Division of Revenue Act

Link to law: http://www.gov.za/documents/division-revenue-act-11
Published: 2010-03-31

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Division of Revenue Act 1 of 2010
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions.
This means that this document will only contain even numbered pages as the other language is printed on uneven numbered pages.


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 537 Cape Town 31 March 2010 No. 33081
THE PRESIDENCY No. 264 31 March 2010
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 1 of 2010: Division of Revenue Act, 2010.

ACT
To provide for the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2010/11 financial year and the responsibilities of all three spheres pursuant to such division; and to provide for matters connected therewith.
PREAMBLE
WHEREAS section 214(1) of the Constitution of the Republic of South Africa, 1996, requires an Act of Parliament to provide for—
(a) the equitable division of revenue raised nationally among the national, provincial and local spheres of government;
(b) the determination of each province’s equitable share of the provincial share of that revenue; and
(c) any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and any conditions on which those allocations may be made,
BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa,as follows:— ARRANGEMENT OF PROVISIONS OF ACT
Sections
CHAPTER 1
INTERPRETATION AND OBJECTS OF ACT
1. Interpretation 2. Objects of Act
CHAPTER 2
EQUITABLE SHARE ALLOCATIONS
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
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————————— (English text signed by the President.)
(Assented to 31 March 2010.) —————————
CHAPTER 3
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES
Part 1
Conditional allocations
7. Conditional allocations to provinces 8. Conditional allocations to municipalities
Part 2
Duties of accounting officers in respect of Schedule 4, 5, 6, 7 or 8 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
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 2010/11
Part 3
General matters relating to Schedule 4, 5, 6, 7 or 8 allocations
14. Publication of allocations and frameworks 15. Spending in terms of purpose and subject to conditions 16. Withholding of allocation 17. Stopping of allocation 18. Re-allocation of funds 19. Conversion of Schedule 6 and Schedule 7 allocations 20. Unspent conditional allocations
CHAPTER 4
MATTERS RELATING TO ALL ALLOCATIONS
21. Payment schedule 22. Amendment of payment schedule 23. Transfers made in error or fraudulently 24. Allocations not listed in Schedules 25. Authorisation of expenditure 26. Preparations for next financial year and 2012/13 financial year 27. Expenditure prior to commencement of Division of Revenue Act, 2011
CHAPTER 5
DUTIES OF MUNICIPALITIES, PROVINCIAL TREASURIES AND NATIONAL TREASURY
28. Duties of municipalities 29. Duties of provincial treasuries 30. Duties of National Treasury
CHAPTER 6
GENERAL
31. Allocations by public entities to provinces or municipalities 32. Liability for costs incurred in violation of principles of cooperative governance
and intergovernmental relations
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33. Unauthorised and irregular expenditure 34. Financial misconduct 35. Delegations and assignments 36. Exemptions 37. Regulations 38. Repeal of laws 39. Short title and commencement
Schedule 1: Equitable division of revenue raised nationally among the three spheres 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 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 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
CHAPTER 1
INTERPRETATION AND OBJECTS OF ACT
Interpretation
1. (1) In this Act, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in the Public Finance Management Act or the Municipal Finance Management Act has the meaning assigned to it in the Act in question, and—
‘‘accredited municipality’’ means a municipality accredited in terms of section 10(2) of the Housing Act, 1997 (Act No. 107 of 1997), to administer national housing programmes; ‘‘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(1)(c) of the Constitution of the Republic of South Africa, 1996; ‘‘corporation for public deposits account’’ means a bank account of the Provincial Revenue Fund held with the Corporation for Public Deposits, established by the Corporation for Public Deposits Act, 1984 (Act No. 46 of 1984); ‘‘financial year’’ means the financial year commencing on 1 April 2010 and ending on 31 March 2011; ‘‘framework’’ means the conditions and other information in respect of a conditional allocation published by the National Treasury in terms of section 14; ‘‘Municipal Finance Management Act’’ means the Local Government: Munici- pal Finance Management Act, 2003 (Act No. 56 of 2003); ‘‘municipal financial year’’ means the financial year of a municipality commenc- ing on 1 July 2010 and ending on 30 June 2011; ‘‘next financial year’’ means the financial year commencing on 1 April 2011 and ending on 31 March 2012; ‘‘next municipal financial year’’ means the financial year of a municipality commencing on 1 July 2011 and ending on 30 June 2012; ‘‘organ of state’’ means an organ of state as defined in section 239 of the Constitution;
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‘‘payment schedule’’ means a schedule which sets out— (a) the amount of each transfer of an equitable share or any conditional allocation
in terms of this Act to be transferred to a province or municipality in the financial year;
(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 37; ‘‘primary bank account’’— (a) in relation to a province, means a bank account of the Provincial Revenue
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, in terms of this Act must be deposited; and
(b) in relation to a municipality, means the bank account of the municipality as determined in terms of section 8 of the Municipal Finance Management Act;
‘‘Public Finance Management Act’’ means the Public Finance Management Act, 1999 (Act No. 1 of 1999); ‘‘quarter’’ means the period from— (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; ‘‘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
(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; ‘‘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.
(2) Any determination, instruction or request in terms of this Act must be in writing.
Objects of Act
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 government;
(c) promote predictability and certainty in respect of all allocations to provinces and municipalities, in order that such governments may plan their budgets over a multi-year period;
(d) promote transparency and equity in the resource allocation process; and (e) promote accountability by ensuring that all allocations are reflected on the
budgets of receiving provinces and municipalities, and by ensuring that the expenditure of conditional allocations is reported on by the receiving provinces and municipalities.
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CHAPTER 2
EQUITABLE SHARE ALLOCATIONS
Equitable division of revenue raised nationally among spheres of government
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 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 2012/13 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.
Equitable division of provincial share among provinces
4. (1) Each province’s equitable share of the provincial share of revenue raised nationally in respect of the 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 2012/13 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 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 21.
Equitable division of local government share among municipalities
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 2012/13 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 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 2010, 30 November 2010 and 25 March 2011, in accordance with a payment schedule determined by the National Treasury in terms of section 21.
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.
(2) If actual revenue raised nationally in respect of the financial year exceeds the anticipated revenue set out in Schedule 1, the excess accrues to the national government, subject to subsection (3), to be used to reduce borrowing or pay debt as part of its share of revenue raised nationally, in addition to its share in Column A of Schedule 1.
(3) The national government may— (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;
(b) increase a conditional allocation to a province or municipality through a
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virement under section 43 of the Public Finance Management Act or section 28(2)(d) of the Municipal Finance Management Act, as the case may be; and
(c) authorise expenditure in accordance with section 25.
CHAPTER 3
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES
Part 1
Conditional allocations
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 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
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 2012/13 financial year, which is subject to the annual Division of Revenue Acts in respect of those financial years, is set out in Column B of the Schedules referred to in subsection (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:
(a) Schedule 4, specifying allocations to municipalities to supplement the funding of functions funded from municipal budgets;
(b) Schedule 6, specifying specific-purpose allocations to municipalities; (c) Schedule 7, specifying allocations-in-kind to municipalities for designated
special programmes; and (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 2012/13 financial year, which, with the exception of what is provided in subsection (4) in relation to the Public Transport Infrastructure and Systems Grant, is subject to the annual Division of Revenue Acts for those years, is set out in Column B of the Schedules referred to in subsection (1).
(3) 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 14.
(4) Notwithstanding anything to the contrary contained in subsection (2), in respect of the Public Transport Infrastructure and Systems Grant, funding which is specifically approved by the National Treasury in relation to transport contracts for capital projects must be regarded as being firm allocations for the next financial year and the 2012/13 financial year that will not be altered downwards in the Division of Revenue Acts in respect of those financial years.
(5) A municipality may only after obtaining the approval of the National Treasury, pledge, offer as security or commit to a person or institution future conditional allocation transfers due to the municipality for the next financial year and the 2012/13
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financial year, for the purpose of securing a loan or any other form of financial or other support from that person or institution.
Part 2
Duties of accounting officers in respect of Schedule 4, 5, 6, 7 or 8 allocations
Duties of transferring national officer in respect of Schedule 4 allocation
9. (1) The transferring national officer of a Schedule 4 allocation is responsible for— (a) ensuring that transfers to all provinces and municipalities are—
(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 21, unless allocations are withheld or stopped in terms of section 16 or 17;
(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 and municipalities beyond the provision of standard management information;
(iii) is compatible and integrated with and does not duplicate other relevant and related national, provincial and local systems; and
(iv) is consistent with section 11(2); (c) complying with the requirements of the applicable framework; and (d) 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) (a) Subsection (1)(b) does not apply to the Municipal Infrastructure Grant (Cities). (b) Municipalities that receive the Municipal Infrastructure Grant (Cities) are only
required to report expenditure and non-financial performance information against their capital budgets, in accordance with the requirements of section 71 of the Municipal Finance Management Act.
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,
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 systems;
(iii) in respect of a Schedule 5 allocation, any business plans requested in respect of how allocations will be utilised by a province, have been approved prior to the start of the financial year;
(iv) in respect of a Schedule 6 allocation transferred to a municipality, any 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;
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(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;
(c) transfer funds only in accordance with a payment schedule determined in accordance with section 21;
(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 the transfer of the Gautrain Rapid Rail Link Grant; and
(e) ensure that all other arrangements or requirements as stipulated in the Act or in the relevant framework for the particular allocation necessary for the transfer of an allocation have been complied with prior to the start of the financial year, and are complied with throughout the financial year.
(2) The transferring national officer must submit all relevant information and documentation referred to in subsection (1)(a) to the National Treasury within 14 days after this Act takes effect.
(3) A transferring national officer who has not complied with subsection (1) must transfer the allocation in the manner instructed by the National Treasury, including transferring the allocation as an unconditional allocation.
(4) Before making the first transfer of any allocation, the transferring national officer must take note of any notice in terms of section 30(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(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; (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 a Schedule 5 or 6 allocation;
(d) the actual expenditure incurred by the transferring national officer in respect of a Schedule 7 allocation;
(e) any matter or information that may be prescribed in the relevant framework for the particular allocation; and
(f) such other issues as the National Treasury may determine. (6) A transferring national officer must submit a quarterly performance report within
45 days after the end of each quarter to the National Treasury, in accordance with the requirements of the relevant framework.
(7) The transferring national officer must evaluate the performance of programmes funded or partially funded by the allocation and submit 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.
(8) The transferring national officer for the Human Settlements Development Grant, after consultation with the receiving officer and the National Treasury, must determine the allocations for each accredited municipality by 14 April 2010, and submit those allocations to the National Treasury by 30 April 2010, for publication in the Gazette.
Duties of receiving officer in respect of Schedule 4 allocation
11. (1) A receiving officer of a Schedule 4 allocation is responsible for— (a) complying with the framework for a Schedule 4 allocation as published in
terms of section 14; 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—
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(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 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 transferring national officer, the relevant provincial treasury and the National Treasury on— (i) spending and financial performance against programmes funded by a
Schedule 4 allocation, other than the Municipal Infrastructure Grant (Cities); and
(ii) in the case of the Municipal Infrastructure Grant (Cities), spending and financial performance against the municipality’s entire capital budget, and performance against the targets stipulated in the infrastructure performance framework that is required in terms of the allocation framework; and
(c) quarterly, within 30 days after the end of each quarter, report to the transferring national officer and the National Treasury on— (i) non-financial performance against programmes, in respect of Schedule 4
allocations other than the Municipal Infrastructure Grant (Cities); and (ii) performance for that quarter against the targets stipulated in the
infrastructure performance framework that is required in terms of the allocation framework, in respect of the Municipal Infrastructure Grant (Cities).
(3) The National Treasury must make the report submitted to it in terms of section 11(2)(b) or (c) available to any other national departments that have responsibilities relating to the grant.
(4) The receiving officer in a province must— (a) submit, as part of the report required in section 40(4)(c) of the Public Finance
Management Act, reports to the relevant provincial treasury on spending and performance against programmes; and
(b) submit a quarterly performance report within 30 days after the end of each quarter to the relevant provincial treasury and the National Treasury.
(5) The receiving officer must report against programmes funded or partially funded by a Schedule 4 allocation against the relevant framework in the annual financial statements and annual report.
(6) The receiving officer must, within two months after the end of the financial year, and where relevant, the municipal financial year, evaluate the performance of the province or municipality, as the case may be, in respect of programmes funded or partially funded by an allocation and submit such evaluation to the transferring national officer.
Duties of receiving officer in respect of Schedule 5, 6 or 8 allocation
12. (1) The receiving officer of a Schedule 5, 6 or 8 allocation must ensure compliance with the requirements of the relevant framework.
(2) 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)(c) of the Public Finance Management Act, report on the matters referred to in subsection (3) and submit a copy of the section 40(4)(c) 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 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, the relevant provincial treasury and the National Treasury.
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(3) A report by a province in terms of subsection (2)(a) must set out for that month and 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
a programme funded by a Schedule 5 allocation on behalf of a province or to assist the province in implementing such a programme;
(e) the most up to date available figures regarding the actual expenditure by a public entity referred to in paragraph (d);
(f) the extent of compliance with this Act and with the conditions of an allocation provided for in a framework;
(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;
(h) any matter or information that may be prescribed in the relevant framework for the particular allocation; and
(i) such other issues and information as the National Treasury may determine. (4) A report by a municipality in terms of subsection (2)(b) must set out for that month
and for the financial year up to the end of that month— (a) the amount received by the municipality; (b) the amount of funds stopped or withheld from the municipality; (c) the extent of compliance with this Act and with the conditions of an allocation
or part of an allocation provided for in a framework; (d) an explanation of any material problems experienced by the municipality
regarding an allocation which has been received and a summary of the steps taken to deal with such problems;
(e) any matter or information that may be prescribed in the relevant framework for the particular allocation; and
(f) such other issues and information as the National Treasury may determine. (5) (a) Subsections (2) and (3) do not apply to the receiving officer of the Gautrain
Rapid Rail Link Grant. (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 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).
(6) The receiving officer of the 2010 FIFA World Cup Stadiums Development Grant must, in addition to what is provided in subsection (2)—
(a) submit a final report on the stadium construction programme, including all expenditure and a reconciliation of those bank accounts that were used for the stadium construction programme; 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 Management Act.
(7) A 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 or functions funded or partially funded by an allocation and submit such evaluation to the transferring national officer.
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Duties in respect of annual financial statements and annual reports for 2010/11
13. (1) The 2010/11 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 requirements in terms of any other applicable law—
(a) indicate the total amount of that allocation transferred to a province or municipality;
(b) indicate the transfers, if any, that were withheld in respect of each province or municipality;
(c) indicate any re-allocations by the National Treasury in terms of section 18 or by the transferring national officer in respect of the Expanded Public Works Programme Incentive Grant;
(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
(e) indicate the funds, if any, utilised for the administration of the allocation by the receiving officer.
(2) The 2010/11 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—
(a) indicate the reasons for the withholding of any transfers to a province or municipality;
(b) indicate to what extent provinces or municipalities were monitored for compliance with this Act and the conditions of an allocation provided for in the relevant framework;
(c) indicate to what extent the allocation achieved its purpose and outputs; and (d) indicate any non-compliance with this Act or the relevant framework, and the
steps taken to deal with such non-compliance. (3) The 2010/11 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 of any other applicable law—
(a) indicate the total amount of all allocations received; (b) indicate the total amount of actual expenditure on all allocations except
Schedule 4 allocations; and (c) certify that all transfers in terms of this Act to the province were deposited into
the primary bank account of the province or, where appropriate, into the corporation for public deposits account of a province.
(4) The 2010/11 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—
(a) indicate to what extent the provincial department complied with the provisions of this Act and met the conditions provided for in the relevant framework of such an allocation;
(b) indicate the steps taken to deal with non-compliance with any of the provisions of this Act or the conditions provided for in the relevant framework of such an allocation;
(c) indicate the extent to which the objectives and outputs of the allocation were achieved;
(d) contain any other information that may be specified in the relevant framework for the allocation; and
(e) contain such other information as the National Treasury may determine. (5) The 2010/11 financial statements and annual report of a municipality must be
prepared in accordance with the Municipal Finance Management Act. (6) The National Treasury may determine how transferring departments and receiving
municipalities report on local government allocations on a quarterly basis, to facilitate the audit of allocations for both the national and municipal financial years.
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Part 3
General matters relating to Schedule 4, 5, 6, 7 or 8 allocations
Publication of allocations and frameworks
14. (1) The National Treasury must, within 14 days of this Act taking effect, publish in the Gazette—
(a) the allocations per municipality, in respect of Schedule 4 and 6 allocations; (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; and
(d) the framework for each Schedule 4, 5, 6, 7 or 8 allocation. (2) The National Treasury must publish in the Gazette—
(a) any revisions of or amendments to the frameworks published in terms of subsection (1);
(b) any virement which is made in accordance with the requirements of section 6(3) of this Act and 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 6 or a Schedule 7 allocation in terms of section 19;
(d) any re-allocations by the National Treasury in accordance with section 18 or the transferring national officer in respect of the Expanded Public Works Programme Incentive Grant;
(e) any revised allocations in respect of Schedule 7 allocations; and (f) any revised indicative allocations, performance and threshold targets for the
Expanded Public Works Programme Incentive Grant. (3) The National Treasury may at any time, after consultation with or at the written
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.
(4) An amendment, revision, virement or re-allocation takes effect on publication thereof in the Gazette.
Spending in terms of purpose and subject to conditions
15. (1) Despite anything to the contrary contained in any law, an allocation referred to 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 14.
(2) A receiving officer may not transfer any Schedule 5 or 6 allocation or a portion of such an allocation to any other entity or other sphere of government for the performance of a function envisaged in terms of the allocation, unless the receiving officer has entered into a payment schedule with the entity or other sphere of government that will be performing the function, that has been approved by the National Treasury, and—
(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 14;
(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 adequate documentation for payment has been received; or
(c) in the case of an advance payment or a transfer which is 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 that there are good reasons for the advance payment or transfer; and
(ii) the National Treasury has approved the advance payment or transfer. (3) No public entity, other than Eskom Holdings Limited in respect of funds received
from the Department of Energy and water boards in respect of funds received from the
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Department of Water Affairs for the implementation of Schedule 7 allocations, may receive funds for the provision of a municipal service or 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.
(4) In respect of the Human Settlements Development Grant, a receiving officer and an accredited municipality must, by 31 May 2010, comply with the requirements of subsection (2), by—
(a) entering into a payment schedule; and (b) submitting the payment schedule to the National Treasury for approval.
(5) A receiving officer must request the National Treasury to amend the payment schedule referred to in subsection (4), in accordance with the procedure set out in section 22, in instances where a transfer to an accredited municipality has been withheld or stopped in terms of section 16 or 17.
Withholding of allocation
16. (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 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 20 have not been spent; or
(c) expenditure on previous transfers during the financial year reflects significant under-spending, for which no satisfactory explanation is given.
(2) The Health Professions Training and Development Grant and the National Tertiary Services Grant may not be withheld in terms of this section.
(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 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; and
(b) inform the relevant provincial treasury and the National Treasury. (4) A notice contemplated in subsection (3) must include the reasons for withholding
the allocation and the intended duration of the withholding. (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, but not exceeding 120 days, if the withholding will—
(i) facilitate compliance with this Act or the conditions to which the allocation is subject; or
(ii) minimise the risk of under-spending. (b) A transferring national officer must, when requesting the withholding of an
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 issues an instruction or approves a request in terms of paragraph (a).
(6) (a) In respect of the Human Settlements Development Grant, a receiving officer may, in consultation with the transferring national officer, the relevant provincial
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treasury and the National Treasury, withhold a transfer to an accredited municipality, if the conditions set out in subsection (1) exist.
(b) A receiving officer, prior to withholding a transfer to an accredited municipality, must comply with the notice requirements stipulated in subsections (3) and (4).
(c) A receiving officer may request the transferring national officer to seek the approval of the National Treasury that a transfer to an accredited municipality be withheld for a period longer than 30 days, in terms of subsection (5).
Stopping of allocation
17. (1) Despite section 16, the National Treasury may, in its discretion or at the request of a transferring national officer, or a receiving officer in the case of the Human Settlements Development Grant, stop the transfer of a Schedule 4, 5 or 6 allocation referred to in section 16(1) to a province or municipality—
(a) on the grounds of persistent and material non-compliance 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
(b) 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—
(a) comply with the requirements set out in section 16(3)(a), and in respect of a municipality, also with the requirements of 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. (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 the National Revenue Fund.
Re-allocation of funds
18. (1) (a) The National Treasury may, when it stops a Schedule 4, 5 or 6 allocation in terms of section 17, after consultation with the transferring national officer and the relevant provincial treasury, determine that a portion of the allocation that will not be spent be re-allocated, as the same type of grant allocation as it was allocated originally, to one or more provinces or municipalities, on condition that the allocation will be spent in the financial year or the next financial year.
(b) The re-allocation of a portion of an allocation or the full allocation on condition that the allocation will be spent in the next financial year, in terms of paragraph (a), must be deemed to be a roll-over approved by the National Treasury in terms of section 20(2)(a), and the roll-over process set out in Treasury Regulation 6.4.2 would not need to be followed.
(2) (a) Despite subsection (1), the National Treasury may, when an intervention in terms of the Constitution or section 137, 139 or 150 of the Municipal Finance Management Act is taking place, on such conditions as it may determine, authorise—
(i) in relation to section 100 of the Constitution, the transferring national officer to spend an allocation stopped in terms of section 17 on behalf of the relevant province;
(ii) in relation to section 139 of the Constitution and sections 137 and 139 of the Municipal Finance Management Act, the intervening province to spend an allocation stopped in terms of section 17 on behalf of the relevant municipality; or
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(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 17 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 a Schedule 7 allocation from the date on which the authorisation is given.
Conversion of Schedule 6 and Schedule 7 allocations
19. (1) The National Treasury may, in its discretion or at the request of the transferring national officer, convert an allocation listed in Schedule 6 to become an allocation listed in Schedule 7, or convert an allocation listed in Schedule 7 to become an allocation listed in Schedule 6, if the National Treasury is satisfied that the conversion will prevent under-spending on the allocation.
(2) An allocation that is converted in terms of this section must be paid to or expended on behalf of the same municipality to which the allocation was originally made.
(3) A conversion referred to in subsection (1) takes effect on the date of publication referred to in section 14(2)(c).
(4) The National Treasury must inform the transferring national officer and each affected receiving municipality of a conversion.
Unspent conditional allocations
20. (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 and the Expanded Public Works Programme Incentive Grant, that is, in the case of a province, not 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, 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.
(3) Any funds which must revert to the National Revenue Fund in terms of subsection (1), and which have not been approved by the National Treasury to be retained in terms of subsection (2), must be repaid to the National Revenue Fund.
(4) The National Treasury, in accordance with subsection (5), may set-off any funds which must be repaid to the National Revenue Fund in terms of subsections (1) and (3), but which have not been repaid—
(a) in the case of a province, against future conditional grant allocations to that province; and
(b) in the case of a municipality, against future equitable share or conditional grant allocations to that municipality.
(5) Prior to the National Treasury setting-off any amounts against allocations to provinces or municipalities in terms of subsection (4), the National Treasury must give the relevant transferring national officer, province or municipality—
(a) written notice of the intention to set-off amounts against upcoming alloca- tions; and
(b) an opportunity, within 14 days of receipt of the notice referred to in paragraph (a), to— (i) submit written representations that prove to the satisfaction of the
National Treasury that the unspent allocation was either spent in
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accordance with the relevant framework, or is committed to identifiable projects;
(ii) propose alternative means acceptable to the National Treasury by which the unspent allocations can be repaid to the National Revenue Fund; and
(iii) propose an alternative payment schedule in terms of which the unspent allocations will be repaid to the National Revenue Fund.
(6) A notice contemplated in subsection (5) must include the intended amount to be set-off against allocations, and the reasons for setting-off the amounts.
(7) Despite anything else contained within this section, the retention of funds which should revert to the National Revenue Fund in terms of subsections (1) and (3), and which have not been approved by the National Treasury to be retained in terms of subsection (2), constitutes financial misconduct in terms of section 34.
CHAPTER 4
MATTERS RELATING TO ALL ALLOCATIONS
Payment schedule
21. (1) (a) The National Treasury determines the payment schedule for the transfer of 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.
(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 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 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 section 139 of the Constitution or section 137, 139 or 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 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 a payment schedule to the National Treasury for approval before 14 April 2010.
(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
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
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relevant province in accordance with regulations issued under the Public Finance Management Act; and
(bb) reflects the portion of any payments due under the agreement referred to in item (aa) payable from the allocation; and
(iii) in relation to a Schedule 5 or 6 allocation, consult the relevant province or municipality.
(4) The transferring national officer of a Schedule 4, 5 or 6 allocation must provide the receiving officer with a copy of the approved payment schedule prior to making the first transfer in accordance therewith.
Amendment of payment schedule
22. (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 terms of section 16 or 17, 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 or financial misconduct, slow spending or accelerated spending, amend any payment schedule for an allocation listed in Schedule 2, 3, 4, 5 or 6 on notification to—
(a) the accounting officer of a provincial treasury, in the case of a provincial allocation; and
(b) the accounting officer of the national department responsible for local 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—
(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
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).
Transfers made in error or fraudulently
23. (1) Despite anything to the contrary contained in any law, the transfer of an allocation to a province, municipality or public entity in error or fraudulently is regarded as not legally due to that province, municipality or public entity, as the case may be.
(2) A transfer contemplated in subsection (1) must be recovered, without delay, by the responsible transferring national officer.
(3) Despite subsection (2), the National Treasury may instruct that the recovery 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.
Allocations not listed in Schedules
24. (1) An allocation, other than— (a) a re-allocation referred to in section 18 or in respect of the Expanded Public
Works Programme Incentive Grant; or (b) a revised indicative allocation in respect of a Schedule 7 or 8 grant, which is
not listed in the Schedules referred to in sections 7 and 8, may only be made in terms of section 6(3).
(2) The National Treasury must publish the allocations and frameworks for such allocations in the Gazette, prior to the transfer of any funds to a province or municipality.
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Authorisation of expenditure
25. (1) Despite anything to the contrary contained in any law, to defray expenditure of an exceptional nature which cannot, without serious prejudice to the public interest, be postponed to a future appropriation of funds—
(a) the Minister may, in accordance with section 16 of the Public Finance Management Act and subject to conditions, make an allocation to a province or municipality from the National Revenue Fund; and
(b) the MEC for Finance in a province may, in accordance with section 25 of the Public Finance Management Act and subject to conditions, make an allocation to a municipality from the Provincial Revenue Fund.
(2) The relevant treasury must publish any allocation and the conditions subject to which the allocations were made, if any, in the Gazette.
(3) In addition to what is provided in subsection (1), and despite any contrary provision contained in any 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
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.
(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.
Preparations for next financial year and 2012/13 financial year
26. (1) (a) A provincial department responsible for implementing the Infrastructure Grant to Provinces must, by a date determined by the provincial treasury, submit detailed infrastructure plans in a format determined by the National Treasury, to the provincial treasury, and the provincial treasury must submit the infrastructure plans to the National Treasury by 31 August 2010.
(b) The infrastructure plans must indicate the prioritised projects to be funded from the allocations for the next financial year and the 2012/13 financial year, as set out in 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 National Treasury by 27 August 2010, 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 2012/13 financial year, and that infrastructure budgets are aligned with the 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.
(2) (a) A category C municipality that receives an equitable share, a conditional allocation, or both, in terms of this Act must, using the envisaged conditional allocations to that municipality for the next financial year and the 2012/13 financial year as set out in Column B of the Schedules, by 1 October 2010—
(i) agree on the provisional allocations and the projects to be funded from those allocations in the next financial year and the 2012/13 financial year with each
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category B municipality within the category C municipality’s area of jurisdiction; and
(ii) submit to the transferring national officer— (aa) the provisional allocations referred to in subparagraph (i); and (bb) the prioritised projects contemplated in subparagraph (i) listed per
municipality to be funded from the allocations for the next financial year and the 2012/13 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.
(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 referred to in paragraph (b).
(d) Any proposed amendment or adjustment of the allocations published in terms of section 29(3)(b) must be agreed with the relevant category B municipality, the transferring national officer and the National Treasury, prior to the submission of the allocations referred to in paragraph (a)(ii).
(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 2010, the National Treasury may proceed to determine the provisional allocations and provide those provisional allocations to the municipali- ties concerned and the transferring national officer.
(f) (i) The final allocations based on the provisional allocations referred to in paragraphs (a)(i) and (ii) and (e) must be submitted to the National Treasury by 7 December 2010.
(ii) If the transferring national officer fails to submit the allocations referred to in subparagraph (i) by 7 December 2010, the National Treasury may determine the appropriate allocations, taking into consideration the envisaged allocations for the next financial year.
(3) (a) The transferring national officer of a conditional allocation, using the envisaged conditional allocations for the next financial year and the 2012/13 financial year as set out in Column B of the Schedules to this Act, must, by 1 October 2010, submit to the National Treasury for approval—
(i) the provisional allocations to each province or municipality in respect of new conditional allocations to be made in the next financial year;
(ii) any amendments to the envisaged allocations for each province or municipal- ity set out in Column B of the Schedules in respect of existing conditional allocations; and
(iii) the draft frameworks for the allocations referred to in subparagraphs (i) and (ii) in the format to be determined by the National Treasury.
(b) Any proposed amendment or adjustment for the next financial year of the allocation criteria of an existing conditional allocation must be agreed 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 1 October 2010, determine—
(i) the provisional allocations referred to in paragraph (a)(i); (ii) any amendments to the envisaged allocations referred to 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
paragraph (a)(i) and (ii) must be submitted to the National Treasury by 7 December 2010.
(ii) If the transferring national officer fails to submit the allocations referred to in subparagraph (i) by 7 December 2010, the National Treasury may determine the appropriate allocations, taking into consideration the envisaged allocations for the next financial year.
(4) The National Treasury may, in preparation for the next financial year, instruct transferring national officers, receiving officers and municipalities to submit to it such
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plans and information for any conditional allocation as it may determine at specified times prior to the start of the next financial year.
Expenditure prior to commencement of Division of Revenue Act, 2011
27. 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 2011, 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 province or municipality as a direct charge against the National Revenue Fund.
CHAPTER 5
DUTIES OF MUNICIPALITIES, PROVINCIAL TREASURIES AND NATIONAL TREASURY
Duties of municipalities
28. (1) (a) In addition to the requirements of the Municipal Finance Management Act, the accounting officer of a category C municipality must, no later than 14 April 2010, 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 2010/11 municipal financial year, and 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.
(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.
(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 Municipal Structures Act; and
(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—
(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.
(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 (1)(b) to be transferred to the category B municipality in that financial year, and the category C municipality must submit the payment schedule to the National Treasury.
(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—
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(i) make allocations referred to in subsection (1)(b); (ii) reach an agreement contemplated in subsection (2); or
(iii) submit a payment schedule in accordance with subsection (5)(a). (b) Sections 16(3) and 17(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 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.
(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.
(8) In addition to the requirements of the Municipal Finance Management Act, the disposal by a municipality of a stadium that was built or upgraded with funding allocated in terms of the FIFA World Cup Stadiums Development Grant is subject to the approval of the transferring national officer for the FIFA World Cup Stadiums Development Grant and the National Treasury.
(9) In respect of the Human Settlements Development Grant, the financial and non-financial reporting that is required to be submitted by the accredited municipality in terms of the grant framework must relate to the requirements specified in the grant framework.
(10) An accredited municipality must submit the required monthly financial and quarterly performance reports to the receiving officer, the transferring national officer and the National Treasury.
Duties of provincial treasuries
29. (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 than 14 April 2010, publish the following in the Gazette:
(i) the indicative allocation per municipality for every allocation to be made by the province to municipalities from the province’s own funds;
(ii) the indicative allocation to be made per school in the province; (iii) 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;
(iv) the envisaged division of the allocation contemplated in subparagraphs (i) to (iii), in respect of each municipality and school, for the next financial year and the 2012/13 financial year;
(v) the conditions and other information in respect of the allocations referred to in subparagraphs (i), (ii) and (iii) to facilitate performance measurement and the use of required inputs and outputs; and
(vi) 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 Gazette within 14 days of the legislature passing the appropriation Bill, which
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allocations must align to the appropriation Bill as passed by the legislature, and which must be deemed to be final.
(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).
(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).
(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 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—
(i) actual transfers received by the province from national departments; (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 expendi-
ture by municipalities on such allocations. (b) The report contemplated in paragraph (a) must include reports for each quarter,
and be in the format and include the information as may be determined by the National Treasury.
(6) A provincial treasury must— (a) ensure—
(i) that a payment schedule is agreed between each provincial department and receiving institution referred to in subsection (2)(a); and
(ii) that transfers are made in accordance therewith; and (b) submit the payment schedules to the National Treasury within 14 days of the
commencement of the financial year.
Duties of National Treasury
30. (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 of all allocations listed in the Schedules referred to in sections 7 and 8 or made in terms of section 24.
(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 report on the equitable share and conditional allocations provided for in this Act.
CHAPTER 6
GENERAL
Allocations by public entities to provinces or municipalities
31. 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 financial statements the purpose and amount of each such grant, sponsorship or donation received.
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Liability for costs incurred in violation of principles of cooperative governance and intergovernmental relations
32. (1) An organ of state involved in an intergovernmental dispute regarding any provision of this Act or any division of revenue matter or allocation must, 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 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 of state not to comply with the requirements of subsection (1).
Unauthorised and irregular expenditure
33. (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:
(a) a transfer prohibited in terms of section 15(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; or (iii) in respect of the Gautrain Rapid Rail Link Grant, the dedicated banking
account configuration established for the transfer of the Gautrain Rapid Rail Link Grant in accordance with the directive issued by the National Treasury under section 10(2)(a) of the Division of Revenue Act, 2006 (Act No. 2 of 2006).
(2) Any transfer made or spending of an allocation in contravention of this Act or a framework published in terms of this Act, constitutes irregular expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act.
Financial misconduct
34. (1) Despite anything to the contrary contained in any law, any serious or persistent non-compliance with a provision of this Act or a framework published in terms of this Act, and in particular, any non-compliance with section 26, constitutes financial misconduct.
(2) Section 84 of the Public Finance Management Act and section 171(4) of the Municipal Finance Management Act apply in respect of financial misconduct contemplated subsection (1).
Delegations and assignments
35. (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—
(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
assigned duty to another National Treasury official; and
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(c) does not divest the National Treasury of the responsibility concerning the exercise of the delegated power or the performance of the assigned duty.
(3) The Minister may confirm, vary or revoke any decision taken by an official as a result of a delegation, subject to any rights that may have vested as a consequence of the decision.
Exemptions
36. (1) The National Treasury may, on written application by a transferring national officer, province, or municipality, exempt such officer, province, or municipality in writing from complying with a provision of this Act.
(2) Any exemption granted in terms of subsection (1) must set out the period and conditions, if any, to which it is subject and must be published in the Gazette.
Regulations
37. The Minister may, by notice in the Gazette, make regulations regarding— (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
necessary to prescribe for the proper implementation or administration of this Act.
Repeal of laws
38. (1) Subject to subsection (2), the Division of Revenue Act, 2009 (Act No. 12 of 2009), with the exception of sections 33 and 47, is hereby repealed.
(2) The repeal of the Division of Revenue Act, 2009 (Act No. 12 of 2009), does not affect any duty or obligation set out in that Act, the execution of which is still outstanding.
Short title and commencement
39. This Act is called the Division of Revenue Act, 2010, and takes effect on 1 April 2010 or the date of publication thereof by the President in the Gazette, whichever is the later date.
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SCHEDULE 1
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
National 1,2 527 001 492 573 709 007 632 299 464
Provincial 260 973 745 280 688 678 294 779 975
Local 30 167 706 33 939 901 37 234 396
TOTAL 818 142 943 888 337 586 964 313 835
1. National share includes conditional allocations to provincial and local spheres, general fuel
1. levy sharing with metropolitan municipalities, debt service cost and the contingency reserve.
2. The direct charges for the provincial equitable share are netted out.
SCHEDULE 2
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Eastern Cape 40 134 424 42 856 005 44 693 156
Free State 15 959 310 17 054 636 17 787 796
Gauteng 45 134 335 48 791 833 51 459 021
KwaZulu-Natal 56 742 834 61 358 875 64 761 099
Limpopo 33 237 814 35 397 976 36 820 351
Mpumalanga 21 323 198 22 864 675 23 943 495
Northern Cape 7 101 615 7 556 611 7 962 754
North West 17 314 124 18 680 341 19 681 857
Western Cape 24 026 091 26 127 726 27 670 446
TOTAL 260 973 745 280 688 678 294 779 975
EQUITABLE DIVISION OF REVENUE RAISED NATIONALLY AMONG
THE THREE SPHERES OF GOVERNMENT
DETERMINATION OF EACH PROVINCE'S EQUITABLE SHARE OF THE
PROVINCIAL SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
(as a direct charge against the National Revenue Fund)
Province 2010/11
Allocation
Spheres of Government 2010/11
Allocation
50 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
EASTERN CAPE
A NMA Nelson Mandela Bay 602 883 686 623 759 738
B EC101 Camdeboo 29 339 33 081 36 392
B EC102 Blue Crane Route 31 051 35 012 38 515
B EC103 Ikwezi 11 553 13 010 14 297
B EC104 Makana 53 620 60 557 66 657
B EC105 Ndlambe 43 896 49 614 54 629
B EC106 Sunday's River Valley 25 710 28 959 31 837
B EC107 Baviaans 12 094 13 619 14 969
B EC108 Kouga 34 882 39 829 44 020
B EC109 Kou-Kamma 22 754 25 642 28 202
C DC10 Cacadu District Municipality 69 387 73 487 77 298
Total: Cacadu Municipalities 334 287 372 811 406 817
B EC121 Mbhashe 77 759 87 555 96 241
B EC122 Mnquma 112 592 126 838 139 485
B EC123 Great Kei 24 084 27 121 29 826
B EC124 Amahlathi 69 462 78 216 86 017
B EC125 Buffalo City 508 895 583 459 643 912
B EC126 Ngqushwa 47 261 53 215 58 522
B EC127 Nkonkobe 72 656 81 821 89 988
B EC128 Nxuba 16 259 18 314 20 141
C DC12 Amatole District Municipality 481 040 516 050 565 555
Total: Amatole Municipalities 1 410 008 1 572 589 1 729 686
B EC131 Inxuba Yethemba 32 832 37 003 40 712
B EC132 Tsolwana 19 031 21 409 23 526
B EC133 Inkwanca 13 503 15 201 16 709
B EC134 Lukhanji 86 908 97 879 107 646
B EC135 Intsika Yethu 69 276 77 962 85 679
B EC136 Emalahleni 51 330 57 778 63 510
B EC137 Engcobo 46 997 52 915 58 166
B EC138 Sakhisizwe 27 217 30 659 33 721
C DC13 Chris Hani District Municipality 281 530 316 327 347 648
Total: Chris Hani Municipalities 628 623 707 132 777 317
B EC141 Elundini 50 021 56 309 61 879
B EC142 Senqu 66 493 74 893 82 378
B EC143 Maletswai 17 620 19 842 21 814
B EC144 Gariep 19 221 21 663 23 832
C DC14 Ukhahlamba District Municipality 125 943 141 618 155 629
Total: Ukhahlamba Municipalities 279 299 314 324 345 532
B EC151 Mbizana 75 758 85 262 93 698
B EC152 Ntabankulu 41 957 47 220 51 884
B EC153 Ngquza Hill 73 505 82 747 90 938
B EC154 Port St Johns 44 714 50 321 55 292
B EC155 Nyandeni 88 682 99 862 109 800
B EC156 Mhlontlo 67 972 76 537 84 145
B EC157 King Sabata Dalindyebo 127 858 144 365 159 022
C DC15 O.R.Tambo District Municipality 406 208 456 876 502 252
Total: O.R.Tambo Municipalities 926 655 1 043 190 1 147 030
B EC442 Umzimvubu 71 442 80 440 88 427
B EC441 Matatiele 71 817 80 870 88 896
C DC44 Alfred Nzo District Municipality 125 171 140 777 154 706
Total: Alfred Nzo Municipalities 268 431 302 088 332 029
Total: Eastern Cape Municipalities 4 450 185 4 998 756 5 498 148
2010/11
Allocation Number Municipality
52 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
FREE STATE
B FS161 Letsemeng 40 637 45 817 50 407
B FS162 Kopanong 72 760 82 060 90 301
B FS163 Mohokare 40 862 46 076 50 691
C DC16 Xhariep District Municipality 13 372 14 528 15 565
Total: Xhariep Municipalities 167 631 188 481 206 964
B FS171 Naledi 29 882 33 691 37 064
B FS172 Mangaung 494 273 565 491 624 239
B FS173 Mantsopa 53 916 60 809 66 908
C DC17 Motheo District Municipality 152 312 157 537 144 936
Total: Motheo Municipalities 730 383 817 527 873 146
B FS181 Masilonyana 66 189 74 634 82 113
B FS182 Tokologo 34 525 38 912 42 800
B FS183 Tswelopele 48 822 55 048 60 561
B FS184 Matjhabeng 358 900 406 057 447 544
B FS185 Nala 111 999 126 326 139 012
C DC18 Lejweleputswa District Municipality 90 922 96 169 101 063
Total: Lejweleputswa Municipalities 711 356 797 146 873 093
B FS191 Setsoto 133 874 151 000 166 160
B FS192 Dihlabeng 103 057 116 494 128 277
B FS193 Nketoana 62 145 70 092 77 121
B FS194 Maluti a Phofung 267 069 301 604 332 128
B FS195 Phumelela 44 238 49 871 54 858
C DC19 Thabo Mofutsanyana District Municipality 59 868 64 177 68 114
Total: Thabo Mofutsanyana Municipalities 670 251 753 237 826 659
B FS201 Moqhaka 135 789 153 130 168 490
B FS203 Ngwathe 126 766 142 969 157 312
B FS204 Metsimaholo 79 048 89 636 98 891
B FS205 Mafube 61 766 69 644 76 618
C DC20 Fezile Dabi District Municipality 122 988 128 476 133 751
Total: Fezile Dabi Municipalities 526 357 583 856 635 062
Total: Free State Municipalities 2 805 978 3 140 248 3 414 925
54 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
GAUTENG
A EKU Ekurhuleni 1 471 409 1 677 189 1 856 224
A JHB City of Johannesburg 1 704 648 1 969 607 2 203 924
A TSH City of Tshwane 717 978 827 506 921 982
B GT461 Nokeng tsa Taemane 28 495 32 249 35 538
B GT462 Kungwini 65 336 74 383 82 150
C DC46 Metsweding District Municipality 26 015 27 667 29 188
Total: Metsweding Municipalities 119 846 134 299 146 876
B GT421 Emfuleni 498 815 564 602 622 584
B GT422 Midvaal 37 448 42 593 47 026
B GT423 Lesedi 48 093 54 400 59 922
C DC42 Sedibeng District Municipality 213 221 222 569 231 574
Total: Sedibeng Municipalities 797 577 884 164 961 105
B GT481 Mogale City 173 321 196 622 217 050
B GT482 Randfontein 73 559 83 491 92 105
B GT483 Westonaria 79 143 89 229 98 192
B NW405 Merafong City 147 257 166 393 183 414
C DC48 West Rand District Municipality 160 459 168 637 176 554
Total: West Rand Municipalities 633 739 704 373 767 315
Total: Gauteng Municipalities 5 445 197 6 197 137 6 857 427
56 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
KWAZULU-NATAL
A ETH eThekwini 1 414 534 1 631 503 1 787 032
B KZN211 Vulamehlo 24 501 27 573 30 296
B KZN212 uMdoni 20 802 23 487 25 849
B KZN213 Umzumbe 60 966 68 625 75 428
B KZN214 uMuziwabantu 30 377 34 213 37 616
B KZN215 Ezinqolweni 18 112 20 395 22 425
B KZN216 Hibiscus Coast 70 295 79 826 88 144
C DC21 Ugu District Municipality 199 841 224 181 246 271
Total: Ugu Municipalities 424 894 478 301 526 029
B KZN221 uMshwathi 41 165 46 346 50 962
B KZN222 uMngeni 26 617 30 313 33 486
B KZN223 Mpofana 16 695 18 813 20 696
B KZN224 Impendle 16 386 18 443 20 274
B KZN225 Msunduzi 267 211 309 968 343 311
B KZN226 Mkhambathini 20 601 23 183 25 478
B KZN227 Richmond 21 684 24 409 26 835
C DC22 uMgungundlovu District Municipality 258 183 272 874 297 778
Total: uMgungundlovu Municipalities 668 542 744 347 818 820
B KZN232 Emnambethi-Ladysmith 83 304 94 065 103 561
B KZN233 Indaka 44 140 49 711 54 667
B KZN234 Umtshezi 21 569 24 411 26 893
B KZN235 Okhahlamba 44 542 50 161 55 157
B KZN236 Imbabazane 47 956 53 996 59 382
C DC23 Uthukela District Municipality 198 196 222 676 244 720
Total:Uthukela Municipalities 439 707 495 021 544 379
B KZN241 Endumeni 19 788 22 437 24 741
B KZN242 Nquthu 47 451 53 432 58 735
B KZN244 Msinga 46 328 52 132 57 271
B KZN245 Umvoti 30 040 33 838 37 203
C DC24 Umzinyathi District Municipality 132 014 148 391 163 102
Total: Umzinyathi Municipalities 275 622 310 230 341 052
B KZN252 Newcastle 225 777 255 395 281 462
B KZN253 eMadlangeni 9 622 10 817 11 875
B KZN254 Dannhauser 34 578 38 930 42 798
C DC25 Amajuba District Municipality 78 331 86 968 95 266
Total: Amajuba Municipalities 348 308 392 110 431 401
B KZN261 eDumbe 26 395 29 732 32 694
B KZN262 uPhongolo 43 874 49 420 54 356
B KZN263 Abaqulusi 57 815 65 083 71 546
B KZN265 Nongoma 49 419 55 621 61 124
B KZN266 Ulundi 56 601 63 711 70 018
C DC26 Zululand District Municipality 198 670 223 201 245 293
Total: Zululand Municipalities 432 774 486 768 535 032
B KZN271 Umhlabuyalingana 35 750 40 230 44 195
B KZN272 Jozini 48 546 54 641 60 038
B KZN273 The Big Five False Bay 9 747 10 956 12 026
B KZN274 Hlabisa 39 265 44 144 48 471
B KZN275 Mtubatuba 12 309 13 861 15 239
C DC27 Umkhanyakude District Municipality 133 129 149 636 164 469
Total: Umkhanyakude Municipalities 278 746 313 468 344 438
58 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
B KZN281 Mfolozi 31 241 35 138 38 604
B KZN282 uMhlathuze 145 629 165 170 182 243
B KZN283 Ntambanana 14 750 16 575 18 199
B KZN284 Umlalazi 58 565 65 906 72 422
B KZN285 Mthonjaneni 18 193 20 491 22 530
B KZN286 Nkandla 34 332 38 627 42 427
C DC28 uThungulu District Municipality 259 978 288 406 315 853
Total: uThungulu Municipalities 562 687 630 313 692 277
B KZN291 Mandeni 49 629 55 886 61 456
B KZN292 KwaDukuza 50 940 58 202 64 441
B KZN293 Ndwedwe 43 443 48 882 53 707
B KZN294 Maphumulo 33 488 37 695 41 426
C DC29 iLembe District Municipality 178 694 200 114 219 728
Total: iLembe Municipalities 356 194 400 779 440 757
B KZN431 Ingwe 35 213 39 645 43 579
B KZN432 Kwa Sani 8 754 9 857 10 832
B KZN433 Greater Kokstad 36 196 40 906 45 058
B KZN434 Ubuhlebezwe 35 479 39 934 43 888
B KZN435 Umzimkhulu 59 411 66 898 73 551
C DC43 Sisonke District Municipality 156 284 175 760 193 166
Total: Sisonke Municipalities 331 336 373 000 410 073
Total: KwaZulu-Natal Municipalities 5 533 344 6 255 840 6 871 291
60 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
LIMPOPO
B LIM473 Makhuduthamaga 107 338 120 858 132 909
B LIM474 Fetakgomo 33 103 37 236 40 907
B LIM471 Greater Marble Hall 52 272 58 862 64 744
B LIM472 Elias Motsoaledi 100 148 112 761 124 019
B LIM475 Greater Tubatse 94 525 106 448 117 053
C DC47 Greater Sekhukhune District Municipality 274 264 307 959 338 391
Total: Greater Sekhukhune Municipalities 661 651 744 124 818 022
B LIM331 Greater Giyani 100 047 112 636 123 862
B LIM332 Greater Letaba 100 445 113 119 124 422
B LIM333 Greater Tzaneen 154 949 174 825 192 570
B LIM334 Ba-Phalaborwa 47 605 53 625 58 982
B LIM335 Maruleng 39 323 44 259 48 656
C DC33 Mopani District Municipality 363 483 408 208 448 567
Total: Mopani Municipalities 805 851 906 671 997 058
B LIM341 Musina 24 045 27 089 29 800
B LIM342 Mutale 29 975 33 725 37 057
B LIM343 Thulamela 202 015 227 875 250 961
B LIM344 Makhado 185 483 209 219 230 428
C DC34 Vhembe District Municipality 371 246 417 712 459 245
Total: Vhembe Municipalities 812 764 915 619 1 007 490
B LIM351 Blouberg 60 017 67 577 74 303
B LIM352 Aganang 55 215 62 140 68 297
B LIM353 Molemole 57 083 64 282 70 706
B LIM354 Polokwane 307 859 347 758 383 056
B LIM355 Lepelle-Nkumpi 93 674 105 472 115 985
C DC35 Capricorn District Municipality 316 939 353 462 387 666
Total: Capricorn Municipalities 890 787 1 000 691 1 100 015
B LIM361 Thabazimbi 45 148 50 926 56 038
B LIM362 Lephalale 72 053 81 258 89 410
B LIM364 Mookgopong 18 371 20 723 22 799
B LIM365 Modimolle 44 945 50 702 55 794
B LIM366 Bela Bela 35 685 40 292 44 346
B LIM367 Mogalakwena 193 964 218 921 241 058
C DC36 Waterberg District Municipality 85 215 89 991 94 460
Total: Waterberg Municipalities 495 380 552 813 603 905
Total: Limpopo Municipalities 3 666 434 4 119 918 4 526 490
62 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
MPUMALANGA
B MP301 Albert Luthuli 119 231 134 400 147 831
B MP302 Msukaligwa 82 968 93 595 102 977
B MP303 Mkhondo 73 346 82 684 90 941
B MP304 Pixley Ka Seme 66 690 75 197 82 727
B MP305 Lekwa 62 872 70 947 78 073
B MP306 Dipaleseng 35 349 39 859 43 845
B MP307 Govan Mbeki 156 732 177 783 196 161
C DC30 Gert Sibande District Municipality 238 148 248 242 258 009
Total: Gert Sibande Municipalities 835 336 922 708 1 000 563
B MP311 Delmas 40 266 45 473 50 053
B MP312 Emalahleni 146 796 166 569 183 854
B MP313 Steve Tshwete 70 395 80 174 88 591
B MP314 Emakhazeni 28 324 31 933 35 122
B MP315 Thembisile 172 932 194 891 214 399
B MP316 Dr JS Moroka 180 529 203 426 223 761
C DC31 Nkangala District Municipality 282 304 294 137 305 605
Total: Nkangala Municipalities 921 548 1 016 603 1 101 385
B MP321 Thaba Chweu 59 553 67 191 73 946
B MP322 Mbombela 247 674 279 834 308 291
B MP323 Umjindi 36 584 41 278 45 425
B MP324 Nkomazi 196 588 221 861 244 251
B MP325 Bushbuckridge 339 796 383 126 421 623
C DC32 Ehlanzeni District Municipality 166 230 175 478 184 139
Total: Ehlanzeni Municipalities 1 046 425 1 168 768 1 277 676
Total: Mpumalanga Municipalities 2 803 310 3 108 079 3 379 625
64 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
NORTHERN CAPE
B NC451 Moshaweng 47 483 53 490 58 811
B NC452 Ga-Segonyana 48 470 54 657 60 135
B NC453 Gamagara 16 224 18 317 20 161
C DC45 John Taolo Gaetsewe District Municipality 48 852 52 393 55 625
Total: John Taolo Gaetsewe Municipalities 161 029 178 856 194 731
B NC061 Richtersveld 9 197 10 368 11 396
B NC062 Nama Khoi 27 222 30 670 33 724
B NC064 Kamiesberg 9 425 10 596 11 632
B NC065 Hantam 15 680 17 665 19 420
B NC066 Karoo Hoogland 10 139 11 399 12 513
B NC067 Khai-Ma 9 566 10 755 11 806
C DC6 Namakwa District Municipality 29 291 30 898 32 401
Total: Namakwa Municipalities 110 519 122 351 132 892
B NC071 Ubuntu 13 986 15 756 17 319
B NC072 Umsobomvu 23 637 26 638 29 291
B NC073 Emthanjeni 28 011 31 598 34 759
B NC074 Kareeberg 9 050 10 194 11 201
B NC075 Renosterberg 11 249 12 654 13 895
B NC076 Thembelihle 10 815 12 163 13 357
B NC077 Siyathemba 15 440 17 402 19 134
B NC078 Siyancuma 25 818 29 101 32 009
C DC7 Pixley Ka Seme District Municipality 25 666 27 486 29 147
Total: Pixley Ka Seme Municipalities 163 673 182 991 200 112
B NC081 Mier 6 650 7 478 8 207
B NC082 !Kai! Garib 35 787 40 326 44 361
B NC083 //Khara Hais 40 532 45 901 50 578
B NC084 !Kheis 11 788 13 259 14 562
B NC085 Tsantsabane 18 204 20 514 22 554
B NC086 Kgatelopele 11 591 13 047 14 339
C DC8 Siyanda District Municipality 43 532 46 313 48 878
Total: Siyanda Municipalities 168 084 186 839 203 479
B NC091 Sol Plaatje 121 741 138 223 152 568
B NC092 Dikgatlong 34 478 38 858 42 732
B NC093 Magareng 22 648 25 524 28 070
B NC094 Phokwane 50 647 57 089 62 804
C DC9 Frances Baard District Municipality 76 378 83 873 91 549
Total: Frances Baard Municipalities 305 892 343 567 377 723
Total: Northern Cape Municipalities 909 198 1 014 604 1 108 938
66 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
NORTH WEST
B NW371 Moretele 115 673 130 313 143 305
B NW372 Madibeng 217 230 245 326 270 216
B NW373 Rustenburg 206 740 233 949 257 954
B NW374 Kgetlengrivier 32 605 36 751 40 424
B NW375 Moses Kotane 179 214 202 003 222 245
C DC37 Bojanala Platinum District Municipality 224 696 235 536 245 852
Total: Bojanala Platinum Municipalities 976 159 1 083 876 1 179 997
B NW381 Ratlou 49 310 55 522 61 064
B NW382 Tswaing 48 094 54 163 59 572
B NW383 Mafikeng 96 350 108 766 119 833
B NW384 Ditsobotla 61 003 68 671 75 512
B NW385 Ramotshere Moiloa 60 151 67 736 74 496
C DC38 Ngaka Modiri Molema District Municipality 315 958 353 240 387 685
Total: Ngaka Modiri Molema Municipalities 630 866 708 097 778 163
B NW391 Kagisano 42 848 48 234 53 037
B NW392 Naledi 26 405 29 811 32 812
B NW393 Mamusa 24 380 27 458 30 196
B NW394 Greater Taung 72 436 81 527 89 619
B NW395 Molopo 8 606 9 661 10 597
B NW396 Lekwa-Teemane 21 761 24 517 26 967
C DC39 Dr Ruth Segomotsi Mompati District Municipality 165 396 185 831 204 182
Total: Dr Ruth Segomotsi Mompati Municipalities 361 832 407 039 447 410
B NW401 Ventersdorp 35 264 39 755 43 732
B NW402 Tlokwe 69 095 78 447 86 596
B NW403 City of Matlosana 283 801 320 975 353 769
B NW404 Maquassi Hills 58 942 66 471 73 134
C DC40 Dr Kenneth Kaunda District Municipality 147 927 156 244 155 569
Total: Dr Kenneth Kaunda Municipalities 595 029 661 892 712 801
Total: North West Municipalities 2 563 886 2 860 905 3 118 371
68 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL
GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
National Financial Year
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
2010/11
Allocation Number Municipality
WESTERN CAPE
A CPT City of Cape Town 861 811 997 555 1 114 890
B WC011 Matzikama 27 119 30 618 33 710
B WC012 Cederberg 21 423 24 204 26 644
B WC013 Bergrivier 18 735 21 180 23 324
B WC014 Saldanha Bay 26 840 30 735 34 015
B WC015 Swartland 20 979 23 913 26 421
C DC1 West Coast District Municipality 68 704 72 217 75 539
Total: West Coast Municipalities 183 800 202 867 219 654
B WC022 Witzenberg 36 683 41 433 45 613
B WC023 Drakenstein 59 707 68 150 75 428
B WC024 Stellenbosch 34 272 39 423 43 777
B WC025 Breede Valley 53 333 60 629 66 972
B WC026 Langeberg 41 769 47 181 51 948
C DC2 Cape Winelands District Municipality 195 500 203 735 211 710
Total: Cape Winelands Municipalities 421 263 460 550 495 448
B WC031 Theewaterskloof 43 655 49 296 54 272
B WC032 Overstrand 26 920 32 251 34 244
B WC033 Cape Agulhas 13 494 15 306 16 872
B WC034 Swellendam 15 267 17 279 19 028
C DC3 Overberg District Municipality 40 309 42 554 44 650
Total: Overberg Municipalities 139 645 156 686 169 065
B WC041 Kannaland 15 563 17 559 19 313
B WC042 Hessequa 21 258 24 166 26 659
B WC043 Mossel Bay 34 233 38 851 42 854
B WC044 George 58 296 66 591 73 701
B WC045 Oudtshoorn 35 403 39 983 44 009
B WC047 Bitou 17 536 20 458 22 196
B WC048 Knysna 22 279 27 605 28 438
C DC4 Eden District Municipality 126 111 132 354 138 285
Total: Eden Municipalities 330 680 367 566 395 455
B WC051 Laingsburg 6 862 7 728 8 484
B WC052 Prince Albert 7 956 8 945 9 818
B WC053 Beaufort West 22 401 25 300 27 842
C DC5 Central Karoo District Municipality 15 756 17 217 18 525
Total: Central Karoo Municipalities 52 976 59 189 64 669
Total: Western Cape Municipalities 1 990 175 2 244 414 2 459 181
National Total 30 167 706 33 939 901 37 234 396
70 No. 33081 GOVERNMENT GAZETTE, 31 MARCH 2010
Act No. 1, 2010 DIVISION OF REVENUE ACT, 2010
SCHEDULE 4
ALLOCATIONS TO PROVINCES TO SUPPLEMENT THE FUNDING OF PROGRAMMES OR FUNCTIONS FUNDED FROM PROVINCIAL BUDGETS
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Eastern Cape 160 004 170 557 179 085
Free State 75 772 88 894 93 339
Gauteng 42 187 43 965 46 163
(Vote 25) KwaZulu-Natal 135 804 160 176 168 185
Limpopo 144 567 148 123 155 530
Mpumalanga 81 947 95 691 100 475
Northern Cape 58 275 63 954 67 152
North West 100 745 129 485 135 959
Western Cape 63 064 78 476 82 399
TOTAL 862 365 979 321 1 028 287
Health Eastern Cape 160 444 170 071 178 730
(Vote 15) Free State 117 400 124 444 130 930
Gauteng 651 701 690 803 725 310
KwaZulu-Natal 235 771 249 917 261 860
Limpopo 94 085 99 730 103 913
Mpumalanga 76 149 80 718 85 208
Northern Cape 61 802 65 510 68 583
North West 83 324 88 323 93 522
Western Cape 384 711 407 794 428 120
TOTAL 1 865 387 1 977 310 2 076 176
Eastern Cape 557 137 587 327 616 693
Free State 659 469 695 204 729 964
Gauteng 2 561 154 2 699 936 2 834 933
KwaZulu-Natal 1 102 585 1 162 331 1 220 448
Limpopo 257 314 257 314 270 180
Mpumalanga 91 879 96 858 101 700
Northern Cape 225 948 225 948 237 245
North West 179 280 179 280 188 244
Western Cape 1 763 234 1 894 680 1 989 415
TOTAL 7 398 000 7 798 878 8 188 822
Vote Name of allocation Purpose Type of allocation 2010/11
Allocation
Province
To compensate tertiary facilities for the
additional costs associated with the
rendering of tertiary services provision and
spill over effects.
Nationally assigned function to
provinces
To expand the provision of agricultural
support services to promote and facilitate
agricultural development to targeted
groups.
General conditional allocation to
provinces
Support provinces to fund operational costs
associated with training of health
professionals; development and
recruitment of medical specialists in under-
served provinces; and support and
strengthen undergraduate and postgraduate
teaching and training processes in health
facilities.
Nationally assigned function to
provinces
Agriculture,
Forestry and
Fisheries
(b) National Tertiary Services Grant
Comprehensive Agricultural Support
Programme Grant
(a) Health Professions Training and
Development Grant
7 2
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
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H 2 0 1 0
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N o .
1 ,
2 0 1 0
D IV
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T ,
2 0 1 0
SCHEDULE 4
ALLOCATIONS TO PROVINCES TO SUPPLEMENT THE FUNDING OF PROGRAMMES OR FUNCTIONS FUNDED FROM PROVINCIAL BUDGETS
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Vote Name of allocation Purpose Type of allocation 2010/11
Allocation
Province
Eastern Cape 555 208 581 579 610 484
Free State 256 703 273 275 286 827
Gauteng 883 160 928 310 974 354
(Vote 16) KwaZulu-Natal 642 561 681 906 715 785
Limpopo 435 854 452 613 475 046
Mpumalanga 285 563 303 207 318 258
Northern Cape 52 101 52 905 55 530
North West 214 999 224 039 235 188
Western Cape 446 512 474 155 497 616
TOTAL 3 772 661 3 971 989 4 169 088
Eastern Cape 2 010 800 2 305 798 2 520 560
Free State 869 338 997 085 1 091 625
(Vote 9) Gauteng 952 477 1 097 646 1 211 032
KwaZulu-Natal 2 395 763 2 757 467 3 025 901
Limpopo 1 743 422 2 083 089 2 060 678
Mpumalanga 976 347 1 125 906 1 102 946
Northern Cape 598 847 688 471 755 831
North West 973 072 1 118 968 1 228 125
Western Cape 794 845 916 760 1 010 852
TOTAL 11 314 911 13 091 190 14 007 550
Transport Eastern Cape 148 077 166 953 180 460
(Vote 36) Free State 169 264 184 566 195 516
Gauteng 1 496 442 1 577 612 1 635 695
KwaZulu-Natal 714 587 773 473 815 611
Limpopo 214 472 249 498 274 561
Mpumalanga 397 003 420 099 436 626
Northern Cape 30 370 37 565 42 715
North West 60 416 77 211 89 230
Western Cape 632 402 666 255 690 480
TOTAL 3 863 033 4 153 232 4 360 894
General conditional allocation to
provinces
Public Transport Operations Grant To provide supplementary funding towards
public transport services provided by
provincial departments of transport.
Nationally assigned function to
provinces
To help accelerate construction,
maintenance, upgrading and rehabilitation
of new and existing infrastructure in
education, roads, health and agriculture; to
enhance the application of labour intensive
methods in order to maximise job creation
and skills development as encapsulated in
the EPWP guidelines; and to enhance
capacity to deliver infrastructure.
General conditional allocation to
provinces
To ensure the successful transfer of the
further education and training colleges
function to the national Department of
Higher Education and Training.
Higher
Education and
Training
National
Treasury
Infrastructure Grant to Provinces
Further Education and Training Colleges
Grant
7 4
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
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E N
U E
A C
T ,
2 0 1 0
SCHEDULE 4
ALLOCATIONS TO MUNICIPALITIES TO SUPPLEMENT THE FUNDING OF FUNCTIONS FUNDED FROM MUNICIPAL BUDGETS
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Nelson Mandela Bay 182 532 219 532 266 931
Ekurhuleni 501 395 603 030 733 230
City of Johannesburg 556 450 669 245 813 741
City of Tshwane 384 068 461 921 561 654
(Vote 3) eThekwini 595 912 716 707 871 450
City of Cape Town 383 726 461 509 561 153
TOTAL 2 604 083 3 131 944 3 808 159
Cooperative
Governance and
Traditional
Affairs
2010/11
Allocation
City
Municipal Infrastructure Grant (Cities)
Purpose
Supplements the capital revenues of selected large urban municipalities in
order to support their infrastructure investment programmes.
Vote Name of allocation
7 6
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
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E N
U E
A C
T ,
2 0 1 0
SCHEDULE 5
SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Eastern Cape 20 000 40 000 42 000
Free State 26 000 52 000 54 600
Gauteng 10 000 20 000 21 000
(Vote 25) KwaZulu-Natal 30 000 60 000 63 000
Limpopo 20 000 40 000 42 000
Mpumalanga 20 000 40 000 42 000
Northern Cape 30 000 60 000 63 000
North West 20 000 40 000 42 000
Western Cape 24 000 48 000 50 400
TOTAL 200 000 400 000 420 000
Eastern Cape 8 721 9 244 9 707
Free State 4 360 4 622 4 853
Gauteng 3 815 4 044 4 246
KwaZulu-Natal 8 721 9 244 9 706
Limpopo 8 176 8 667 9 100
Mpumalanga 4 904 5 198 5 458
Northern Cape 5 995 6 355 6 672
North West 6 540 6 932 7 279
Western Cape 3 270 3 466 3 640
TOTAL 54 502 57 772 60 661
Arts and Culture Eastern Cape 77 240 80 974 79 273
(Vote 13) Free State 45 197 47 909 50 304
Gauteng 51 619 54 716 57 452
KwaZulu-Natal 38 282 45 401 48 619
Limpopo 62 733 66 497 69 822
Mpumalanga 62 733 66 497 69 822
Northern Cape 65 943 69 900 73 395
North West 59 275 62 832 65 973
Western Cape 49 638 48 694 56 129
TOTAL 512 660 543 420 570 789
To assist vulnerable South African farming
communities to achieve an increase in
agricultural production.
(b) Land Care Programme Grant: Poverty
Relief and Infrastructure Development
Community Library Services Grant
Conditional allocation
Vote 2010/11
Allocation
Province
To transform urban and rural community
library infrastructure, facilities and services
(primarily targeting previously
disadvantaged communities) through a
recapitalised programme at provincial level
in support of local government and national
initiatives.
Conditional allocation
Purpose Type of allocation
To enhance a sustainable conservation of
natural resources through a community-
based participatory approach; create job
opportunities through the Expanded Public
Works programme; and improve food
security within previously disadvantaged
communities.
Name of allocation
Conditional allocationAgriculture,
Forestry and
Fisheries
(a) Ilima/Letsema Projects Grant
7 8
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
E V
E N
U E
A C
T ,
2 0 1 0
SCHEDULE 5
SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Vote 2010/11
Allocation
ProvincePurpose Type of allocationName of allocation
Basic Education Eastern Cape - - -
(Vote 14) Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
Unallocated - 70 000 100 000
TOTAL - 70 000 100 000
Eastern Cape 32 189 34 346 35 322
Free State 10 866 11 772 12 561
Gauteng 26 202 28 175 29 217
KwaZulu-Natal 42 686 45 114 46 876
Limpopo 28 322 28 088 30 012
Mpumalanga 15 392 16 388 17 486
Northern Cape 4 084 4 357 4 649
North West 12 912 14 700 15 685
Western Cape 15 392 16 388 17 486
TOTAL 188 045 199 328 209 294
Eastern Cape 702 936 845 166 909 644
Free State 195 194 244 699 263 367
Gauteng 388 884 509 798 548 691
KwaZulu-Natal 855 285 1 070 013 1 151 644
Limpopo 659 233 829 669 892 964
Mpumalanga 354 341 440 923 474 560
Northern Cape 84 536 105 116 113 135
North West 249 599 305 935 329 301
Western Cape 173 318 227 433 244 784
TOTAL 3 663 326 4 578 752 4 928 090
To enhance the quality of maths and
science in Dinaledi schools by providing
additional resources.
Conditional allocation
Conditional allocationTo provide education and training for
school management teams, learners,
educators and other school support staff to
develop, implement and manage life skills
education in line with the National
Strategic Plan on HIV and Aids, policies
on HIV and Aids, National Curriculum
Statement, drug and substance abuse and
gender equity policies.
To provide nutritious meals to targeted
learners.
Conditional allocation
(c) National School Nutrition Programme
Grant
(a) Dinaledi Schools Grant
(b) HIV and Aids (Life Skills Education)
Grant
8 0
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
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H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
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E N
U E
A C
T ,
2 0 1 0
SCHEDULE 5
SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Vote 2010/11
Allocation
ProvincePurpose Type of allocationName of allocation
Basic Education Eastern Cape 9 549 23 873 25 066
(Vote 14) Free State 7 477 18 693 19 628
Gauteng 17 944 44 861 47 104
KwaZulu-Natal 15 274 38 185 40 095
Limpopo 8 479 21 197 22 257
Mpumalanga 5 869 14 672 15 406
Northern Cape 3 423 8 557 8 984
North West 8 697 21 743 22 830
Western Cape 3 288 8 219 8 630
TOTAL 80 000 200 000 210 000
Health Eastern Cape 690 940 859 157 1 013 609
(Vote 15) Free State 433 583 528 209 615 594
Gauteng 1 277 683 1 609 901 1 922 644
KwaZulu-Natal 1 498 811 1 877 593 2 241 412
Limpopo 514 896 623 404 720 009
Mpumalanga 383 646 484 439 578 384
Northern Cape 182 306 208 307 232 350
North West 475 838 593 638 702 510
Western Cape 554 054 648 314 738 098
TOTAL 6 011 757 7 432 962 8 764 610
Eastern Cape 69 345 73 506 77 185
Free State 37 218 39 451 41 423
Gauteng 92 421 97 966 102 864
KwaZulu-Natal 152 406 161 550 169 627
Limpopo 39 913 42 308 44 423
Mpumalanga 50 107 53 114 55 769
Northern Cape 22 868 24 240 25 452
North West 26 433 28 019 29 419
Western Cape 66 251 70 226 73 737
TOTAL 556 962 590 380 619 899
Conditional allocation
To recapitalise technical schools to
improve the capacity to contribute to skills
development and training.
Conditional allocation
To enable the health sector to develop an
effective response to HIV and Aids; to
support the implementation of the National
Operational Plan for comprehensive HIV
and Aids treatment and care; and to
subsidise in-part funding for the
antiretroviral treatment programme.
Conditional allocationTo continue the development and provision
of adequate mortuary services in all
provinces.
(d) Technical Secondary Schools
Recapitalisation Grant
(a) Comprehensive HIV and Aids Grant
(b) Forensic Pathology Services Grant
8 2
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
E V
E N
U E
A C
T ,
2 0 1 0
SCHEDULE 5
SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Vote 2010/11
Allocation
ProvincePurpose Type of allocationName of allocation
Health Eastern Cape 360 660 386 048 406 909
(Vote 15) Free State 378 426 421 883 442 744
Gauteng 798 609 805 967 837 259
KwaZulu-Natal 500 815 551 698 572 559
Limpopo 323 425 375 672 396 534
Mpumalanga 331 657 360 557 381 419
Northern Cape 420 218 410 892 431 754
North West 326 303 374 074 405 366
Western Cape 580 554 485 501 506 363
TOTAL 4 020 667 4 172 292 4 380 907
Eastern Cape - - -
Free State - - -
(Vote 30) Gauteng - - -
KwaZulu-Natal 133 800 - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
TOTAL 133 800 - -
Eastern Cape 1 598 646 1 802 873 2 561 647
Free State 1 300 691 1 380 185 1 340 021
Gauteng 3 771 831 4 322 945 4 068 497
KwaZulu-Natal 2 714 109 3 149 500 3 327 629
Limpopo 1 234 750 1 415 163 1 648 567
Mpumalanga 975 863 1 118 449 1 250 327
Northern Cape 273 260 313 187 426 941
North West 1 288 770 1 578 161 1 314 907
Western Cape 1 868 843 2 141 905 2 000 165
TOTAL 15 026 763 17 222 368 17 938 701
Conditional allocation
(b) Human Settlements Development Grant To provide funding for the creation of
sustainable human settlements.
Conditional allocation
(a) Housing Disaster Relief Grant To provide emergency relief in support of
reconstruction work to housing and related
infrastructure damaged by storms in
KwaZulu-Natal.
To provide funding to enable provinces to
plan, manage, modernise, rationalise and
transform the infrastructure, health
technology, monitoring and evaluation of
hospitals; and to transform hospital
management and improve quality of care in
line with national policy objectives.
Conditional allocation
Human
Settlements
(c) Hospital Revitalisation Grant
8 4
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
E V
E N
U E
A C
T ,
2 0 1 0
SCHEDULE 5
SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Vote 2010/11
Allocation
ProvincePurpose Type of allocationName of allocation
Public Works Eastern Cape 147 467 156 315 164 131
(Vote 6) Free State 154 158 163 408 171 578
Gauteng 191 381 202 864 213 007
KwaZulu-Natal 259 891 275 485 289 259
Limpopo 15 154 16 063 16 866
Mpumalanga 44 374 47 036 49 388
Northern Cape 29 698 31 480 33 054
North West 72 718 77 081 80 935
Western Cape 181 351 192 232 201 844
TOTAL 1 096 192 1 161 964 1 220 062
Eastern Cape 10 884 - -
Free State 4 992 - -
Gauteng 5 100 - -
KwaZulu-Natal 5 376 - -
Limpopo 10 137 - -
Mpumalanga 9 240 - -
Northern Cape 2 616 - -
North West 7 104 - -
Western Cape 1 188 - -
TOTAL 56 637 - -
Eastern Cape 66 531 70 523 74 049
Free State 28 186 29 877 31 371
Gauteng 67 664 71 724 75 310
(Vote 19) KwaZulu-Natal 90 256 95 671 100 455
Limpopo 43 604 46 220 48 531
Mpumalanga 31 663 33 563 35 241
Northern Cape 23 927 25 363 26 631
North West 34 022 36 063 37 866
Western Cape 40 532 42 964 45 112
TOTAL 426 385 451 968 474 566
Sport and
Recreation
South Africa
(a) Devolution of Property Rate Funds
Grant
To facilitate the transfer of property rates
expenditure responsibility to provinces;
and to enable provincial accounting
officers to be fully accountable for their
expenditure and payment of provincial
property rates.
Conditional allocation
Mass Sport and Recreation Participation
Programme Grant
To promote mass participation within
communities and schools through selected
sport and recreation activities,
empowerment of communities and schools
in conjunction with stakeholders and
development of communities through sport.
Conditional allocation
(b) Expanded Public Works Programme
Grant for the Social Sector
To subsidise non-profit organisations in
home and community based care via the
provincial departments of Health and
Social Development, to provide stipends to
previously unpaid volunteers to maximise
job creation and skills development in line
with the Expanded Public Works
Programme guidelines.
Conditional allocation
8 6
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
F R
E V
E N
U E
A C
T ,
2 0 1 0
SCHEDULE 5
SPECIFIC PURPOSE ALLOCATIONS TO PROVINCES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Vote 2010/11
Allocation
ProvincePurpose Type of allocationName of allocation
Transport Eastern Cape - - -
(Vote 36) Free State - - -
Gauteng 438 360 5 300 -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga - - -
Northern Cape - - -
North West - - -
Western Cape - - -
TOTAL 438 360 5 300 -
Eastern Cape 5 519 - -
Free State - - -
Gauteng - - -
KwaZulu-Natal - - -
Limpopo - - -
Mpumalanga 5 519 - -
Northern Cape - - -
North West - - -
Western Cape - - -
TOTAL 11 038 - -
(b) Overload Control Grant To successfully implement the National
Overload Control Strategy and ensure that
overloading practices are significantly
reduced.
Conditional allocation
(a) Gautrain Rapid Rail Link Grant To provide for national government
funding contribution to the Gauteng
Provincial Government for the construction
of a fully integrated Gautrain Rapid Rail
network.
Conditional allocation
8 8
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
Z E
T T
E ,
3 1
M A
R C
H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
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N O
F R
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A C
T ,
2 0 1 0
SCHEDULE 6
SPECIFIC PURPOSE ALLOCATIONS TO MUNICIPALITIES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
RECURRENT GRANTS
212 000 224 720 235 956
(Vote 3)
364 589 384 641 403 873
(Vote 9)
Water Affairs
(Vote 37) 661 704 380 000 399 000
210 280 - -
(Vote 19)
TOTAL 1 448 573 989 361 1 038 829
INFRASTRUCTURE GRANTS
Municipal Infrastructure Grant
9 924 800 11 936 607 14 513 821
(Vote 3)
Energy
(Vote 28) 1 020 104 1 096 612 1 151 443
220 000 280 000 -
1 030 000 1 190 440 1 182 462
(Vote 9)
Transport
(Vote 36) 3 699 462 4 425 000 4 125 000
10 400 11 100 11 655
Water Affairs
(Vote 37) 228 357 - -
302 286 - -
(Vote 19)
TOTAL 16 435 409 18 939 759 20 984 381
Sport and
Recreation SA
To assist host cities with the operational response associated with the hosting of the 2010 FIFA
World Cup competition.
To assist municipalities in building in-house capacity to perform their functions and stabilise
institutional and governance systems.
Municipal Systems Improvement Grant
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 schemes to local government.
2010 World Cup Host City Operating
Grant
2010/11
Allocation
Vote Name of allocation
Local Government Financial Management
Grant
To promote and support reforms in financial management by building capacity in municipalities to
implement the Municipal Finance Management Act.
National
Treasury
Purpose
Cooperative
Governance and
Traditional
Affairs
Sport and
Recreation SA
2010 FIFA World Cup Stadiums
Development Grant
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.
Neighbourhood Development Partnership
Grant
National
Treasury
Municipal Drought Relief Grant To provide capital finance for basic water supply in municipal infrastructure for affected
households, micro enterprises and social institutions.
Cooperative
Governance and
Traditional
Affairs
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 support neighbourhood development projects that provide community infrastructure and create
the platform for other public and private sector development, towards improving the quality of life
of residents in targeted underserved neighbourhoods (townships generally).
(a) Integrated National Electrification
Programme (Municipal) Grant
To provide specific capital finance for basic municipal infrastructure backlogs for poor households,
to micro enterprises and social institutions servicing poor communities.
(b) Electricity Demand Side Management
(Municipal) Grant
To implement the Electricity Demand Side Management (EDSM) programme by providing capital
subsidies to licensed distributors to address EDSM in residential dwellings, communities and
commercial buildings in order to mitigate the risk of load shedding and supply interruptions.
(a) Public Transport Infrastructure and
Systems Grant
To provide for accelerated planning, establishment, construction and improvement of new and
existing public transport and non-motorised transport infrastructure and systems.
(b) Rural Transport Services and
Infrastructure Grant
To strengthen the rural transport services by improving accessibility to essential services.
9 0
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
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T T
E ,
3 1
M A
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H 2 0 1 0
A ct
N o .
1 ,
2 0 1 0
D IV
IS IO
N O
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A C
T ,
2 0 1 0
SCHEDULE 7
ALLOCATIONS-IN-KIND TO MUNICIPALITIES FOR DESIGNATED SPECIAL PROGRAMMES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
125 000 100 000 105 000
(Vote 9)
Energy
(Vote 28) 1 751 780 1 769 812 1 914 057
108 900 118 800 -
Water Affairs
(Vote 37) 145 978 - -
893 000 1 675 340 1 849 107
100 000 350 000 750 000
(Vote 30)
TOTAL 3 124 658 4 013 952 4 618 164
National
Treasury
2010/11
Allocation
Vote Name of allocation Purpose
Neighbourhood Development Partnership
Grant
To support neighbourhood development projects that provide community infrastructure and create the
platform for other public and private sector development, towards improving the quality of life of
residents in targeted underserved neighbourhoods (townships generally).
(a) 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 schemes to local government.
(a) Integrated National Electrification
Programme (Eskom) Grant
To implement the Integrated National Electrification Programme (INEP) by providing capital
subsidies to Eskom to address the electrification backlog of permanently occupied dwellings, the
installation of bulk infrastructure and rehabilitation of electrification infrastructure.
To implement the Electricity Demand Side Management (EDSM) programme by providing capital
subsidies to Eskom to address the EDSM in dwellings, communities and commercial buildings in
order to mitigate the risk of load shedding and supply interruptions.
(b) Electricity Demand Side Management
(Eskom) Grant
Human
Settlements
To provide specific capital finance for the eradication of rural sanitation backlogs targeted at existing
households without access to sanitation and water.
Rural Households Infrastructure Grant
(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.
9 2
N o .
3 3 0 8 1
G O
V E
R N
M E
N T
G A
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E ,
3 1
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1 ,
2 0 1 0
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SCHEDULE 8
INCENTIVES TO PROVINCES TO MEET TARGETS WITH REGARDS TO PRIORITY GOVERNMENT PROGRAMMES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Public Works Eastern Cape 60 354 - -
(Vote 6) Free State 13 767 - -
Gauteng 39 154 - -
KwaZulu-Natal 169 470 - -
Limpopo 2 903 - -
Mpumalanga 18 074 - -
Northern Cape 1 167 - -
North West 2 897 - -
Western Cape 23 218 - -
Unallocated - 800 000 840 000
TOTAL 331 004 800 000 840 000
INCENTIVES TO MUNICIPALITIES TO MEET TARGETS WITH REGARDS TO PRIORITY GOVERNMENT PROGRAMMES
Column A Column B
Forward Estimates
2011/12 2012/13
R'000 R'000 R'000
Public Works
(Vote 6) 622 996 1 108 000 1 163 400
TOTAL 622 996 1 108 000 1 163 400
Vote Name of allocation
Vote Name of allocation
Expanded Public Works Programme
Incentive Grant to Provinces for the
Infrastructure Sector
Expanded Public Works Programme
Incentive Grant for Municipalities
Purpose
To incentivise municipalities to increase labour intensive employment through infrastructure
programmes that maximise job creation and skills development in line with the Expanded Public
Works Programme guidelines.
2010/11
Allocation
Province
2010/11
Allocation
To incentivise provinces to increase labour
intensive employment through programmes
that maximise job creation and skills
development in line with the Expanded
Public Works Programme guidelines.
Incentive allocation to provinces
Purpose Type of allocation
9 4
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3 3 0 8 1
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3 1
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