 5 7 4 0 2 9 4 2 7 1 0 6 7 6 0 0 6 2 4 8 0 7 4 - 0 0 5 9 0 0 0 4 1 0 0 5 3 0 0 7 3 1 0 0 0 7 1 0 0 7 7 5 - 4 8 3 7 0 0 8 0 1 0 0 0 0 1 8 6 1 8 2 2 5 3 6 5 - 0 6 5 7 2 3 6 8 1 2 0 0 6 1 6 5 7 4 8 5 7 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 6 0 0 0 6 - 0 0 0 5 - - - - - - - - - - - 0 0 0 4 - - - - - - 0 0 0 5 0 0 0 5 0 0 0 0 1 0 0 0 9 - - - 0 0 0 5 0 0 0 5 0 0 0 5 - - - - - - - 0 0 0 3 0 0 0 3 0 0 0 5 - - - - 0 0 0 5 0 0 0 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 5 - - - - - - - 0 0 0 5 - 0 0 0 4 0 0 0 4 0 0 0 5 - - - - - - - - - - - 0 0 0 5 - 0 0 0 5 0 0 0 5 0 0 0 4 - - - - 0 0 0 5 0 0 0 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2 4 4 6 1 - - - - 2 7 7 5 1 2 6 5 3 1 8 9 2 2 8 5 7 7 9 2 1 7 0 4 1 4 2 - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 2 0 2 2 9 3 0 1 4 6 6 0 3 6 - - - - - - - 1
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u M ( / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( N
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2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( 266 - - - - - - - - - - 9 0 1 4 6 9 0 1 4 6 0 6 3 1 6 0 6 3 1 6 - - - - 2 7 1 2 8 2 7 1 2 8 - - - 5 1 3 0 8 1 4 6 2 1 1 6 5 9 2 9 1 - - - 3 3 5 4 5 8 5 4 9 5 2 3 4 9 5 - - - - 5 0 6 8 7 5 0 6 8 7 - - - 1 7 8 6 7 2 1 8 7 0 1 3 8 6 4 8 1 - - - 9 0 2 2 5 8 0 9 6 5 3 9 8 6 5 - - - - - - - - - - - 0 0 0 9 0 1 0 0 0 9 0 1 - - - 0 0 7 2 7 5 2 0 8 5 1 5 2 7 0 3 2 - - - - 0 5 7 5 5 3 3 3 5 7 - - - - - - - - 2 7 8 9 5 2 7 8 9 5 4 2 3 7 5 4 2 3 7 5 - - - - - - 3 2 4 3 7 1 0 1 0 6 6 1 3 8 0 1 3 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 8 5 7 8 5 2 2 - - - - 8 3 6 2 8 3 6 2 - - - - 9 3 8 2 9 3 8 2 - - - - - 0 0 5 0 0 5 2 2 - - - - 6 8 6 6 8 6 2 2 - - - - - 6 7 4 6 7 4 2 2 - - - - 4 2 5 2 4 2 5 2 - - - - 8 1 7 2 8 1 7 2 - - - - - 3 9 3 3 9 3 2 2 - - - - 1 7 5 1 7 5 2 2 - - - - - 0 7 3 0 7 3 2 2 - - - - 6 1 4 2 6 1 4 2 - - - - 1 0 6 2 1 0 6 2 - - - - - 0 9 2 0 9 2 2 2 - - - - 0 6 4 0 6 4 2 2 - - 5 2 8 9 0 1 2 8 2 8 3 5 2 1 8 3 5 2 1 - - 4 0 4 9 0 0 0 7 2 0 0 0 2 1 0 0 0 2 1 - - - 2 3 7
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2 - - - - - - - - - - 7 4 4 7 4 4 2 2 - - - - 9 3 6 9 3 6 2 2 3 8 6 7 - - - - - - 1 4 3 1 4 3 2 2 - - - - - - - 0 6 4 6 0 0 8 9 9 7 1 4 - - - - 3 4 5 4 1 4 8 4 1 4 6 7 3 6 1 6 7 3 6 1 - - - 9 1 9 3 1 5 0 7 9 3 4 7 6 5 1 4 7 6 5 1 - - 9 5 2
9 1 9 3 1 5 0 7 9 3 4 7 6 5 1 4 7 6 5 1 - - - - 1 0 1 3 1 5 5 5 4 1 8 6 6 3 4 4 2 3 1 7 - - 9 3 5 2 1 1 3 9 3 1 6 9 7 1 4 6 6 2 8 6 - - 0 0 4 6 1 0 0 0 8 1 0 0 0 0 3 0 0 4 4 6 - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 5 - 0 0 0 5 - - - - - 0 0 0 4 0 0 0 9 - 0 0 0 5 0 0 0 4 - - - - - - - - - - - 0 0 0 5 0 0 0 5 - - 0 0 0 0 0 0 5 4 0 0 0 5 - - 0 0 0 9 0 0 0 4 1 - - - 0 0 0 0 0 0 5 4 0 0 0 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 8 2 7 5 3 6 0 5 4 8 0 2 0 7 3 2 0 5 0 3 1 8 5 7 7 4 - 9 0 5 2 4 8 4 3 6 5 6 8 7 2 3 2 9 5 9 4 0 0 2 6 0 2 - 2 8 8 4 5 1 2 2 3 4 9 0 2 7 6 4 2 2 1 9 2 6 3 5 6 5 4 - 1
- 5 7 5 2 5 3 5 4 1 4 2 3 3 4 6 7 8 9 7 7 2 7 4 3 6 3 4 - - : D
: - : - - : : : l a t o T 5 5 0 4 1 1 6 9 3 8 6 7 4 4 2 0 1 - 8 6 4 3
t o T 5 5 0 4 1 1 6 9 3 8 6 7 4 4 2 0 1 - - - P
: l a t o T - 8 5 4 1 3 7 7 7 7 5 1 - 6 8 5 2 2 6 6 3 2 6 1 1 0 6 4 6 1 - 1 4 2 0 3 0 5 7 0 5 1 - 7 7 7 1 2 9 2 1 5 5 1 1 6 2 7 5 1 - 4 7 0 9 2 0 1 0 4 4 1 - : l a t o T - 6 1 3 1 6 4 1 4 7 9 2 2 7 3 5 9 4 0 4 8 1 4 4 - 6 2 7 8 5 6 6 9 3 8 2 9 1 8 2 7 4 9 4 7 1 2 4 - : : l a t o T - 2 9 3 7 1 2 2 3 9 4 4 7 2 1 - - 3 0 7 5 1 6 1 5 4 4 7 1 9 5 1 3 0 1 4 4 7 2 1 - 4 2 8 9 7 9 5 2 1 - - 4 5 2 5 1 8 0 9 9 6 - - 0 5 6 6 1 4 2 9 8 0 0 2 2 1 - - 0 6 4 5 4 3 2 3 4 5 7 8 3 8 7 9 8 0 0 2 2 1 - 5 0 4 9 9 5 0 2 1 - - 3
 0 6 4 1 5 2 9 6 6 - - - - 7 9 9 4 2 2 9 3 4 4 - 9 9 5 8 5 7 7 0 6 4 4 3 3 6 2 - - - 0 3 9 3 2 7 9 4 2 4 - - 5 6 6 9 7 0 5 4 9 5 0 4 5 1 5 7 6 6 1 - - - - 0 4 5 1 1 0 0 0 0 1 0 7 0 3 6 - - - 5 7 9 7 5 7 9 2 1 0 5 7 6 0 0 7 7 2 - - - 5 1 5 9 1 8 6 6 0 3 3 8 1 0 5 - - 3 6 5 3 7 - 3
1 0 1 3 1 0 2 4 5 2 1 5 7 1 0 1 1 - 3 6 5 3 7 - 3 5 6 5 8 - 5 2 0 4 9 - - 0 0 0 5 5 - 5 1 0 0 9 0 0 0 2 2 1 - 0 0 0 0 3 - 0 0 0 5 9 - 0 0 0 5 6 1 4 2 3 5 2 5 1 0 7 6 2 0 0 0 0 9 1 - - - - - - - - - - - - 0 0 9 4 9 0 0 9 4 9 - 6 3 3 6 4 8 6 6 0 3 5 5 8 0 2 9 5 8 7 9 - - - - - - - - - - - - 0 0 0 5 7 0 0 0 5 7 - 0 0 0 0 5 0 0 0 5 1 6 6 9 9 1 6 6 9 4 8 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 3 9 1 0 2 5 4 3 5 3 1 5 3 9 1 0 2 5 4 3 5 3 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 4 0 0 0 0 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 0 1 0 0 0 0 0 1 - 0 3 6 8 4 0 0 0 5 4 0 0 0 5 2 0 3 6 8 1 1 - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 1 1 0 0 0 0 1 1 - - - - - - - - - - - - - - - - - - - 0 0 5 1 0 0 3 3 0 0 1 2 0 0 9 2 0 0 5 2 0 8 1 4 - 0 0 9 7 1 0 8 4 6 1 - - - - - - - - - - - - - - - - - - - - - - - - 9 2 5 9 2 5 3 3 8 7 3 8 7 3 3 3 2 3 2 2 3 2 3 3 - - - - - 1 6 3 3 1 6 3 3 - - - - 5 5 9 2 5 5 9 2 - - - 6 2 3 6 2 3 2 2 - - - - - 7 1 2 3 7 1 2 3 - - - - 9 2 8 2 9 2 8 2 - - - 6 2 2 6 2 2 2 2 - - - - - 9 7 0 3 9 7 0 3 - - - - 7 0 7 2 7 0 7 2 - - - 0 3 1 2 0 3 1 2 2 7 2 0 0 0
7 0 7 2 7 0 7 2 - - - - - - 5 6 3 6 0 0 5 1 0 0 6 5 0 0 5 1 0 0 4 7 - 0 0 6 3 3 5 6 3 2 2 - 0 0 5 8 0 0 5 0 0 3 1 8 0 0 0 5 2 0 0 3 3 4 - 0 0 0 2 0 0 0 0 2 0 0 0 5 1 0 0 0 7 3 - 9 5 3 8 0 0 1 2 0 7 4 6 0 0 7 2 2 9 2 6 9 3 - 0 0 5 1 0 0 0 9 1 0 0 0 0 2 0 0 5 0 4 - - - - - - - - - - - - - 0 0 0 3 5 2 8 3 - 7 3 2 6 2 6 0 3 1 - - 5 2 9 6 0 0 5 1 - 0 0 7 6 1 5
 2 1 5 2 - - 0 0 0 5 6 2 0 8 4 0 0 5 5 1 6 2 5 8 6 - 5 2 0 3 4 - - 5 2 0 3 4 - - - - - - - - - - - - - - - 2 7 7 2 7 7 2 2 3 5 6 3 5 6 2 2 8 3 5 8 3 5 2 2 - - - - - - - - - - - - - - - 9 7 9 9 7 9 2 2 1 5 8 1 5 8 2 2 8 2 7 8 2 7 2 2 - - - - - 6 6 8 2 6 6 8 2 - - - 4 8 8 4 8 8 2 2 - - - - - 3 4 7 3 4 7 2 2 - - - 1 6 7 1 6 7 2 2 - - - - - 5 2 5 5 2 5 2 2 - - - 1 4 6 1 4 6 2 2 - - - - 0 0 0 0 3 0 0 0 0 3 - - - 0 0 0 0 3 0 0 0 3 3 0 0 0 2 - - - - 0 5 1 0 3 0 0 0 1 3 0 0 0 0 6 0 0 0 5 6 0 5 1 1 6 - - 0 0 0 7 0 0 0 5 0 0 0 8 - 0 0 0 0 2 0 0 0 0 2 0 9 1 8 1 - - - - - 0 0 0 0 1 - - - 0 0 0 5 0 0 0 5 1 0 0 0 5 0 0 0 0 2 - - - - - - - - - - - - - - - 5 2 6 4 0 0 6 1 0 9 1 8 3 0 0 0 5 2 5 2 2 6 0 0 0 5 1 - - 0 0 0 7 1 0 0 0 2 3 0 0 0 0 1 - - 0 5 7 8 2 0 5 7 8 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 2 1 0 0 0 4 - - - 0 0 2 1 - 0 0 2 1 0 0 0 2 - - - - - - - - - 0 0 0 4 - - 0 0 0 5 - - - - - - 0 0 2 3 0 0 0 5 - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 5 0 0 4 9 - - - - 0 0 0 5 0 0 0 5 0 0 0 0 1 - 0 0 0 6 0 0 0 7 - - - - - - - - - - - - - - 0 0 0 4 0 0 0 4 - - - 0 0 0 4
 0 0 0 4 0 0 0 7 1 - - - - 0 0 0 5 0 0 0 4 0 0 0 9 - - 2 9 2 4 - - - 0 0 0 3 1 2 9 2 4 - - - - - - - - - - - - - - - - - - - - - - 0 0 0 4 0 0 0 4 0 0 0 3 2 2 9 2 7 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 6 0 1 8 7 4 7 7 1 2 9 3 8 5 2 3 1 1 2 0 1 9 4 8 6 8 - - 3 2 8 9 9 - - - 2 7 0 7 9 - - - 2 3 4 4 1 1 - - .
.

F Z 8 C D b i r a G !

i a K !

2 8 0 C N s i e h K !

 : l a t o T s e i t i l a p i c i n u M a w k a m a N : .

.
F Z : l a t o T - - 3 0 3 4 2 0 9 1 3 1 6 5 2 3 3 9 4 7 0 7 - 6 1 1 8 7 3 8 1 9 6 6 0 1 4 1 - - 5 1 4 3 2 3 1 8 2 1 7 5 9 1 3 5 8 1 8 6 - 3 5 7 4 7 1 3 2 6 6 7 8 6 3 1 - - 3 6 5 2 2 2 5 4 2 1 0 1 7 0 3 5 2 7 5 6 - - : : : l a t o T - 3 7 8 0 5 1 2 0 8 2 7 3 1 6 7 0 1 3 1 0 7 2 3 4 6 2 7 9 1 - 4 6 1 4 4 1 6 8 8 5 5 3 9 9 6 6 9 2 7 2 4 1 3 2 2 4 8 8 1 - : 1
- - - i
: - o n a s i g a K 7 9 3 W N e n a m e e T - : : : ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( - d n a m e
o i t a N d e t a r g e t n I e d i S - ) l a p i c i n u M ( a
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' - - - - - - - - - - - - - - - - - - - - - - - - - - 268 - - - - - - - - - - 9 1 1 3 2 0 4 9 1 2 - - - - - - - 4 3 2 5 3 3 5 3 8 5 - 7 3 4 3 3 7 7 3 5 5 4 0 6 9 4 1 1 9 - - - - - 0 0 0 6 1 - 0 0 0 0 0 0 3 9 8 5 5 5 0 0 7 0 1 3 9 5 6 2 - 0 0 0 0 0 3 5 8 0 2 8 3 0 0 0 0 1 - 0 0 4 3 - 0 2 5 0 3 3 3 1 4 3 0 0 0 0 1 - - 4 0 6 9 4 1 1 9 3 3 1 4 4 - - - - - - - - - - - 2 3 0 7 2 1 1 0 1 1 4 5 6 5 2 0 5 4 0 1 - - - 0 0 0 5 0 0 0 1 1 0 0 0 0 1 3 4 0 8 3 4 0 1 6 3 0 0 0 6 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 9 4 0 0 0 0 0 6 0 1 3 5 0 3 - - - - - - - - - - - - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - 6 2 6 4 7 2 8 3 1 5 7 3 6 2 6 4 7 2 8 3 1 5 7 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 6 9 7 6 9 2 2 0 4 8 0 4 8 2 2 8 1 7 8 1 7 2 2 - - - - - 3 5 1 3 3 5 1 3 - - - - 7 0 1 7 0 1 3 3 - - - - - - - 3 4 8 3 4 8 2 2 - - - 2 5 2 2 5 2 2 2 - - - - - 8 1 0 3 8 1 0 3 - - - - 4 7 9 4 7 9 2 2 - - - - - - - 1 2 7 1 2 7 2 2 - - - 6 5 1 6 5 1 2 2 - - - - - 8 8 8 2 8 8 8 2 - - - - 6 4 8 6 4 8 2 2 - - - - - - - 4 5 7 4 5 7 2 2 - - - 3 6 0 3 6 0 2 2
 - - - 0 0 0 8 0 0 0 9 0 0 0 9 - 0 0 3 0 0 0 8 5 0 0 0 5 1 0 0 0 5 1 0 0 0 5 3 0 0 3 8 7 - 0 0 0 1 0 0 0 0 2 0 0 0 5 1 0 0 0 0 3 0 0 0 3 0 0 0 9 6 - - 0 0 0 5 1 0 0 0 3 4 - - 0 0 0 1 7 - 0 0 0 1 0 8 9 5 1 0 0 0 6 1 0 0 0 1 2 0 0 0 5 0 8 9 8 5 - - 0 0 0 0 0 0 0 0 0 0 0 0 5 5 5 5 0 0 0 0 4 - 2 9 0 2 9 0 0 0 0 2 1 5 4 8 1 8 - - - 0 6 4 8 4 3 7 5 - 0 8 3 4 2 - - - 0 8 3 4 2 - 0 0 7 3 6 4 3 6 7 0 0 2 1 - - 4 7 7 3 4 5 7 3 4 1 8 5 9 6 - - - 0 9 4 0 9 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 4 0 0 0 5 0 0 0 4 - - - - - - - - - - 0 0 0 0 0 0 5 6 - - - - - 0 0 0 4 0 0 0 4 0 0 0 0 0 2 4 4 - - - 0 0 0 1 1 0 0 2 8 - 0 0 0 6 - 0 0 0 4 - - - - - - - - - - 0 0 0 5 0 0 0 1 1 0 0 0 0 0 0 4 8 - - - - - - - - - - - - - - - - - - - - - - 0 8 3 0 8 1 - - 2
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - n w o T e p a C f o y t i C T P C - 9 6 6 6 2 4 7 1 9 1 7 8 6 7 1 5 5 1 4 2 0 6 6 6 2 - 2 7 6 5 2 2 2 5 8 1 3 0 1 7 1 4 7 2 3 2 4 6 6 5 2 - i
: l a t o T 6 3 1 8 2 2 7 0 7 2 1 5 0 6 2 - - - 6 3 1 4 4 6 6 5 7 2 8 3 8 9 9 - 5 7 4 3 3 2 0 6 7 2 9 7 9 2 1 8 1 2 4 1 4 7 2 8 8 - - - - - 6 3 3 2 4 9 2 5 6 2 7 3 9 5 9 - 6 6 1 2 3 3 6 5 6 2 2 1 6 2 1 4 9 7 3 1 5 3 1 5 8 - - - - - 9 0 6 0 4 3 3 5 5 2 3 9 1 2 9 - 9 0 9 0 3 5 6 5 5 2 0 6 2 2 1 7 8 3 3 1 1 2 1 2 8 - - : : o
: l a t o T - 3 5 1 7 3 0 4 8 7 1 9 6 1 3 7 4 2 3 - 4 5 0 7 7 4 2 8 5 6 3 6 1 6 6 6 1 3 - e
s e i t i l a p i c i n u M o o r a K l a r t n e C : : - ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( - ) l a p i c i n u M ( / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2
 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0
 0 0 R ( ' 269 - - - 8
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 3 0 0 0 8 - - - - 0 0 0 5 0 0 0 1 0 0 0 6 - - - - - - 0 0 0 5 0 0 0 2 0 0 0 5 0 0 0 2 - - - 0 0 0 2 0 0 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - E R U T C U R T S A R F N I : L A T O T - l
: t n a r G ) l a t i p a C ( n
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( - B
.

B A .

 : l a t o T s e i t i l a p i c i n u M i n a H s i r h C : .

.
- : : l a t o T s e i t i l a p i c i n u M o b m a T .
R O : l a t o T E R U T C U R T S A R F N I : L A T O T - : t n a r G ) l a t i p a C ( / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L
 U D E H C S ( 270 9
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 1 0 0 0 5 0 0 0 1 - - - - - - - - - - - - 0 0 0 5 0 0 0 2 0 0 0 5 0 0 0 2 - - - - - - - - 0 0 0 5 0 0 0 1 0 0 0 5 0 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - 5
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3
- 0 0 0 0 0 0 0 0 0 5 5 2 0 0 0 2 1 - - - - - - 9 5 8 8 4 9 5 8 3 7 - - 0 0 0 0 7 0 0 0 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - : l a t o T y t i l a p i c i n u M y r o
r a h X : : - a - S
: l a t o T s e i t i l a p i c i n u M i b a D e l i z e F : l a t o T s e i t i l a p i c i n u M e t a t S e e r F : : : l a t o T s e i t i l a p i c i n u M g n e t u a G : l a t o T 271 2
4
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 5 - - - - - - - - 0 0 0 5 1 0 0 0 5 1 - - - - - - - - 0 0 0 9 1 0 0 0 9 1 - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 5 - - - - - - - - - 0 0 0 5 0 0 0 5 - - - - - - - - - 0 0 0 1 0 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 4 1 0 8 4 4 1 0 8 - 8 8 6 6 7 8 8 6 6 7 - 8 4 8 8 8 8 4 8 8 8 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4 0 3 0 4 1 1 8 0 4 3 1 6 9 1 3 5 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5
- - - - - - - - - - - - - - - - - - - - - - - - : L A T O T - : t n a r G ) l a t i p a C ( t n a r G p i h s r e n t r a P g n i d a r g p U s t n e m
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( u
2 1 2 N Z K A B B B B C s e i t i l a p i c i n u M u g U : l a t o T - A
: : : l a t o T s e i t i l a p i c i n u M i h t a y n i z M u : : l a t o T s e i t i l a p i c i n u M d n a l u l u Z : k
: - u l u Z a w K : l a t o T s e i t i l a p i c i n u M a l a w G y
 r r a H : : l a t o T 272 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5
2
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 2 0 0 0 0 1 0 0 0 2 1 - - - - - - - - - - - - 4 3 8 6 0 0 0 1 4 3 8 7 - - - - - - - - - - - - - 0 0 0 5 2 0 0 0 5 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 2 0 0 0 2 - 0 0 0 1 0 0
 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 1 0 0 0 1 0 0 0 0 1 0 0 0 1 - - 0 0 0 3 0 0 0 0 2 0 0 0 0 3 0 0 0 3 5 - - 0 0 0 1 0 0 0 5 1 0 0 0 5 2 0 0 0 1 4 -
 - - - - - - - - - - - - - - - - - - - 0 0 0 0 1 0 0 0 5 1 0 0 0 5 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 1 4 4 6 5 8 6 1 6 5 6 7 6 7 E R U T C U R T S A R F N I : L A T O T - : t n a r G ) l a t i p a C ( / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2
 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( - i
: : - : - - : : l a t o T s e i t i l a p i c i n u M o p o p m L i : 3
: l
: : l a t o T - - - - - - - - - - - - - - - - - - : l a t o T 273 2
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 1 - - - - 0 0 0 0 2 0 0 0 5 2 - - - - 0 0 0 0 2 0 0 0 1 2 - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 1 0 0 0 5 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
.

F Z 8 C D b i r a G !

i a K !

2 8 0 C N s i e h K !

 .

.
F Z : : l a t o T s e i t i l a p i c i n u M a w k a m a N : : l a t o T - - - 0 0 0 0 1 - - - 0 0 0 5 1 - - - 0 0 0 0 2 0 0 0 0 1 0 0 0 5 1 0 0 0 0 2 - - - - - - - - - - - - - - - - : : l a t o T - - - - 0 0 0 2 0 0 0 5 1 - - - - 0 0 0 1 0 0 0 0 1 - - - - - 7 0 7 1 1 0 0 0 7 1 0 0 0 1 1 7 0 7 1 1 - - - - - - - - - - 0 0 0 5 0 0 0 1 0 0 0 5 0 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 2 - - 0 0 0 5 0 0 0 5 2 0 0 0 5 2 - - 0 0 0 0 1 0 0 0 5 3 2 6 1 1 3 - - 0 0 0 5 2 6 1 6 3 0 0 0 7 4 0 0 0 7 4 9 6 8 7 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - a
: : - o n a s i g a K 7 9 3 W N e n a m e e T - a w k e L 6
a s i g a K 7 9 3 W N e n a m e e T - : l a t o T s e i t i l a p i c i n u M t s e W h t r o N : : ) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( E R U T C U R T S A R F N I : L A T O T - : t n a r G ) l a t i p a C ( F
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R
 ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 274 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 0 1 0 0 0 0 1 - - - 0 0 0 0 1 0 0 0 5 1 - - - 0 0 0 5 1 0 0 0 5 2 - - - 2 7 2 9 2 7 2 9 1 - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 5 0 0 0 5 0 0 0 5 5 4 6 1 5 0 0 5 9 4 0 5 4 7 6 - - - 1 0 0 0 1 1 0 0 5 1 - - - - - - - - 0 0 0 5 1 0 0 0 0 2 - - - - - - - - 0 0 0 5 1 0 0 0 0 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - : L A T O T - : t n a r G ) l a t i p a C ( / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0
a N 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 5 W E R U X E N N A S E I T I L A P I C I N U M O T S
) B T R A P , 5 E L U D E H C S D N A B T R A P , 4 E L U D E H C S ( 3 0 2 5 2 9 9 1 5 1 4 7 - 1 5 4 1 0 3 9 0 9 6 0 3 - - - - - - - - - - 4 1 5 0 9 1 2 5 7 1 8 1 - : : : u
: n
: : l a t o T l a t o T l a n o i t a N d e t a c o l l a n U 275 - S N O I T A C O L L A - ) B T R A P , 6 E L U D E H C S ( ) ( 276 0 5 2 4 8 3 9 4 8 5 3 5 8 - - - - - - - 0 0 0 1 5 2 4 2 0 4
1 9 2 2 2 0 5 2 2 7 1 5 8 5 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 5 9 3 3 9 7 1 2 - - - - 0 0 0 1 3 4 7 6 2 - - - - - - - - 0 0 0 1 5 - 0 0 0 0 4 0 0 0 0 2 0 0 0 2 - 0 0 6 7 - 0 0 6 0 2 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 1 - - 0 0 0 1 0 0 0 2 - - - - 0 0 1 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 1 - - 0 0 0 1 0 0 0 2 - - - - 0 0 5 1 0 0 5 1 0 0 5 6 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 1 0 0 0 1 0 0 1 1 - - - - - 8 3 9 3 8 - 5 3 5 8 5 3 5 5 3 2 2 6 1 5 9 6 2 9 1 5 5 9 9 8 - 4 5 3 6 4 - 1 5 5 8 7 - 0 8 6 3 2 4 0 4 6 8 4 3 5 8 8 0 1 6 9 3 0 1 9 2 4 7 - 6 9 2 0 4 - 0 0 9 2 2 2 2 5 0 2 0 7 1 0 3 8 4 5 5 1 9 5 5 4 2 - - - - 7 1 5 7 5 2 4 2 3 9 7 8 3 3 6 7 7 7 6 4 - - 9 6 0 0 2 2 8 3 9 7 4 2 3 7 7 8
9 9 7 5 4 9 8 4 - 9 6 0 0 2 2 8 3 9 7 4 2 3 7 7 8 2 2 - - 0 8 5 9 2 1 2 4 4 3 0 1 0 6 1 1 9 4 3 2 8 9 0 1 2 - - 2 8 0 0 2 2 1 6 5 1 6 0 0 4 2 2 6 5 4 1 2 0 3 8 1 - - - - 0 1 2 3 5 5 8 8 2 3 - - 4 7 1 1 6 0 3 6 8 1 - - 3 2 5 5 5 7 4 0 9 1 5 9 0 6 8 4 0 8 9 7 0 7 5 4 7 - 0 0 9 9 1 0 8 7 2 2 0 4 3 9 4 8 5 4 8 1 0 0 0 3 7 - 7 4 9 1 3 5 6 1 8 4 9 8 6 4 2 9 9 8 5 1 3 9 6 0 0 1 - - 2 7 2 9 2 0 3
7 4 3 8 1 3 9 3 1 2 2 5 2 8 1 7 1 - 2 7 2 9 2 0 3 9 1 5 3 9 4 0 4 5 0 6 9 - 3 7 2 2 4 8 4 4 9 1 2 8 1 6 4 2 1 5 1 1 - - 0 5 2 2 - 0 0 0 2 - 0 5 2 - - - - - - - - - - - - - - - - - - - - - 0 0 4 0 0 4 1 1 0 0 0 0 0 0 2 2 0 6 1 0 6 1 2 2 - - - - - - - - - - - - - - - - - - 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 2 0 0 0 0 0 0 3 3 - - - - - - 0 0 0 0 0 0 3 3 - - - 0 0 0 0 0 0 2 2 - - - - - - - - - - - 0 0 0 0 0 0 2 2 - - - 0 0 0 0 0 0 2 2 - - - - - - - - - - - 0 6 0 0 6 0 1 1 - - - 0 6 0 0 6 0 2 2 - - - - - - - - - - - - - - - - - : L A T O T B U S - - S N O I T A C O L L A - ) B T R A P , 6 E L U D E H C S ( ) e c n a t s i s s A l a c i n h c e T ( t n a r G ) m o k s E ( t
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0
 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' - .
.

B A .
: l a t o T s e i t i l a p i c i n u M i n a H s i r h C : l a t o T s e i t i l a p i c i n u M e l o h t a m A : : .
- : : l a t o T s e i t i l a p i c i n u M o z N d e r f l A : l a t o T 277 - - - 0 0 5 0 0 1 0 8 9 5 0 2 7 6 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3
- - 7 8 1 5 2 8 8 1 5 2 5 7 3 0 5 - - - - - - - - - - - 0 0 0 0 2 0 0 0 0 5 - 0 0 0 4 2 0 0 0 0 5 - 0 0 0 5 3 - - - - 0 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 3
 3 4 6 8 5 6 6 9 1 8 - - - - - 0 0 0 0 8 4 4 9 1 7 6 8 3 3 4 6 8 5 6 6 9 1 8 4 4 9 1 5 7 - - - - - - 0 0 0 0 9 1 0 0 0 0 9 1 0 0 0 0 9 1 0 0 0 0 9 1 - - - - - 0 0 0 0 0 0 0 0 0 2 1 1 0 0 1 0 0 0 0 0 0 1 2 - 0 0 1 3 - - - - - - 0 0 1 3 - 0 0 1 0 0 1 0 0 0 1 0 0 2 1 0 0 3 8 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 5 0 0 0 0 6 0 0 0 0 0 1 - - 0 0 0 5 8 0 0 0 3 5 7 4 4 0 4 0 0 0 0 7 - - - - - - - 0 0 0 5 3 0 0 0 5 6 0 0 0 0 2 0 0 0 0 8 - - - - - - - - - - 0 0 1 - - - - - - - - - - - - - - - - 0 0 0 0 2 - - - - - 0 0 0 5 0 0 0 0 7 0 0 0 0 6 9 9 3 8 2 1 0 0 0 4 5 1 - - 0 0 0 5 - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 1 0 0 1 - - - - - 0 0 1 - - 0 0 1 - 6 7 7 9 3 3 2 2 6 0 4 2 8 4 2 9 2 5 9 6 9 6 2 6 3 0 1 - 4 1 7 6 9 9 9 9 7 7 0 0 3 9 6 1 8 1 2 7 6 4 8 9 1 1 - 7 9 8 9 3 8 1 - 8 7 9 5 3 9 4 1 7 3 - - 6 0 8 7 7 5 5 - 5 5 - 7 5 - 7 5 - - 7
9 6 6 1 0 9 6 1 1 4 1 9 0 2 0 5 5 9 7 9 3 9 5 - 7 7 1 0 4 9 3 - - 7 3 1 2 4 8 3 8 1 4 1 0 2 4 9 1 - 8 3 0 5 2 2 0 0 0 2 0 5 1 1 - - - 0 0 4 0 0 4 2 2 - - - - - - - - 0 0 0 0 0 0 2 2 - - - - - - - - 0 0 1 0 0 1 2 2 - - - - - 0 0 4 0 0 4 1 1 0 0 5 0 0 5 3 3 3 1 1 3 1 1 3 3 - - - - - - - - - - - - - - - - - - 0 0 4 0 0 4 1 1 0 0 0 0 0 0 2 2 0 0 0 0 0 0 4 4 - - - - - - - - - - - - - - - - 0 0 9 0 0 9 1 1 0 0 5 0 0 0 2 0 0 0 1 - 0 0 1 0 0 5 - 0 0 6 - - 0 0 0 2 0 0 1 0 0 1 2 0 0 2 6 2 3 7 3 1 9 5
6 - - - - - - - - - - 9 3 1 3 3 3 3 4 7 1 5 1 1 - 3 8 8 2 8 7 4 7 8 5 8 6 8 1 1 - - 0 5 8 6 6 8 5 0 6 1 8 9 4 3 5 1 8 0 9 2 8 - 1 9 4 7 9 4 1 6 4 6 1 1 4 3 6 3 1 - - - - - - - - - - - - - - - - - 0 0 0 0 0 0 1 1 - - - 0 0 0 0 0 0 3 3 0 0 0 4 - - - - - - - - - - - - - - : L A T O T B U S - - S N O I T A C O L L A - ) B T R A P , 6 E L U D E H C S ( ) e c n a t s i s s A l a c i n h c e T ( t n a r G ) m o k s E ( / 5
i l a p i c i n u M d n a l a n o i t a N 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' y t i l a p i c
R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' : : - a - : l a t o T s e i t i l a p i c i n u M i b a D e l i z e F : l a t o T s e i t i l a p i c i n u M e t a t S e e r F : a
: l a t o T s e i t i l a p i c i n u M g n e t u a G : l a t o T s e i t i l a p i c i n u M g n e b i d e S : l a t o T 278 0
- - - - - 2 7 2 2 3 2 2 5 4 6 0 0 0 2 4 9 7 8 9 - 5 1 8 5 0 0 0 2 4 2 4 8 3 9 3 2 6 4 - - - - 0 2 7 6 - 8 9 4 4 4 0 8 8 0 0 5 2 3 8 9 5 7 5 - 2 1 1 5 0 0 5 3 4 2 4 4 3 6 3 0 3 4 - - 6 1 0 0 3 6 1 8 4 3 8 6 7 5 1 0 0 0 3 0 0 6 3 8 - - - 0 5 4 4 2 0 3 0 0 0 4 7 4 2 5 - 6 1 0 6 2 6 1 8 4 3 8 6 7 5 1 0 0 0 2 0 0 6 8 7 - - - - - - - - - - - - - - - - - - - -
8 2 0 0 1 2 1 3 2 4 0 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 2 3 0 0 0 2 3 0 0 0 2 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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 1 4 2 0 5 1 - 0 2 7 9 3 6 1 6 6 9 0 8 3 4 0 3 7 1 2 6 4 6 7 - - 3 5 9 - 9 0 2 1 2 7 1 6 9 6 7 4 6 0 9 1 6 1 7 0 0 1 - 5 0 9 4 8 2 0 8 4 2 2 3 0 4 5 5 2 3 9 - - - - 2 8 3 2 2 8 3 2 - 1 9 9 2 4 2 8 5 2 9 6 3 1 5 2 9 7 2 - - - 6 1 0 0 3 6 1 8 4 3 8 6 7 5 1 0 0 6 0 8 - - 8 0 2 4 1 2 6 7 9 8 8 2 7 1 8 0 8 6 2 - - 6 1 0 6 2 6 1 8 4 3 8 6 7 5 1 0 0 6 6 7 - - 8 0 2 4 1 4 2 8 2 2 8 2 7 1 8 0 8 6 2 - 5 2 9 6 6 0 7 1 8 6 5 1 6 0 1 3 6 0 5 1
 3 7 7 0 6 1 - - - - 2 1 9 5 1 6 9 2 4 3 6 5 0 6 1 7 7 0 8 - - - 0 5 4 4 2 0 3 4 7 4 3 - - 2 1 9 5 1 0 8 4 6 8 0 4 2 1 0 0 8 4 3 - 0 0 2 8 8 2 1 6 4 2 2 1 3 6 5 6 2 2 8 6 3 1 6 - - 4 5 9 0 6 9 1 4 - - - - - - - 0 0 0 0 0 0 2 2 - - - 0 0 0 0 0 0 2 2 - - - - 0 0 0 0 0 0 2 2 - - - 0 0 0 0 0 0 2 2 - - - - - - - - - - - - 0 0 5 0 0 5 3 3 - - - 0 0 5 0 0 5 3 3 - - - - 0 0 0 0 0 0 2 2 - - - 0 0 0 0 0 0 2 2 - - - - - - - - - - - - 0 0 0 0 0 0 3 3 - - - 0 0 0 0 0 0 2 2 - - - - 0 0 0 0 0 0 1 1 - - - 0 0 0 0 0 0 1 1 - - - - - 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 2 - - - - - - - - - - - - 0 0 0 0 0 0 3 3 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 2 - - - - - - - - - - - - - - - 0 0 0 0 0 0 4 4 0 0 0 0 0 0 3 3 0 2 1 0 2 1 1 1 - - - - - - - - - - - - 0 0 0 0 0 0 4 4 0 0 0 0 0 0 3 3 0 6 4 0 6 4 3 3 - - - - - - - - - - - - : L A T O T B U S - - S N O I T A C O L L A - ) B T R A P , 6 E L U D E H C S ( r
) e c n a t s i s s A l a c i n h c e T ( t n a r G ) m o k s E ( a
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' : l a t o T y t i l a p i c i n u M y r o g e t a C - : l a t o T s e i t i l a p i c i n u M u v o l d n u g
: : l a t o T s e i t i l a p i c i n u M i h t a y n i z M u : l a t o T y t i l a p i c i n u M t c i
i z M u : : l a t o T s e i t i l a p i c i n u M d n a l u l u Z : : : - u l u Z a w K : l a t o T s e i t i l a p i c i n u M a l a w G y r r a H : l a t o T 279 1
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- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 7 0 0 3 3 0 1 1 3 5 3 6 4 5 9 2 0 1 - - 0 9 4 8 3 6 2 2 1 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 0 8 1 0 0 0 0 2 1 0 0 0 0 5 - - - 0 0 3 3 0 1 4 5 9 2 0 1 0 9 4 8 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4
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0 6 5 2 1 2 7 3 2 9 9 8 9 1 4 1 5 3 8 7 1 3 1 - 7 6 6 8 5 - - - 6 3 2 3 6 0 2 1 8 8 2 1 1 0 6 6 6 6 7 4 2 0 9 - 4 0 9 9 2 4 6 7 1 1 9 2 5 0 1 3 1 1 8 1 0 1 3 0 7 - - - - - - - - - - - - - - - - - - 0 0 1 0 0 0 0 0 0 1 2 - 0 0 1 3 0 0 1 3 1 9 1 5 0 2 2 3 1 3 0 8 4 2 - - - 5 2 1 1 5 0 5 2 3 5 2 2 3 1 1 8 5 8 6 9 9 1 - 4 2 7 3 7 3 0 5 0 2 5 0 8 9 3 1 9 1 4 7 9 - 9 6 0 7 4 7 3 9 2 5 1 9 3 7 7 1 7 7 7 1 - - 8 9 2 1 5 6 4 8 2 5 4 1 7 3 8 7 0 6 1 - 1 7 9 7 7 4 0 2 1 1 7 1 9 3 9 - - - - - - - - - - - - - - - - 0 0 5 0 0 5 3 3 0 0 0 0 0 0 2 2 0 0 9 0 0 9 2 2 - - - - - - - - - - - - 0 0 0 0 0 0 3 3 0 0 0 0 0 0 5 5 0 0 9 0 0 9 2 2 - - - - - - - - - - - - 0 0 0 0 0 0 2 2 0 0 0 0 0 0 2 2 0 0 0 0 0 0 1 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 0 0 2 0 0 0 2 0 0 0 0 0 0 2 2 0 0 5 0 0 5 3 3 - - - - - - - - - - - - - - - - - - - - - 0 0 8 0 0 8 2 2 0 0 3 0 0 3 5 5 0 0 3 0 0 3 4 4 - - - - - - 0 0 5 0 0 5 1 1 - - - - 0 0 5 0 0 5 3 3 - - - - - - - - - - - - 0 0 0 0 0 0 4 4 0 0 3 9 - - - - - - 0 0 0 0 0 0 2 2 - - - - 0 0 9 0 0 9 3 3 0 0 2 0 1 T C E R I D N I : L A T O T B U S - t n a r G e r u t c
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: L A T O T B U S - - S N O I T A C O L L A - ) B T R A P , 6 E L U D E H C S ( ) e c n a t s i s s A l a c i n h c e T ( t n a r G ) m o k s E ( / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4
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: : : : : l a t o T l a t o T l a n o i t a N 282 ) ( 7 W E R U X E N N A 283 ANNEXURE W7 EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES Category Municipality EASTERN CAPE A A BUF Buffalo City NMA Nelson Mandela Bay EC101 Dr Beyers Naude EC102 Blue
 Crane Route EC104 Makana EC105 Ndlambe EC106 EC108 Kouga EC109 Kou-Kamma DC10 B B B B B B B C Total: Sarah Baartman Municipalities Sundays River Valley Sarah Baartman District Municipality EC121 Mbhashe EC122 Mnquma EC123 Great Kei EC124 Amahlathi EC126 Ngqushwa EC129 Raymond Mhlaba DC12 Amathole District Municipality B B B B B B C Total: Amathole Municipalities Inxuba Yethemba Intsika Yethu EC131 EC135 EC136 Emalahleni EC137 Dr. A.B.
Xuma EC138 EC139 Enoch Mgijima DC13 Chris Hani District Municipality B B B B B B C Total: Chris Hani Municipalities Sakhisizwe Senqu EC141 Elundini EC142 EC145 Walter Sisulu DC14 B B B C Total: Joe Gqabi Municipalities Joe Gqabi District Municipality EC153 Ngquza Hill EC154 Port St Johns EC155 Nyandeni EC156 Mhlontlo EC157 King Sabata Dalindyebo DC15 O.R.

Tambo District Municipality B B B B B C Total: O.R.
Tambo Municipalities EC441 Matatiele EC442 Umzimvubu EC443 Winnie Madikizela-Mandela EC444 Ntabankulu DC44 Alfred Nzo District Municipality B B B B C Total: Alfred Nzo Municipalities EQUITABLE SHARE1 TOTAL ALLOCATIONS TO MUNICIPALITIES National and Municipal Financial Year National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 312
903
Total: Eastern Cape Municipalities 12 544 801 13 358 282 13 660 460 21 489 635 22 673 398 23 422 372 284 ANNEXURE W7 EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES Category Municipality FREE STATE A MAN Mangaung FS161 Letsemeng FS162 Kopanong FS163 Mohokare DC16 Xhariep District Municipality B B B C Total: Xhariep Municipalities FS181 Masilonyana FS182 Tokologo FS183 Tswelopele FS184 Matjhabeng FS185 Nala DC18 B B B B B C Total: Lejweleputswa Municipalities Lejweleputswa District Municipality Setsoto FS191 FS192 Dihlabeng FS193 Nketoana FS194 Maluti-a-Phofung FS195 Phumelela FS196 Mantsopa DC19 B B B B B B C Total: Thabo Mofutsanyana Municipalities Thabo Mofutsanyana District Municipality FS201 Moqhaka FS203 Ngwathe FS204 Metsimaholo FS205 Mafube DC20 B B B B C Total: Fezile Dabi Municipalities Fezile Dabi District Municipality EQUITABLE SHARE1
 TOTAL ALLOCATIONS TO MUNICIPALITIES National and Municipal Financial Year National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 362
Total: Free State Municipalities 5 576 371 6 003 852 6 311 233 9 280 931 9 717 631 10 157 491 GAUTENG A A A EKU JHB TSH City of Ekurhuleni City of Johannesburg City of Tshwane GT421 Emfuleni GT422 Midvaal GT423 Lesedi DC42 B B B C Total: Sedibeng Municipalities Sedibeng District Municipality GT481 Mogale City GT484 Merafong City GT485 Rand West City DC48 West Rand District Municipality B B B C Total: West Rand Municipalities 5 155 680 7 053 154 3
West Rand Municipalities 247
Total: Gauteng Municipalities 19 497 785 21 582 738 23 998 628 31 333 251 33 833 852 37 294 300 285 ANNEXURE W7 EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES Category Municipality KWAZULU-NATAL A ETH eThekwini KZN212 uMdoni KZN213 uMzumbe KZN214 uMuziwabantu KZN216 Ray Nkonyeni B B B B C Total: Ugu Municipalities DC21 Ugu District Municipality KZN221 uMshwathi KZN222 uMngeni KZN223 Mpofana KZN224 iMpendle KZN225 Msunduzi KZN226 Mkhambathini KZN227 Richmond B B B B B B B C Total: uMgungundlovu Municipalities DC22 uMgungundlovu District Municipality KZN235 Okhahlamba KZN237 iNkosi Langalibalele KZN238 Alfred Duma B B B C Total: uThukela Municipalities DC23 uThukela District Municipality KZN241 eNdumeni KZN242 Nquthu KZN244 uMsinga KZN245 uMvoti B B B B C Total: uMzinyathi Municipalities DC24 uMzinyathi District Municipality KZN252 Newcastle KZN253 eMadlangeni KZN254 Dannhauser B B B C Total: Amajuba Municipalities DC25 Amajuba District Municipality KZN261 eDumbe KZN262 uPhongolo KZN263 AbaQulusi KZN265 Nongoma KZN266 Ulundi B B B B B C Total: Zululand Municipalities DC26 Zululand District Municipality KZN271 uMhlabuyalingana KZN272 Jozini KZN275 Mtubatuba KZN276 Big Five Hlabisa B B B B C Total: uMkhanyakude Municipalities DC27 uMkhanyakude District Municipality KZN281 uMfolozi KZN282
 uMhlathuze KZN284 uMlalazi KZN285 Mthonjaneni KZN286 Nkandla B B B B B C Total: King Cetshwayo Municipalities DC28 King Cetshwayo District Municipality KZN291 Mandeni KZN292 KwaDukuza KZN293 Ndwedwe KZN294 Maphumulo B B B B C Total: iLembe Municipalities DC29 iLembe District Municipality KZN433 Greater Kokstad KZN434 uBuhlebezwe KZN435 uMzimkhulu KZN436 Dr Nkosazana Dlamini Zuma B B B B C Total: Harry Gwala Municipalities DC43 Harry Gwala District Municipality EQUITABLE SHARE1 TOTAL ALLOCATIONS TO MUNICIPALITIES
 National and Municipal Financial Year National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 915
93
Total: KwaZulu-Natal Municipalities 18 587 693 20 045 910 20 959 437 30 137 885 30 869 256 31 838 749 286 ANNEXURE W7
 EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES Category Municipality LIMPOPO LIM331 Greater Giyani LIM332 Greater Letaba LIM333 Greater Tzaneen LIM334 Ba-Phalaborwa LIM335 Maruleng DC33 Mopani District Municipality B B B B B C Total: Mopani Municipalities LIM341 Musina LIM343 Thulamela LIM344 Makhado LIM345 Collins Chabane DC34 Vhembe District Municipality B B B B C Total: Vhembe Municipalities LIM351 Blouberg LIM353 Molemole LIM354 Polokwane LIM355 Lepele-Nkumpi DC35 Capricorn District
 Municipality B B B B C Total: Capricorn Municipalities LIM361 Thabazimbi LIM362 Lephalale LIM366 Bela-Bela LIM367 Mogalakwena LIM368 Modimolle-Mookgophong DC36 Waterberg District Municipality B B B B B C Total: Waterberg Municipalities LIM471 Ephraim Mogale LIM472 Elias Motsoaledi LIM473 Makhuduthamaga LIM476 Fetakgomo Tubatse DC47 B B B B C Total: Sekhukhune Municipalities Sekhukhune District Municipality EQUITABLE SHARE1 TOTAL ALLOCATIONS TO MUNICIPALITIES National and Municipal Financial Year National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 920
4
Total: Limpopo Municipalities 12 800 618 13 773 722 14 158 645 19 923 896 21 088 117 21 731 756 MPUMALANGA MP301 Chief Albert Luthuli MP302 Msukaligwa MP303 Mkhondo MP304 Dr Pixley ka Isaka Seme MP305 Lekwa MP306 Dipaleseng MP307 Govan Mbeki DC30 Gert Sibande District Municipality B B B B B B B C Total: Gert Sibande Municipalities MP311 Victor Khanye MP312 Emalahleni MP313 Steve Tshwete MP314 Emakhazeni MP315 Thembisile Hani MP316 Dr JS Moroka DC31 Nkangala District Municipality B B B B B B C Total: Nkangala Municipalities MP321 Thaba Chweu MP324 Nkomazi MP325 Bushbuckridge MP326 City of Mbombela DC32 B B B B C Total: Ehlanzeni Municipalities Ehlanzeni District Municipality 2
690
Total: Mpumalanga Municipalities 8 141 511 8 823 737 9 314 333 13 000 368 13 350 397 14 166 517 287 ANNEXURE W7 EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES Category Municipality NORTHERN CAPE NC061 Richtersveld NC062 Nama Khoi NC064 Kamiesberg NC065 Hantam NC066 Karoo Hoogland NC067 Khâi-Ma B B B B B B C Total: Namakwa Municipalities DC6 Namakwa District Municipality NC071 Ubuntu NC072 Umsobomvu NC073 Emthanjeni NC074 Kareeberg NC075 Renosterberg NC076 Thembelihle NC077 Siyathemba NC078 Siyancuma B B B B B B B B C Total: Pixley Ka Seme Municipalities DC7 Pixley Ka Seme District Municipality !Kai !Garib !Kheis NC082 NC084 NC085 Tsantsabane NC086 Kgatelopele NC087 Dawid Kruiper B B B B B C Total: Z.F.
Mgcawu Municipalities DC8 Z.F.
Mgcawu District Municipality NC091 Sol Plaatjie NC092 Dikgatlong NC093 Magareng NC094 Phokwane B B B B C Total: Frances Baard Municipalities DC9 Frances Baard District Municipality NC451 Joe Morolong NC452 Ga-Segonyana NC453 Gamagara DC45 B B B C Total: John Taolo Gaetsewe Municipalities John Taolo Gaetsewe District Municipality EQUITABLE SHARE1 TOTAL ALLOCATIONS TO MUNICIPALITIES National and Municipal Financial Year National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 754
75
Total: Northern Cape Municipalities 2 458 646 2 637 090 2 741 694 4 294 162 4 819 790 5 016 503 NORTH WEST NW371 Moretele NW372 Madibeng NW373 Rustenburg NW374 Kgetlengrivier NW375 Moses Kotane DC37 Bojanala Platinum District Municipality B B B B B C Total: Bojanala Platinum Municipalities NW381 Ratlou NW382 Tswaing NW383 Mafikeng NW384 Ditsobotla NW385 Ramotshere Moiloa DC38 Ngaka Modiri Molema District Municipality B B B B B C Total: Ngaka Modiri Molema Municipalities NW392 Naledi NW393 Mamusa NW394 Greater Taung NW396 Lekwa-Teemane NW397 Kagisano-Molopo DC39 Dr Ruth Segomotsi Mompati District Municipality B B B B B C Total: Dr Ruth Segomotsi Mompati Municipalities NW403 City of Matlosana NW404 Maquassi Hills NW405 JB Marks DC40 Dr Kenneth Kaunda District Municipality B B B C Total: Dr Kenneth Kaunda Municipalities 393
621
Total: North West Municipalities 8 237 443 8 928 461 9 420 025 12 539 203 13 612 299 14 257 310 288 ANNEXURE W7 EQUITABLE SHARE AND TOTAL ALLOCATIONS TO MUNICPALITIES EQUITABLE SHARE1 TOTAL ALLOCATIONS TO MUNICIPALITIES National and Municipal Financial Year National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) Category Municipality WESTERN CAPE A CPT City of Cape Town 4 066 769 4 475 653 4 953 531 7 892 128 8 949 595 10 088 575 WC011 Matzikama WC012 Cederberg WC013 Bergrivier WC014 Saldanha Bay WC015 Swartland B B B B B C Total: West Coast Municipalities DC1 West Coast District Municipality WC022 Witzenberg WC023 Drakenstein WC024 Stellenbosch WC025 Breede Valley WC026 Langeberg B B B B B C Total: Cape Winelands Municipalities DC2 Cape Winelands District Municipality WC031 Theewaterskloof WC032 Overstrand WC033 Cape Agulhas WC034 Swellendam B B B B C Total: Overberg Municipalities DC3 Overberg District Municipality WC041 Kannaland WC042 Hessequa WC043 Mossel Bay WC044 George WC045 Oudtshoorn WC047 Bitou WC048 Knysna B B B B B B B C Total: Garden Route Municipalities DC4 Garden Route District
 Municipality WC051 Laingsburg WC052 Prince Albert WC053 Beaufort West B B B C Total: Central Karoo Municipalities DC5 Central Karoo District Municipality 270
Total: Western Cape Municipalities 7 343 873 8 034 242 8 803 609 13 290 094 14 621 557 15 669 596 Unallocated 1 357 517 584 001 - 1 730 249 2 531 468 2 185 177 96 546 258 National Total 1.
Includes equitable share formula allocations, RSC levies replacement and special contribution towards councillor remuneration, but excludes the sharing of the general fuel levy with metropolitan municipalities.
(See Appendix W1) 157 019 674 103 772 035 167 117 765 109 368 064 175 739 771 289 R O L L I C N U O C R O F T R O P P U S L A I C E P S + T N E M E C A L P E R S E I V E L C S R + ( + S E E T T I M M O C D R A W D N A N O I T A R E N U M E R ) ) ( : i
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) 0 0 0 ( ' R 6 2 / 5 2 0 2 ) 0 0 0 ( ' R 5 2 / 4 2 0 2 ) 0 0 0 ( ' R 4 2 / 3 2 0 2 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 /
 3 2 0 2 ) 0 0 0 R ( ' : + + T N E M E C A L P E R S E I V E L C S R + ( ) S E C I V R E S R O F D E S I R O H T U A 290 1
5
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 8 3 4 1 1 0 7 2 9 1 1 - - 5 8 8 7 2 1 1 7 0 7 7 3 9 2 5 7 3 2 5 6 8 8 3 7 2 - 6 0 9 1 1 1 4 8 7 9 2 2 3 6 0 6 5 3 - 7 6 7 6 4 7 9 8 4 4 9 3 3 6 2 - 8 6 4 2 7 0 7 5 9 6 3 1 8 0 4 2 0 0 8 1 1 2 5 8 2 8 1 - 4 0 5 0 8 5 5 4 6 4 5 5 4 1 8 6 8 9 1 5 6 7 2 2 4 1 - - 5 7 0 7 7 3 3 6 5 6 9 0 2 6 8 4 9 6 3 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 9 5 0 7 3 1 6 3 7 6 2 6 9 9 4 6 7 2 6 5 8 0 2 1 0 9 6 4 - 6 8 7 6 0 1 6 4 3 1 1 1 - 1
- 7 2 9 5 2 3 1 0 6 6 0 2 4 9 4 3 0 9 0 6 8 6 5 5 2 - 8 5 1 4 0 1 5 8 4 9 1 2 9 8 9 1 3 3 - 5 8 6 4 4 9 3 9 2 4 6 2 8 4 2 - 0 9 5 7 6 8 4 9 4 6 1 5 5 7 3 0 5 4 2 1 1 0 9 0 0 7 1 - 5 7 3 6 7 0 6 1 4 4 8 0 6 7 7 9 1 7 9 4 2 8 3 4 3 1 - - 5 9 0 3 7 1 4 6 2 6 5 4 2 1 8 5 2 2 2 3 - - - - -
2 4 4 9 6 7 3 9 2 6 2 1 2 1 9 9 1 4 3 8 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 7 8 5 8 8 8 9 3 6 6 9 8 7 1 9 4 4 3 8 1 1 2 6 4 3 7 3 - - - 0 5 6 5 8 7 7 6 8 3 8 0 7 7 6 7 3 6 0 8 9 9 2 6 4 3 7 2 - - - 2 3 3 5 2 7 6 9 2 0 3 4 4 5 5 5 5 6 6 2 8 8 2 6 4 3 6 2 - - 9 1 1 0 0 1 5 9 3 4 0 1 - - - - - - - 2 3 1 6 5 8 3 2 8 8 8 4 0 0 3 7 7 2 3 0 4 9 8 9 4 - - 7 2 0 4 1 7 2 0 4 1 3 5 1 3 5 6 6 0 4 1 6 5 8 2 0 0 1 - 0 4 0 3 5 9 9 9 1 3 3 4 5 5 8 9 3 7 0 8 3 9 7 9 3 - - 9 1 6 9 0 2 6 8 8 0 1 3 5 6 3 7 3 5 3 9 5 3 9 8 0 4 3 - 3 9 6 2 4 8 5 0 1 4 8 9 3 3 2 - 8 1 3 3 6 4 9 8 0 6 2 0 7 4 3 - 3 2 3 3 2 3 8 8 7 1 7 5 0 5 1 7 0 1 4 1 9 8 5 1 3 6 3 2 2 - 3 5 4 2 7 5 7 9 1 4 9 3 9 3 7 1 4 5 7 4 8 1 9 6 2 1 - 5 5 4 7 0 1 4 5 2 2 6 8 5 6 9 0 1 8 0 5 0 7 1 3 2 8 8 1 - - 6 6 6 5 1 7 7 5 9 6 6 6 5 1 4 1 5 2 1 - - - - - - 6 2 8 2 6 3 7 0 1 8 3 5 3 2 4 3 5 1 8 3 1 5 4
 9 4 8 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6 1 3 9 6 1 8 7 9 5 2 6 5 6 7 4 1 8 0 3 - 1 6 6 8 8 3 0 8 2 0 1
 0 0 7 5 4 9 4 5 3 1 1 - - 3 1 7 2 1 8 7 9 2 1 7 6 0 5 1 3 9 4 9 1 5 2 0 5 - 7 9 9 1 1 9 4 2 2 1 9 1 2 4 1 7 2 1 9 2 9 5 7 4 - - - - - - - - - - - - - l
: : 7
.

B A .
R O : : : / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) 0 0 0 ( ' R 6 2 / 5 2 0 2 ) 0 0 0 ( ' R 5 2 / 4 2 0 2 ) 0 0 0 ( ' R 4 2 / 3 2 0 2 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R
 ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' : O
+ + T N E M E C A L P E R S E I V E L C S R + ( ) S E C I V R E S R O F D E S I R O H T U A 291 3
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 0 4 7 4 4 8 0 4 7 3 4 3 4 3 3 0 0 7 4 1 - 1 8 6 4 8 0 4 7 4 4 3 4 - 5 7 8 5 1 1 4 8 1 - - 8 0 1 8 6 0 4 4 8 5 1 6 0 4 4 4 - 8 7 2 7 7 2 8 7 2 7 8 2 3 4 3 3 0 2 1 4 1 - 3 0 5 4 8 7 2 7 7 2 3 4 - 0 5 6 5 8 0 7 7 1 - - 9 9 7 7 8 3 2 4 7 9 9 8 3 2 3 4 - 3 5 1 3 1 1 3 5 1 5 7 0 3 4 3 3 4 9 4 3 1 - 1 5 2 4 3 5 1 3 1 1 3 4 - 2 3 3 5 9 4 8 6 1 - - 2 6 3 7 9 9 9 3 3 4 8 9 9 9 3 3 - 8 7 0 1 2 2 7 2 0 2 3 0 2 9 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2
: 7
- a - : : - - - - 1 9 1 4 1 9 1 4 - - - - 2 3 0 4 2 3 0 4 - - - - 7 0 8 3 7 0 8 3 - - - - - - - - - - - - - - - - - 4 4 3 4 6 3 7 6 8 0 7 3 1 -
6 2 1 7 1 5 - - - - - 4 4 3 4 6 3 7 6 8 0 7 3 1 - - - - - - - - - - 3 6 0 1 2 1 7 6 4 8 1 3 1 - - - - - - - - - - 5 6 6 6 7 7 6 5 1 4 4 2 1 - - - - - - - - - - - - - - - - - - - - - - - 4
1 5 2 0 6 6 0 1 4 3 6 4 2 7 1 7 6 0 3 8 5 1 4 1 4 7 4 4 1 - - - - - - - - - : l a t o T s e i t i l a p i c i n u M e t a t S e e r F : : : l a t o T s e i t i l a p i c i n u M g n e t u a G : l a t o T 292 9
5
1
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 8 7 4 4 1 7 3 4 3 0 8 2 7 2 2 9 5 6 0 1 - - 9 1 2 7 3 0 8 8 5 4 6 1 6 2 1 7 4 8 8 - 4 3 1 1 2 3 4 4 4 2 1 4 1 0 5 1 - 4 7 4
7 4 8 8 - 4 3 1 1 2 3 4 4 4 2 1 4 1 0 5 1 - - 9 4 7 2 3 6 7 8 7 3 - 2 5 6 2 3 2 - 8 6 0 8 5 0 2 8 3 9 3 8 5 6 5 1 0 7 0 9 9 1 1 7 4 8 0 3 - 4 1 9 5 2 4 3 7 0 4 1 8 0 5 5 5 7 2 2 5 - - - 6 8 9 6 9 1 1 4 2 5 0 1 1 3 - 3 3 9 1 2 6 9 1 8 4 6 5 9 6 6 7 0 4 3 4 4 4 6 3 4 - - 6 2 8 0 1 4 7 3 7 3 0 0 2 8 4 - - 8 7 1 0 6 5 2 9 0 6 8 5 6 8 5 1 9 9 4 3 - - - 8 6 1 1 4 2 9 3 8 5 0 6 5 8 1 8 4 5 4 2 - - - 1 7 1 6 6 6 0 7 0 3 1 5 2 7 6 4 7 9 0 5 2 - - 3 9 3 7 2 5 9 0 2 3 6 7 8 2 6 1 6 0 9 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5 0 0 2 4 2 7 8 2 3 4 8 8 5 2 6 2 3 9 9 - - 0 5 7 9 1 3 3 8 2 2 - 8 7 0 3 5 1 7 6 3 6 6 7 0 8 1 9 9 7 2 1 - 4 7 8 9 2 7 3 5 4 3 - 0 8 1 0 4 1 3 3 0 2 1 2 - 0 7 5 5 3 1 5 8 6 5 4 3 4 5 9 - 2 0 8 3 5 1 9 9 5 8 2 5 3 4 4 1 5 5 8 7 8 1 6 4 1 4 8 2 - 8 7 8 3 2 2 4 6 8 3 8 0 8 1 5 7 2 4 8 4 - 7 1 1 6 3 9 4 4 8 5 4 6
8 3 8 0 8 1 5 7 2 4 8 4 - - - 2 4 6 6 4 8 9 2 2 6 2 6 9 2 - 7 5 7 0 2 4 1 0 5 4 2 7 4 2 6 0 8 0 1 4 0 4 3 1 4 - - 6 4 0 0 1 6 6 7 4 3 2 1 8 4 4 - - 0 5 9 5 5 9 1 1 7 5 0 3 1 4 5 6 3 5 2 3 - - - 5 5 3 8 3 0 5 0 5 5 1 5 7 7 1 7 7 4 3 2 - - - 5 8 2 1 6 2 6 9 8 1 1 0 2 8 3 4 3 0 0 4 2 - 9 9 6 2 9 0
1 6 2 6 9 8 1 1 0 2 8 3 4 3 0 0 4 2 - - 4 9 7 5 2 9 0 5 0 3 0 5 2 9 5 5 8 8 6 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 6 7 3 3 9 8 3 3 5 5 4 1 0 9 - 1 8 0 0 5 1 8 1 9 7 4 9 6 3 3 1 2 0 3 7 7 1 6 5 9 2 6 2 - 6 0 0 2 2 3 6 6 6 3 8 3 7 8 4 0 7 8 4 4 - 6 3 6 2 3 4 7 3 4 5 3 8 2 2 7 6 4 5 6 6 - 9 2 1 7 5 3 5 1 1 8 8 0 7 2 5 7 5 2 - - - 5 1 3 6 7 0 9 1 2 1 2 2 8 2 - 8 4 6 9 1 8 4 0 2 4 7 9 2 8 5 4 8 8 8 3 3 6 1 9 3 - - 6 6 3 9 0 9 4 2 3 5 5 8 1 4 - 0 4 1 9 2 1 6 3 2 6 0 6 4 6 8 9 6 6 7 5 3 8 0 8 5 - - 8 8 8 2 0 5 1 6 8 3 0 9 - - - 7 2 0 2 5 0 6 5 3 5 9 5 9 9 4 9 5 2 0 3 - 2 6 1 7 7 5 3 4 9 7 4 9 0 4 7 6 7 8 4 4 - - - 9 3 7 5 3 7 0 9 1 5 4 7 9 6 1 9 4 4 2 2 - - - 9 6 7 6 5 1 9 2 8 0 1 2 0 1 1 4 2 5 9 2 2 - 5 9 1 4 8 6 0 6 0 6 1 8 5 9 0 6 0 4 0 4 3 - - 5 2 1 9 6 2 5 6 9 3 6 6 3 9 4 3 1 3 8 7 5 3 - - 7 9 5 8 4 4 6 9 0 6 6 5 - 7 5 8 6 5 9 0 1 1 9 7 7 6 1 3 7 4 2 - 0 9 0 0 4 7 3 8 6 8 3 6 3 7 2 0 1 9 8 4 8 2 - - 8 7 7 2 5 1 9 5 3 9 6 8 - - 3 0 5 7 5 8 4 6 4 2 6 0 1 5 9 0 1 1 9 7 0 3 3 - 1 1 2 9 4 2 6 0 1
 4 2 6 0 1 5 7 7 6 4 3 2 7 3 - - 4 7 7 8 6 7 2 6 6 8 3 6 8 7 9 2 1 4 1 4 4 3 - - 0 7 2 8 3 7 2 5 4 4 9 5 - 3 7 4 6 2 7 4 0 1 2 4 3 6 7 8 2 3 2 - 8 1 9 2 0 5 2 8 8 7 8 9 9 2 0 6 5 7 0 7 2 - - 2 7 6 2 4 8 5 5 6 5 2 8 - - 1 5 2 4 3 7 4 6 8 2 0 0 1 2 7 4 0 1 4 2 2 1 3 - 5 9 6 8 8 2 0 0 1 8 2 0 0 1 5 1 5 6 6 6 2 5 3 - - 7 3 4 8 5 3 0 6 9 2 0 6 9 4 2 2 1 0 5 7 2 3 - - - - - - - - - - - - - - 7 8 3 9 6 7 8 3 9 6 4 3 3 7 6 4 3 3 7 6 7 3 4
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3 9 2 4 2 7 0 0 9 2 2 4 8 5 5 6 3 8 4 3 - 9 2 0 6 3 0 2 0 3 4 9 1 8 2 8 5 6 6 1 5 - - 7 1 3 8 2 - 1 5 2 4 9 2 0 6 3 8 5 9 6 9 9 6 9 5 8 6 2 - - - - - - - - - - - - - - - - - - 1 0 4 9 3 2 3 4 1 3 3 6 5 4 2 9 6 5 2 9 - 6 3 4 8 5 7 1 6 6 4 9 2 4 6 3 0 9 2 7 3 1 - - 7 8 0 9 4 6 1 0 1 0 7 1 5 - - 0 4 7 3 7 7 4 7 9 8 9 4 - - - 9 5 4 8 1 2 3 3 1 2 - 4 7 0 9 4 7 8 2 7 5 1 9 7 6 1 0 0 0 2 1 - 7 7 3 7 2 8 3 6 1 3 - 9 3 6 6 0 5 1 6 8 9 5 2 7 0 8 2 - 7 2 4 3 7 2 4 3 - 6 8 3 6 5 1 9 5 8 9 4 2 8 9 6 2 - 6 9 2 3 6 9 2 3 - 9 2 0 6 4 8 5 5 2 0 4 2 3 9 5 2 - 0 1 1 3 0 1 1 3 - 0 2 9 0 3 1 7 6 1 4 9 1 8 4 0 5 2 9 8 0 4 2 8 2 8 2 2 - - - - - - - - - - - - - - - - - - -
4 1 1 4 0 4 4 1 1 2 8 4 9 0 1 2 8 4 9 0 1 - - - - - - - - - - - - - - - - - - - - - 3
- - - - - - - - - : : Z
: h
: : : : l a t o T - L A
e i t i l a p i c i n u M u g U : l a t o T - a
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/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' t
) 0 0 0 ( ' R 6 2 / 5 2 0 2 ) 0 0 0 ( ' R 5 2 / 4 2 0 2 ) 0 0 0 ( ' R 4 2 / 3 2 0 2 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' : + + T N E M E C A L P E R S E I V E L C S R + ( ) d
/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' e
) 0 0 0 ( ' R 6 2 / 5 2 0 2 ) 0 0 0 ( ' R 5 2 / 4 2 0 2 ) 0 0 0 ( ' R 4 2 / 3 2 0 2 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' : + + T N E M E C A L P E R S E I V E L C S R + ( ) S E C I V R E S R O F D E S I R O H T U A 293 1
8
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 3 3 5 7 8 5 3 0 1 5 2 1 4 1 6 1 0 2 3 - - 5 4 4 5 - 2 3 0 4 0 9 1 7 7 6 6 6 1 3 3 5 7 1 9 3 4 1 6 9 5 4 1 - - 4 7 7 3 1 0 3 3 3 1 - - 0 5 2 9 2 0 8 6 3 8 3 1 4 2 3 3 5 6 2 0 8 1 - - 4 0 8 5 1 2 6 1 9 3 - - 5 7 7 9 0 1 9 7 0 3 3 3 1 4 1 2 0 3 - - 0 4 1 5 - 7 0 8 3 6 2 7 6 3 7 6 5 1 9 0 1 7 2 8 5 3 1 4 7 7 3 1 - - 5 9 4 6 4 3 6 8 8 3 1 5 2 7 9 7 3 0 2 5 6 3 5 6 4 4 3 - - - - - - - - - - - - - - - - - - - - - - - - - - - 8 8 7 4 1 1 8 8 7
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- 1 0 0 4 8 5 7 1 5 7 5 3 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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+ + T N E M E C A L P E R S E I V E L C S R + ( ) / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' ) 0 0 0 ( ' R 6 2 / 5 2 0 2 ) 0 0 0 ( ' R 5 2 / 4 2
 0 2 ) 0 0 0 ( ' R 4 2 / 3 2 0 2 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 296 R
( D N A ) G I M ( T N A R G E R U T C U R T S A R F N I L A P I C I N U M : B T R A P , 6 E L U D E H C S D N A B T R A P , 5 E L U D E H C S O T X I D N E P P A ) G I S W ( ) S E C I V R E S R O F D E S I R O H T U A ) ( 297 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1
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2 / 3 2 0 2 ) 0 0 0 R ( ' : : Z
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0 4 1 0 0 2 3 1 0 0 0 2 1 5 2 2 0 1 5 2 4 9 4 - - - - - - - - - - - - - - 4 7 6 9 4 1 4 8 4 8 1 1
0 1 5 2 0 8 5 1 - - - - - , 6 e l u d e h c S B t r a P , / 5 2 0 2 ) 0 0
i n u M d n a l a n o i t a N 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' - - - - - - - - - - - - 0 0 0 7 0 0 0 7 0 0 0 6 0 0 0 0 1 0 0 0 0 1 0 0 0 0 4 - - - - - - - - - - - - 0 0 7 7 1 0 0 0 7 1 0 0 2 6 1 0 0 0 3 2 0 0 0 1 2 0 0 9 4
 9 - - - - - - - - - - - - - : l a t o T i p m u k N - : l a t o T s e i t i l a p i c i n u M e b m e h V : : l a t o T s e i t i l a p i c i n u M o p o p m L i : : l a t o T
u M a m e l o M i r i d o M a k a g N : - o n a s i g a K 7 9 3 W N e n a m e e T - : l a t o T 4 6 0 1 5 2 2 4 0 9 3 2 8 6 2 2 4 4 5
: : l a t o T 2 W X I D N E P P A ) G I S W ( ) G I M ( T N A R G E R U T C U R T S A R F N I L A P I C I N U M : B T R A P , 6 E L U D E H C S D N A B T R A P , 5 E L U D E H C S O T X I D N E P P A ) ( 301 T N A R G E R U T C U R T S A R F N I L A P I C I N U M : B T R A P , - - G N I R ) ( 3 W X I D N E P P A 302 APPENDIX W3 APPENDIX TO SCHEDULE 5, PART B: MUNICIPAL INFRASTRUCTURE GRANT RING-FENCED FUNDING FOR SPORT INFRASTRUCTURE - BREAKDOWN PER MUNICIPALITY Category Municipality Project EASTERN CAPE Ring-fenced Municipal Infrastructure Grant allocations for sport infrastructure National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) EC131 EC122 Mnquma EC102 Blue Crane Route B Total: Sarah Baartman Municipalities B Total:
 Amathole Municipalities B Total: Chris Hani Municipalities B EC141 Elundini Total: Joe Gqabi Municipalities B Total: O.R.
Tambo Municipalities Inxuba Yethemba Port St Johns EC154 Total: Eastern Cape Municipalities KWAZULU-NATAL KZN213 uMzumbe B Total: Ugu Municipalities KZN223 Mpofana B KZN225 Msunduzi B Total: uMgungundlovu Municipalities B KZN241 eNdumeni Total: uMzinyathi Municipalities KZN252 Newcastle B KZN253 eMadlangeni B Total: Amajuba Municipalities B Total: Zululand Municipalities B B B Total: uMkhanyakude Municipalities KZN271 uMhlabuyalingana KZN275 Mtubatuba KZN276 Big Five Hlabisa KZN263 AbaQulusi KZN291 Mandeni KZN284 uMlalazi B Total: King Cetshwayo Municipalities B Total: iLembe Municipalities B KZN434 uBuhlebezwe Total: Harry Gwala Municipalities Total: KwaZulu-Natal Municipalities LIMPOPO LIM344 Makhado B Total: Vhembe Municipalities LIM367 Mogalakwena B B LIM368 Modimolle-Mookgophong Total: Waterberg Municipalities Total: Limpopo Municipalities MP326 City of Mbombela B Total: Ehlanzeni Municipalities Total: Mpumalanga Municipalities NORTHERN CAPE NC071 Ubuntu B B NC077 Siyathemba Total: Pixley Ka Seme Municipalities B Total: Z.F.
Mgcawu Municipalities B Total: John Taolo Gaetsewe Municipalities Joe Morolong !Kai !Garib NC451 NC082 Total: Northern Cape Municipalities Upgrading of Westview Sport Field Upgarding of Msobomvu Sport Field Upgarding of Cradock Sport Field Upgrading of Hopedale Sport Field Construction of Port St. John Sport Field Construction of Ward 6 Sport Field Upgrading of Bruntville Sport Field Construction of Mkangala Sport Field Upgrading of Sithembile Sport Field Construction of Sport Field Construction of Ward 2 Sport Field Construction of Emondlo Sport Field Construction of Manguzi Sport Field Construction of Dukuduku Sport Field Construction of Enkhanyiso Sport Field Construction of Tap Tap Makhathini Sport Centre Construction of Endlondlweni Sport Field Upgrading of Morningside Sport Field Construction of Sport Field within Makhado Local Municipality Upgrading of Mokopane Swimming Pool Construction Mookgophong Sport Field Construction of Tekwane sport field Upgrading of Richmond Sport Field Construction of Prieska Sport Field Upgrading of Marchand Sport Field Upgrading of Mapiniki/Dithakong Sport Field - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - 303 APPENDIX W3 APPENDIX TO SCHEDULE 5, PART B: MUNICIPAL INFRASTRUCTURE GRANT RING-FENCED FUNDING FOR SPORT INFRASTRUCTURE - BREAKDOWN PER MUNICIPALITY Category Municipality Project NORTH WEST NW373 Rustenburg B Total: Bojanala Platinum Municipalities B NW403 City of Matlosana Total: Dr Kenneth Kaunda Municipalities Total: North West Municipalities WESTERN CAPE WC014 Saldanha Bay B Total: West Coast
 Municipalities B WC051 Laingsburg Total: Central Karoo Municipalities Total: Western Cape Municipalities Unallocated National Total Construction Seraleng Sport Field Upgrading of Tigane Sport Field Upgrading of St Helena Bay Sport Field Construction of Bersig Sport Field Ring-fenced Municipal Infrastructure Grant allocations for sport infrastructure National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 8 000 8 000 11 000 11 000 19 000 6 858 6 858 8 000 8 000 14 858 - - - - - - - - - - - - - - - - - - - - - 252 858 252 858 252 858 252 858 252 858 304 : B T R A P , ) ( 305 APPENDIX W4 APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT FOR MUNICIPALITIES Expanded Public Works Programme Integrated Grant for Municipalities FTE Target for 2023/24 National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) Category Municipality EASTERN CAPE A A Buffalo City BUF NMA Nelson Mandela Bay EC101 Dr Beyers Naude EC102 Blue Crane Route EC104 Makana EC105 Ndlambe EC106 EC108 Kouga EC109 Kou-Kamma DC10 B B B B B B B C Total: Sarah Baartman Municipalities Sundays River Valley Sarah Baartman District Municipality EC121 Mbhashe
 EC122 Mnquma EC123 Great Kei EC124 Amahlathi EC126 Ngqushwa EC129 Raymond Mhlaba DC12 Amathole District Municipality B B B B B B C Total: Amathole Municipalities Inxuba Yethemba Intsika Yethu EC131 EC135 EC136 Emalahleni EC137 Dr. A.B.
Xuma EC138 EC139 Enoch Mgijima DC13 Chris Hani District Municipality B B B B B B C Total: Chris Hani Municipalities Sakhisizwe EC141 Elundini EC142 Senqu EC145 Walter Sisulu DC14 B B B C Total: Joe Gqabi Municipalities Joe Gqabi District Municipality EC153 Ngquza Hill EC154 Port St Johns EC155 Nyandeni EC156 Mhlontlo EC157 King Sabata Dalindyebo DC15 O.R.

Tambo District Municipality B B B B B C Total: O.R.
Tambo Municipalities EC441 Matatiele EC442 Umzimvubu EC443 Winnie Madikizela-Mandela EC444 Ntabankulu DC44 Alfred Nzo District Municipality B B B B C Total: Alfred Nzo Municipalities - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total: Eastern Cape Municipalities 1 278 98 103 306 APPENDIX W4 APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT FOR MUNICIPALITIES Expanded Public Works Programme Integrated Grant for Municipalities FTE Target for 2023/24 National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) Category Municipality FREE STATE A MAN Mangaung FS161 Letsemeng FS162 Kopanong FS163 Mohokare DC16 Xhariep District Municipality B B B C Total: Xhariep Municipalities FS181 Masilonyana FS182 Tokologo FS183 Tswelopele FS184 Matjhabeng FS185 Nala DC18 B B B B B C Total: Lejweleputswa Municipalities Lejweleputswa District Municipality Setsoto FS191 FS192 Dihlabeng FS193 Nketoana FS194 Maluti-a-Phofung
 FS195 Phumelela FS196 Mantsopa DC19 B B B B B B C Total: Thabo Mofutsanyana Municipalities Thabo Mofutsanyana District Municipality FS201 Moqhaka FS203 Ngwathe FS204 Metsimaholo FS205 Mafube DC20 B B B B C Total: Fezile Dabi Municipalities Fezile Dabi District Municipality 16 1 263 12 14 - 12 38 15 12 12 48 15 15 117 23 56 12 69 16 15 47 238 16 28 12 12 14 82 950 1 089 - Total: Free
295 1 263 2 154 950 950 1 097 6 414 Total: Free State Municipalities 491 37 963 GAUTENG A A A EKU JHB TSH City of Ekurhuleni City of Johannesburg City of Tshwane GT421 Emfuleni GT422 Midvaal GT423 Lesedi DC42 B B B C Total: Sedibeng Municipalities Sedibeng District Municipality GT481 Mogale City GT484 Merafong City GT485 Rand West City DC48 West Rand District Municipality B B B C Total: West Rand Municipalities Total: Gauteng Municipalities 1 073 82 481 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 307 APPENDIX W4 APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT FOR MUNICIPALITIES Expanded Public Works Programme Integrated Grant for Municipalities FTE Target for 2023/24 National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) Category Municipality KWAZULU-NATAL A ETH eThekwini KZN212 uMdoni KZN213 uMzumbe KZN214 uMuziwabantu KZN216 Ray Nkonyeni B B B B C Total: Ugu Municipalities DC21 Ugu District Municipality KZN221 uMshwathi KZN222 uMngeni KZN223 Mpofana KZN224 iMpendle KZN225 Msunduzi KZN226 Mkhambathini KZN227 Richmond B B B B B B B C Total: uMgungundlovu Municipalities DC22 uMgungundlovu District Municipality KZN235 Okhahlamba KZN237 iNkosi Langalibalele KZN238 Alfred Duma B B B C Total:
 uThukela Municipalities DC23 uThukela District Municipality KZN241 eNdumeni KZN242 Nquthu KZN244 uMsinga KZN245 uMvoti B B B B C Total: uMzinyathi Municipalities DC24 uMzinyathi District Municipality KZN252 Newcastle KZN253 eMadlangeni KZN254 Dannhauser B B B C Total: Amajuba Municipalities DC25 Amajuba District Municipality KZN261 eDumbe KZN262 uPhongolo KZN263 AbaQulusi KZN265 Nongoma KZN266 Ulundi B B B B B C Total: Zululand Municipalities DC26 Zululand District Municipality KZN271 uMhlabuyalingana KZN272
 Jozini KZN275 Mtubatuba KZN276 Big Five Hlabisa B B B B C Total: uMkhanyakude Municipalities DC27 uMkhanyakude District Municipality KZN281 uMfolozi KZN282 uMhlathuze KZN284 uMlalazi KZN285 Mthonjaneni KZN286 Nkandla B B B B B C Total: King Cetshwayo Municipalities DC28 King Cetshwayo District Municipality KZN291 Mandeni KZN292 KwaDukuza KZN293 Ndwedwe KZN294 Maphumulo B B B B C Total: iLembe Municipalities DC29 iLembe District Municipality KZN433 Greater Kokstad KZN434 uBuhlebezwe KZN435 uMzimkhulu KZN436 Dr Nkosazana Dlamini Zuma B B B B C Total: Harry Gwala Municipalities DC43 Harry Gwala District Municipality - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total:
 KwaZulu-Natal Municipalities 2 745 211 248 308 APPENDIX W4 APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT FOR MUNICIPALITIES Expanded Public Works Programme Integrated Grant for Municipalities FTE Target for 2023/24 National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) Category Municipality LIMPOPO LIM331 Greater Giyani LIM332 Greater Letaba LIM333 Greater Tzaneen LIM334 Ba-Phalaborwa LIM335 Maruleng DC33 Mopani District Municipality B B B
 B B C Total: Mopani Municipalities LIM341 Musina LIM343 Thulamela LIM344 Makhado LIM345 Collins Chabane DC34 Vhembe District Municipality B B B B C Total: Vhembe Municipalities LIM351 Blouberg LIM353 Molemole LIM354 Polokwane LIM355 Lepele-Nkumpi DC35 Capricorn District Municipality B B B B C Total: Capricorn Municipalities LIM361 Thabazimbi LIM362 Lephalale LIM366 Bela-Bela LIM367 Mogalakwena LIM368 Modimolle-Mookgophong DC36 Waterberg District Municipality B B B B B C Total: Waterberg Municipalities LIM471 Ephraim Mogale LIM472 Elias Motsoaledi LIM473 Makhuduthamaga LIM476 Fetakgomo Tubatse DC47 B B B B C Total: Sekhukhune Municipalities Sekhukhune District Municipality 41 20 70 19 17 113 280 17 58 38 18 88 219 15 16 153 16 43 243 18 13 17 15 23 - - 6 615 2 712 2 376 1 783 1 463 16 264 24 598 Total: Limpopo Municipalities 1 148 88 446 MPUMALANGA MP301 Chief Albert Luthuli MP302 Msukaligwa MP303 Mkhondo MP304 Dr Pixley ka Isaka Seme MP305 Lekwa MP306 Dipaleseng MP307 Govan Mbeki DC30 Gert Sibande District Municipality B B B B B B B C Total: Gert Sibande Municipalities MP311 Victor Khanye MP312 Emalahleni MP313 Steve Tshwete MP314 Emakhazeni MP315 Thembisile Hani MP316 Dr JS Moroka DC31 Nkangala District Municipality B B B B B B C Total: Nkangala Municipalities MP321 Thaba Chweu MP324 Nkomazi
 MP325 Bushbuckridge MP326 City of Mbombela DC32 B B B B C Total: Ehlanzeni Municipalities Ehlanzeni District Municipality Total: Mpumalanga Municipalities 816 62 879 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - 309 APPENDIX W4 APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT FOR MUNICIPALITIES Category Municipality NORTHERN CAPE Expanded Public Works Programme Integrated Grant for Municipalities FTE Target for 2023/24 National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) NC061 Richtersveld NC062 Nama Khoi NC064 Kamiesberg NC065 Hantam NC066 Karoo Hoogland NC067 Khâi-Ma B B B B B B C Total: Namakwa Municipalities DC6 Namakwa District Municipality NC071 Ubuntu NC072 Umsobomvu NC073 Emthanjeni NC074 Kareeberg NC075 Renosterberg NC076 Thembelihle NC077 Siyathemba NC078 Siyancuma B B B B B B B B C Total: Pixley Ka Seme Municipalities DC7 Pixley Ka Seme District Municipality !Kai !Garib !Kheis NC082 NC084 NC085 Tsantsabane NC086 Kgatelopele NC087 Dawid Kruiper B B B B B C Total: Z.F.
Mgcawu Municipalities DC8 Z.F.
Mgcawu District Municipality NC091 Sol Plaatjie NC092 Dikgatlong NC093 Magareng NC094 Phokwane B B B B C Total: Frances Baard Municipalities DC9 Frances Baard District Municipality NC451 Joe Morolong NC452 Ga-Segonyana NC453 Gamagara DC45 B B B C Total: John Taolo Gaetsewe Municipalities John Taolo Gaetsewe District Municipality 12 14 12 18 12 - 12 80 13 12 12 12 - - 12 12 12 85 13 - 12 12 12 13 62 43 13 12 - 12 80 28 14 12 12 66 950 1 103 950 1 364 950 - 950 6 267 978 950 950 950 - - 950 900 950 6 628 1 021 - 950 960 950 999 4 880 3 286 1 017 950 - 959 6 212 2 159 1 111 950 950 5 170 Total: Northern Cape Municipalities 373 29 157 NORTH WEST NW371 Moretele NW372 Madibeng NW373 Rustenburg NW374 Kgetlengrivier NW375 Moses Kotane DC37 Bojanala Platinum District Municipality B B B B B C Total: Bojanala Platinum Municipalities NW381 Ratlou NW382 Tswaing NW383 Mafikeng NW384 Ditsobotla NW385 Ramotshere Moiloa DC38 Ngaka Modiri Molema District Municipality B B B B B C Total: Ngaka Modiri Molema Municipalities NW392 Naledi NW393 Mamusa NW394 Greater Taung NW396 Lekwa-Teemane NW397 Kagisano-Molopo DC39 Dr Ruth Segomotsi Mompati District Municipality B B B B B C Total: Dr Ruth Segomotsi Mompati Municipalities NW403 City of Matlosana NW404 Maquassi Hills NW405 JB Marks DC40 Dr Kenneth Kaunda District Municipality B B B C Total: Dr Kenneth Kaunda Municipalities 37 13 29 12 21 16 128 16 14 41 - - 1 715 1 845 9 011 1 133 1
883 1 234 1 099 3 118 - 1 715 1 845 9 011 1 133 1 094 3 229 950 1 321 1 079 8 806 3 512 1 316 2 848 2 306 9 982 Total: North West Municipalities 489 37 682 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 310 APPENDIX W4 APPENDIX TO SCHEDULE 5, PART B: TARGETS FOR EXPANDED PUBLIC WORKS PROGRAMME INTEGRATED GRANT FOR MUNICIPALITIES Category Municipality
 WESTERN CAPE Expanded Public Works Programme Integrated Grant for Municipalities FTE Target for 2023/24 National and Municipal Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) A CPT City of Cape Town 814 62 588 WC011 Matzikama WC012 Cederberg WC013 Bergrivier WC014 Saldanha Bay WC015 Swartland B B B B B C Total: West Coast Municipalities DC1 West Coast District Municipality WC022 Witzenberg WC023 Drakenstein WC024 Stellenbosch WC025 Breede Valley WC026 Langeberg B B B B B C Total: Cape Winelands Municipalities DC2 Cape Winelands District Municipality WC031 Theewaterskloof WC032 Overstrand WC033 Cape Agulhas WC034 Swellendam B B B B C Total: Overberg Municipalities DC3 Overberg District Municipality WC041 Kannaland WC042 Hessequa WC043 Mossel Bay WC044 George WC045 Oudtshoorn WC047 Bitou WC048 Knysna B B B B B B B C Total: Garden Route Municipalities DC4 Garden Route District Municipality WC051 Laingsburg WC052 Prince Albert WC053 Beaufort West B B B C Total: Central Karoo Municipalities DC5 Central Karoo District Municipality Total: Western Cape Municipalities 1 671 133 426 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
 - - - - - - - - - - - - - - - - - - - - - - - - - - - Unallocated National Total - - 816 477 853 055 10 084 781 385 816 477 853 055 311 : B T R A P , 6 E L U D E H C S D N A B T R A P , ) s r a e Y l a i c
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/ 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' 6 2 / 5 2 0 2 ) 0 0 0 R ( ' 5 2 / 4 2 0 2 ) 0 0 0 R ( ' 4 2 / 3 2 0 2 ) 0 0 0 R ( ' - - - - - 0 0 0 0 3 8 2 6 8 4 1 8 2 6 8 7 1 0 0 0 0 1 - 0 0 0 2 7 0 0 0 2 8 - - - - - 7 3 7 0 0 0 3 1 5 9 0 0 0 0 5 7 3 7 8 0 1 - 0 0 0 0 9 0 0 0 0 4 1 - - - - - - - - - - - - - - - - - - - - 0 0 0 0 0 1 6 8 9 6 5 1 0 0 0 0 3 2 -
 - - - - - - - - - - - - - - - : a
: l a t o T y t i l a p i c i n u
d o M a k a g N : : : l a t o T s e i t i l a p i c i n u M t s e W h t r o N : l a t o T e s a h P ) e w k o l T ( ) t f i r d p i l K ( y l p p u S r e t a W k l u B h t u o S e l e t e r o M ) s t i r B ( ) 4 o t 1 e s a h p ( y l p p u S r e t a W k l u B a s u m a M r e t a e r G ) 3 o t 1 e s a h p ( y l p p u S r e t a W k l u B i d e l a N / 316 - - - - - - - - - - - - - 0 0 0 0 9 4 0 0 0 0 9 4 - - 0 0 0 0 0 6 0 0 0 0 0 6 6 2 6 4 7 2 6 2 6 4 7 2 - - : l a t o
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: : : : B T R A P , 6 E L U D E H C S D N A B T R A P , 317 : : A T R A P , ) s r a e Y l a i c n a n F i l a n o i t a N ( 6 W X I D N E P P A 318 APPENDIX W6 APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF THE EARLY CHILDHOOD DEVELOPMENT GRANT: ALLOCATIONS PER GRANT COMPONENT PER PROVINCE Basic Education (Vote 16) Province/Components Early Childhood Development Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total of which: Maintenance Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West
 Western Cape Unallocated Total: Maintenance Component Subsidy Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total: Subsidy Component Early Childhood Development Grant National Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 210 524 63 575 246 963 196 875 187 261 100 307 25 335 111 571 100 076 - 1 242 487 12 907 9 340 10 092 18 052 13 009 11 096 6 825 6 650 14 038 - 255 457 75 785 303 450 235 775 232 811 119 372 28 470
- 1 140 478 297 000 1 728 696 396 000 2 180 084 319 E C N I V O R P R E P T N E N O P M O C T N A R G R E P ) s r a e Y l a i c n a n F i l a n o i t a N ( S N O I T A C O L L A : : A T R A P , 5 E L U D E H C S O T X I D N E P P A 7 W X I D N E P P A 320 APPENDIX W7 APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF THE DISTRICT HEALTH PROGRAMMES GRANT: ALLOCATIONS PER GRANT COMPONENT PER PROVINCE Health (Vote 18) Province/Components District Health Programmes Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total of which: Comprehensive HIV/AIDS Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total District Health Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total District Health Programmes Grant National Financial Year
 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 913
E C N I V O R P R E P T N E N O P M O C T N A R G R E P ) s r a e Y l a i c n a n F i l a n o i t a N ( S N O I T A C O L L A : : A T R A P , 5 E L U D E H C S O T X I D N E P P A 8 W X I D N E P P A 322 APPENDIX W8 APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF HUMAN RESOURCES AND TRAINING GRANT: ALLOCATIONS PER GRANT COMPONENT PER PROVINCE Health (Vote 18) Human Resources and Training Grant National Financial Year 2024/25 Province/Components Human Resources and Training Grant 2023/24 (R'000) Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total of which: Statutory Human Resources Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total Training Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total 576 485 284 312 1 879 547 764 447 380 788 281 115 149 030 276 176 887 123 - 5 479 023 312 276 133
 378 897 055 425 356 232 377 154 778 49 454 142 227 369 008 - 2 715 909 264 209 150 934 982 492 339 091 148 411 126 337 99 576 133 949 518 115 - 2 763 114 (R'000) - 2 479 313 266 927 157 711 1 026 607 354 316 149 359 127 437 100 618 135 391 541 378 27 460 2 887 204 2025/26 (R'000) 581 540 288 985 1 906 893 781 344 369 465 279 273 151 959 274 366 944
- 2 590 387 278 885 164 776 1 072 599 370 189 156 050 133 146 105 126 141 457 565 632 28 690 3 016 550 323 ) s r a e Y l a i c n a n F i l a n o i t a N ( D N A S T E G R A T : : A T R A P , 5 E L U D E H C S O T X I D N E P P A 9 W X I D N E P P A 324 APPENDIX W9 APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF EPWP INTEGRATED GRANT FOR PROVINCES: TARGETS AND ALLOCATIONS PER PROVINCIAL DEPARTMENTS Province / Provincial Department EASTERN CAPE Cooperative Governance and Traditional Affairs Economic Development, Environmental Affairs and Tourism Education Health Human Settlements Public Works Rural Development and Agrarian Reform Sport, Recreation, Arts and Culture Transport Total: Eastern Cape FREE STATE Agriculture and Rural Development Economic Development and Small Business Development, Tourism and Environmental Affairs Education Human Settlements Police, Roads and Transport Public Works and Infrastructure Total: Free State GAUTENG Agriculture and Rural Development Cooperative Governance and Traditional Affairs Infrastructure Development Education Health Human Settlements Roads and Transport Total: Gauteng KWAZULU-NATAL Agriculture and Rural Development Arts, Culture and Tourism Cooperative Governance and Traditional
 Affairs Economic Development, Tourism and Environmental Affairs Education Health Human Settlements Public Works Transport Total: KwaZulu-Natal LIMPOPO Agriculture and Rural Development Cooperative Government, Human Settlents and Traditional Affairs Economic Development, Environment and Tourism Education Health Public Works, Roads and Infrastructure Social Development Sport, Arts and Culture Transport and Community Safety Total: Limpopo MPUMALANGA Agriculture, Rural Development, Land and Environmental Affairs
 Cooperative Governance and Traditional Affairs Culture, Sport and Recreation Economic Development and Tourism Education Health Human Settlements Public Works, Roads and Transport Total: Mpumalanga NORTHERN CAPE Agriculture, Land Reform and Rural Development Cooperative Governance, Human Settlements and Traditional Affairs Economic Development and Tourism Education Roads and Public Works Sports, Arts and Culture Total: Northern Cape Expanded Public Works Programme Integrated Grant for Provinces FTE Target for 2023/24 National Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 325 APPENDIX W9 APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF
 EPWP INTEGRATED GRANT FOR PROVINCES: TARGETS AND ALLOCATIONS PER PROVINCIAL DEPARTMENTS Province / Provincial Department NORTH WEST Agriculture and Rural Development Arts, Culture, Sport and Recreation Cooperative Governance, Human Settlements and Traditional Affairs Education Economic Development, Environment, Conversation and Tourism Public Works and Roads Social Development Total: North West WESTERN CAPE Agriculture Cultural Affairs and Sport Education Environmental Affairs and Development Planning
 Health Human Settlements Transport and Public Works Total: Western Cape Unallocated Grand Total Expanded Public Works Programme Integrated Grant for Provinces FTE Target for 2023/24 National Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 454 287 474 639 5 646 434 762 454 287 474 639 326 : : A T R A P , ) s r a e Y l a i c n a n F i l a n o i t a N ( 0 1 W X I D N E P P A 327 APPENDIX W10 APPENDIX TO SCHEDULE 5, PART A: BREAKDOWN OF SOCIAL SECTOR EPWP INCENTIVE GRANT FOR PROVINCES: ALLOCATIONS PER PROVINCIAL DEPARTMENT Province/Provincial Department EASTERN CAPE Education Health Safety and Liaison Social Development Total: Eastern Cape FREE STATE Education Health Social Development Total: Free State GAUTENG Community Safety Education Health Social Development Total: Gauteng KWAZULU-NATAL Community Safety and Liaison Education Health Social Development Sport and Recreation Total: KwaZulu-Natal LIMPOPO Education Health Social Development Total: Limpopo MPUMALANGA Community Safety, Security and Liaison Culture, Sport and Recreation
 Education Health Social Development Total: Mpumalanga NORTHERN CAPE Education Health Social Development Transport, Safety and Liaison Total: Northern Cape NORTH WEST Community Safety and Transport Management Education Health Social Development Total: North West WESTERN CAPE Community Safety Cultural Affairs and Sport Education Health Social Development Total: Western Cape Unallocated Grand Total Social Sector Expanded Public Works Programme Incentive Grant for Provinces FTE Target for 2023/24 National
 Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 445 633 465 597 9 889 426 480 445 633 465 597 328 E C N I V O R P R E P ) s r a e Y l a i c n a n F i l a n o i t a N ( S N O I T A C O L L A : : A T R A P , 329 APPENDIX W11 APPENDIX TO SCHEDULE 6, PART A: BREAKDOWN OF SCHOOL INFRASTRUCTURE BACKLOGS GRANT: ALLOCATIONS PER PROVINCE Basic Education (Vote 16) Province School Infrastructure Backlogs Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total School Infrastructure Backlogs Grant National Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 1 047 183 - - 456 000
 211 000 - - - - 364 519 2 078 702 - - - - - - - - - 2 172 048 2 172 048 - - - - - - - - - 2 269 351 2 269 351 330 : : A T R A P , ) s r a e Y l a i c n a n F i l a n o i t a N ( 2 1 W X I D N E P P A 331 APPENDIX W12 APPENDIX TO SCHEDULE 6, PART A: BREAKDOWN OF NATIONAL HEALTH INSURANCE INDIRECT GRANT:
 ALLOCATIONS PER GRANT COMPONENT PER PROVINCE Health (Vote 18) Province/Components National Health Insurance Indirect Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total of which: Health Facility Revitalisation Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Personal Services Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated Total Non-Personal Services Component Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total National Health Insurance Indirect Grant National Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 682 132 172 845 109 206 69 052 286 187 299 702 69 052 253 350 69 052 88 520 2 099 098 613 080 103 793 40 155 - 217 135 230 650 - 184 298 - 1 389 111 - - - - - - - - - - 795 779 142 242 - 113 657 - 1 518 538 - - - - - - - - - - 948 353 148 615 - 118 749 - 1 703 491 - - - - - - - - - 108 003
 108 003 75 846 75 846 75 845 75 846 75 846 75 846 75 846 75 846 75 846 682 613 332 T N A R G R E P E C N I V O R P R E P ) s r a e Y l a i c n a n F i l a n o i t a N ( : G N I D N U F R E T S A S I D D E C N E F - G N I R F O N W O D K A E R B : A T R A P , 5 E L U D E H C S D N A A T R A P , 333 APPENDIX W13 APPENDIX TO SCHEDULE 4, PART A AND SCHEDULE 5, PART A: BREAKDOWN OF RING-FENCED DISASTER FUNDING: PER PROVINCE PER GRANT Province/Grant Name
 Education Infrastructure Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Human Settlements Development Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Provincial Roads Maintenance Grant Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Total Ring-Fenced Disaster Allocations National Financial Year 2023/24 (R'000) 2024/25 (R'000) 2025/26 (R'000) 13 921 - - 595 075 - - - - - 608 996 - - - 474 974 - - - - - 474 974 122 000 - - 478 531 - - - - - 600 531 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Printed by Creda Communications ISBN 978-1-4850-0849-1