Source: https://www.global-regulation.com/law/south-africa/2981132/division-of-revenue-act.html
Timestamp: 2019-04-25 08:15:45
Document Index: 320146418

Matched Legal Cases: ['art 3', 'art 4', 'art 9', 'art 4', 'art 7', 'art 9']

Link to law: http://www.gov.za/documents/division-revenue-act-8
Division of Revenue Act 12 of 2009
Vol. 526 Cape Town 3 April 2009 No. 32106
THE PRESIDENCY No. 408 3 April 2009
No. 12 of 2009: Division of Revenue Act, 2009.
2 No. 32106
Act No. 12, 2009
GOVERNMENT GAZETTE, 3 APRIL 2009
DIVISION OF REVENUE ACT, 2009
(English text signed by the President.) (Assented to 3 April 2009.)
ACT To provide for the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2009/10 financial year and the responsibilities of all three spheres pursuant to such division; and to provide for matters connected therewith.
BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:— ARRANGEMENT OF PROVISIONS OF ACT
EQUITABLE SHARE ALLOCATIONS 10
3. Equitable division of revenue raised nationally among spheres of government 4. Equitable division of provincial share among provinces 5. Equitable division of local government share among municipalities 6. Shortfalls, excess revenue and additional allocations
4 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Act No. 12, 2009 DIVISION OF REVENUE ACT, 2009
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES
Conditional allocations
7. Conditional allocations to provinces 5
Duties of accounting officers in respect of Schedule 4, 5, 6,7 or & allocations 9. Duties of transferring national officer in respect of Schedule 4 allocation 10. Duties of transferring national officer in respect of Schedule 5, 6, 7 or 8 10
allocation 11. Duties of receiving officer in respect of Schedule 4 allocation 12. Duties of receiving officer in respect of Schedule 5, 6 or 8 allocation 13. Duties in respect of annual financial statements and annual reports for 2009/10
Part 3 15
Matters relating to specific Schedule 4 allocations
14. Infrastructure Grant to Provinces 15. Municipal Infrastructure Grant (Cities)
16. Municipal Infrastructure Grant
Part 4 20
Matters relating to specific Schedule 5 allocations
17. Gautrain Rapid Rail Link Grant
18. Integrated Housing and Human Settlement Development Grant
Matters relating to specific Schedule 6 allocations 25
19. 2010 FIFA World Cup Stadiums Development Grant
Matters relating to specific Schedule 7 allocations
20. Integrated National Electrification Programme Grant 21. Regional Bulk Infrastructure Grant 30 22. Water Services Operating Subsidy
6 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Matters relating to specific Schedule 8 allocations
23. Expanded Public Works Programme Incentive
General matters relating to Schedule 4, 5, 6,7 or 8 allocations 5
24. Publication of allocations and frameworks 25. Frameworks for Schedule 4 allocations 26. Spending in terms of purpose and subject to conditions 27. Withholding of allocation 28. Stopping of allocation 10 29. Re-allocation after stopping of allocation 30. Conversion of Schedule 7 to Schedule 6 allocation 31. Unspent conditional allocations
32. Allocations to public entities for provision of municipal service or function
Part 9 15
33. Gautrain Rapid Rail Link Loan
MATTERS RELATING TO ALL ALLOCATIONS
34. Payment schedule 20 35. Amendment of payment schedule 36. Transfers made in error 37. Allocations not listed in Schedules 38. Authorisation of expenditure 39. Implementation of re-demarcations of provincial and municipal boundaries 25 40. Preparations for next financial year and 2011/12 financial year 41. Expenditure prior to commencement of Division of Revenue Act, 2010
DUTIES OF MUNICIPALITIES, PROVINCIAL TREASURIES AND NATIONAL TREASURY 30
42. Duties of municipalities 43. Duties of provincial treasuries 44. Duties of National Treasury
45. Allocations by public entities to provinces or municipalities 46. Liability for costs incurred in violation of principles of co-operative
governance and intergovernmental relations 47. Unauthorised and irregular expenditure 48. Financial misconduct 40 49. Delegations and assignments
8 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Act No. 12,2009 DIVISION OF REVENUE ACT, 2009
50. Exemptions 51. Regulations 52. Repeal of laws 53. Short title and commencement
Schedule 1: Equitable division of revenue raised nationally among the three spheres 5 of government
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)
Schedule 3: Determination of each municipality's equitable share of the local 10 government sphere's share of revenue raised nationally
Schedule 4: Allocations to provinces and municipalities to supplement the funding of programmes or functions funded from provincial or municipal budgets
Schedule 5: Specific purpose allocations to provinces Schedule 6: Specific purpose allocations to municipalities 15 Schedule 7: Allocations-in-kind to municipalities for designated special programmes Schedule 8: Incentives to provinces and municipalities to meet targets with regards to
priority government programmes
INTERPRETATION AND OBJECTS OF ACT 20
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— 25
"category A, B or C municipality" has the meaning assigned to each category in terms of the Municipal Structures Act; "conditional allocation" means a conditional allocation to a province, local government or municipality from the national government's share of revenue raised nationally, contemplated in section 214(l)(c) of the Constitution of the 30 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); "financial year" means the financial year commencing on 1 April 2009 and 35 ending on 31 March 2010; "framework" means the conditions and other information in respect of a conditional allocation published by the National Treasury in terms of section 24; "Municipal Finance Management Act" means the Local Government: Munici­ pal Finance Management Act, 2003 (Act No. 56 of 2003); 40 "municipal financial year" means the financial year of a municipality commenc­ ing on 1 July 2009 and ending on 30 June 2010; "next financial year" means the financial year commencing on 1 April 2010 and ending on 31 March 2011; "next municipal financial year" means the financial year of a municipality 45 commencing on 1 July 2010 and ending on 30 June 2011; "organ of state" means an organ of state as defined in section 239 of the Constitution; "payment schedule" means a schedule which sets out—
(a) the amount of each transfer of an equitable share or any conditional 50 allocation in terms of this Act to be transferred to a province or municipality in the financial year;
10 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(b) the date on which each transfer must be paid; and (c) to whom, and to which bank account, each transfer must be paid;
"prescribe" means prescribe by regulation in terms of section 51; "primary bank account"—
(a) in relation to a province, means a bank account of the Provincial Revenue 5 Fund held with a commercial bank which the head of the department in the provincial treasury has certified to the National Treasury as the bank account into which all conditional allocations, other than the Gautrain Rapid Rail Link Grant and the Gautrain Rapid Rail Link Loan, in terms of this Act must be deposited; and 10
"Public Finance Management Act" means the Public Finance Management Act, 1999 (Act No. 1 of 1999); 15 "quarter" means—
(a) 1 April to 30 June; (b) 1 July to 30 September; (c) 1 October to 31 December; or (d) 1 January to 31 March; 20
"receiving officer"— (a) in relation to a Schedule 4, 5 or 8 allocation transferred to a province,
means the accounting officer of the provincial department which receives that allocation or a portion thereof for spending via an appropriation from its Provincial Revenue Fund; or 25
(b) in relation to a Schedule 4 , 6 , 7 or 8 allocation transferred to or provided in kind to a municipality, means the accounting officer of the municipality;
"this Act" includes any framework or allocation published, or any regulation, determination or request made or instruction given under this Act; 30 "transferring national officer" means the accounting officer of a national department that transfers a Schedule 4, 5, 6 or 8 allocation to a province or municipality or spends a Schedule 7 allocation on behalf of a municipality.
Objects of Act 35
2. The objects of this Act are to— (a) provide for the equitable division of revenue raised nationally among the three
spheres of government; (b) promote better co-ordination between policy, planning, budget preparation
and execution processes between and within the different spheres of 40 government;
(d) promote transparency and equity in the resource allocation process; and 45 (e) promote accountability by ensuring that all allocations are reflected on the
budgets of receiving provinces and municipalities.
12 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
3. (1) Revenue raised nationally in respect of the financial year must be divided among the national, provincial and local spheres of government for their equitable share 5 allocations as set out in Column A of Schedule 1.
(2) An envisaged division of revenue anticipated to be raised in respect of the next financial year and the 2011/12 financial year, and which is subject to the provisions of the annual Division of Revenue Acts in respect of those financial years, is set out in Column B of Schedule 1. 10
4. (1) Each province's equitable share of the provincial share of revenue raised nationally in respect of the financial year is set out in Column A of Schedule 2.
(2) An envisaged division for each province of revenue anticipated to be raised nationally in respect of the next financial year and the 2011/12 financial year, and which 15 is subject to the provisions of the annual Division of Revenue Acts for those financial years, is set out in Column B of Schedule 2.
(3) Each province's equitable share allocation contemplated in subsection (1) must be transferred to the corporation for public deposits account of the province, in accordance with a payment schedule determined by the National Treasury in terms of section 34. 20
5. (1) Each municipality's share of local government's equitable share of revenue raised nationally in respect of the financial year, is set out in Column A of Schedule 3.
(2) An envisaged division between municipalities of revenue anticipated to be raised nationally in respect of the next financial year and the 2011/12 financial year, and which 25 is subject to the provisions of the annual Division of Revenue Acts for those financial years, is set out in Column B of Schedule 3.
(3) Each municipality's equitable share contemplated in subsection (1) must be transferred to the primary bank account of the municipality in three transfers on 7 July 2009, 30 November 2009 and 25 March 2010, in accordance with a payment schedule 30 determined by the National Treasury in terms of section 34.
Shortfalls, excess revenue and additional allocations
6. (1) If actual revenue raised nationally in respect of the financial year falls short of the anticipated revenue set out in Schedule 1, the national government bears the shortfall. 35
(3) The national government may— 40
14 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(a) appropriate a portion of its equitable share or excess revenue contemplated in subsection (2) to make further allocations in an adjustments budget to— (i) national departments; or
(ii) provinces or municipalities, as a conditional or an unconditional allocation; 5
(b) increase a conditional allocation to a province or municipality through a virement under section 43 of the Public Finance Management Act; and
(c) authorise expenditure in accordance with section 38.
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES 10
Conditional allocations to provinces 7. (1) Conditional allocations to provinces in respect of the financial year from the
national government's share of revenue raised nationally, with the exception of the 15 Gautrain Rapid Rail Link Loan, are set out in Column A of the following Schedules:
(a) Schedule 4 specifying allocations to provinces to supplement the funding of programmes or functions funded from provincial budgets;
(b) Schedule 5 specifying specific-purpose allocations to provinces; and (c) Schedule 8 specifying incentives to provinces to meet targets with regards to 20
priority government programmes. (2) An envisaged division of conditional allocations to provinces from the national
government's share of revenue anticipated to be raised nationally for the next financial year and the 2011/12 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 25 (1).
Conditional allocations to municipalities
8. (1) Conditional allocations to local government in respect of the financial year from the national government's share of revenue raised nationally are set out in Column A of the following Schedules: 30
(b) Schedule 6 specifying specific-purpose allocations to municipalities; (c) Schedule 7 specifying allocations-in-kind to municipalities for designated
special programmes; and 35 (d) Schedule 8 specifying incentives to municipalities to meet targets with
regards to priority government programmes. (2) An envisaged division of conditional allocations to local government from the
national government's share of revenue anticipated to be raised nationally for the next financial year and the 2011/12 financial year, which is subject to the annual Division of 40 Revenue Acts for those years, is set out in Column B of the Schedules referred to in subsection (1).
(3) The National Treasury must publish the share or indicative allocation of each municipality in respect of the local government allocations contemplated in subsections (1) and (2) in the Gazette in terms of section 24. 45
16 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Duties of accounting officers in respect of Schedule 4, 5, 6,7 or 8 allocations
9. (1) The transferring national officer of a Schedule 4 allocation is responsible for— (a) ensuring that transfers to all provinces and municipalities are— 5
(i) deposited only into the primary bank account of a province or municipality; and
(ii) made in accordance with the payment schedule approved in terms of section 34, unless allocations are withheld or stopped in terms of section 27 or 28; 10
(b) monitoring expenditure and non-financial performance information on programmes funded by an allocation, provided that any monitoring programme or system— (i) is approved by the National Treasury;
(ii) does not impose any undue administrative burden on receiving provinces 15 and municipalities beyond the provision of standard management information;
(iv) is consistent with sections 11(2) and 25; and 20 (c) evaluating the performance of programmes funded or partially funded by the
allocation and the submission of such evaluations to the National Treasury, within four months in respect of a province, and six months in respect of a municipality, after the end of the financial year.
(2) Where two or more national departments have responsibilities relating to a 25 Schedule 4 allocation, the transferring national officer must co-ordinate the roles and responsibilities of such national departments and ensure that those roles and responsibilities—
(a) are exercised in a manner that does not duplicate the responsibilities as set out in subsection (1); and 30
(b) do not impose any undue administrative burden on provinces or municipali­ ties beyond the provision of standard management information.
18 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Duties of transferring national officer in respect of Schedule 5 ,6 , 7 or 8 allocation
10. (1) A transferring national officer must— (a) not later than 14 days after this Act takes effect, certify to the National
Treasury that— (i) allocation frameworks, including conditions and monitoring provisions, 5
are reasonable and do not impose an undue administrative burden on receiving provincial departments and municipalities beyond the provi­ sion of standard management information;
(ii) monitoring provisions are compatible and integrated with and do not duplicate other relevant and related national, provincial and local 10 systems;
(iv) in respect of a Schedule 6 allocation transferred to a municipality, any 15 business plans requested in respect of how allocations will be utilised by a municipality have been approved prior to the start of the financial year;
(b) transfer funds only after information required in terms of this Act has been secured and all relevant information has been provided to the National Treasury; 20
(c) transfer funds only in accordance with a payment schedule determined in accordance with section 34;
(d) deposit funds only into the primary bank account of a province or municipality, or, where appropriate, into the corporation for public deposits account of a province or the bank account designated for transfer of the 25 Gautrain Rapid Rail Link Grant in accordance with section 17, or the Gautrain Rapid Rail Link Loan in terms of section 33; and
(2) The transferring national officer must submit all relevant information and 30 documentation referred to in subsection (l)(a) to the National Treasury within 14 days after this Act takes effect.
(3) A transferring national officer who has not complied with subsection (1) must transfer the allocation in the manner instructed by the National Treasury, including as an unconditional allocation. 35
(4) Before making the first transfer of any allocation, the transferring national officer must take note of any notice in terms of section 44(1) from the National Treasury outlining the details of the account for each province or municipality.
(5) Despite anything to the contrary contained in any law, a transferring national officer must in respect of any allocation, as part of the report contemplated in section 40 40(4)(c) of the Public Finance Management Act, not later than 20 days after the end of each month, and in the format determined by the National Treasury, submit to the National Treasury information for the month reported on and for the financial year up to the end of that month on—
(a) the amount of funds transferred to a province or municipality; 45 (b) the amount of funds withheld or stopped from any province or municipality,
the reasons for the withholding or stopping and the steps taken by the transferring national officer and the receiving officer to deal with the matters or causes that necessitated the withholding or stopping of the payment;
(c) the actual expenditure incurred by the province or municipality in respect of 50 a Schedule 5 or 6 allocation;
20 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(e) such other issues as the National Treasury may determine. (6) The transferring national officer must evaluate the performance of programmes
funded or partially funded by the allocation and submit such evaluations to the National 5 Treasury—
(a) in respect of a province, four months after the end of the financial year; and (b) in respect of a municipality, six months after the end of the financial year.
11. (1) A receiving officer is responsible for— 10 (a) complying with the framework for a Schedule 4 allocation as published in
terms of section 24; and (b) the manner in which it allocates and spends a Schedule 4 allocation.
(2) The receiving officer of a municipality must— (a) ensure and certify to the National Treasury that the municipality— 15
(i) indicates or, if required, exclusively appropriates each programme funded or partially funded by this allocation in its annual budget; and
(ii) makes public, in accordance with the requirements 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 20 required inputs and outputs;
(b) as part of the report required in terms of section 71 of the Municipal Finance Management Act, report to the relevant provincial treasury, the National Treasury and the transferring national officer on spending and financial performance against programmes funded by the Schedule 4 allocation; and 25
(c) quarterly, within 30 days after the end of each quarter, report to the transferring national officer and the National Treasury on non-financial performance against programmes.
(3) The receiving officer in a province must— (a) submit, as part of the report required in section 40(4)(c) of the Public Finance 30
Management Act, reports to the relevant provincial treasury on spending and performance against programmes; and
(4) The receiving officer must report against programmes funded or partially funded 35 by a Schedule 4 allocation against the relevant framework in its annual financial statements and annual report.
(5) The receiving officer must, within two months after the end of the financial year, and where relevant, the municipal financial year, evaluate its performance in respect of programmes funded or partially funded by an allocation and submit such evaluation to 40 the transferring national officer.
Duties of receiving officer in respect of Schedule 5, 6 or 8 allocation
12. (1) The relevant receiving officer must, in respect of a Schedule 5,6 or 8 allocation transferred to—
(a) a province, as part of the report required in section 40(4)fcJ of the Public 45 Finance Management Act, report on the matters referred to in subsection (2)
22 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
and submit a copy of the section 40(4)(cj report to the relevant provincial treasury and the transferring national officer;
(b) a municipality, as part of the report required 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 the section 71 report to the relevant 5 provincial treasury, the National Treasury and the relevant transferring national officer; and
(c) a province or a municipality, submit a quarterly performance report within 30 days after the end of each quarter to the transferring national officer.
(2) A report by a province in terms of subsection (1)(a) must set out for that month and 10 for the financial year up to the end of that month—
(a) the amount received by the province; (b) the amount of funds stopped or withheld from the province; (c) the actual expenditure by the province in respect of a Schedule 5 allocation; (d) the amount transferred to any national or provincial public entity to implement 15
a programme funded by a Schedule 5 allocation on behalf of a province or assist the province in implementing such a programme;
(e) the actual expenditure by a public entity referred to in paragraph (d); (f) the extent of compliance with the conditions of an allocation provided for in
a framework and with this Act; 20 (g) an explanation of any material problems experienced by the province
regarding an allocation which has been received and a summary of the steps taken to deal with such problems; and
(h) such other issues and information as the National Treasury may determine. (3) (a) Subsections (1) and (2) do not apply to the receiving officer of the Gautrain 25
Rapid Rail Link Grant or the Gautrain Rapid Rail Link Loan. (b) The receiving officer of the Gautrain Rapid Rail Link Grant must, at the end of
each quarter, submit a report to the transferring national officer, detailing the payment made in that quarter to meet its payment obligation in terms of the public-private partnership agreement entered into by the province in accordance with regulations 30 issued under the Public Finance Management Act.
(c) Copies of payment certificates issued in terms of the public-private partnership agreement must be submitted together with the report referred to in paragraph (b).
(4) A report by a municipality in terms of subsection (1) must set out for that month and for the financial year up to the end of that month— 35
(a) the amount of funds stopped or withheld from the municipality; (b) the extent of compliance with the conditions of an allocation or part of an
allocation provided for in a framework and with this Act; (c) an explanation of any material problems experienced by the municipality
regarding an allocation which has been received and a summary of the steps 40 taken to deal with such problems; and
(d) such other issues and information as the National Treasury may determine. (5) The receiving officer of the 2010 FIFA World Cup Stadiums Development Grant
must, in addition to subsection (1)— (a) include in the report contemplated in that subsection the cash flow projections 45
for the stadium construction or upgrading in the format determined by the transferring national officer; and
(b) attach to the report contemplated in that subsection copies of payment certificates issued in terms of the construction contract entered into by the municipality which comply with the requirements of the Municipal Finance 50 Management Act.
(6) The receiving officer must, within two months after the end of the financial year, and where relevant, the municipal financial year, evaluate its performance in respect of
24 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
programmes or functions funded or partially funded by an allocation and submit such evaluation to the transferring national officer.
Duties in respect of annual financial statements and annual reports for 2009/10
13. (1) The 2009/10 financial statements of a national department transferring any funds in respect of an allocation set out in Schedule 4, 5, 6 or 8 must, in addition to any 5 requirements in terms of any other applicable law—
(b) indicate the transfers, if any, that were withheld in respect of each province or municipality; 10
(c) indicate any re-allocations by the National Treasury in terms of section 29 or the transferring national officer in terms of section 23(7);
(d) certify that all transfers to a province or municipality were deposited into the primary bank account of a province or municipality or, where appropriate, into the corporation for public deposits account of a province; and 15
(2) The 2009/10 annual report of a national department transferring any funds in respect of an allocation set out in Schedule 4, 5, 6 or 8 must, in addition to any requirements in terms of any other applicable law— 20
(b) indicate to what extent provinces or municipalities were monitored for compliance with the conditions of an allocation provided for in the relevant framework and the provisions of this Act; 25
such non-compliance. (3) The 2009/10 financial statements of a provincial department receiving an
allocation in terms of Schedule 4, 5 or 8 must, in addition to any requirements in terms 30 of any other applicable law—
Schedule 4 allocations; and (c) certify that all transfers in terms of this Act to the province were deposited into 35
the primary bank account of the province or, where appropriate, into the corporation for public deposits account of a province.
(4) The 2009/10 annual report of a provincial department receiving an allocation in terms of Schedule 4, 5 or 8 must, in addition to any requirements in terms of any other applicable law— 40
(a) indicate to what extent the province met the conditions provided for in the relevant framework of such an allocation and complied with the provisions of this Act;
(b) indicate the steps taken to deal with non-compliance with the conditions provided for in the relevant framework of such an allocation and the 45 provisions of this Act;
(d) contain such other information as the National Treasury may determine. (5) The 2009/10 financial statements and annual report of a municipality must be 50
prepared in accordance with the Municipal Finance Management Act. (6) The National Treasury may determine how transferring departments and receiving
26 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
municipalities report on local government allocations on a quarterly basis to facilitate the audit of allocations for both the national and municipal financial years.
Infrastructure Grant to Provinces 5
14, (1) The Infrastructure Grant to Provinces set out in Schedule 4 supplements the funding of infrastructure programmes funded from provincial budgets to enable provinces to address backlogs in provincial infrastructure.
(3) (a) A province, in allocating the Infrastructure Grant to Provinces— (i) must, with the exception of the ring-fenced sectoral allocations, take into
account the capacity of the receiving provincial department to spend and manage infrastructure, based on the extent of any approved roll-overs in the 2007/08 financial year and any projected roll-overs in the 2008/09 financial year; and
(ii) may, where a receiving provincial department or a provincial department responsible for public works that manages or undertakes construction or maintenance on behalf of the receiving provincial department in accor­ dance with an agreement referred to in subsection (2)(b) lacks capacity, designate an amount not exceeding four per cent of the allocation for acquiring such capacity.
(b) The percentage referred to in paragraph (a)(ii) must be informed by a capacity plan prepared by the receiving provincial department or the provincial department responsible for public works and approved by the provincial treasury.
15. (1) (a) The Municipal Infrastructure Grant (Cities) set out in Schedule 4 supplements the funding of infrastructure programmes funded from the budgets of the municipalities identified in Schedule 4 to address municipal infrastructure backlogs, foster integrated built environments, as well as other investments that support the built 40 environment.
(b) The Municipal Infrastructure Grant (Cities) seeks to ensure integrated planning, effective leveraging of municipal resources towards the eradication of backlogs, improved performance in integrated human settlement development outcomes, and effective asset management practices. 45
(c) Conditions associated with the grant must be restricted to output and outcome performance of the overall municipal capital expenditure programme.
(2) The Municipal Infrastructure Grant (Cities) may be transferred to a municipality only if the municipality—
(a) has satisfied the criteria set out in the grant policy framework; and 50 (b) has submitted, by 30 May 2009, an infrastructure performance framework
which complies with the requirements set out in the grant policy framework to the National Treasury and the transferring national officer, along with proof
28 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Act No. 12 ,2009 DIVISION OF REVENUE ACT, 2009
that the performance framework and the performance targets contained therein have been ratified by a resolution of the municipal council.
(3) The provisions of the performance framework ratified by the municipal council must, for the purposes of sections 27 and 28, be regarded as provisions of this Act.
(4) The transferring national officer must submit copies of the infrastructure 5 performance framework referred to in subsection (2)(b) to the relevant sectoral departments by 1 July 2009.
(5) A municipality receiving the Municipal Infrastructure Grant (Cities) must, together with the requirements of section ll(2)(b), report on performance against the targets provided for in the framework referred to in subsection (2)(b), in accordance and 10 in conjunction with the reporting requirements of section 71 of the Municipal Finance Management Act.
(6) Reporting to the National Treasury in terms of subsection (5) must be regarded as compliance with section 9(\)(b).
(7) The National Treasury must make the report submitted to it in terms of section 15 ll(2)(b) or (c) available to any other national departments that have responsibilities relating to the Grant.
16. (1) The Municipal Infrastructure Grant set out in Schedule 4 supplements the funding of infrastructure programmes from municipal budgets, to enable municipalities 20 that do not receive the Municipal Infrastructure Grant (Cities) to address backlogs in municipal infrastructure required for the provision of basic services.
(2) The Municipal Infrastructure Grant must be transferred directly to a category B or C municipality that has the powers and functions referred to in section 84 of the Municipal Structures Act, to enable the municipality to provide municipal infrastructure 25 in respect of those powers and functions.
(3) The Municipal Infrastructure Grant allocation for a category B or C municipality may be transferred to the category C municipality or province within whose jurisdiction the municipality is situated if, in the assessment of the transferring national officer in consultation with the National Treasury, the municipality does not— 30
(a) have sufficient expenditure capacity to effectively carry out the infrastructure programmes; or
(b) adhere to good financial governance practices. (4) A municipality receiving the Municipal Infrastructure Grant must table a
three-year capital budget as part of its budget for the 2009/10 financial year in 35 accordance with the Municipal Finance Management Act, unless exempted in terms of that Act.
(5) The transferring national officer of the Municipal Infrastructure Grant, in addition to the duties contemplated in section 9, must, within 20 days after the end of each month, submit a report to the National Treasury and the other national departments that have 40 responsibilities relating to the Grant, which report must include—
(a) expenditure and non-financial performance information on programmes funded by an allocation; and
(b) an explanation of any material problems experienced by municipalities regarding an allocation that has been received and a summary of the 45 interventions or steps taken to deal with such problems.
(6) The framework for the Municipal Infrastructure Grant may— (a) include a condition requiring the registration of a project with a national
department or any other organ of state prior to the financial year or municipal financial year in which the project will be implemented or such later date as 50 may be agreed upon between the transferring national officer and the receiving officer, but such later date may not delay or impede the commencement of that project in the relevant financial year; and
(b) not include any condition— (i) for a national department or any other organ of state, other than the 55
30 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
relevant province or municipality or the National Treasury in respect of a public-private partnership, to approve specific projects or budgets; or
Part 4 5
Gautrain Rapid Rail Link Grant
17. (1) The transferring national officer of the Gautrain Rapid Rail Link Grant must, in addition to the duties contemplated in sections 10 and 34, take appropriate steps to ensure that transfers are made timeously and in a manner that allows the province to 10 meet its payment obligations in terms of the public-private partnership agreement entered into by the province in accordance with regulations issued under the Public Finance Management Act.
(2) The transferring national officer must transfer the Gautrain Rapid Rail Link Grant to the bank account designated for transfer in the dedicated banking account 15 configuration established for the transfer of the Gautrain Rapid Rail Link Grant in accordance with the directive issued by the National Treasury under section \Q(2)(a) of the Division of Revenue Act, 2006 (Act No. 2 of 2006).
Integrated Housing and Human Settlement Development Grant
18. (1) The receiving officer must, in the interest of facilitating the commencement 20 and continued implementation of the housing programme, consider advancing a portion of the allocation for the financial year, on such conditions as it may determine, to a municipality, when requested to do so by the municipality.
(2) Where a dispute arises between a receiving officer and a municipality in respect of the need for an advance referred to in subsection (1), the municipality may request the 25 transferring national officer to mediate the dispute.
(3) The transferring national officer must, on receipt of a request referred to in subsection (2), take all necessary steps to resolve the dispute as soon as possible, but no later than 60 days after the request was received.
(4) No advance in terms of subsection (1) may be made in respect of implementation 30 activities to be undertaken in the next financial year.
Matters relating to specific Schedule 6 allocations
19. (1) The transferring national officer of a 2010 FIFA World Cup Stadiums 35 Development Grant must, in addition to the duties contemplated in section 10, take appropriate steps to ensure that—
(a) spending on stadiums in each World Cup Host City— (i) does not exceed the amounts appropriated for that purpose on municipal
budgets; and 40 (ii) are in accordance with the approved payment schedule;
(b) the Municipal Finance Management Act is adhered to; and (c) expert technical, engineering and project management support necessary to
ensure the construction or upgrading of the relevant stadiums are provided to the World Cup Host Cities. 45
(2) A receiving officer must, in addition to complying with the duties and reporting requirements contemplated in section 12—
32 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(b) ensure that spending is in accordance with the approved payment schedule; 5 (c) ensure, by no later than 30 September 2010, that all stadium final financial
reports are submitted by the transferring national officer to the National Treasury;
(d) provide such information and reports, within the specified timeframes, to the transferring national officer as he or she may request in the performance of the 10 duties provided for in subsection (1).
(3) (a) The transferring national officer must, after consultation with receiving officers, not later than 30 days after this Act takes effect, submit a monitoring plan to the National Treasury.
(b) The monitoring plan must set out the key performance indicators, financial 15 procedures, internal audit processes and monitoring and reporting mechanisms of the national department, in order to ensure the effective and efficient construction or upgrading of the relevant stadiums.
(4) Any expenditure by a municipality on a stadium that exceeds the allocation and anticipated allocations set out in Schedule 6 must be funded from the municipal budget. 20
(5) In addition to the requirements of the Municipal Finance Management Act, the disposal of a stadium by the municipality is subject to the approval of the transferring national officer and the National Treasury.
(6) (a) The transferring national officer and the receiving officer of a 2010 FIFA World Cup Stadiums Development Grant may enter into an agreement to further clarify the 25 provisions of this Act and the relevant framework, and to enhance the implementation of the allocation.
(b) Any provision of an agreement referred to in paragraph (a) that contradicts, conflicts with or purports to amend or negate the provisions of this Act, the relevant framework, any provision of the Public Finance Management Act or any provision of 30 the Municipal Finance Management Act, is invalid.
Integrated National Electrification Programme Grant
20. (1) The transferring national officer must ensure that Eskom Holdings Limited's 35 implementation of the National Electrification Programme within a municipality is aligned with the Integrated Development Plan of that municipality, and prepared in accordance with the Municipal Systems Act.
(2) Eskom Holdings Limited must, within 30 days after the end of each month, report to the relevant municipality, the transferring national officer and the National Treasury 40 on the amount spent on the implementation of the National Electrification Programme.
Regional Bulk Infrastructure Grant
21. The transferring national officer must, in implementing the Regional Bulk Infrastructure Grant, ensure that—
(a) every municipality that may benefit from a specific project or scheme is 45 invited to participate in the feasibility study to be undertaken in respect of the project or scheme, despite the fact that the municipality did not participate in submitting a motivation for that feasibility study;
(b) the feasibility study takes account of the Integrated Development Plans of municipalities, prepared in accordance with the Municipal Systems Act, 50
34 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
especially the water services development plans that form part of the Integrated Development Plans; and
(c) all participating municipalities— (i) agree to and understand the implications of the findings of the feasibility
studies; and 5 (ii) enter into an agreement setting out their rights and obligations regarding
the construction, ownership and operation of the proposed infrastructure, prior to the finalisation of funding arrangements and the commencement of construction.
Water Services Operating Subsidy 10
22. (1) The transferring national officer, subsequent to the signing of a transfer agreement between the transferring national officer and the municipality for the transfer of water services assets, may, with the written approval of the National Treasury, adjust the Water Services Operating and Transfer Subsidy allocation to a municipality to reflect— 15
(b) the actual operating allocation payable to a municipality, as informed by the percentage or portion of assets transferred to a municipality in respect of 20 assets shared across municipal boundaries.
Part 7 25
Expanded Public Works Programme Incentive
23. (1) The Expanded Public Works Programme Incentive set out in Schedule 8 is a special performance-based incentive provided to provinces and municipalities that contribute to the employment creation efforts of the Expanded Public Works Programme 30 through the employment of previously unemployed people.
(2) In order to receive the Expanded Public Works Programme Incentive, a province or municipality must—
(a) meet the eligibility requirements set out in the framework; (b) attain the minimum performance threshold determined by the transferring 35
national officer in terms of the framework; and (c) conclude an agreement with the transferring national officer which complies
with the requirements set out in the framework. (3) A province or municipality which is receiving the Expanded Public Works
Programme Incentive must— 40 (a) comply with the requirements specified in the framework and the agreement
entered into between the transferring national officer and the province or municipality; and
(b) utilise the incentive payments received for continuing or expanding job creation programmes. 45
(4) The transferring national officer must— (a) conclude agreements with provinces and municipalities who are eligible to
receive the Expanded Public Works Programme Incentive; (b) adjust the indicative allocations, threshold and performance targets of
provinces and municipalities on a quarterly basis, based on their performance 50 during the previous quarter, and submit the adjusted allocations and targets to the National Treasury within 20 days after the end of the quarter;
36 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(c) disburse the Expanded Public Works Programme Incentive in terms of the framework and payment schedule; and
(d) submit a quarterly report to the National Treasury— (i) assessing the progress of the Expanded Public Works Programme
Incentive and the performance of the provinces and municipalities who 5 are eligible to receive the Incentive; and
(ii) detailing the amounts which were allocated for that quarter to provinces and municipalities, as well as the amounts which were paid to them for that quarter.
(5) As this is a performance-based incentive, the allocations set out in Schedule 8 are 10 indicative only, and are based on projected employment creation performance by provinces and municipalities.
(6) The indicative allocations for provinces and municipalities are amounts which they will become eligible to receive if they exceed their threshold targets and meet their performance targets. 15
(7) The transferring national officer may, in accordance with the terms of the framework—
(a) revise the indicative allocations of underperforming provinces and munici­ palities downwards;
(b) reallocate the indicative allocation from any underperforming provinces and 20 municipalities to provinces and municipalities which exceed their perfor­ mance targets;
(c) provide additional amounts to provinces and municipalities that exceed their performance targets, subject to the availability of funds; and
(d) determine that a province or municipality should not be eligible to receive 25 further incentive payments where there has been a persistent and material failure to comply with the requirements of the Act, the framework or the terms of the agreement between the transferring national officer and that province or municipality.
(8) In accordance with section 34(3)(b), the transferring national officer must submit 30 a provisional payment schedule, containing the indicative allocations and threshold and performance targets based on the projected performance of all eligible provinces and municipalities.
(9) Within 20 days after the close of the quarter, the transferring officer must submit an amended payment schedule for the respective quarter to the National Treasury, based 35 on the actual performance of all eligible provinces and municipalities.
(10) The National Treasury must, within 30 days of the end of each quarter, publish in the Gazette—
(a) the revised indicative allocations per province and municipality for that quarter; 40
(b) the revised threshold and performance targets for each province and municipality for that quarter; and
(c) the amounts paid during that quarter to provinces and municipalities for the Expanded Public Works Programme Incentive.
(11) The Expanded Public Works Programme Incentive is not subject to sections 27, 45 28 and 29.
General matters relating to Schedule 4, 5, 6,7 or 8 allocations
Publication of allocations and frameworks
24. (1) The National Treasury must, within 14 days of this Act taking effect, publish 50 in the Gazette—
(a) the allocations per municipality, in respect of Schedule 4 and 6 allocations;
38 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(b) the indicative allocations per municipality, in respect of Schedule 7 allocations;
(c) the indicative allocations for provinces and municipalities, along with their initial threshold and performance targets, in respect of Schedule 8 allocations;
(d) the framework for each Schedule 4, 5, 6, 7 or 8 allocation. (2) The National Treasury must publish in the Gazette—
(b) any additional allocation that is authorised by an adjustment budget or a 10 virement made in terms of the Public Finance Management Act;
(c) any revisions of or amendments to the allocations and frameworks published in terms of subsection (1) necessary to give effect to the conversion of a Schedule 7 allocation to a Schedule 6 allocation in terms of section 30;
(d) any re-allocations by the National Treasury in accordance with section 29 or 15 the transferring national officer in terms of section 23(7);
(e) any revised allocations in respect of Schedule 7 Grants; and (f) the revised indicative allocations, performance and threshold targets for the
Expanded Public Works Programme Incentive in terms of section 23(10). (3) The National Treasury may at any time, after consultation with or at the written 20
request of a transferring national officer, revise or amend a framework published in terms of subsection (1) or (2), to correct any error or omission.
Frameworks for Schedule 4 allocations 25
25. The framework for a Schedule 4 allocation must be designed to promote comprehensive reporting on outputs for a programme or function funded or partially funded by the allocation.
26. (1) Despite anything to the contrary contained in any law, an allocation referred to 30 in Schedule 4, 5,6, 7 or 8 may only be utilised for the purpose stipulated in the Schedule concerned and in accordance with the framework published in terms of section 24.
(2) A receiving officer may not transfer any Schedule 5 or 6 allocation or a portion of such allocation to any other entity for the performance of a function envisaged in terms of the allocation, unless— 35
(a) it is a transfer that is approved in the budget of the receiving province or municipality or a framework published in terms of section 24;
(b) it is a payment for services rendered or goods received, which services or goods were procured in accordance with the supply chain management policy or procurement policy of the relevant province or municipality and for which 40 adequate documentation for payment has been received; or
(c) in the case of an advance payment or a transfer not consistent with the budget of the receiving province or municipality— (i) the receiving officer has certified to the National Treasury that the
transfer is not an attempt to artificially inflate its spending estimates and 45 that there are good reasons for the advance payment or transfer; and
40 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
27. (1) Subject to subsections (2) and (3), a transferring national officer may withhold the transfer of a Schedule 4, 5 or 6 allocation or any portion of such allocation for a period not exceeding 30 days if—
(a) the province or municipality does not comply with the provisions of this Act 5 or conditions to which the allocation, as provided for in the relevant framework, is subject;
(b) roll-overs of conditional allocations approved by the National Treasury in accordance with section 31 have not been spent; or
(c) expenditure on previous transfers during the financial year reflects significant 10 under-spending, for which no satisfactory explanation is given.
(3) A transferring national officer must, seven working days, or such shorter period as may be approved by the National Treasury, prior to withholding an allocation in terms 15 of subsection (1)—
(a) give the relevant receiving officer— (i) written notice of the intention to withhold the allocation; and
(ii) an opportunity to submit written representations, within those seven days or that shorter period, as to why the allocation should not be withheld; 20 and
(b) inform the relevant provincial treasury and the National Treasury and, in respect of the Municipal Infrastructure Grant (Cities) and the Municipal Infrastructure Grant, also the provincial department responsible for local government of its intention to withhold the allocation. 25
(5) (a) The National Treasury may, when a transferring national officer is withholding an allocation in terms of subsection (1), instruct or approve a request from that transferring national officer to withhold an allocation for a period longer than 30 days, 30 but not exceeding 120 days, if the withholding will—
(ii) minimise the risk of under-spending. (b) A transferring national officer must, when requesting the withholding of an 35
allocation in terms of this subsection, submit proof of its compliance with subsection (3) and any representations received from the receiving officer, to the National Treasury.
(c) The transferring national officer must again comply with subsection (3) when the National Treasury instructs or approves a request by him or her in terms of paragraph (a). 40
28. (1) Despite section 27, the National Treasury may, in its discretion or at the request of a transferring national officer, stop the transfer of—
(a) a Schedule 4, 5 or 6 allocation referred to in section 27(1) to a province or municipality on the grounds of persistent and material non-compliance 45 with— (i) the provisions of this Act; or
(ii) a condition to which the allocation, as provided for in the relevant framework, is subject; or
42 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(b) a Schedule 4, 5 or 6 allocation referred to in section 27(1), if the National Treasury anticipates that a province or municipality will substantially under-spend on that programme or allocation in the financial year.
(2) The National Treasury must, when stopping an allocation in terms of this section— 5
(a) comply with section 27(3)(a), and in respect of a municipality, also with section 38 of the Municipal Finance Management Act; and
(b) inform the relevant provincial treasury of its intention to stop the allocation. (3) Any stopping of an allocation contemplated in subsection (1) must, together with
an explanatory memorandum, be published by the National Treasury in the Gazette. 10 (4) (a) The Minister may, by notice in the Gazette, approve that an allocation or any
portion of such allocation stopped in terms of subsection (1), be utilised to meet that province's or municipality's outstanding statutory and contractual financial commit­ ments.
(b) The utilisation of funds contemplated in this subsection is a direct charge against 15 the National Revenue Fund.
29. (1) (a) The National Treasury may, where it stops an allocation in terms of section 28, after consultation with the transferring national officer, determine that a portion of the allocation that will not be spent be reallocated to one or more provinces or 20 municipalities, on condition that the allocation will be spent in the financial year or the next financial year.
(b) The reallocation of a portion of an allocation or the full allocation on condition that the allocation will be spent in the next financial year, referred to in paragraph (a), must be deemed to be a roll-over approved by the National Treasury in terms of section 25 31(2)(aj.
(2) (a) Despite subsection (1), the National Treasury may, when an intervention in terms of the Constitution or section 150 of the Municipal Finance Management Act is taking place, on such conditions as it may determine, authorise—
(1) in relation to section 100 of the Constitution, the transferring national officer to 30 spend an allocation stopped in terms of section 28 on behalf of the relevant province;
(ii) in relation to section 139 of the Constitution, the intervening province to spend an allocation stopped in terms of section 28 on behalf of the relevant municipality; or 35
(iii) in relation to section 150 of the Municipal Finance Management Act, the relevant transferring national officer to spend an allocation stopped in terms of section 28 on behalf of the relevant municipality.
(b) An allocation that is spent by the transferring national officer or intervening province referred to in paragraph (a) must, for the purposes of this Act, be regarded as 40 a Schedule 7 allocation from the date on which the authorisation is given.
Conversion of Schedule 7 to Schedule 6 allocation
30. (1) The National Treasury may, in its discretion or at the request of the transferring national officer, convert a Schedule 7 allocation to a Schedule 6 allocation, if the National Treasury is of the opinion that the conversion will prevent under-spending on 45 the allocation.
(2) A conversion referred to in subsection (1) takes effect on the date of the publication referred to in section 24(2)(c).
(3) The National Treasury must inform the transferring national officer and each affected receiving municipality of a conversion. 50
44 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Unspent conditional allocations
31. (1) Despite the provisions of the Public Finance Management Act or the Municipal Finance Management Act relating to roll-overs, any conditional allocation, excluding the Gautrain Rapid Rail Link Grant, the Gautrain Rapid Rail Link Loan and the Expanded Public Works Programme Incentive, that is, in the case of a province, not 5 spent at the end of a financial year or, in the case of a municipality, at the end of a municipal financial year, reverts to the National Revenue Fund, unless the relevant receiving officer can prove to the satisfaction of the National Treasury that the unspent allocation is committed to identifiable projects.
(2) The National Treasury may, at the request of a transferring national officer, 10 provincial treasury or municipality, approve—
(a) a roll-over from a conditional allocation to the next financial year; and (b) spending of a portion of a conditional allocation on activities related to the
purpose of that allocation, where the province or municipality projects significant unforeseeable and unavoidable over-spending on its budget. 15
32. No public entity, other than Eskom Holdings Limited in respect of funds received from the Department of Minerals and Energy and water boards in respect of funds received from the Department of Water Affairs and Forestry for the implementation of Schedule 7 allocations, may receive funds for the provision of a municipal service or 20 municipal function on behalf of a municipality from a national or provincial organ of state except via the municipality responsible for that service or function, unless the National Treasury approves otherwise in respect of municipalities it deems to have low capacity.
Part 9 25
Gautrain Rapid Rail Link Loan
33. (1) An amount of R4.2 billion is allocated to the Gauteng Province for the implementation of the Gautrain Rapid Rail Link Project, subject to a loan agreement being entered into between the Minister of Finance and the Premier of the Gauteng 30 Province and the Province's continued compliance with the loan agreement once entered into.
(2) The loan agreement referred to in subsection (1) is subject to the provisions of this Act.
(3) Any non-compliance by the Gauteng Province with the requirements of the loan 35 agreement constitutes financial misconduct contemplated in section 48.
34. (1) (a) The National Treasury determines the payment schedule for the transfer of 40 a province's equitable share allocation, after consultation with the head of the department in the provincial treasury.
(b) In determining the payment schedule, the National Treasury must take account of the monthly spending commitments of provinces and seek to minimise risk and debt servicing costs for national and provincial government. 45
(c) Despite paragraph (a), the National Treasury may, for cash management purposes relating to the corporation for public deposits account or when an intervention in terms of section 100 of the Constitution is taking place, on such conditions as it may
46 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
determine, advance funds to a province in respect of its equitable share or a portion of it which has not yet fallen due for transfer in accordance with the payment schedule.
(d) Any advances in terms of paragraph (c) must be set off against transfers to the province which would otherwise become due in terms of that payment schedule.
(2) (a) The National Treasury determines the payment schedule for the transfer of a 5 municipality's equitable share allocation, after consultation with the accounting officer of the national department responsible for local government.
(b) Despite paragraph (a), the National Treasury, after consultation with the accounting officer of the national department responsible for local government, may, for cash management purposes in the municipality or when an intervention in terms of 10 section 139 of the Constitution or section 150 of the Municipal Finance Management Act is taking place, on such conditions as it may determine, approve a request or direct that the equitable share or a portion of it which has not yet fallen due for transfer in accordance with the payment schedule, be advanced to a municipality.
(c) Any advances in terms of paragraph (b) must be set off against transfers to the 15 municipality which would otherwise become due in terms of the applicable payment schedule.
(3) (a) The National Treasury must approve the payment schedules for a Schedule 4, 5, 6 or 8 allocation transferred to a province or municipality.
(b) The transferring national officer of a Schedule 4, 5, 6 or 8 allocation must submit 20 a payment schedule to the National Treasury for approval before 14 April 2009.
(c) Prior to the submission of a payment schedule in terms of paragraph (b), the transferring national officer must—
(i) in relation to a Schedule 4 allocation, consult the relevant receiving officer; (ii) in relation to the Gautrain Rapid Rail Link Grant, ensure that the payment 25
schedule— (aa) is consistent with the projected dates for payments to the private
party in terms of the public-private partnership agreement entered into by the relevant province in accordance with regulations issued under the Public Finance Management Act; and 30
(4) The transferring national officer of a Schedule 4 ,5 or 6 allocation must provide the 35 receiving officer with a copy of the approved payment schedule prior to making the first transfer in accordance therewith.
35. (1) Subject to subsection (2), a transferring national officer of a Schedule 4, 5 or 6 allocation must, within seven days of the withholding or stopping of an allocation in 40 terms of section 27 or 28, amend a payment schedule as a result of the withholding or stopping of an allocation in terms of this Act and submit the amended payment schedule to the National Treasury, prior to any further transfers being made.
(2) The National Treasury may, in the interest of better debt and cash-flow management or to deal with financial mismanagement, slow spending or accelerated 45 spending, amend any payment schedule for an allocation listed in Schedule 2, 3 ,4 , 5 or 6 on notification to—
(b) the accounting officer of the national department responsible for local 50 government, in the case of a local government allocation.
(3) A payment schedule amended in terms of subsection (1) or (2) must take account of—
48 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(a) the monthly spending commitments of provinces or municipalities; (b) the revenue at the disposal of provinces or municipalities; and (c) the minimisation of risk and debt servicing costs for all three spheres of
government. (4) An amendment of a payment schedule in terms of subsection (2) prevails over any 5
amendment made in terms of subsection (1). (5) The transferring national officer must immediately inform the receiving officer of
any amendment to a payment schedule in accordance with subsection (1) or (2).
36. (1) Despite anything to the contrary contained in any law, the transfer of an 10 allocation to a province, municipality or public entity in error is regarded as not legally due to that province, municipality or public entity, as the case may be.
(3) Despite subsection (2), the National Treasury may instruct that the recovery 15 contemplated in subsection (2) be effected by set-off against future transfers to the province, municipality or public entity, which would otherwise become due in accordance with a payment schedule.
37. (1) An allocation, other than— 20 (a) a re-allocation referred to in sections 23(7) or 29; (b) a revised indicative allocation in respect of a Schedule 7 or 8 grant; or (c) the Gautrain Rapid Rail Link Loan referred to in section 33, which is not listed
in the Schedules referred to in sections 7 and 8, may only be made in terms of section 6(3). 25
38. (1) Despite anything to the contrary contained in any other law, to defray expenditure of an exceptional nature which cannot, without serious prejudice to the 30 public interest, be postponed to a future appropriation of funds—
(b) the MEC for Finance in a province may, in accordance with section 25 of the 35 Public Finance Management Act and subject to conditions, make an allocation to a municipality from the Provincial Revenue Fund.
(3) In addition to what is provided in subsection (1), and despite any contrary 40 provision contained in any other law, the Minister may approve expenditure qualifying for inclusion in an adjustments budget in terms of section 30(2) of the Public Finance Management Act before such an adjustments budget is passed.
(4) Expenditure approved in terms of subsection (3) — (a) may not exceed the total amount set aside as a contingency reserve in the 45
national annual budget for the current financial year; (b) is a direct charge against the National Revenue Fund; and (c) must be included either in the next national adjustments budget or in other
appropriation legislation tabled in the National Assembly for the financial year in which the expenditure is authorised. 50
50 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(5) An approval granted by the Minister in respect of money to be appropriated for expenditure already announced by the Minister during the tabling of the annual budget, may be made subject to conditions.
(6) The application of this section may be regulated by regulation or treasury instruction. 5
Implementation of re-demarcations of provincial and municipal boundaries
39. (1) (a) Despite any conflicting provisions contained in legislation which re-demarcates provincial boundaries and addresses associated matters, a province (the releasing province) from which a particular area is relocated at the commencement of the legislation effecting the re-demarcation of provincial boundaries, must continue to 10 spend its allocations for the 2009/10 financial year made in terms of this Act in that particular area, as if that area was not reallocated to another province (the receiving province), unless the affected provinces have entered into an implementation protocol or any other agreement that ensures that the relocated area is not negatively affected.
(b) The transferring national officer of an allocation made in terms of this Act and the 15 provincial treasury of the receiving province must monitor that the releasing province complies with paragraph (a).
(c) The provincial treasury of the releasing province must, at the request of the transferring national officer, the receiving province or the National Treasury, demon­ strate compliance with paragraph (a). 20
(2) (a) Sections 27 and 28, with the necessary changes, apply where a releasing province fails to comply with subsection (\)(a) or (c) in respect of a Schedule 4, 5 or 6 allocation.
(b) The National Treasury may, where it stops an allocation in terms of paragraph (a), after consultation with the transferring national officer, determine that a portion of the 25 allocation be reallocated to the receiving province.
(3) The National Treasury may, where a releasing province fails to comply with subsection (l)(a) or (c), after complying with the provisions of section 216(3) of the Constitution, reallocate a portion of the releasing province's equitable share allocation referred to in section 4 to the receiving province. 30
(4) (a) The allocations referred to in sections 4(2) and 7(2) are subject to adjustments necessitated by the implementation of the legislation which re-demarcates provincial boundaries.
(b) The transferring national officer of a Schedule 4, 5 or 6 allocation must, by 15 September 2009, inform the National Treasury of any adjustments to the allocations 35 referred to in section 7(2) that must be reflected in the Division of Revenue Act for the next financial year.
(5) (a) A category C municipality (the releasing municipality) from which a particular area or a category B municipality is transferred at the commencement of legislation which re-demarcates municipal boundaries and addresses associated matters, must 40 continue to spend its allocations for the 2009/10 financial year made in terms of this Act in that particular area or category B municipality, as if that area was not transferred to another category C municipality (the receiving municipality), unless the affected municipalities have entered into an agreement that ensures that the relocated area or category B municipality is not negatively affected. 45
(b) The transferring national officer of an allocation made in terms of this Act and the receiving municipality must monitor that the releasing municipality complies with paragraph (a);
(c) The releasing municipality must, at the request of the transferring national officer, the receiving municipality or the National Treasury, demonstrate compliance with 50 paragraph (a).
(6) (a) The provisions of sections 27 and 28, with the necessary changes, apply where a releasing municipality fails to comply with subsection (5)(a) or (c) in respect of a Schedule 4, 6 or 7 allocation.
(b) The National Treasury may, where it stops an allocation in terms of paragraph (a), 55 after consultation with the transferring national officer, determine that a portion of the allocation be reallocated to the receiving municipality.
(7) The National Treasury may, where a releasing municipality fails to comply with
52 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
subsection (5)(a) or (c), reallocate a portion of the releasing municipality's equitable share allocation referred to in section 5 to the receiving municipality.
(8) (a) The allocations referred to in sections 5(2) and 8(2) are subject to adjustments necessitated by the implementation of the legislation which re-demarcates the municipal boundaries. 5
(b) The transferring national officer of a Schedule 4, 6 or 7 allocation must, by 15 September 2009, inform the National Treasury of any adjustments to the allocations referred to in section 8(2) that must be reflected in the Division of Revenue Act for the next financial year.
Preparations for next financial year and 2011/12 financial year 10
40. (1) (a) The receiving officer of an Infrastructure Grant to Provinces must, by 30 June 2009, submit detailed infrastructure plans in a format determined by the National Treasury, to the provincial treasury.
(b) The infrastructure plans must indicate the prioritised projects to be funded from the allocations for the next financial year and the 2011/12 financial year, as set out in 15 column B of Schedule 4.
(c) The provincial treasury must— (i) review the infrastructure plans of all receiving officers, and must assess the
extent to which those plans are aligned to the Integrated Development Plan of each affected municipality, and submit the integrated plans to the 20 National Treasury by 28 August 2009, together with the provincial budget submission;
(ii) ensure that the infrastructure budgets of the receiving departments include an allocation for project design and the initiation of procurement for projects to be implemented in the next financial year and the 2011/12 25 financial year, and that infrastructure budgets are aligned with cash flow requirements of the planned projects in a given year; and
(iii) ensure that the infrastructure budgets of the receiving departments make adequate provision for operations and maintenance associated with newly constructed or upgraded infrastructure. 30
(2) The receiving officer of a Municipal Infrastructure Grant (Cities) must, by 30 October 2009, submit an infrastructure performance framework referred to in section I5(2)(b) to the National Treasury and the transferring national officer for the next financial year and the 2011/12 financial year.
(3) (a) The receiving officer of a Municipal Infrastructure Grant must, by 30 October 35 2009, submit a detailed infrastructure plan to the transferring national officer for the next financial year and the 2011/12 financial year.
(b) The infrastructure plan referred to in paragraph (a) must address those matters and be in a format determined by the transferring national officer with the concurrence of the National Treasury. 40
(4) (a) The receiving officer of an Integrated Housing and Human Settlement Development allocation must, using the envisaged conditional allocations to that province for the next financial year and the 2011/12 financial year as set out in Column B of Schedule 5, by 1 October 2009—
(i) agree on the provisional allocations and the projects to be funded from the 45 allocations in the next financial year and the 2010/11 financial year with each municipality identified by the transferring national officer in consultation with the National Treasury; and
(ii) submit to the transferring national officer— (aa) the provisional allocations referred to in subparagraph (i); 50 (bb) the prioritised projects referred to in subparagraph (i), listed per
municipality, to be funded from the allocations for the next financial year and the 2011/12 financial year; and
54 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(cc) a housing development plan indicating how the projects referred to in subparagraph (i) give effect to the Integrated Development Plan of each municipality;
(b) The National Treasury may identify the municipalities referred to in paragraph (a)(i) if the transferring national officer has not done so by 1 August 2009. 5
(c) Where a municipality and a receiving officer cannot agree on the allocations and projects referred to in subsection (4)(a), the receiving officer must request the transferring national officer to facilitate agreement.
(d) The transferring national officer must take all necessary steps to facilitate agreement as soon as possible, but no later than 60 days after receiving a request. 10
(e) Any proposed amendment or adjustment of the allocations published in terms of section 43 must be agreed with the relevant municipality, the transferring national officer and the National Treasury prior to the submission of the allocations referred to in paragraph (a)(ii).
(5) (a) A category C municipality that receives an equitable share, a conditional 15 allocation, or both, in terms of this Act must, using the envisaged conditional allocations to that municipality for the next financial year and the 2011/12 financial year as set out in Column B of the Schedules, by 1 October 2009—
(i) agree the provisional allocations and the projects to be funded from those allocations in the next financial year and the 2011/12 financial year with each 20 category B municipality within the category C municipality's area of jurisdic­ tion; and
(ii) submit to the transferring national officer— (aa) the provisional allocations referred to in subparagraph (i); and (bb) the prioritised projects referred to in subparagraph (i) listed per 25
municipality to be funded from the allocations for the next financial year and the 2011/12 financial year.
(b) Where 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 national officer to facilitate agreement. 30
(c) The transferring national officer must take all necessary steps to facilitate agreement as soon as possible, but no later than 60 days after receiving a request.
(d) Any proposed amendment or adjustment of the allocations published in terms of section 43(3)(b) must be agreed with the relevant category B municipality, transferring national officer and the National Treasury, prior to the submission of the allocations 35 referred to in paragraph (a)(\\).
(e) Should agreement not be reached between the category C municipality and the category B municipality on the provisional allocations and projects referred to in paragraph (a) prior to 1 October 2009, the National Treasury may proceed to determine the provisional allocations and provide those provisional allocations to the municipali- 40 ties concerned and the transferring national officer.
(6) (a) The transferring national officer of a conditional allocation, using the envisaged conditional allocations for the next financial year and the 2011/12 financial year as set out in Column B of the Schedules to this Act, must, by 31 July 2009 submit to the National Treasury for approval— 45
(ii) any amendments to the envisaged allocations for each province or municipality set out in Column B of the Schedules in respect of existing conditional allocations; and 50
(b) Any proposed amendment or adjustment of the allocation criteria of an existing conditional allocation from the financial year to the next financial year must be agreed
56 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
with the National Treasury prior to the submission of the provisional allocations and draft frameworks referred to in paragraph (a)(ii) and (iii).
(c) The National Treasury may, if the transferring national officer fails to comply with paragraph (a) by 31 July 2009, determine—
(i) the provisional allocations in paragraph (a)(i); 5 (ii) any amendments to the envisaged allocations contemplated in paragraph
(a)(ii); and (iii) the draft frameworks for the allocations referred to in paragraph (a)(iii), and
submit that information to the relevant provinces or municipalities. (d) (i) The final allocations based on the provisional allocations referred to in 10
paragraph (a)(\) and (ii) must be submitted to the National Treasury by 7 December 2009.
(ii) If the transferring national officer fails to submit the allocations referred to in subparagraph (i) by 7 December 2009, the National Treasury may determine the appropriate allocations, taking into consideration the envisaged allocations for the next 15 financial year.
(7) The National Treasury may, in preparation for the next financial year, instruct transferring national officers, receiving officers and municipalities to submit to it such plans and information for any conditional allocation as it may determine at specified times prior to the start of the next financial year. 20
Expenditure prior to commencement of Division of Revenue Act, 2010
41. Despite sections 3(2), 7(2) and 8(2), if the annual Division of Revenue Act for the next financial year has not commenced before or on 1 April 2010, the National Treasury may determine that an amount not exceeding 45 per cent of the total amount of each allocation made in terms of sections 3(1), 7(1) and 8(1) be transferred to the relevant 25 province or municipality as a direct charge against the National Revenue Fund.
DUTIES OF MUNICIPALITIES, PROVINCIAL TREASURIES AND NATIONAL TREASURY
Duties of municipalities 30
42. (1) (a) In addition to the requirements of the Municipal Finance Management Act, the accounting officer of a category C municipality must, no later than 14 April 2009, submit to the National 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 2009/10 municipal financial year, and 35 the two following municipal financial years.
(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. 40
(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 will be implemented, and agree in writing which municipality is responsible for the operational costs and the collection of user fees. 45
(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, irrespective of the fact that—
(a) the category C municipality retains the power or function in terms of the 50 Municipal Structures Act; and
58 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(b) a service delivery agreement for the provision of services by the category B municipality on behalf of the category C municipality has not been 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— 5
(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 the legal authorisation to perform the function in terms of the Municipal Structures Act. 10
(5) (a) A category C municipality and a category B municipality must, before the commencement of a municipal financial year, agree to a payment schedule in respect of the allocations referred to in subsection (l)(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. 15
(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— 20
(1) make allocations referred to in subsection (l)(b); (ii) reach an agreement contemplated in subsection (2); or
(iii) submit a payment schedule in accordance with subsection (5). (b) Sections 27(3) and 28(3) and (4) of this Act and section 216 of the Constitution
apply, with the necessary changes, to the withholding and stopping of an allocation in 25 accordance with paragraph (a).
(c) The National Treasury may, where it stops an allocation in terms of this section, after consultation with the transferring national 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 will be spent in the financial year or the next financial year. 30
(7) A municipality must ensure that any allocation made to it in terms of this Act, or by a province or another municipality, that 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. 35
43. (1) The provincial treasury must reflect Schedule 5 allocations separately in the province's appropriation Bill or a schedule to its appropriation Bill.
(2) (a) The provincial treasury must, on the same day that its budget is tabled in the provincial legislature, or a later date approved by the National Treasury, but not later 40 than 14 April 2009, publish the following in the Gazette:
(ii) the indicative allocation to be made per school in the province; (iii) the indicative portion of the Integrated Housing and Human Settlement 45
Development allocation to each municipality; (iv) the indicative allocation to any national or provincial public entity for the
implementation of a programme funded by a Schedule 5 allocation on behalf of a province or for assistance provided to the province in implementing such a programme; 50
(v) the envisaged division of the allocation contemplated in subparagraphs (i)-(iv), in respect of each municipality and school, for the next financial year and the 2011/12 financial year;
(vi) the conditions and other information in respect of the allocations referred to in subparagraphs (i), (ii) and (iii) to facilitate performance measurement and the 55 use of required inputs and outputs; and
60 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(vii) the budget of each hospital in a format determined by the National Treasury. (b) The allocations and budgets referred to in paragraph (a) must be deemed to be
final if the legislature passes the appropriation Bill without any amendments. (c) In the event that the legislature amends the appropriation Bill, the accounting
officer of the provincial treasury must publish amended allocations and budgets in the 5 Gazette within 14 days of the legislature passing the appropriation Bill.
(3) (a) Despite anything to the contrary contained in any law, 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 (1) or (2). 10
(b) The amended allocations and allocations referred to in paragraph (a) must be included in the province's budget documents that are submitted with an adjustment appropriation Bill to its legislature.
(c) The provisions of subsection (2), with the necessary changes, apply in respect of allocations referred to in paragraph (b). 15
(4) Where a function for which a province receives a Schedule 5 allocation is assigned to a municipality during a financial year and the province has not appropriated funds to that municipality for the performance of that function, the province must transfer the allocation to the municipality in terms of section 226(3) of the Constitution as a direct charge against that province's Revenue Fund and must inform the National Treasury of 20 the transfer.
(5) (a) A provincial treasury must, as part of its consolidated monthly report in terms of section 32 of the Public Finance Management Act, in the format determined by the National Treasury, report on—
(1) actual transfers received by the province from national departments; 25 (ii) actual expenditure on such allocations, excluding Schedule 4 allocations, up to
the end of that month; and (iii) actual transfers made by the province to municipalities, and actual expenditure
by municipalities on such allocations. (b) The report contemplated in paragraph (a) must include reports for each quarter, 30
(6) A provincial treasury must— (a) ensure—
(i) that a payment schedule is agreed between each provincial department and 35 receiving institution referred to in subsection (2)(a); and
(ii) that transfers are made in accordance therewith. (b) submit the payment schedules to the National Treasury within 14 days of the
commencement of the financial year.
Duties of National Treasury 40
44. (1) The National Treasury must, within 14 days of this Act taking effect, submit a notice to all transferring national officers, containing the details of the bank accounts of each province and municipality.
(2) The National Treasury must, together with the monthly report contemplated in section 32(2) of the Public Finance Management Act, publish a report on actual transfers 45 of all allocations listed in the Schedules referred to in sections 7 and 8 or made in terms of section 37.
(3) The National Treasury may, in any report it publishes that aggregates reports published by provincial treasuries contemplated in section 71(7) of the Municipal Finance Management Act, and in any report in respect of municipal finances, include a 50 report on the equitable share and conditional allocations provided for in this Act.
62 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
Allocations by public entities to provinces or municipalities
45. The accounting officer of a provincial department or municipality that receives funds from a public entity as a grant, sponsorship or donation must disclose in its 5 financial statements the purpose and amount of each such grant, sponsorship or donation received.
46. (1) An organ of state involved in an intergovernmental dispute regarding any 10 provision of this Act or any division of revenue matter or allocation must, before approaching a court to resolve such dispute, make every effort to settle the dispute with the other organ of state concerned, including exhausting all mechanisms provided for the settlement of disputes in relevant legislation.
(2) In the event that a dispute is referred back by a court in accordance with section 15 41(4) of the Constitution, due to the court not being satisfied that the organ of state approaching the court has complied with subsection (1), 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 a prescribed procedure, be recovered without delay from the person who caused the organ 20 of state not to comply with the requirements of subsection (1).
47. (1) The following transfers constitute unauthorised expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act, as the case may be, where relevant: 25
(a) a transfer prohibited in terms of section 26(2) of this Act; or (b) a transfer by a transferring national officer to a bank account of a province or
municipality that is not— (i) the primary bank account;
(ii) in respect of provinces, a corporation for public deposits account; 30 (iii) in respect of the Gautrain Rapid Rail Link Grant, the account referred to
in section 17(2); or (iv) in respect of the Gautrain Rapid Rail Link Loan, the account designated
in terms of the Loan Agreement. (2) Any transfer made or spending of an allocation in contravention of this Act 35
constitutes irregular expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act.
48. (1) Despite anything to the contrary contained in any law, any serious or persistent non-compliance with a provision of this Act, and in particular, any non-compliance with 40 section 40, constitutes financial misconduct.
Delegations and assignments 45
49. (1) The Minister may, in writing, delegate any of the powers entrusted to the National Treasury in terms of this Act 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 Treasury— 50
64 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
(a) is subject to any limitations or conditions that the Minister may impose; (b) may authorise that official to subdelegate, in writing, the delegated power or
exercise of the delegated power or the performance of the assigned duty. 5 (3) The Minister may confirm, vary or revoke any decision taken by an official as a
50. (1) The National Treasury may, on written application by a transferring national 10 officer, exempt such officer in writing from complying with a provision of this Act.
51. The Minister may, by notice in the Gazette, make regulations regarding— 15 (a) anything which must or may be prescribed in terms of this Act; and (b) any ancillary or incidental administrative or procedural matter that it is
Repeal of laws 20
52. (1) Subject to subsection (2), the Division of Revenue Act, 2008 (Act No. 2 of 2008), is hereby repealed.
(2) The repeal of the Division of Revenue Act, 2008 (Act No. 2 of 2008), does not affect any duty or obligation set out in that Act, the execution of which is still outstanding. 25
53. This Act is called the Division of Revenue Act, 2009, and takes effect on 1 April 2009 or the date of publication thereof by the President in the Gazette, whichever is the later date.
66 No. 32106
Act No. 12,2009
2009/10 Allocation
National 1 - 2 483 665 383 509 416 140 544 146 880 Provincial 231 050 881 253 670 492 272 934 054 Local 23 846 502 29 267 706 31 889 901 TOTAL 738 562 766 792 354 338 848 970 835
1. National share includes conditional allocations to provincial and local spheres, general fuel levy sharing with metropolitan municipalities, debt service cost and the contingency reserve.
R'000 R'000 R'000 Eastern Cape 35 940 398 38 983 317 41 431 044 Free State 14 236 280 15 466 344 16 465 163 Gauteng 38 896 845 43 336 279 47 305 421 KwaZulu-Natal 49 989 762 54 742 454 58 748 345 Limpopo 29 861 344 32 567 740 34 806 606 Mpumalanga 19 005 445 20 819 407 22 350 564 Northern Cape 6 192 507 6 801 249 7 320 267 North West 16 121 174 17 813 857 19 290 052 Western Cape 20 807 126 23 139 845 25 216 592 TOTAL 231 050 881 253 670 492 272 934 054
68 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
S C H E D U L E 3
D E T E R M I N A T I O N O F E A C H MUNICIPALITY'S E Q U I T A B L E S H A R E OF T H E L O C A L G O V E R N M E N T SPHERE'S S H A R E OF R E V E N U E R A I S E D N A T I O N A L L Y
National Financial Year Column A Column B
2009/10 Forward Estimates Number Municipality
Allocation 2010/11 2011/12 R'000 R'000 R'000
A NMA Nelson Mandela 456 625 579 518 636 311
B EC101 Camdeboo 23 014 28 512 31 135 B EC102 Blue Crane Route 24 450 30 271 33 049 B EC103 lkwezi 9 111 11 236 12 260 B EC104 Makana 41 807 51 979 56 819 B EC105 Ndlambe 34 983 43 437 47 462 B EC106 Sundays River Valley 20 232 24 992 27 275 B EC107 Baviaans 9 535 11 764 12 836 B EC108 Kouga 26 991 33 255 36 616 B EC109 Koukamma 17 875 22 118 24 146 C DC10 Cacadu District Municipality 63 569 68 769 72 080 Total: Cacadu Municipalities 271 569 326333 353 679
B EC121 Mbhashe 61 253 75 599 82 488 B EC122 Mnquma 88 519 109 454 119 467 B EC123 Great Kei 18 944 23 419 25 558 B ECI24 Amahlathi 54 635 67 538 73 704 B EC125 Buffalo City 392 875 492 572 545 235 B EC126 Ngqushwa 37 180 45 956 50 151 B EC127 Nkonkobe 57 125 70 637 77 092 B EC128 Nxuba 12 780 15 805 17 251 C DC12 Amatole District Municipality 401 480 473 073 497 259 Total: Amatole Municipalities 1 124 791 1 374 054 1 488 206
B EC131 Inxuba Yethemba 25 732 31 886 34 817 B EC132 Tsolwana 15 020 18 509 20 189 B EC133 Inkwanca 10 639 13 131 14 327 B EC134 Lukhanji 68 291 84 457 92 182 B EC135 Intsika Yethu 54 631 67 357 73 479 B EC136 Emalahleni 40 449 49 912 54 455 B EC137 Engcobo 37 019 45 691 49 854 B EC138 Sakhisizwe 21 399 26 469 28 890 C DC13 Chris Hani District Municipality 223 806 275 094 300 385 Total: Chris Hani Municipalities 496988 612 505 668 578
B EC141 Elundini 39 444 48 634 53 058 B EC142 Senqu 52 274 64 668 70 581 B EC143 Maletswai 13 908 17 174 18 742 B EC 144 Gariep 15 083 18 681 20 396 C DC14 Ukhahlamba District Municipality 100 602 122 888 134 158 Total: Ukhahlamba Municipalities 221 312 272 046 296 936
B EC151 Mbizana 59 746 73 660 80 355 B EC152 Ntabankulu 33 103 40 791 44 497 B EC153 Ngquza Hill 57 934 71 450 77 952 B EC154 Port St Johns 35 278 43 472 47 421 B EC155 Nyandeni 69 802 86 232 94 100 B EC156 Mhlontlo 53 515 66 089 72 116 B EC157 King Sabata Dalindyebo 100 474 125 001 136 577 C DC15 OR. Tambo District Municipality 324 580 396 607 433 096 Total: O.R Tambo Municipalities 734 433 903 301 986113
B EC442 Umzimvubu 56 261 69 453 75 784 B EC441 Matatiele 56 549 69 808 76 174 C DC44 Alfred Nzo District Municipality 99 863 122 097 133 290 Total: Alfred Nzo Municipalities 212 672 261 358 285 248
Total: Eastern Cape Municipalities 3 518 390 4 329 116 4 715 072
70 No. 32106 GOVERNMENT GAZETTE, 3 APRIL 2009
D E T E R M I N A T I O N O F E A C H M U N I C I P A L I T Y ' S E Q U I T A B L E S H A R E O F T H E L O C A L G O V E R N M E N T S P H E R E ' S S H A R E O F R E V E N U E R A I S E D N A T I O N A L L Y
200Q/10 Forward Estimates Number Municipality Allocation 2010/11 2011/12
B FS161 Letsemeng 31 915 39 535 43 166 B FS162 Kopanong 57 098 70 795 77 307 B FS163 Mohokare 32 087 39 750 43 403 C DC16 Xhariep District Municipality 11 557 13 128 13 992 Total: Xhariep Municipalities 132 656 163 209 177 868
B FS171 Naledi 23 469 29 068 31 737 B FS172 Mangaung 384 373 481 570 533 031 B FS173 Mantsopa 42 289 52 423 57 249 C DC17 Motheo District Municipality 142 772 151 579 139 253 Total: Motheo Municipalities 592 904 714 639 761 269
B FS181 Masilonyana 51 953 64 372 70 289 B FS182 Tokologo 27 147 33 594 36 673 B FS183 Tswelopele 38 340 47 493 51 855 B FS184 Matjhabeng 278 382 348 025 380 804 B FS185 Nala 87 860 108 945 118 975 C DC18 Lejweleputswa District Municipality 83 578 90 250 94 499 Total: Lejweleputswa Municipalities 567 260 692 679 753 094
B FS191 Setsoto 105 206 130 421 142 422 B FS192 Dihlabeng 80 146 99 843 109 194 B FS193 Nketoana 48 893 60 584 66 154 B FS194 Maluti-a-Phofung 208 757 259 702 283 804 B FS195 Phumelela 34 749 43 021 46 968 C DC19 Thabo Mofutsanyana District Municipality 53 417 59 196 62 511 Total: Thabo Mofutsanyana Municipalities 531 167 652 767 711 053
B FS201 Moqhaka 106 449 131 969 144 121 B FS203 Ngwathe 99 420 123 251 134 598 B FS204 Metsimaholo 61 351 77 036 84 388 B FS205 Mafube 48 454 60 026 65 541 C DC20 Fezile Dabi District Municipality 116 094 122 511 127 284 Total: Fezile Dabi Municipalities 431 766 514 792 555 933
Total: Free State Municipalities 2 255 754 2 738 086 2 959 217
72 No. 32106
Forward Estimates Number Municipality
A EKU Ekurhuleni A TSH City of Johannesburg A JHB City of Tshwane
1 099 319 1 234 256
1 404 710 1 626 603
675 636
1 543 160 1 804 526
B GT461 Nokeng tsa Taemane B GT462 Kungwini C DC46 Metsweding District Municipality
22 439 50 363 23 617
27 999 63 690 25 739
30 630 69 936 27 051
Total: Metsweding Municipalities 96 419 117 429 127 617
B GT421 Emfuleni B GT422 Midvaal B GT423 Lesedi C DC42 Sedibeng District Municipality
388 199 28 363 37 541
201 583
485 954 35 906 46 817
531 822 39 439 51 216
220 612 Total: Sedibeng Municipalities 655 685 781 114 843 089
B GT481 MogaleCity B GT482 Randfontein B GT483 Westonaria C DC48 West Rand District Municipality
132 729 56 171 62 218
167 331 70 747 77 134
183 456 77 601 84 223
157 251 Total: West Rand Municipalities 393 703 466 339 502 531
Total: Gauteng Municipalities 3 991 530 5 071 829 5 568 593
74 No. 32106
Allocation 2010/11 2011/12
KWAZU LU-NATAL
A ETH eThekwini I 095 568 1 336 019 1 472 018
B KZN211 Vulamehlo 19 326 23 814 25 977 B KZN212 Umdoni 16 484 20 444 22 338 B KZN213 Umzumbe 48 056 59 284 64 679 B KZN214 uMuziwabantu 23 904 29 532 32 229 B KZN215 Ezinqolweni 14 261 17616 19 223 B KZN216 Hibiscus Coast 53 663 67 774 74 351 C DC21 Ugu District Municipality 161 248 195 518 213 473 Total: Ugu Municipalities 336 941 413 982 452 269
B KZN221 uMshwathi 32 399 40 030 43 681 B KZN222 uMngeni 19 999 25 415 27 949 B KZN223 Mooi Mpofana 13 106 16 228 17717 B KZN224 Impendle 12919 15 941 17 392 B KZN225 Msunduzi 199 824 255 504 284 638 B KZN226 Mkhambathini 16 242 20 028 21 849 B KZN227 Richmond 17 073 21 080 23 002 C DC22 uMgungundlovu District Municipality 218 249 254 738 264 245 Total: uMgungundlovu Municipalities 529 810 648 965 700 471
B KZN232 Emnambithi/Ladysmith 64 822 80 658 88 183 B KZN233 Indaka 34 737 42 935 46 856 B KZN234 Umtshezi 16 648 20 811 22 786 B KZN235 Okhahlamba 35 045 43 307 47 261 B KZN236 Jmbabazane 37 738 46 644 50 901 C DC23 Uthukela District Municipality 159 193 193 675 211 480 TotahUthukela Municipalities 348 183 428 031 467 466
B KZN241 Endumeni 15 160 19 045 20 878 B KZN242 Nquthu 37 377 46 137 50 343 B KZN244 Msinga 36 575 45 039 49 126 B KZN245 Umvoti 23 720 29 296 31 971 C DC24 Umzinyathi District Municipality 105 793 128 955 140 814 Total: Umzinyathi Municipalities 218 625 268 473 293 132
B KZN252 Newcastle 178 204 222 180 242 927 B KZN253 eMadlangeni 7615 9 352 10 197 B KZN254 Dannhauser 27 230 33 620 36 684 C DC25 Amajuba District Municipality 66 487 77 255 84 299 Total: Amajuba Municipalities 279 536 342 407 374 106
B KZN26I eDumbe 20 763 25 665 28 011 B KZN262 uPhongolo 34 490 42 663 46 565 B KZN263 Abaqulusi 45 536 56 210 61 329 B KZN265 Nongoma 38 960 48 036 52 403 B KZN266 Ulundi 44 577 54 982 59 989 C DC26 Zululand District Municipality 159 047 194 146 211 993 Total: Zululand Municipalities 343 372 421 701 460 290
76 No. 32106
2009/10 Forward Estimates Number Municipality Allocation 2010/11 2011/12
B KZN271 Umhlabuyalingana 28 225 34 756 37910 B KZN272 Jozini 38 298 47 196 51 486 B KZN273 The Big Five False Bay 7 723 9 478 10 332 B KZN274 Hlabisa 31 052 38 158 41 604 B K.ZN275 Mtubatuba 9 664 11 941 13 034 C DC27 Umkhanyakude District Municipality 106 085 130 048 142 007 Total: Umkhanyakude Municipalities 221 045 271 577 296 374
B KZN281 Mbonambi 24 661 30 367 33 118 B KZN282 uMhlathuze 111 841 140 698 154 205 B KZN283 Ntambanana 11 668 14 332 15 624 B KZN284 Umlalazi 46 142 56 884 62 058 B KZN285 Mthonjaneni 14313 17 684 19 300 B KZN286 Nkandla 27 118 33 372 36 397 C DC28 uThungulu District Municipality 216 528 256 570 279 951 Total: uThungulu Municipalities 452 270 549 907 600 654
B KZN291 Mandeni 39 016 48 229 52 636 B KZN292 KwaDukuza 39 868 50 796 55 846 B KZN293 Ndwedwe 34 274 42 222 46 054 B KZN294 Maphumulo 26 408 32 563 35 525 C DC29 iLembe District Municipality 145 775 175 065 191 123 Total: iLembe Municipalities 285 341 348 876 381 183
B KZN431 Ingwe 27 744 34 243 37 362 B KZN432 Kwa Sani 6 892 8 501 9 277 B KZN433 Greater Kokstad 28 639 35 625 38 936 B KZN434 Ubuhlebezwe 27 970 34 493 37 631 B KZN435 Umzimkhulu 46 771 57 767 63 035 C DC43 Sisonke District Municipality 124 778 152 495 166 488 Total: Sisonke Municipalities 262 794 323 123 352 730
Total: KwaZulu-Natal Municipalities 4 373 485 5 353 061 5 850 693
78 No. 32106
B LIM473 Makhuduthamaga 84 451 104 379 113 904 B LIM474 Fetakgomo 26 136 32 179 35 096 B LIM471 Greater Marble Hall 41 102 50 836 55 480 B LIM472 Elias Motsoaledi 78 757 97 378 106 269 B LIM475 Greater Tubatse 74 350 91 888 100 280 C DC47 Greater Sekhukhune District Municipality 219 940 268 134 292 774 Total: Greater Sekhukhune District Municipalities 524 736 644 794 703 802
B LIM331 Greater Giyani 78 723 97 281 106 154 B LIM332 Greater Letaba 78 967 97 676 106 603 B LIM333 Greater Tzaneen 121 187 150 776 164 719 B LIM334 Ba-Phalaborwa 37 516 46 403 50 649 B LIM335 Maruleng 30 972 38 233 41 714 C DC33 Mopani District Municipality 292 547 355 311 387 965 Total: Mopani Municipalities 639 912 785 678 857 804
B LIM341 Musina 18 878 23 372 25 514 B LIM342 Mutale 23 650 29 139 31 784 B LIM343 Thulamela 158 199 196 656 214 802 B L1M344 Makhado 145 224 180 560 197 222 C DC34 Vhembe District Municipality 296 093 362 362 395 708 Total: Vhembe Municipalities 642 043 792 088 865 030
B LIM351 Blouberg 47 239 58 358 63 681 B LIM352 Aganang 43 526 53 683 58 565 B LIM353 Molemole 44 890 55 524 60 597 B LIM354 Polokwane 240 219 299 207 327 054 B LIM355 Lepelle-Nkumpi 73 707 91 091 99 402 C DC35 Capricorn District Municipality 258 677 311 507 339 997 Total: Capricorn Municipalities 708 258 869 369 949 296
B LIM361 Thabazimbi 35 341 43 839 47 887 B LIM362 Lephalale 56 497 70 041 76 490 B LIM364 Mookgopong 14 514 17 976 19 630 B LIM365 Modimolle 35 196 43 664 47 694 B LIM366 Bela Bela 27 857 34 613 37 829 B L1M367 Mogalakwena 151 839 188 739 206 193 C DC36 Waterberg District Municipality 78 598 84 623 88 519 Total: Waterberg Municipalities 399 842 483 496 524 243
Total: Limpopo Municipalities 2 914 792 3 575 426 3 900174
80 No. 32106
B MP301 Albert Luthuli 93 696 115 968 126 602 B MP302 Msukaligwa 65 007 80 600 88 035 B MP303 Mkhondo 57 623 71 315 77 858 B MP304 Pixley Ka Seme 52 359 64 859 70 818 B MP305 Lekwa 49 169 61 026 66 673 B MP306 Dipaleseng 27 759 34 374 37 533 B MP307 Govan Mbeki 121 570 152 753 167 362 C DC30 Gert Sibande District Municipality 226 184 237 366 246 286 Total: Cert Sibande Municipalities 693 368 818 260 881 167
B MP311 Delmas 31 595 39 247 42 888 B MP312 Emalahleni 113 700 143 084 156 814 B MP313 Steve Tshwete 53 235 67 613 74 302 B MP314 Emakhazeni 22 224 27 515 30 044 B MP315 Thembisile 135 892 168 240 183 657 B MP316 Dr JS Moroka 141 939 175 641 191 722 C DC31 Nkangala District Municipality 268 516 281 412 291 907 Total: Nkangala Municipalities 767 101 902 751 971 334
B MP321 Thaba Chweu 46 970 58 242 63 608 B MP322 Mbombela 193 016 240 616 263 058 B MP323 Umjindi 28 855 35 776 39 072 B MP324 Nkomazi 154 048 191 348 209 017 B MP325 Bushbuckridge 266 721 330 672 361 059 C DC32 Ehlanzeni District Municipality 153 454 165 094 172 654 Total: Ehlanzeni Municipalities 843 064 1 021 749 1 108 467
Total: Mpumalanga Municipalities 2 303 533 2 742 759 2 960 968
82 No. 32106
B NC451 Moshaweng 37 385 46 188 50 406 B NC452 Ga-Segonyana 38014 47 111 51 446 B NC453 Gammagara 12 649 15 722 17 185 C DC45 Kgalagadi District Municipality 43 519 48 247 50 974 Total: Kgalagadi Municipalities 131 568 157 267 170 011
B NC061 Richtersveld 7 270 8 978 9 801 B NC062 Nama Khoi 21 375 26 432 28 855 B NC064 Kamiesberg 7 460 9 160 9 987 B NC065 Hantam 12 329 15 234 16 628 B NC066 Karoo Hoogland 8 031 9 860 10 749 B NC067 Khai-Ma 7 572 9 298 10 137 C DC6 Namakwa District Municipality 27 068 29 055 30 379 Total: Namakwa Municipalities 91 105 108 016 116 537
B NC071 Ubuntu 11 006 13 592 14 834 B NC072 Umsobomvu 18 589 22 985 25 089 B NC073 Emthanjeni 21 931 27 181 29 692 B NC074 Kareeberg 7 122 8 785 9 588 B NC075 Renosterberg 8 904 10 945 11 935 B NC076 Thembelihle 8 551 10514 11 465 B NC077 Siyathemba 12 131 15 001 16 377 B NC078 Siyancuma 20 285 25 108 27411 C DC7 Karoo District Municipality 22 939 25 335 26 747 Total: Karoo Municipalities 131 459 159 446 173138
B NC081 Mier 5 265 6 462 7 046 B NC082 !Kai! Garib 28 109 34 801 37 991 B NC083 //Khara Hais 31 243 39 101 42 823 B NC084 !Kheis 9 322 11 464 12 502 B NC085 Tsantsabane 14 301 17 678 19 298 B NC086 Kgatelopele 9 147 11 280 12 306 C DC8 Siyanda District Municipality 39 486 43 086 45 290 Total: Siyanda Municipalities 136 872 163 871 177 255
B NC091 Sol Plaatje 93 127 117 444 128 806 B NC092 Dikgatlong 27 115 33 534 36 605 B NC093 Magareng 17 808 22 025 24 042 B NC094 Phokwane 39 776 49 259 53 778 C DC9 Frances Baard District Municipality 67 847 75 852 82 679 Total: Frances Baard Municipalities 245 673 298 112 325 910
Total: Northern Cape Municipalities 736 677 886 713 962 852
84 No. 32106
7009/10 Forward Estimates Number Municipality Allocation 2010/11 2011/12
B NW371 Moretele 91 015 112 524 122 810 B NW372 Madibeng 169 609 211 184 230 810 B NW373 Rustenburg 159 996 200 355 219 285 B NW374 Kgetlengrivier 25 638 31 731 34 639 B NW375 Moses Kotane 140 734 174 320 190315 C DC37 Bojanala Platinum District Municipality 210 564 223 605 232 819 Total: Bojanala Platinum Municipalities 797 556 953 719 1 030 678
B NW381 Ratlou 38 795 47 963 52 341 B NW382 Tswaing 37 810 46 762 51 036 B NW383 Mafikeng 75 669 94 194 102 917 B NW384 Ditsobotla 48 005 59315 64 722 B NW385 Ramotshere Moiloa 47 298 58 482 63 824 C DC38 Ngaka Modiri Moiloa District Municipality 259 788 309 947 338 343 Total: Ngaka Modiri Moiloa Municipalities 507 365 616 662 673 183
B NW391 Kagisano 33 735 41 672 45 470 B NW392 Naledi 20 560 25 560 27 942 B NW393 Mamusa 19 204 23 738 25 906 B NW394 Greater Taung 57 080 70 437 76 847 B NW395 Molopo 6 838 8 366 9 114 B NW396 Lekwa-Teemane 17 160 21 225 23 168 C DC39 Dr Ruth Segomotsi Mompati District Municipality 132 663 161 509 176 320 Total: Bophirima Municipalities 287 239 352 507 384 767
B NW401 Ventersdorp 27 707 34 305 37 453 B NW402 Tlokwe 52 835 66 652 73 102 B NW403 City of Matlosana 221 440 276 565 302 504 B NW404 Maquassi Hills 46 325 57 399 62 674 B NW405 Merafong City 116 251 144 947 158 422 C DC40 Dr Kenneth Kaunda District Municipality 140 787 150 338 156 827 Total: Southern Municipalities 605 344 730 206 790 982
Total: North West Municipalities 2 197 504 2 653 094 2 879 610
86 No. 32106
A CPT City of Cape Town 609 313 817 886 910 454
B WC011 Matzikama 21 126 26 285 28 732 B WC012 Cederberg 16817 20 905 22 853 B WC013 Bergrivier 14 500 18 088 19 793 B WC014 Saldanha Bay 20 875 25 415 28 050 B WC015 Swartland 15 690 19 983 21 990 C DC1 West Coast District Municipality 64 006 68317 71 255 Total: West Coast Municipalities 153 015 178 992 192 674
B WC022 Witzenberg 28 541 35 517 38 834 B WC023 Drakenstein 44 586 57 117 62 882 B WC024 Stellenbosch 25 651 32 398 35 862 B WC025 Breede Valley 40 544 51 342 56 362 B WC026 Breede River Winelands 32 673 40 648 44 435 C DC2 Cape Winelands District Municipality 185 963 194 870 202 162 Total: Cape Winelands Municipalities 357 958 411 891 440 537
B WC031 Theewaterskloof 34 242 42 565 46 521 B WC032 Overstrand 21 988 25 419 28 102 B WC033 Cape Agulhas 10 324 12 965 14216 B WC034 Swellendam 11 918 14 861 16 264 C DC3 Overberg District Municipality 37 187 39 974 41 816 Total: Overberg Municipalities 115 660 135 784 146 918
B WC041 Kannaland 11 943 14 836 16219 B WC042 Hessequa 16 138 20 366 22 363 B WC043 Mossel Bay 26 117 32 888 36 077 B WC044 George 43 471 55 722 61 369 B WC045 Oudtshoorn 27 757 34 491 37 700 B WC047 Bitou 14 002 16 648 18 360 B WC048 Knysna 18 849 20 956 23 208 C DC4 Eden District Municipality 117 863 125 454 130 723 Total: Eden Municipalities 276 140 321 361 346 020
B WC051 Laingsburg 5 457 6 709 7319 B WC052 Prince Albert 6 300 7 732 8 430 B WC053 Beaufort West 17 581 21 828 23 858 C DC5 Central Karoo District Municipality 13414 15 438 16515 Total: Central Karoo Municipalities 42 752 51 707 56122
Total: Western Cape Municipalities 1 554 837 1 917 621 2 092 724
National Total 23 846 502 29 267 706 31 889 901
S C H E D U L E 4
A L L O C A T I O N S T O P R O V I N C E S T O S U P P L E M E N T T H E F U N D I N G O F P R O G R A M M E S O R F U N C T I O N S F U N D E D F R O M P R O V I N C I A L B U D G E T S
Vote Name of allocation Purpose Type of allocation Province 2009/10 Forward Estimates Allocation 2010/11 2011/12
R'000 R'000 R'000 Agriculture Comprehensive Agricultural Support To expand the provision of agricultural General conditional allocation to Eastern Cape 120 364 145 092 170 557 (Vote 23) Programme Grant support services, and promote and provinces Free State 65 659 79 149 88 894
facilitate agricultural development by Gauteng 33 844 40 797 43 965 targeting subsistence, emerging and KwaZulu-Natal 117 762 141 954 160 176 commercial farmers. Limpopo 108 483 130 771 148 123
Mpumalanga 70 892 85 456 95 691 Northern Cape 49 232 59 346 63 954 North West 91 518 110319 129 485 Western Cape 57 640 69 481 78 476 TOTAL 715 394 862 365 979 321
Health (a) Health Professions Training and Support provinces to fund costs associated Nationally assigned function to Eastern Cape 151 362 160 444 170 071 (Vote 14) Development Grant with training of health professionals; provinces Free State 110755 117 400 124 444
development and recruitment of medical Gauteng 614812 651 701 690 803 specialists in under-served provinces, and KwaZulu-Natal 222 425 235 771 249 917 support and strengthen undergraduate and Limpopo 88 759 94 085 99 730 post graduate teaching and training Mpumalanga 71 839 76 149 80 718 processes in health facilities. Northern Cape 58 304 61 802 65 510
North West 78 608 83 324 88 323 Western Cape 362 935 384 711 407 794 TOTAL 1 759 799 1 865 387 1 977 310
(b) National Tertiary Services Grant To compensate provinces for the supra- Nationally assigned function to Eastern Cape 509 429 557 137 588 135 provincial nature of tertiary services provinces Free State 642 835 659 469 695 631 provision and spill over effects. Gauteng 2 328 301 2 561 154 2 703 835
KwaZulu-Natal 983 948 1 102 585 1 164 255 Limpopo 176 871 257314 272 409 Mpumalanga 81 410 91 879 97 025 Northern Cape 173 241 225 948 238 964 North West 134416 179 280 189 648 Western Cape 1 583 991 1 763 234 1 848 976 TOTAL 6 614 442 7 398 000 7 798 878
R'000 R'000 R'000 National Infrastructure Grant to Provinces To help accelerate construction, General conditional allocation to Eastern Cape 1 661 391 2 028 135 2 341 246 Treasury maintenance, upgrading and rehabilitation provinces Free State 717 182 867 987 1 000 756 (Vote 7) of new and existing infrastructure in Gauteng 770 400 936 879 1 082 318
education, roads, health and agriculture; to KwaZulu-Natal 1 970 933 2 397 899 2 740 202 enhance the application of labour intensive Limpopo 1 407 445 1 753 105 2 099 813 methods in order to maximise job creation Mpumalanga 771 968 973 877 1 126 770 and skills development as encapsulated in Northern Cape 492 388 593 564 675 819 the EPWP guidelines; and to enhance North West 807 577 976 571 1 122 285 capacity to deliver infrastructure. Western Cape 649 963 786 894 901 981
TOTAL 9 249 247 11 314 911 13 091 190 Transport Public Transport Operations Grant To provide supplementary funding towards Nationally assigned function to Eastern Cape 126 540 - - (Vote 33) public transport services provided by provinces Free State 151 805 - -
provincial departments of transport. Gauteng 1 403 826 - - KwaZulu-Natal 647 396 - - Limpopo 174 507 - - Mpumalanga 370 650 - - Northern Cape 22 159 - - North West 41 252 - - Western Cape 593 774 - - Unallocated - 3 863 033 4 153 232 TOTAL 3 531 909 3 863 033 4 153 232
A L L O C A T I O N S T O M U N I C I P A L I T I E S T O S U P P L E M E N T T H E F U N D I N G O F F U N C T I O N S F U N D E D F R O M M U N I C I P A L B U D G E T S
Vote Name of allocation Purpose City
Provincial and Local Government (Vote 29)
To supplement capital finance for basic municipal infrastructure for poor households, micro enterprises and social institutions.
Nelson Mandela Ekurhuleni City of Johannesburg City of Tshwane eThekwini City of Cape Town
11 084 860
2 224 349
12S28 884
2 604 084
15 068 551
3 131 944 156016 428 253 475 257 328 083 508 950 327 790
182 532 501 395 556 450 384 068 595 913 383 726
219 532 603 030 669 245 461 921 716 707 461 509
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S C H E D U L E 5
S P E C I F I C P U R P O S E A L L O C A T I O N S T O P R O V I N C E S
R'000 R'000 R'000 Agriculture (a) Agricultural Disaster Management To relief farmers from the effects of Conditional allocation Eastern Cape 4 000 - - (Vote 23) Grant drought/veldfire, cold spell, hail storm and Free State 11 000 - -
flood in identified areas. Gauteng 10 000 - - KwaZulu-Natal 5 000 - - Limpopo 5 000 - - Mpumalanga 5 000 - - Northern Cape 5 000 - - North West 5 000 - - Western Cape 10 000 - - TOTAL 60 000 - -
(b) llima/Letsema Projects Grant Universal access to agriculture support Conditional allocation Eastern Cape 5 000 20 000 40 000 services. Free State 6 500 26 000 52 000
Gauteng 2 500 10 000 20 000 KwaZulu-Natal 7 500 30 000 60 000 Limpopo 5 000 20 000 40 000 Mpumalanga 5 000 20 000 40 000 Northern Cape 7 500 30 000 60 000 North West 5 000 20 000 40 000 Western Cape 6 000 24 000 48 000 TOTAL 50 000 200 000 400 000
(c) Land Care Programme Grant: Poverty To enhance a sustainable conservation of Conditional allocation Eastern Cape 8 227 8 721 9 244 Relief and Infrastructure Development natural resources through a community- Free State 4 113 4 360 4 622
based participatory approach; create job Gauteng 3 599 3 815 4 044 opportunities through the Expanded Public KwaZulu-Natal 8 227 8 721 9 244 Works programme; and improve food Limpopo 7713 8 176 8 667 security within previously disadvantaged Mpumalanga 4 627 4 904 5 198 communities. Northern Cape 5 656 5 995 6 355
North West 6 170 6 540 6 932 Western Cape 3 085 3 270 3 466 TOTAL 51 417 54 502 57 772
R'000 R'000 R'000 Arts and Culture Community Library Services Grant To transform urban and rural community Conditional allocation Eastern Cape 55 515 62 240 65 974 (Vote 12) library infrastructure, facilities and services Free State 40315 45 197 47 909
(primarily targeting previously Gauteng 46 043 51 619 54 716 disadvantaged communities) through a KwaZulu-Natal 34 147 38 282 40 579 recapitalised programme at provincial level Limpopo 55 956 62 733 66 497 in support of local government and nationa Mpumalanga 55 956 62 733 66 497 initiatives. Northern Cape 58 820 65 943 69 900
North West 52 872 59 275 62 832 Western Cape 40 976 45 938 48 694 TOTAL 440 600 493 960 523 598
Education (a) HIV and Aids (Life Skills Education) To provide education and training for Conditional allocation Eastern Cape 30 168 32 156 34 086 (Vote 13) Grant school management teams and educators to Free State 10 341 10 719 11 362
develop, implement and manage life skills Gauteng 25 253 27 078 28 703 education in line with HIV and Aids, drug KwaZulu-Natal 39 765 42 686 45 247 and substance abuse, gender equity policies Limpopo 25 882 27 454 29 101 and national strategic plans on HIV and Mpumalanga 14 626 15 420 16 345 Aids. Northern Cape 3 828 3 573 3 788
North West 12 912 13 539 14 351 Western Cape 14 626 15 420 16 345 TOTAL 177 401 188 045 199 328
(b) National School Nutrition Programme To provide nutritious meals to learners. Conditional allocation Eastern Cape 486 695 702 936 845 166 Grant Free State 122 306 195 194 244 699
Gauteng 251 590 388 884 509 798 KwaZulu-Natal 555 917 855 285 1 070 013 Limpopo 419 185 659 233 829 669 Mpumalanga 229 534 354 341 440 923 Northern Cape 55 690 84 536 105 116 North West 161 063 249 599 305 935 Western Cape 112 548 173318 227 433 TOTAL 2 394 528 3 663 326 4 578 752
R'000 R'000 R'000 Education (c) Technical Secondary Schools To increase the number of learners with Conditional allocation Eastern Cape - - - (Vote 13) Recapitalisation Grant key technical skills by supporting quality Free State - - -
curriculum delivery of the NCS technical Gauteng - - - subjects by providing facilities, equipment KwaZulu-Natal - - - and training to teachers at technical high Limpopo - - - schools. Mpumalanga - - -
Northern Cape - - - North West - - - Western Cape - - - Unallocated - 80 000 200 000 TOTAL - 80 000 200 000
Health (a) Comprehensive HIV and Aids Grant To enable the health sector to develop an Conditional allocation Eastern Cape 401 727 497 599 533 965 (Vote 14) effective response to HIV and Aids and to Free State 235 792 326 658 350 365
support the implementation of the National Gauteng 760 879 866 452 932 511 Operational Plan for Comprehensive HIV KwaZulu-Natal 880 659 1 013 082 1 090 268 and Aids treatment and care. Limpopo 291 474 403 280 432 554
Mpumalanga 200 226 261 544 281 080 Northern Cape 113 703 157 150 168 559 North West 281 813 337 158 362 666 Western Cape 309 913 448 834 480 994 TOTAL 3 476 186 4 311 757 4 632 962
(b) Forensic Pathology Services Grant To continue the development and provisior Conditional allocation Eastern Cape 61 214 69 345 73 506 of adequate mortuary services in all Free State 32 855 37218 39 451 provinces Gauteng 81 584 92 421 97 966
KwaZulu-Natal 134 538 152 406 161 550 Limpopo 35 233 39 913 42 308 Mpumalanga 44 233 50 107 53 114 Northern Cape 20 187 22 868 24 240 North West 23 334 26 433 28 019 Western Cape 58 484 66 251 70 226 TOTAL 491 662 556 962 590 380
R'000 R'000 R'000 Health (c) Health Disaster Response (Cholera) To support and enable a response to the Conditional allocation Eastern Cape - - - (Vote 14) Grant Cholera epidemic including treatment, Free State - - -
public health response and prevention. Gauteng - - - KwaZulu-Natal - - - Limpopo 50 000 - - Mpumalanga - - - Northern Cape - - - North West - - - Western Cape - - - TOTAL SO 000 - -
(d) Hospital Revitalisation Grant To provide funding to enable provinces to Conditional allocation Eastern Cape 238 611 360 660 386 048 plan, manage, modernise, rationalise and Free State 247 886 378 426 421 883 transform the infrastructure, health Gauteng 755 190 798 609 805 967 technology, monitoring and evaluation of KwaZulu-Natal 449 558 500 815 551 698 hospitals; and to transform hospital Limpopo 206 931 323 425 375 672 management and improve quality of care in Mpumalanga 304 441 331 657 360 557 line with national policy objectives. Northern Cape 340 197 420 218 410 892
North West 254 644 326 303 374 074 Western Cape 388 845 440 554 485 501 TOTAL 3 186 303 3 880 667 4 172 292
Housing (a) Housing Disaster Relief Grant To provide emergency relief in support of Conditional allocation Eastern Cape - - - (Vote 26) reconstruction work to housing and related Free State - - -
infrastructure damaged by storms in Gauteng - - - KwaZulu-Natal. KwaZulu-Natal 150 000 - -
Limpopo - - - Mpumalanga - - - Northern Cape - - - North West - - - Western Cape - - - TOTAL 150 000 - -
R'000 R'000 R'000 Housing (b) Integrated Housing and Human To provide for the facilitation of a Conditional allocation Eastern Cape 1 313 378 1 598 646 1 802 873 (Vote 26) Settlement Development Grant sustainable housing development process Free State 962 759 1 300 691 1 380 185
by laying down general principles Gauteng 3 187 086 3 771 831 4 322 945 applicable to housing development in all KwaZulu-Natal 2 180 448 2 714 109 3 149 500 spheres of government through the Limpopo 996 667 1 234 750 1 415 163 Division of Revenue Act. Mpumalanga 795 447 975 863 1 118 449
Northern Cape 325 011 273 260 313 187 North West 1 100 055 1 288 770 1 578 161 Western Cape 1 581 425 1 868 843 2 141 905 TOTAL 12 442 276 15 026 763 17 222 368
Public Works Devolution of Property Rate Funds Grant To facilitate the transfer of property rates Conditional allocation Eastern Cape 134 061 147 467 156 315 (Vote 5) expenditure responsibility to provinces; Free State 140 144 154 158 163 408
and to enable provincial accounting Gauteng 173 983 191 381 202 864 officers to be fully accountable for their KwaZulu-Natal 236 264 259 891 275 485 expenditure and payment of provincial Limpopo 13 776 15 154 16 063 property rates. Mpumalanga 40 340 44 374 47 036
Northern Cape 26 998 29 698 31 480 North West 66 107 72 718 77 081 Western Cape 164 865 181 351 192 232 TOTAL 996 538 1 096 192 1 161 964
Sport and Mass Sport and Recreation Participation To promote mass participation within Conditional allocation Eastern Cape 62 765 66 531 70 523 Recreation Programme Grant communities and schools through selected Free State 26 591 28 186 29 877 South Africa sport and recreation activities. Gauteng 63 834 67 664 71 724 (Vote 17) empowerment of communities and schools KwaZulu-Natal 85 148 90 256 95 671
in conjunction with stakeholders and Limpopo 45 023 45 604 48 340 development of communities through sport Mpumalanga 29 870 31 663 33 563
Northern Cape 19 686 21 927 23 243 North West 31 096 34 022 36 063 Western Cape 38 237 40 532 42 964 TOTAL 402 250 426 385 451 968
Reproduced by Sabinet Online in terms of Government Printer’s Copyright Authority No. 10505 dated 02 February 1998
R'000 R'000 R'000 Transport (a) Gautrain Rapid Rail Link Grant To provide for national government Conditional allocation Eastern Cape - - - (Vote 33) funding contribution over a period of five Free State - - -
years to the Gauteng Provincial Gauteng 2 832 691 340 660 - Government for the construction of a fully KwaZulu-Natal - - - integrated Gautrain Rapid Rail network. Limpopo - - -
Mpumalanga - - - Northern Cape - - - North West - - - Western Cape - - - TOTAL 2 832 691 340 660 -
(b) Overload Control Grant To successfully implement the National Conditional allocation Eastern Cape - 5 519 - Overload Control Strategy and ensure that Free State - - - overloading practices are significantly Gauteng 5 034 - - reduced. KwaZulu-Natal - - -
Limpopo 5 035 - - Mpumalanga - 5 519 - Northern Cape - - - North West - - - Western Cape - - - TOTAL 10 069 11038 -
(c) Sani Pass Roads Grant To allow commuters from both the Conditional allocation Eastern Cape - - - Republic of South Africa and the Kingdom Free State - - - of Lesotho to travel and access Gauteng - - - opportunities and markets; and to improve KwaZulu-Natal 34 347 - - safety and create the opportunity for Limpopo - - - extended border control hours. Mpumalanga - - -
Northern Cape - - - North West - - - Western Cape - - - TOTAL 34 347 - -
S C H E D U L E 6
S P E C I F I C P U R P O S E A L L O C A T I O N S T O M U N I C I P A L I T I E S
2010/11 2011/12 R'000 R'000 R'000
200 000 212 000 224 720 Provincial and Local Government (Vote 29)
Municipal Systems Improvement Grant To assist municipalities in building in-house capacity to perform their functions and stabilise institutional and governance systems.
National Treasury (Vote 7)
To promote and support reforms in financial management by building the capacity in municipalities to implement the Municipal Finance Management Act. 299 990 364 589 384 641
Water Affairs and Forestry (Vote 34)
Water Services Operating Subsidy Grant To subsidise water schemes owned and/or operated by the department or by other agencies on behalf of the department and transfer these to local government. 978 579 570 000 380 000
Sport and Recreation SA (Vote 17)
To assist host cities with the operational response associated with the hosting of the 2009 Confederations Cup and the 2010 FIFA World Cup competition. 507 557 210 280 -
I TOTAL 1 986 126 1 356 869 989 361
932 957 1 020 104 1 096 612 Minerals and Energy (Vote 28)
To implement the Integrated National Electrification Programme (INEP) by providing capital subsidies to municipalities to address the electrification backlog of permanently occupied residential dwellings, the installation of bulk infrastructure and rehabilitation and refurbishment of electricity infrastructure in order to improve quality of supply.
To implement the EEDSM programme by providing capital subsidies to licensed distributors to address the Energy Efficiency Demand Side Management in residential dwellings, community and commercial buildings in order to mitigate the risk of load shedding and supply interruptions.
175 000 220 000 280 000
To provide municipalities with capital subsidies for property developments in townships and new residential neighbourhoods that include the construction or upgrading of community facilities, and where appropriate, attract private sector funding and input.
582 000 630 000 840 440
Transport (Vote 33)
To provide for accelerated planning, establishment, construction and improvement of new and existing public transport and non-motorised transport infrastructure and systems. 2418 177 4 289 775 5 149 008
To improve mobility and access in rural municipalities in support of Integrated Development Plans. 9 800 10 400 11 100
To fund the design and construction of new designated stadiums or the design and upgrading of designated existing stadiums and supporting bulk services infrastructure in the World Cup host cities 1 661 107 302 286 -
|TOTAL 5 779 041 6 472 565 7 377 160
S C H E D U L E 7
A L L O C A T I O N S - I N - K I N D T O M U N I C I P A L I T I E S F O R D E S I G N A T E D S P E C I A L P R O G R A M M E S
To provide municipalities with technical assistance to develop appropriate project proposals for property developments in townships and new residential neighbourhoods that include the construction or upgrading of community facilities, and where appropriate, attract private sector funding and input.
Minerals and Energy (Vote 28)
To implement the Integrated National Electrification Programme (1NEP) by providing capital subsidies to Eskom to address the electrification backlog of permanently occupied residential dwellings, the installation of bulk infrastructure and rehabilitation of electrification infrastructure.
1 477 709 1 769 475 1 902 186
(b) Backlogs in the Electrification of Clinics and Schools Grant
To implement the INEP by providing capital subsidies to Eskom to address the electrification backlog of schools and clinics. 150 000 - -
(c) Electricity Demand Side Management (Eskom) Grant
To implement the EEDSM programme by providing capital subsidies to Eskom to address the Energ; Efficiency Demand Side Management in residential dwellings, community and commercial building! in order to mitigate the risk of load shedding and supply interruptions.
75 000 110 000 120 000
To subsidise water schemes owned and/or operated by the department or by other agencies on behalf of the department and transfer these to local government. 135 199 - -
(b) Regional Bulk Infrastructure Grant To develop regional bulk infrastructure for water supply to supplement water treatment works at resource development and link such water resource development with the local bulk and local distribution networks on a regional basis cutting across several local municipal boundaries. In the case of sanitation to supplement regional bulk collection as well as regional waste water treatment works.
611 500 839 000 1 475 340
(c) Backlogs in Water and Sanitation at Clinics and Schools Grant
To eradicate the water supply and sanitation backlog of all clinics and schools. 350 000 - -
|TOTAL 2 879 362 2 843 475 3 597 526
S C H E D U L E 8
I N C E N T I V E S T O P R O V I N C E S T O M E E T T A R G E T S W I T H R E G A R D S T O P R I O R I T Y G O V E R N M E N T P R O G R A M M E S
Public Works (Vote 5)
Expanded Public Works Programme Incentive Grant
To incentivise provinces to increase labour intensive employment through programme; that maximise job creation and skills development as encapsulated in the EPWP guidelines.
Incentive allocation to provinces Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape Unallocated
R'000 29 992 23 008
500 84 180
500 5 047
500 7 192
800 000 TOTAL 151 419 400 000 800 000
I N C E N T I V E S T O M U N I C I P A L I T I E S T O M E E T T A R G E T S W I T H R E G A R D S T O P R I O R I T Y G O V E R N M E N T P R O G R A M M E S
2 0 0 9 / 1 0
Allocation Forward Estimates
2 0 1 0 / 1 1 2 0 1 1 / 1 2
Public Works (Vote 5 )
To incentivise municipalities to increase labour intensive employment through programmes that maximise job creation and skills development in line with the EPWP guidelines
R ' 0 0 0
I T O T A L 2 0 1 7 4 8 5 5 4 0 0 0 1 1 0 8 0 0 0