Division of Revenue Act

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Published: 2006-03-31

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Division of Revenue Act [No. 2 of 2006]


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 489 Cape Town 31 March 2006 No. 28700
THE PRESIDENCY No. 318 31 March 2006
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 2 of 2006: Division of Revenue Act, 2006.

(English te-xt signed by the President.) (Assented to 31 March 2006.)
To provide for the eauitable division of revenue ant.&atec
ACT to be raisec nationally
among the national; provincial and local spheres of government for the 2006/07 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;
E IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, B as follows:- ARRANGEMENT OF SECTIONS
Sections
CHAPTER 1 5
INTERPRETATION AND OBJECTS OF ACT
1. Interpretation 2. Objects of Act
CHAPTER 2
EQUITABLE SHARE ALLOCATIONS 10
3.
4. 5. 6. Shortfalls and excess revenue
Equitable division of revenue anticipated to be raised nationally among spheres of government Equitable division of provincial share among provinces Equitable division of local government share among municipalities
15
4 No. 28700 GOVERNMENT GAZETI'E, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
CHAPTER 3
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES
Part 1
Conditional allocations
7. 8.
9. 10. 11. 12. 13. 14.
15. 16. 17. 18. 19. 20. 21. 22. 23.
24. 25. 26. 27. 28.
29. 30.
Conditional allocations to provinces Conditional allocations to municipalities
Part 2
Matters relating to spec$c Schedule 4, 5, 6 or 7 allocation
Provincial Infrastructure Grant Gautrain Rapid Rail Link Municipal Infrastructure Grant Municipal Capacity Building allocations Water Services Operating and Transfer Subsidy Integrated Housing and Human Settlement Development
5
10
Part 3 15
General matters relating to Schedule 4, 5, 6 or 7 allocation
Publication of allocations and frameworks Framework for Schedule 4 allocation Spending in terms of purpose and subject to conditions Withholding of allocation Stopping of allocation Re-allocation after stopping of allocation Risk management in respect of Schedule 5 or 6 allocation Unspent Schedule 5 or 6 allocation Allocations to public entities for provision of municipal service or function 25
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CHAPTER 4
DUTIES OF ACCOUNTING OFFICERS AND TREASURIES
Duties of transferring national officer in respect of Schedule 4 allocation Duties of transferring national officer in respect of Schedule 5,6 or 7 allocation Duties of receiving officer in respect of Schedule 4 allocation Duties of receiving officer in respect of Schedule 5 or 6 allocation Duties relating to Category C municipal budgets and allocations in terms of this Act Duties of provincial accounting officers and treasuries Duties in respect of annual financial statements and annual reports for 2006/07 35
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CHAPTER 5
DUTIES OF NATIONAL TREASURY, POWERS OF AUDITOR-GENERAL
3 1. 32. Power of Auditor-General
Duties of National Treasury
6 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006
CHAPTER 6
MATTERS RELATING TO ALL ALLOCATIONS
33. 34. 35. 36. 37. 38.
39.
40. 41.
42. 43.
44. 45. 46. 47. 48. 49. 50.
Payment schedule Amendment of payment schedule
Transfers made in error Allocations not listed in Schedules Implementation of Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 Implementation of changes to boundary, power or function of province or 10 municipality Preparations for next budget year Expenditure prior to commencement of Division of Revenue Act, 2007
Transfers to low capacity municipalities 5
CHAPTER 7
GENERAL 15
Allocations by public entities to provinces or municipalities Liability for costs incurred in violation of principles of co-operative governance and intergovernmental relations Unauthorised and irregular expenditure Financial misconduct 20 Delegations and assignments Exemptions Regulations Repeal of laws Short title and commencement 25
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 30 Municipal Finance Management Act has the meaning assigned to it in the Act in question and-
“budget year” means the financial year commencing on 1 April 2006 and ending on 31 March 2007; “category A, B or C municipality” has the meaning assigned to each category in 35 terms of the Municipal Structures Act; “conditional allocation” means a conditional allocation to a province, local government or municipality from the national government’s share of revenue raised nationally, contemplated in section 214(l)(c) of the Constitution of the 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 of Public Deposits Act, 1984 (Act No. 46 of 1984); “framework” means the conditions and other information in respect of an
“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 and ending on 30 June; “next financial year” means the financial year commencing on 1 April 2007 and 50 ending on 31 March 2008; “payment schedule” means a schedule, which sets out-
40
allocation published by the National Treasury in terms of section 15; 45
8 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(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 for 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 48; “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 10 into which allocations, other than the equitable share allocation and the Gautrain Rapid Link allocation, 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, 15 1999 (Act No. 1 of 1999); “quarter” means- (a) 1 April to 30 June; (b) 1 July to 30 September; (c) 1 October to 31 December; or 20 (d) 1 January to 31 March; “receiving officer”- (a) in relation to a Schedule 4 or 5 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 25 Revenue Fund; or
(b) in relation to a Schedule 4 or 6 allocation transferred to a municipality, the accounting officer of the municipality;
“this Act” includes any framework or allocation published or any regulation or determination made or instruction given under this Act; “transferring national officer” means the accounting officer of a national department that transfers a Schedule 4, 5 or 6 allocation to a province or municipality or makes a Schedule 7 allocation on behalf of a municipality. (2) Any determination or instruction in terms of this Act must be in writing.
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30
Objects of Act 35
2. The objects of this Act are to- (a) provide for the equitable division of revenue anticipated to be raised
nationally among the three spheres of government; (b) promote better co-ordination between policy, planning, budget preparation
and execution processes between and within the different spheres of 40 government;
(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.
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
CHAPTER 2
EQUITABLE SHARE ALLOCATIONS
Equitable division of revenue anticipated to be raised nationally among spheres of government
3. (1) Revenue anticipated to be raised nationally in respect of the budget 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 2008/09 financial year, and which is subject to the provisions of the annual Division of Revenue Act in respect of those financial years, is set out in 10 Column B of Schedule 1.
5
Equitable division of provincial share among provinces
4. (1) Each province’s equitable share of the provincial share of revenue anticipated to be raised nationally in respect of the budget year is set out in Column A of Schedule 2. 15
(2) Subject to section 38, an envisaged division for each province of revenue anticipated to be raised nationally in respect of the next financial year and the 2008/09 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial years, is set out in Column B of Schedule 2.
(3) Each province’s equitable share allocation contemplated in subsection (1) must be 20 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 33.
Equitable division of local government share among municipalities
5. (1) Each municipality’s share of local government’s equitable share of revenue anticipated to be raised nationally in respect of the budget year, is set out in Column A 25 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 2008/09 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial years, is set out in Column B of Schedule 3.
(3) Each municipality’s equitable share contemplated in subsection (1) must be transferred to the primary bank account of the municipality in three transfers before the end of July, November and February in the budget year, in accordance with a payment schedule determined by the National Treasury in terms of section 33.
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Shortfalls and excess revenue 35
6. (1) If actual revenue raised nationally in respect of the budget 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 budget year exceeds the anticipated revenue set out in Schedule 1, the excess accrues to the national government, to be used to reduce borrowing or pay debt as part of its share of revenue raised 40 nationally, in addition to its share in column A of Schedule 1.
(3) The national government may appropriate a portion of its equitable share or excess revenue contemplated in subsection (2) to make further allocations in an adjustments budget to-
(a) national departments; 45
12 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(b) provinces or municipalities, as a conditional or an unconditional allocation.
CHAPTER 3
CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES
Part 1
Conditional allocations 5
Conditional allocations to provinces
7. (1) Conditional allocations to provinces in respect of the budget year from the national government’s share of revenue anticipated to be raised nationally are set out in Column A of the following Schedules:
(a) Schedule 4 specifying allocations to provinces to supplement the funding of 10 programmes or functions funded from provincial budgets; and
(b) Schedule 5 specifying specific-purpose allocations to provinces. (2 ) Subject to section 38, 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 2008/09 financial year, which is subject to the annual 15 Division of Revenue Act for those 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 budget year from the national government’s share of revenue anticipated to be raised nationally are set out 20 in Column A of the following Schedules:
(a) Schedule 4 specifying allocations to municipalities to supplement the funding of functions funded from municipal budgets; and
(b) Schedule 6 specifying specific-purpose allocations to municipalities; and (c) Schedule 7 specifying allocations-in-kind to municipalities for designated 25
special 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 2008/09 financial year, which is subject to the annual Division of Revenue Act for those years, is set out in Column B of the Schedules referred to in 30 subsection (1).
(3) The National Treasury must publish in the Gazette required in terms of section 15, the share of each municipality in respect of the local government allocations referred to in subsections (1) and (2).
Part 2 35
Matters relating to specijk Schedule 4,5, 6 or 7 allocation
Provincial Infrastructure Grant
9. (1) The Provincial Infrastructure Grant set out in Schedule 4 supplements the funding of infrastructure programmes funded from provincial budgets to enable provinces to address backlogs in provincial infrastructure.
(2 ) A province must ensure that its provincial departments responsible for education, health and roads-
(a) are responsible for all capital and maintenance budgets and spending for those functions;
(b) enter into, implement and manage service delivery agreements with national 45 or provincial departments, national or public entities and any other organs of state, where such departments, entities or other organs of state manage or undertake construction or maintenance on their behalf; and
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14 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 ~~
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(c) participate, together with the provincial department responsible for public works in the Infrastructure Development Improvement Programme facilitated by the National Treasury, unless the National Treasury exempts any such department from participation.
(a) must take into account the capacity of the receiving provincial department to spend and manage infrastructure, based on the extent of any approved roll-overs in the 2005/06 financial year and any projected roll-overs in the 2006107 financial year; and
(6 ) may, where a receiving provincial department lacks capacity designate a 10 percentage not exceeding one percent of the allocation for acquiring such capacity.
(3) A province, in allocating the Provincial Infrastructure Grant- 5
Gautrain Rapid Rail Link
10. (1) The transferring national officer must, in addition to the duties contemplated in sections 25 and 33, take appropriate steps to ensure that transfers are made timeously 15 and in a manner that allows the province 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.
(2) (a) The National Treasury must direct the establishment of a dedicated banking account configuration for the transfer of the Gautrain Rapid Rail Link allocation, that 20 may include a dedicated corporation of public deposits account.
(b) The Provincial Treasury must ensure that the account configuration referred to in paragraph (a) is in place and operational by no later than I May 2006.
(3) The transferring national officer must transfer the Gautrain Rapid Rail Link allocation to the bank account designated for transfer in the account configuration 25 referred to in subsection (2)(a).
Municipal Infrastructure Grant
11. (1) The Municipal Infrastructure Grant set out in Schedule 4 supplements the funding of infrastructure programmes funded from municipal budgets to enable municipalities to address backlogs in municipal infrastructure required for the provision 30 of basic services.
(2) The Municipal Infrastructure Grant- (a) must be transferred, directly to a category A, B or C municipality that has the
powers and functions in terms of section 84 of the Municipal Structures Act to provide municipal infrastructure in respect of those powers and functions; and 35
(b) may be transferred via the relevant category C municipality to a category B municipality if- (i) the allocation to the category B municipality is less than R2 million; or
(ii) the transferring national officer, in consultation with the National Treasury, identifies the category B municipality as not able to manage or 40 administer the allocation.
(3) Allocations referred to in subsection (2)(b) must be listed as an allocation to the category B municipality in the publications referred to in section 15( l)(a).
(4) A municipality receiving the Municipal Infrastructure Grant must table a three-year capital budget as part of its budget for the 2006107 financial year in 45 accordance with the Municipal Finance Management Act, unless exempted in terms of that Act.
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Municipal Capacity Building allocations
12. (1) Any transfer of an allocation aimed at developing and improving municipal systems and the capacity of municipalities to perform functions assigned to them, may only be made in terms of a framework determined by the national accounting officer
(2) The framework contemplated in subsection (1) must take into account the capacity requirements for implementing the Municipal Systems Act and the Municipal Finance Management Act, including integrated planning, performance management, financial management and budgeting considerations and the need to ensure that the capacity of a
(3) The annual report of the department responsible for any capacity-building allocation must indicate the extent to which the capacity of any municipality was improved in measurable ways by that allocation.
responsible for local government, in consultation with the National Treasury. 5
municipality is developed in measurable ways. 10
Water Services Operating and Transfer Subsidy
13. (1) The transferring national officer, subsequent to the signing of a transfer 15 agreement between the transferring national officer and the municipality for the transfer of water services assets, may with the written approval of the National Treasury adjust the Water Services Operating and Transfer Subsidy allocation to a municipality to reflect-
(a) the actual personnel allocation payable to a municipality as a result of the 20 number of staff transferred from the transferring national department to the municipality; and
(b) the actual operating allocation payable to a municipality as informed by the percentage or portion of assets transferred to a municipality in respect of assets shared across municipal boundaries.
(2) Any adjustments contemplated in subsection (1) must, together with an explanatory memorandum, be published by the National Treasury in the Gazette, within 120 days after granting approval for an adjustment.
25
Integrated Housing and Human Settlement Development
14. (1) The provincial accounting officer responsible for housing must- 30 (a) facilitate applications for accreditation in terms of section 10 of the Housing
Act, 1997 (Act No. 107 of 1997) from all municipalities identified by the transferring national officer in respect of each province: and
(b) before 30 November 2006, consider the applications of the municipalities and inform their accounting officers of the granting or refusal of the application for 35 accreditation.
(2 ) (a) A municipality whose accreditation application was refused may lodge an objection to the refusal with the transferring national officer.
(b) The transferring national officer must on receipt of an objection take all necessary steps to facilitate accreditation as soon as possible, but no later than 60 days after the 40 objection was received.
( 3 ) Accreditation granted in terms of subsection (1) must- (a) at least include-
(i) authority to administer housing programmes, including the administra-
(ii) authority to grant subsidies and approve projects, subject to subsection (4), to be funded from uncommitted housing subsidy funds from the 2007108 financial year;
(iii) an obligation to maintain compliance with the capacity and system requirements prescribed by the provincial accounting officer responsible 50 for housing;
(iv) an obligation to provide reports on housing demand and delivery to the provincial accounting officer quarterly or at shorter intervals when requested; and
tion of all housing subsidy applications; 45
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(VI an obligation to provide information on the levying and collection of rental in respect of all municipal owned houses to the provincial accounting officer; and
(b) be implemented progressively during the financial year.
(3)(4(ii)- (4) An accredited municipality must, in exercising its authority in terms of subsection
(a) take into account any criteria for the prioritisation of projects as determined by the province;
(b) comply with national housing policies and programmes; and (c) participate in housing programme forums established by the transferring 10
national department. (5) Accreditation in terms of the Housing Act, 1997 (Act No. 107 of 1997), does not
constitute an assignment for purposes of section 3 of the Financial and Fiscal Commission Act, 1997 (Act No. 99 of 1997), section 35 of the Public Finance
5
Management Act and sections 9 and 10 of the Municipal Systems Act. 15
Part 3
General matters relating to Schedule 4,5, 6 or 7 allocation
Publication of allocations and frameworks
15. (1) The National Treasury must, within 14 days of this Act taking effect publish in
(a) the allocations per municipality for each Schedule 4 ,6 or 7 allocation to local government; and
(b) the framework for each Schedules 4, 5, 6 and 7 allocation.
the Gazette- 20
(2) The National Treasury must publish in the Gazette any revisions or amendments to the allocations or frameworks published in terms of subsection (1) that is authorised 25 by an adjustment budget.
(3) (a) 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.
(6) An amendment or revision takes effect on publication thereof in the Gazette. 30
Framework for Schedule 4 allocation
16. The framework for a Schedule 4 allocation must be designed to promote comprehensive outputs for a programme or function funded or partially funded by the allocation, and may not include any condition-
(a) for a national department or any other organ of state, other than the relevant 35 province or municipality, to approve specific projects or budgets; or
(b) requiring a report on spending or projects other than the reports required in terms of section 26 or as approved by the National Treasury.
Spending in terms of purpose and subject to conditions
17. (1) Despite anything to the contrary contained in any law, an allocation referred to 40 in Schedule 4, 5 , 6 or 7 may only be utilised for the purpose stipulated in the Schedule concerned and in accordance with the framework published in terms of section 15.
(2) A receiving officer may not transfer any Schedule 5 or 6 allocation or a portion of such allocation to any other entity for the performance of a function envisaged in terms
(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 15;
(6) 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 50 adequate documentation for payment have been received; or
of the allocation, unless- 45
20 N0.28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006
(c) it is a transfer not consistent with the budget of the receiving province or municipality, or advance payment, approved by the National Treasury on certification by the receiving officer that such transfer is not an attempt to artificially inflate its spending estimates and there are good reasons for the transfer or advance payment. 5
Withholding of allocation
18. (1) Subject to subsections (2) and (3), a transferring national officer may withhold the transfer of a Schedule 4 , 5 , 6 or 7 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 10 or conditions to which the allocation, as provided for in the relevant framework, is subject; or
(b) expenditure on previous transfers during the financial year reflects significant under-spending, for which no satisfactory explanation is given.
(2) Despite subsection (I), the Health Professions Training and Development and 15 National Tertiary services allocations may not be withheld in terms of this section.
(3) A transferring national officer must, seven working days 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 as to why the allocation should not be withheld; and
(b) inform the relevant provincial treasury and the National Treasury of its intention to withhold the allocation.
(4) A notice contemplated in subsection ( 3 ) must include the reasons for withholding 25 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.
20
30
(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) 35 and any representations received from the receiving officer, to the National Treasury.
(c) The transferring national officer must comply with subsection (3) when the National Treasury instructs or approves a request by him or her in terms of paragraph (4.
Stopping of allocation 40
19. (1) Despite section 18, the National Treasury may in its discretion or at the request
(a) a Schedule 4, 5 or 6 allocation referred to in section 18(1) to a province or municipality on the grounds of persistent and material non-compliance with the provisions of this Act, or a condition to which the allocation, as provided 45 for in the relevant framework, is subject; or
(b) a Schedule 4, 5, 6 or 7 allocation referred to in section 18(1) if the National Treasury anticipates that a province or municipality will substantially under spend on that programme or allocation in the financial year.
of a transferring national officer stop the transfer of-
(2) The National Treasury must when stopping an allocation in terms of this section- 50
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(a) comply with section 18(3)(a), and in respect of a municipality, also 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 (I) , 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 10 the National Revenue Fund.
5
Re-allocation after stopping of allocation
20. (1) The National Treasury may, where it stops an allocation in terms of section 19, after consultation with the transferring national officer, determine that a portion or the full allocation that will be under spent be reallocated to one or more provinces or 15 municipalities on condition that the allocation will be spent in the financial year or the next financial year.
(2) The reallocation of a portion or the full allocation on condition that the allocation will be spent in the next financial year referred to in subsection (I), must be deemed to be a roll-over approved by the National Treasury in terms of section 22(2)(a). 20
Risk management in respect of Schedule 5 or 6 allocation
21. (1) (a) The transferring national officer of a Schedule 5 or 6 allocation of which the total value transferred to provinces or municipalities, exceeds R 1 billion for the budget year must, within 14 days after this Act takes effect, determine a minimum set of risks that must be taken into account and mitigated by a receiving officer in respect of that 25 allocation.
(b) The internal audit plan of the receiving officer for the financial year must take into account the risks identified in paragraph (a) and any other major fiscal risks to the National Revenue Fund posed by poor implementation of legislative requirements.
(2) A receiving officer of an allocation contemplated in subsection (I), or if requested 30 by any other transferring national officer, must-
(a) by 30 April 2006, submit a risk management plan that includes the internal audit plan referred to in subsection (l)(b) to the transferring national officer and the National Treasury; and
(b) report as part of the quarterly performance report referred to in section 35 26(3)(b) all material issues and risks that arose in respect of the spending of the allocation and the measures taken to minimise the impact thereof.
(3) The internal audit unit of the transferring national department must co-ordinate and co-operate with the internal audit units of the provincial departments and municipalities to whom it transfers an allocation.
(4) The accounting officer of the transfemng national department, the receiving provincial department and receiving municipality must regularly report to his or her audit committee on compliance with this section.
( 5 ) (a) Subsections (l)(b), (2)(a), (3) and (4) do not apply to municipalities for whom the implementation of sections 165 and 166 of the Municipal Finance Management Act 45 was delayed by the Minister under section 177 of that Act.
(b) Despite paragraph (a), a municipality referred to in that paragraph that receives an allocation contemplated in subsection (l)(a), or if requested by any other transferring national officer, must-
(i) by 30 April 2006, submit a risk management plan for the 2006/07 municipal 50 financial year that takes into account the risks identified in subsection (l)(a)
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
and any other major fiscal risks to the National Revenue Fund posed by poor enforcement of legislative requirements, to the transferring national officer and the National Treasury; and
(ii) comply with subsection (2)(b).
Unspent Schedule 5 or 6 allocation 5
22. (1) Despite the provisions of the Public Finance Management Act or the Municipal Finance Management Act relating to roll-overs, a Schedule 5 or 6 allocation, excluding the Gautrain Rapid Link allocation, that is not spent at the end of a financial year, including any interest earned thereon, reverts to the National Revenue Fund, unless the relevant receiving officer can prove, to the satisfaction of the National Treasury that 10 the unspent allocation is committed to identifiable projects.
(2) Despite subsection (l), the National Treasury may at the request of a transfening national officer, provincial treasury or municipality approve-
(a) roll-overs from a conditional allocation to the next financial year; and (b) spending of a portion of a conditional allocation on activities related to the 15
purpose of that allocation where the province or municipality projects significant unforeseen and unavoidable over spending on its budget.
Allocations to public entities for provision of municipal service or function
23. (1) No public entity 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 20 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.
(2) (a) Subsection (1) does not apply to Eskom Holdings Limited in respect of funds received from the Department of Minerals and Energy for the implementation of the 25 National Electrification Programme.
(b) The Department of Minerals and Energy must ensure that Eskom Holdings Limited’s implementation of the National Electrification Programme within a munici- pality is aligned with the Integrated Development Plan, prepared in accordance with the Municipal Systems Act, of that municipality.
(c) Eskom Holdings Limited must within 30 days after the end of each month, report to the relevant municipality, the Department of Minerals and Energy and the National Treasury on the amount spent on the implementation of the National Electrification Programme.
30
CHAPTER 4 35
DUTIES OF ACCOUNTING OFFICERS AND TREASURIES
Duties of transferring national officer in respect of Schedule 4 allocation
24. ( 1 ) The transferring national officer of a Schedule 4 allocation is responsible for- ensuring that transfers to all provinces and municipalities are -in accordance with the payment schedule approved in terms of section 33, unless allocations 40 are withheld or stopped in terms of section 18 or 19; monitoring expenditure and non-financial performance information on programmes funded by an allocation, provided that any monitoring programme or system-
(ii) does not impose any undue administrative burden on receiving provinces and municipalities beyond the provision of standard management information; and
(i) is approved by the National Treasury; and 45
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Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006
(iii) is in accordance with sections 16 and 26(2). (c) evaluating the performance of programmes funded or partially funded by the
allocation and the submission of such evaluations to the National Treasury, within four months in respect of a province and six months in respect of a
(2) Where more than one national department have responsibilities relating to a Schedule 4 allocation, the transferring national officer must co-ordinate the roles and responsibilities of such national departments and ensure those roles and responsibili- ties-
(a) are exercised in a manner that does not duplicate its responsibilities as set out 10 in subsection (1); and
(b) do not impose any undue administrative burden on provinces or municipali- ties beyond the provision of standard management information.
municipality after the end of the financial year. 5
Duties of transferring national officer in respect of Schedule 5 ,6 or 7 allocation
25. (1) A transferring national officer must- 15 (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 governments and municipalities beyond the provi- 20 sion of standard management information;
(ii) 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;
(iii) any business plans requested in respect of how allocations will be utilised by a municipality have been approved prior to the start of the municipal 25 financial year;
transfer funds only after information required in terms of this Act has been provided to the National Treasury; transfer funds only in accordance with a payment schedule determined in accordance with section 33; 30 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; and ensure that ail other arrangements or requirements necessary for the transfer of an allocation have been complied with prior to the start of the financial year. 35
(2) The transferring national officer must submit all information and documentation referred to in subsection (l)(a) to the National Treasury within 14 days after this Act takes effect.
(3) A transferring national officer who has not complied with subsection (1) must transfer such allocation as instructed by the National Treasury, including as an 40 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 31(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 45 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- 50
(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; 55
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(c) the actual expenditure incurred by the province or municipality in respect of a Schedule 5 or 6 allocation; and
(d) such other issues as the National Treasury may determine. (6) The transferring national officer must evaluate the performance of programmes
funded or partially funded by the allocation and submit such evaluations to the National Treasury within four months in respect of a province and six months in respect of a municipality after the end of the financial year.
5
Duties of receiving officer in respect of Schedule 4 allocation
26. (1) A receiving officer is responsible for- (a) complying with the framework for a Schedule 4 allocation as published in 10
terms of section 15; and (b) the manner in which it allocates and spends a Schedule 4 allocation.
(a) ensure and certify to the National Treasury that the municipality- (i) indicates, or if required, exclusively appropriates each programme 15
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
(b) as part of the report required in terms of section 7 1 of the Municipal Finance Management Act, report to the National Treasury and the transferring national officer on spending against programmes; and
(a) submit, as part of the report required in section 40(4)(c) of the Public Finance 25 Management Act, reports to the relevant provincial treasury on spending against programmes; and
(b) submit a quarterly performance report within 30 days after the end of each quarter to the transfemng national officer.
(4) The receiving officer must report against programmes funded or partially funded 30 by a Schedule 4 allocation against the relevant framework in its annual financial statements and annual report.
(5 ) The receiving officer must, within two months after the end of the financial year and where relevant the municipal financial year, evaluate its performance in respect of programmes funded or partially funded by an allocation and submit such evaluation to 35 the transfemng national officer.
(2) The receiving officer of a municipality must-
required inputs and outputs; 20
(3) The receiving officer in a province must-
Duties of receiving ollicer in respect of Schedule 5 or 6 allocation
27. (1) The relevant receiving officer must, in respect of an allocation transferred to- (a) a province, as part of the report required in section 40(4)(c) of the Public
Finance Management Act, submit a report to the relevant provincial treasury 40 and the transferring national officer; and
(b) a municipality, as part of the report required in terms of section 71 of the Municipal Finance Management Act, submit a report to the relevant transferring national or provincial officer.
(2) A report by a province in terms of subsection (1) must set out for that month and 45 for the financial year up to the end of that month-
(a) the amount received by the province; (6 ) the amount of funds stopped or withheld from the province; (c) the actual expenditure by the province in respect of a Schedule 5 allocation;
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(d) the extent of compliance with the conditions of an allocation provided for in a framework and with this Act;
(e) an explanation for any material problems experienced by the province regarding an allocation which has been received and a summary of the steps
such other issues and information as the National Treasury may determine. taken to deal with such problems; and 5 v)
( 3 ) A report by a municipality in terms of subsection (1) must set out for that month and for the financial year up to the end of that month-
(a) the amount of funds stopped or withheld from the municipality; (b) the extent of compliance with the conditions of an allocation provided for in 10
a framework and with this Act; (c) an explanation for 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 or the effect of such variations; and
(d) such other issues and information as the National Treasury may determine. (4) (a) Subsections (1) and ( 2 ) do not apply to the receiving officer of the Gautrain
Rapid Rail Link allocation. (b) The receiving officer of the Gautrain Rapid Rail Link allocation 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 20 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 reports referred to in paragraph (b).
(5) The receiving officer must, within two months after the end of the financial year 25 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.
15
Duties relating to Category C municipal budgets and allocations in terms of this Act 30
28. (1) (a ) In addition to the requirements of the Municipal Finance Management Act, a category C municipality must, no later than 14 April 2006, submit to the National Treasury and all category B municipalities within its area of jurisdiction, its budget, as tabled in accordance with section 16 of the Municipal Finance Management Act, for the 2006/07 municipal financial year, and the two following municipal financial years.
(b) The budget must indicate all allocations to be transferred to each category B municipality within its area of jurisdiction and disclose the criteria for allocating funds between the category B municipalities.
(2) A category C municipality must strive to ensure that it does not duplicate a function currently performed by a category B municipality, and transfer funds for 40 infrastructure development, including funds that will replace the levies referred to in section 93(6) of the Municipal Structures Act, or the provision of services to the relevant category B municipalities, taking into account any indicative allocations for such municipalities as determined or published in the Gazette by the National Treasury, and
( a ) the category C municipality retained a power or function in terms of the Municipal Structures Act; and
(b) a category B municipality in the opinion of the category C municipality has weak capacity and the national department for local government and National Treasury concur with that opinion.
(c) the Municipal Infrastructure Grant allocation to the category B municipality is transferred to the category C municipality in terms of section 1 l(3).
35
may only retain and spend funds directly if- 45
50
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(3) A category C municipality must before implementing any capital project for water, electricity, roads or any other municipal service consult the category B municipality on the project within whose area of jurisdiction the project will be implemented and agree on which municipality is responsible for operational costs and collection of user fees.
(4) 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 approved in accordance with section 24 of the Municipal Finance Management Act.
(5) Where a function for which a province receives a Schedule 5 allocation is assigned 10 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 such funds 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. 15
5
Duties of provincial treasuries
29. (1) The head of the department in the provincial treasury must ensure and certify
(a) indicates or, if required, exclusively appropriates each programme funded or partially funded through Schedule 4 allocations in its Appropriation Bill or a 20 schedule to its Appropriation Bill; and
(b) publishes the conditions and other information in respect of these allocations to facilitate performance measurement and the use of required inputs and outputs in its budget documents submitted to its legislature or the Gazette.
(2) The provincial treasury must in respect of allocations to municipalities other than 25 allocations made in terms of this Act publish, with its annual budget and in the Gazette, not later than 14 April 2006-
(a) the allocation per municipality for every allocation made by the province to municipalities; and
(b) the envisaged division of the allocation contemplated in paragraph (a) in 30 respect of each municipality, for the next financial year and the 2008/09 financial year.
(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, make
(b) These allocations must be published in the Gazette before any transfers can be made, unless the allocations were published with its adjustments budget submitted to the provincial legislature.
(4) 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 40 National Treasury, report on-
(a) actual transfers received by the province from national departments; (b) actual expenditure on such allocations, excluding Schedule 4 allocations, up
to the end of that month; and (c) actual transfers made by the province to municipalities, and projections of 45
actual expenditure by municipalities on such allocations. (5) The report contemplated in subsection (4) must include reports for each quarter,
and be in the format and include the information as may be determined by the National Treasury.
Duties in respect of annual financial statements and annual reports for 2006/07
to the National Treasury that the province-
allocations to municipalities that were not published in terms of subsection (2). 35
50
30. (1) The 2006107 financial statements of a national department transferring any funds in respect of an allocation set out in Schedule 4, 5,6 or 7 must, in addition to any requirements in terms of any other applicable law-
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(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 ) 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
(d) indicate the funds, if any, utilised for the administration of the allocation, and whether the transferring department retained any portion of the allocation for
(2) The 2006/07 annual report of a national department transferring any funds in respect of an allocation set out in Schedule 4, 5, 6 or 7 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; 15
(b) indicate to what extent a province or municipality was monitored for compliance with the conditions of an allocation provided for in the relevant framework and the provisions of this Act;
(c) indicate to what extent the allocation achieved its purpose and outputs; and (d) indicate any non-compliance with this Act, and the steps taken to deal with 20
such non-compliance. (3) The 2006/07 financial statements of a provincial department receiving an
allocation in terms of Schedule 4 or 5, must, in addition to any requirements in terms of any other applicable law-
5
that purpose. 10
(a) indicate the total amount of all allocations received; 25 (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 2006/07 annual report of a provincial department receiving an allocation in terms of Schedule 4 or 5, must, in addition to any requirements in terms of any other applicable law-
(a) indicate to what extent the province met the conditions, provided for in the relevant framework of such an allocation, and complied with the provisions of 35 this Act;
(6) indicate the extent to which the objectives and outputs of the allocation were achieved; and
( c ) contain such other information as the National Treasury may determine.
30
( 5 ) (a) The 2006/07 financial statements and annual report of a municipality must be 40 prepared in accordance with the Municipal Finance Management Act.
(b) Municipalities for whom the implementation of section 121 of the Municipal Finance Management Act was delayed by the Minister under section 177 of that Act, must despite such delay, prepare annual performance reports in terms of section 46 of
(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.
the Municipal Systems Act, by no later than 3 1 December 2006. 45
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
CHAPTER 5
DUTIES OF NATIONAL TREASURY, POWERS OF AUDITOR-GENERAL
Duties of National Treasury
31. (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 36.
5
10
Powers of Auditor-General
32. (1) Without derogating from the powers and duties of the Auditor-General in terms of the Constitution and any other law, the Auditor-General may, in the audit of financial statements on the allocations set out in Chapter 3 or in a special report to be submitted to Parliament, report on-
(a) the extent of compliance with this Act and frameworks published in terms of section 15 by transferring national officers and receiving officers; and
(b) such other intergovernmental financial management matters as may be prescribed.
(2) The Auditor-General may, when conducting the audits of the provincial 20 departments responsible for education, health, housing and roads, take appropriate measures to ensure consistency in the audit processes between provincial departments to promote comparability between the provincial departments and national departments responsible for the same functions.
15
CHAPTER 6 25
MATTERS RELATING TO ALL ALLOCATIONS
Payment schedule
33. (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 35 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 have 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), when an intervention in terms of section 139 of the Constitution is taking place in a municipality, the National Treasury may after 45 consultation with‘the accounting officer of the national department responsible for local government, on such conditions as it may determine, approve a request or direct that the equitable share contemplated in subsection (l), or a portion of it, be-
30
40
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(i) advanced to a municipality in terms of a financial recovery plan prepared in terms of section 141 of the Municipal Finance Management Act, in respect of any portion which has not yet fallen due for transfer; and
(ii) transferred to a municipality via the province in terms of section 226(3) of the Constitution, if the municipality is unable or unwilling to implement its financial recovery plan imposed in terms of section 141 of the Municipal Finance Management Act.
(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. 10
(3) (a) The National Treasury must approve the payment schedules for Schedules 4, 5 and 6 allocations.
(b) The transferring national officer of a Schedule 4, 5 or 6 allocation must submit a payment schedule to the National Treasury for approval before 14 April 2006.
(c ) Prior to the submission of a payment schedule in terms of paragraph (b) the 15 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 allocation ensure that the payment
schedule- (ua) is consistent with the projected dates for payments to the private 20
party in terms of the public-private partnership agreement entered into by the relevant province in accordance with regulations issued under the Public Finance Management Act; and
(bb) reflects the portion of any payments due under the agreement referred to in subparagraph (aa) payable from the allocation; and
(iii) in relation to a Schedule 5 or 6 allocation, consult the relevant province or municipality.
5
25
Amendment of payment schedule
34. (1) Subject to subsection (2) , a transfemng national officer of a Schedule 4, 5 or 6 allocation must within three days of the withholding or stopping of an allocation in 30 terms of section 18 or 19, amend a payment schedule as a result of the withholding or stopping of an allocation in terms of this Act.
(2) The National Treasury may, in the interest of better debt and cash-flow management or to deal with financial mismanagement or financial under performance, amend any payment schedule for an allocation listed in Schedule 2, 3, 4, 5 or 6 on 35 notification t o -
(a) the head 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 40
of the monthly spending commitments of provinces or municipalities, the revenue at the disposal of provinces or municipalities and the minimisation of risk and debt servicing costs for all three spheres of government.
(4) An amendment of a payment schedule in terms of subsection ( 2 ) prevails over any amendment made in terms of subsection ( 1 ) .
Transfers to low capacity municipalities
45
35. The national accounting officer responsible for local government, in respect of a category B municipality classified as a low capacity municipality by that accounting officer and the National Treasury, may with the concurrence of the National Treasury, determine that an allocation in terms of this Act or portion of such an allocation be 50 transferred to the category C municipality, within whose area of jurisdiction the category B municipality is located, or to the relevant province, for purposes of the proper administration of the allocation.
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Transfers made in error
36. (1) Despite anything to the contrary contained in any law, the transfer of an allocation to a province in error is regarded as not legally due to the province for the purpose of its Revenue Fund.
(2) A transfer contemplated in subsection (l), 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, which would otherwise become due in accordance with a payment schedule.
(4) Despite anything to the contrary contained in any law, the transfer of an allocation to a municipality, or a public entity in error, is regarded as not legally due to that municipality or public entity and must be recovered without delay by the responsible transfemng national officer.
(5) The accounting officer of the national department responsible for local government may instruct that the recovery contemplated in subsection (4) be effected by set-off against transfers to the municipality concerned, which would otherwise become due in accordance with any payment schedule.
Allocations not listed in Schedules
37. (1) An allocation 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.
Implementation of Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005
38. (1) (a) Despite section 5 of the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 (Act No. 23 of 2005), a province (the releasing province) from which a particular area is relocated at the commencement of the Constitution Twelfth Amendment Act of 2005, must continue to spend its allocations for the 2006/07 financial year made in terms of this Act, in that particular area as if that area was not reallocated to another province (the receiving province), unless the affected provinces have entered into an implementation protocol provided for in section 5 of that Act or any other agreement that ensures that the relocated area is not negatively affected.
(b) The transfemng national officer of an allocation made in terms of this Act and the provincial treasury of the receiving province must monitor that the releasing province complies with paragraph (a);
(c) The provincial treasury of the releasing province must, at the request of the transfemng national officer, the receiving province or the National Treasury, demon- strate compliance with paragraph (a).
(2) (a) The provisions of sections 18 and 19, with the necessary changes, apply where a releasing province fails to comply with subsection (l)(a) or (c) in respect of a Schedule 4, 5 or 6 allocation.
(b) The National Treasury may, where it stops an allocation in terms of paragraph (a), after consultation with the transfemng national officer, determine that a portion of the allocation be reallocated to the receiving province.
(3) The National Treasury may, where a releasing province fails to comply with subsection ( l ) (a) or (c), after complying with the provisions of section 216(3) of the Constitution, reallocate a portion of the releasing province’s equitable share allocation referred to in section 4 to the receiving province.
(4) (a) The allocations referred to in sections 4(2) and 7(2) are subject to adjustments
5
10
15
20
25
30
35
40
45
necessitated by the implementation of the Cross-boundary Municipalities Laws Repeal 50 and Related Matters Act, 2005 (Act No. 23 of 2005).
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
(b) The transferring national officer of a Schedule 4, 5 or 6 allocation must by 15 September 2006 inform the National Treasury of any adjustments to the allocations referred to in section 7(2) that must be reflected in the Division of Revenue Act for the next financial year.
Implementation of changes to boundary, power or function of province or municipality
5
39. Despite anything to the contrary contained in any law, any changes to the boundary or the powers and functions of a province or municipality effected in terms of a power contained in any national or provincial legislation that impacts on the allocations made under this Act take effect at the commencement of the Division of 10 Revenue Act for the next financial year only.
Preparations for next budget year
40. (1) (a) The receiving officer of a Provincial Infrastructure Grant must, by 3 1 July 2006, submit detailed five-year infrastructure budgets in a format determined by the National Treasury, to the provincial treasury.
(b)The five-year infrastructure budgets must indicate the prioritised projects to be funded from the allocations for the next financial year and the 2008/07 financial year as set out in column B of Schedule 4.
(c) The provincial treasury must review the infrastructure budgets of all receiving officers and submit the co-ordinated budgets to the National Treasury by 31 August 20 2006, together with the provincial budget submission.
(d) The provincial treasury must ensure that the capital budgets of the receiving departments include allocation for project design and initiation of procurement for projects to be implemented in 2007/08.
(2) The receiving officer of a Municipal Infrastructure Grant in a category C 25 municipality, must, by 1 October 2006, certify to the National Treasury that its capital budget is co-ordinated with all category B municipalities located within that category C municipality.
(3) (a) The transferring national officer of a Schedule 4,5 or 6 allocation must, by 15 November 2006, submit to the National Treasury for approval the draft frameworks for 30 the allocations set out in column B of Schedules 4,5 or 6 in the format to be determined by the National Treasury.
(b) Any proposed amendment or adjustment of the allocation criteria included in the draft frameworks referred to in paragraph (a) must be agreed with the National Treasury
(c) The transferring national officer of a Schedule 4, 6 or 7 allocation must, by 15 January 2007, submit to the National Treasury the allocation payable to each municipality in the next financial year.
(4) The National Treasury may, in preparation for the next financial year, instruct departments and municipalities to submit to it such plans and information for any 40 conditional allocation, as it may determine, at specified times prior to the start of the next financial year,
15
prior to the submission of the draft frameworks. 35
Expenditure prior to commencement of Division of Revenue Act, 2007
41. Despite sections 3(2), 7(2) and 8(2), if the annual Division of Revenue Act for the next financial year has not commenced before or on 1 April 2007, the National Treasury 45 may, determine that an amount not exceeding 45 per cent of the total amount of each allocation made in terms of sections 3( l), 7( 1) and 8( 1) be transferred to the relevant province or municipality as a direct charge against the National Revenue Fund.
,
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Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006
CHAPTER 7
GENERAL
Allocations by public entities to provinces or municipalities
42. 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.
5
Liability for costs incurred in violation of principles of co-operative governance and intergovernmental relations
43. (1) An organ of state involved in an intergovernmental dispute regarding any 10 provision of this Act or any division of revenue matter or allocation must, before approaching a court to resolve such dispute, make every effort to settle the dispute with the other organ of state concerned, including exhausting all mechanisms provided for the settlement of disputes in relevant legislation.
(2) In the event that a dispute is referred back by a court in accordance with section 15 41(4) of the Constitution, due to the court not being satisfied that the organ of state approaching the court has complied with subsection (l), the expenditure incurred by that organ of state in approaching the court must be regarded as fruitless and wasteful.
(3) The amount of any such fruitless and wasteful expenditure must, in terms of a prescribed procedure, be recovered without delay from the person who caused the organ 20 of state not to comply with the requirements of subsection (1).
Unauthorised and irregular expenditure
44. (1) The following transfers constitute unauthorised expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act, as the case may be, where relevant: 25
(a) a transfer prohibited in terms of section 17(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 the primary bank account, or, in respect of provinces, a corporation for public deposits account.
(2) Any transfer made or spending of an allocation in contravention of this Act 30 constitutes irregular expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act.
Financial misconduct
45. (1) Despite anything to the contrary contained in any law, any serious or persistent
(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 in terms of subsection (1).
non-compliance with a provision of this Act constitutes financial misconduct. 35
Delegations and assignments
46. (1) The Minister may, in writing, delegate any of the powers entrusted to the 40 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-
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Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006
(a ) is subject to any limitations or conditions that the Minister may impose; (b) may authorise that official to sub-delegate, in writing, the delegated power or
assigned duty to another National Treasury official; and (c) does not divest the National Treasury of the responsibility concerning the
(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.
exercise of the delegated power or the performance of the assigned duty. 5
Exemptions
47. (1) The National Treasury may, on written application by a transferring national 10 or provincial officer, exempt such officer in writing from complying with a provision of this Act, if the officer satisfies the National Treasury that-
(a) the duty cannot be complied with at that stage; (b) the relevant allocation and framework are properly designed; and (c) the officer is taking steps to comply with the provisions 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 Guzette.
15
Regulations
(a) anything which must or may be prescribed in terms of this Act; and 48. The Minister may, by notice in the Gazette, make regulations regarding-
20 (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
49. (1) Subject to subsections (2) and (3), the Division of Revenue Act, 2005 (Act No. 25 1 of 2005), is hereby repealed.
(2) The repeal of the Division of Revenue Act, 2005, does not affect any duty or obligation set out in that Act, the execution of which is still outstanding.
(3) (a) A municipality affected by a demarcation referred to in the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 (Act No. 23 of 2005), must, 30 despite that demarcation and the repeal of the Division of Revenue Act, 2005 (Act No. 1 of 2005), spend allocations made under the last named Act in accordance with that municipality’s budget for the 2005/06 municipal financial year in the geographical area that constituted that municipality immediately prior to that demarcation, until the commencement of the 2006/07 municipal financial year of the newly constituted 35 municipality that is the successor-in-title of that municipality in terms of the first mentioned Act.
(b) Despite paragraph (a), all allocations payable to the Bohlabela District Municipality (CBDC4) in terms of the Division of Revenue Act, 2005, after 1 March 2006, must be transferred to the municipalities that are the successors-in-title of that 40 municipality in terms of the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005, (Act No. 23 of 2005), in accordance with the same criteria and formulae that informed the allocations to the Bohlabela District Municipality.
(c) The National Treasury must publish the allocations made to each successor-in-title municipality in accordance with paragraph (a), in the Gazette. 45
48 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Short title and commencement
50. This Act is called the Division of Revenue Act, 2006, and takes effect on 1 April 2006 or the date of publication thereof by the President in the Gazette whichever is the later date.
50 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Column A Spheres of Government 2006/07
Allocation
R'000 National',' 303 914 040 Provincial 150 752 930
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Column B
Forward Estimates
2007/08 2008/09 R'000 R'000
331396159 361393252 167 701 393 187 099 825
SCHEDULE 1
Province
Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West
EQUITABLE DIVISION OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY AMONG THE THREE SPHERES OF GOVERNMENT
Column A Column B 2006/07 Forward Estimates
Allocation 2007l08 2008/09 R'000 R'000 R'000 24 642 653 27 188 826 30 091 474
9 595 367 10 566 691 11 665 775 23 361 686 26 071 807 29 189 980 32 052 488 35 957 286 40 445 585 20 615 653 22 992 613 25 725 665 11 227 317 12 559 148 14 085 839 3 451 507 3 790 085 4 174 210
12 346 856 13 668 888 15 174 870
Local I 18057940 I 20075620 I 22 114 167 TOTAL I 472724910 I 519173772 I 571267844 1. National share includes conditional allocations to provincial and local spheres, debi service cost
2. The direct charges for the provincial equitable share are netted oui. and the contingency reserve.
SCHEDULE 2
DETERMINATION OF EACH PROVINCE'S EQUITABLE SHARE OF THE PROVINCIAL SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE
RAISED NATIONALLY (as a direct charge against the National Revenue Fund)
Western Cape I 13459403 I 14906049 I I6 546 421 TOTAL 1 150752930 I 167701393 I 187 099 825
52 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Number Municipality
EASTERN CAPE
A Nelson Mandela
B EClOl Camdeboo B ECI 02 Blue Crane Route B EC103 Ikwezi B EC104 Makana B EC105 Ndlambe B EC 106 Sundays River Valley B EC107 Baviaans B EC108 Kouga B EC109 Koukamma
,Total: Cacadu Municipalities
B EC121 Mbhashe B EC122 Mnquma
C DClO Cacadu District Municipality
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
National Financial Year Column A Column B
Forward Estimates 2006107 Allocation 2007108 2008109
R'000
487 47 1 1 5595091 634872- 11 875 13 457 15 288 12 857 14 390 16 337 4 985 5 451 6 169
22 243 25 209 28 635 18 451 20 847 23 683 11 469' 118321 13417 5 I921 5654 6 403
16 313 18354; 20897 9 478 1 103571 11 765
154 597 173 8161 196 938
43 841 35 925 i 40 675
41 7351 48 266 1 54 344 1
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
54 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Column A
2006107 Allocation
Number Municipality
SCHEDULE 3
Column B Forward Estimates
2007108 2008109
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
FREE STATE - I - T l
FS193 Nketoana FS194 Maluti-a-Phofung FS195 Phumelela
FS204 Metsirnaholo
.
56 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Column A
2006/07 Allocation Number Municipality
SCHEDULE 3
Column B Forward Estimates
2007/08 2008/09
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
A City of Johannesburg A City of Tshwane
B GTOZbl Nokeng tsa Taemane B GT02b2 Kungwini C DC46 Metsweding District Municipality Total: Metsweding Municipalities
2 252 848 2 554 033 2 902 371 1 002 650 1095 231 1245 871
12 036 13 182 15 034 29 080 32 677 37 259 14 987 17 537 19 754 56 103 1 63 397 72 047
I
GAUTENG
A Ekurhuleni
C DC42 Sedibeng District Municipality Total: Sedibeng Municipalities
B GT481 Mogale City B GT482 Randfontein B GT483 Westonaria C DC48 West Rand District Municipality Total: West Rand Municipalities
Total: Gauteng Municipalities
1 191 332 1 136466d 1 5 5 4 4 3 1
140 377 161 2861 181 597 369 654 428 194 1 486 339
68 282 779911 89415 31 249 35 186 40 138 44 336 35 1431 40063 91 303 105 604 1 118967
235 169 1 253 924 288 583
5 107 755 5 759 440 6 549 646
B GT421 Emfuleni B GT422 Midvaal B GT423 Lesedi
258 205
19 854 22 658 25 781 20 7561
193 1171
,
58 No. 28700 GOVERNMENT GAZETIE, 3 1 MARCH 2006
C DC22 uMgungundlovu District Municipality Total: uMgungundlovu Municipalities
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
134 121 I55 525 175 696 325 895 358 040 406 370
SCHEDULE 3
34 480 18 566 9 564
21 449 19 817
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
22 739 38 259 20 075 10 348 11 744 20 253 22 946 21 571 24 431
KWAZULU-NATAL
KZ211 Vulamehlo KZ212 Umdoni
C DC23 Uthukela District Municipality 87 242 1 101 237 1 I4 664
B KZ232 Emnambithinadysmith B KZ233 Indaka B KZ234 Umtshezi B KZ235 Okhahlamba B KZ236 Imbabazane
TotakUthukela Municipalities I 191 1181 211 743 I
239 964
KZ252 Newcastle KZ253 Utrecht
,
60 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Number Municipality
B KZ27 1 Umhlabuyahngana B KZ272 Jozini B KZ273 The Big Five False Bay B KZ274 Hlabisa B KZ275 Mtubatuba C DC27 Umkhanyakude Distnct Municipality Total: Umkhanyakude Municipalities
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
National Financial Year Column A Column B
Forward Estimates
2007108 2008/09 2006107
Allocation
18 941 22 222 1 16 750 28 026 I 22 669 25 644
7 328 4 612 5 204 22 1351 18 246 20 601 6419, 5 582' 6 323
61 982' 65 359 74 131 148 1121 133 218 150 845
I
SCHEDULE 3
C DC28 uThungulu District Municipality Total: uThungulu Municipalities
B KZ291 eNdondakusuka B KZ292 KwaDukuza B KZ293 Ndwedwe ~B KZ294 Maphumulo ,c DC29 iLembe Distnct Municipality Total: iLembe Municipalities
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
127 361 ' 145 389 164 262 280 881 286 965 324 987
20 8701 22 264 25 241 22 271, 24 814 28 407 25 013 20 067 22 698 19 581 15 524 17 565 833151 96 042 108 802
171 049 178 711 202 713
I
C DC43 Sisonke Distnct Municipality Total: Sisonke Municipalities
B KZ281 Mbonambi B KZ282 uMhlathnze €3 KZ283 Ntambanana B KZ284 Umlalazi B KZ285 Mthonjaneni B E 2 8 6 Nkandla
61 412 77 7441 88 364 149 334 158 291 179 628
I 1 I
I I 160771 14 266' 16 125 61 266, 69 177: 78 844
9 675 6 744 7 613 32 935 26881' 30 413 I1 2661 8 373 9 487 22 302 1 16 1361 I8 239
B KZ5al Ingwe B KZ5a2 KwaSani B KZ5a4 Greater Kokstad B KZ5a5 Ubuhlebezwe B KZ5a6 Umzimkhulu
19 139 16 191 ~ 18 328 5 040 4 134 4 614
15 055 1 16 707 18 997 190731 16 363 ' 18 516 29 615) 27 152' 30 750
I I
Total: KwaZulu-Natal Municipalities I 3 091 031 3 348 717 3 802 979
,
62 No. 28700 GOVERNMENT GAZE'lTE, 3 1 MARCH 2006
Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006
Column A
2006/07 Allocation Number Municipality
SCHEDULE 3
Column B Forward Estimates
2007/08 2008/09
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
Total: Greater Sekhukhune District Municipalities 289 322 ~ 312 693 I 354 385
LIMPOPO B NP03a2 Makhudutharnaga B NP03a3 Fetakgorno B NP03a4 Greater Marble Hall B NP03a5 Greater Groblersdal B NP03a6 Greater Tubatse
B NP33 1 Greater Giyani B NP332 Greater Letaba B NP333 Greater Tzaneen B NP334 Ba-Phalaborwa B NP335 Maruleng C DC33 Mopani Distnct Municipality Total: Mopani Municipalities
441131 482381 15 242 54636 I7 22 16 531 21 395' 23 252 26 356 40 658 446361 50 566 41 826 42 889 48 579
43 469 i 1 44 8361 50 794 41 303; 44 888 50 876 61 8131 68 130 77 510 20 208 21 2661 24 125 18 437 17 7401 20 084
152 651 1832051 207 994 337 880 380 065, 431 383
I
C DC34 Vhembe District Municipality Total: Vhembe Municipalities
158 2041 I84 5241 209 463 339 936 1 379 7101 431 334
B NP341 Musina B NP342 Mutale B NP343 Thulamela B NP344 Makhado
27 660 24 760
9 9 1 7 ~ 10 601 1 12 047 13 7591 15 558 89 313 101 558
73 824 81 5141 92 708
27 226 30 835 25 239 28 552
C DC35 Capricorn District Municipality Total: Capricorn Municipalities
B NP35 1 Blouberg B NP352 Aganang B NP353 Molemole B NP354 Polokwane B NP355 Lepelle-Nkurnpi
141 8241 165 458 187 287 381 721 ~ 426 679 ' 483 934
~
B NP361 Thabazirnbi B NP362 Lephalale B NP364 Mookgopong B NP365 Modimolle B NP366 Bela Bela B NP367 Mogalakwena
197921 20 496 1 23 319 33 030 37 515
85001 9656 18 671 20 525 23 344 14 875 166841 18 956 78 251 88 532 I 100 665
I
Total: Limpopo Municipalities 1 565 837 / 17427191 1 977 410
64 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
49 958 34 283 31 210 21 188 26 100
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
55 245 62 669 38 525 43 165 34 080 38 677 30 884 35 053 29 062 33 035
SCHEDULE 3
16 458 65 331
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
18 676 84 466
1 Number Municipality
398 568 1 449 381 I
MPUMALANGA
B MP301 Albert Luthuli B MP302 Msukaligwa B MP303 Mkhondo B MP304 Pixley Ka Seme B MP305 Lekwa B MP306 Dipaleseng B MP307 Govan Mbeki
508 984 C DC30 Gert Sibande District Municipality Total: Gert Sibande Municipalities
16 839 60811 30611 11 890 70 806 73 423
B MP311 Delmas
B B MP3 14 Emakhazeni B MP3 15 Thembisile B MP3 16 Dr JS Moroka C DC3 1 Nkangala District Municipality Total: Nkangala Municipalities
B MP321 Thaba Chweu B MP322 Mbombela B MP323 Umjindi B MP324 Nkomazi B MP325 Bushbuckridge C DC32 Ehlanzeni District Municipality Total: Ehlanzeni Municipalities
MP3 12 Emalahleni MP313 Steve Tshwete
IP 18 886 21 458 68 104 77 899 34 902 39 856 13 118 14 888 78 736 89 325 82 555 93611
Total: Mpumalanga Municipalities
24 749 I 27 264 102 361 112 832 15 378 16 746 81 926 90 335
113 530 153 945
2006/07
30 996 128 511 19 050
102 717 175 543
1884281 215 2781 242 003 452 809 1 511 580) 579 039 ~
I
I 1 284 092 1 1 473 983 1 1671 009
I'
/'
66 No. 28700 GOVERNMENT GAZETTE, 31 MARCH 2006
Act No. 2, BO6 DIVISION OF REVENUE ACT, 2006
Column A
2006/07 Allocation
SCHEDULE 3
Column B Forward Estimates
2007108 2008109
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
NC061 Richtersveld NC062 Nama Khoi
'B NC064 Kamiesberg B NC065 Hantam B NC066 Karoo Hoogland B NC067 Khai-Ma C DC6 Namakwa District Municipality Total: Namakwa Municipalities
Number Municipality
NORTHERN CAPE
B NC081 Mier B NC082 !Kai! Garib B NC083 /iKhara Hais B NC084 !Kheis B NC085 Tsantsabane
NC071 NC072 NC073 NC074 NC075 NC076 NC077 NC078
Ubuntu Umsobomvu Emthanjeni Kareeberg Renosterberg Thembelihle Siyathemba Sivancuma
C DC9 Frances Baard District Municipality Total: Frances Baard Municipalities
Total: Northern Cape Municipalities
32 449 ' 28 205, 31 802 71 846 80 038 ~ 90 651
I
40121 4 388' 4 967 1 1 044' 12 419 14 101 4 098 4 465 5 044 6 533 7 254 8 227 4471, 4 7841 5 405 4 243 1 4 498 5 082
18 221 1 20 557 ~ 23 126 52 622 58 364 65 952
, I 5 9571 9 795
I 1 598 3 954 4 887 4 671, 6 440
10763,
, 6 525 IO 990 13 130' 4 2921 5 340' 5 056' 7 2101
1 1 8811
7 395 12 462 14 898 4 858 6 033 5 718 8 174
I3 490 14 647 16 724 18 821 72 711 81 149 91 850
!
3 333; 3 2161 3 627 15 2131 15 9291 18 126 16 888 19 432 22 107 5 1951 5 523, 6 246 9 1741 9 557, 9 637 4 8071 5 308 6017
26 290 1 29 649 33 389 80 901 1 88 6121 99 150
50 356' 58 016 66 244 14344 I6 044' 18 197
20 471 23 045 26 179 9 351 , 10 526' I 1 935
1 I
I
424 513 468 496 529 471
68 N0.28700 GOVERNMENT GAZETTE, 31 MARCH 2006
Allocation
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
2007/08 2008/09
SCHEDULE 3
NORTH WEST
B NW371 Moretele B "'372 Madibeng B NW373 Rustenburg B NW374 Kgetlengrivier B NW375 Moses Kotane C DC37 Bojanala Platinum District Municipality Total: Bojanala Platinum Municipalities
B NW381 Ratlou B NW382 Tswaing B "383 Mafikeng B NW384 Ditsobotla B NW385 Zeerust C DC38 Central District Municipality TotaL: Central Municipalities
B "391 Kagisano B NW392 Naledi B NW393 Mamusa B NW394 Greater Taung B NW395 Molopo B NW396 Lekwa-Teemane C DC39 Bophirima District Municipality Total: Bophirima Municipalities
B NW401 Ventersdorp B "402 Potchefstroom B NW403 Klerksdorp B NW404 Maquassi Hills B NW405 Merafong City C DC40 Southern District Municipality Total: Southern Municipalities
Total: North West Municipalities
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
i 47 984' 53 117 88 000 98 600 87 839 92 464 13 363 14 978 72 634 81 570
139 081 161 441 448 901 50.2 170
20 1791 22 079 19 625 21 531 37 640 42 446 24 546 27 018 24 673 26 979
I Number Municipality
60 218 112 279 105 694 17 007 92 558
181 845 569 601
25 006 24 410 48 334 30 655 30 573
14 585 1 16 302 28 189 32 404
111 882 128 716 24 000 27 198 68 625 63 499
National Financial Year Column A I Column B
Forward Estimates 2006/07 I
18 504 37 050
146 924 30 891 72 771
151 1241 174 893 1 197 987 277 787 1 314 946 1 356 965
I I 18 837 19275) 21 806
10 052 10 952 12 423 32911 37 246 ' 4 041 ' 4552
8 945. 9 743 1 11 063
11 034 12 181 13 830
72 694 I 83 935 1 95 142 156 671 1 173 038 1 196 062
1 1
72 047 1 85 3641 96 252 319 328 1 353 483 j 402 391
70 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
2006107 Allocation
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
Forward Estimates
2007/08 2008/09
SCHEDULE 3
1435 058, 1634485
13 859
WESTERN CAPE
A City of Cape Town 1 280 807
11 414 9 783
15 850 1 I688
B WCOl1 Matzikama 10 831 12 158
B WCO 13 Bergrivier 7 790 8 587 B WC014 Saldanha Bay 12 215 13 859 B WCO15 Swartland 9 352 10 217 C DC1 West Coast District Municipality 43 320 50 172 56 527 Total: West Coast Municipalities 92 659 105 037 119 120
B WC022 Witzenberg 15 169, 16 757 19 080 E WC023 Drakenstein 24 230 27 748 31 955 B WC024 Stellenbosch 15 111 17 168 I9 798 B WC025 Breede Valley 21 672 24 800 1 28 416 B WC026 Breede River Winelands 16 919 19 144 21 792 C DC2 Cape Winelands District Municipality 127 434 145 358 163 641 Total: Cape Winelands Municipalities 220 535 250 976 284 681
I 1 I B WC012 Cederberg 9 151 10 044
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY
National Total
~
National Financial Year I C o i u m n ~ I Column B
18 057 940 ~ 20 075 620 1 22 774 767
I Number Municipality
72 No. 28700 GOVERNMENT GAZETIE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
74 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006
Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
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Act No. 2,2006 DIVISION OF REVENUE ACT, 2006
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