Division of Revenue Act

Link to law: http://www.gov.za/documents/division-revenue-act-1
Published: 2004-03-31

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Division of Revenue Act [No. 5 of 2004]


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 465 Cape Town 31 March 2004 No. 26222
THE PRESIDENCY No. 437 31 March 2004
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 5 of 2004: Division of Revenue Act, 2004.

(English text signed by the President.) (Assented to 30 March 2004.)
ACT To provide for the equitable division of revenue anticipated to be raised nationally among the national, provincial and local spheres of government for the 2004/05 financial year and the reporting requirements for allocations pursuant to such division; to permit the withholding and the delaying of payments in certain circumstances; to provide for liability for costs incurred in litigation in violation of the principles of co-operative governance and intergovernmental relations; and to provide for matters connected therewith.
PREAMBLE
WHEREAS section 214( 1) of the Constitution 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 B Africa, as follows:- CHAPTER 1
INTERPRETATION AND OBJECTS OF ACT
Interpretation 5
1. (1) In this Act, unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Public Finance Management Act has the meaning assigned to it in that Act, and-
I. “budget year” means the financial year commencing on 1 April 2004 and ending on 31 March 2005; 10
11. “head official”, in relation to a provincial treasury, means the head of the provincial department responsible for financial matters in the province;
111. “Financial and Fiscal Commission Act” means the Financial and Fiscal Commission Act, 1997 (Act No. 99 of 1997);
IV. “Intergovernmental Fiscal Relations Act” means the Intergovernmental 15 Fiscal Relations Act, 1997 (Act No. 97 of 1997);
to in section 60 of the Municipal Finance Management Act;
commencing on 1 July and ending on 30 June; 20
Municipal Finance Management Act, 2003 (Act No. 56 of 2003);
V. “municipal accounting officer” means the official of a municipality referred
VI. “municipal financial year” means the financial year of a municipality
VII. “Municipal Finance Management Act” means the Local Government:
4 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
VIII. “municipality” means the same as in section 1 of the Municipal Finance
IX. “Municipal Structures Act” means the Local Government: Municipal
X. “Municipal Systems Act” means the Local Government: Municipal Systems 5
XI. “next financial year” means the financial year commencing on 1 April 2005
XII. “payment schedule” means a schedule which sets out-
Management Act:
Structures Act, 1998 (Act No. 117 of 1998);
Act, 2000 (Act No. 32 of 2000);
and ending on 31 March 2006;
(a ) the amount of each instalment of an equitable share or any other 10 allocation to be transferred to a province or municipality for the financial year;
(b) the date on which each such instalment must be paid; and (c) to whom, and to which primary bank account, each such instalment
must be paid; 15 XIII. “prescribe” means prescribe by regulation in terms of section 33; XIV. “primary bank account”-
( a ) in relation to a province, means a bank account of the provincial Revenue Fund, which the head official of the provincial treasury has certified to the National Treasury as the bank account into which 20 allocations in terms of this Act must be deposited;
means that account; or
means one of its bank accounts which it has designated as its 25 primary bank account;
(bj in relation to a municipality which has only one bank account,
(c) in relation to a municipality which has more than one bank account,
XV. “Public Finance Management Act” means the Public Finance Management Act, 1999 (Act No. 1 of 1999):
XVI. “quarter” means- (a) 1 April to 30 June; 30 (b) 1 July to 30 September; (c) 1 October to 31 December; or (d) 1 January to 31 March;
(a) in relation to Schedules 4 and 5 allocations transferred to a 35 province, excluding the Provincial Infrastructure Grant, means the accounting officer of the provincial department which is responsible for spending or managing that allocation; or
(bj in relation to Schedules 6 and 6A allocations transferred to a municipality, means the municipal accounting officer of that 40 municipality, except for that portion of the Municipal Infrastructure Grant funds in terms of section 11(7), committed before 30 September 2003 and spent by the accounting officer of the national department for local government directly on behalf of the munici- pality; 45
XVIII. “transferring national officer” means the accounting officer of a national department which transfers to a province or municipality Schedule 4, 5, 6 or 6A allocations, but excludes the accounting officer of the National Treasury in respect of an allocation listed in those Schedules and which is on the vote of the National Treasury; 50
XIX. “transferring provincial officer” means the accounting officer of a provincial department which is responsible for managing a Schedule 5, 6 or 6A allocation for the purpose of transferring it to a municipality in the relevant province.
XVII. “receiving officer”-
(2) In the event of any inconsistency between a provision of this Act and a provision 55 of the Municipal Finance Management Act that has taken effect, the provision of the Municipal Finance Management Act is, to the extent of the inconsistency, suspended until 1 April 2005.
(3 ) Section 35 of the Public Finance Management Act, section 3 of the Financial and Fiscal Commission Act and section 9 of the Municipal Systems Act do not apply in 60 respect of any powers and functions assigned in terms of this Act to a province or municipality.
6 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENW ACT, 2004
Objects of Act
2. The objects of this Act are- (a ) to provide for the equitable division of revenue anticipated to be raised
(b) to promote co-operative governance and the principles of intergovernmental 5
(c) to promote better co-ordination between policy, planning, budget preparation
(d) to promote predictability and certainty in respect of all allocations to
nationally among the three spheres of government;
relations on budgetary matters;
and execution processes;
provincial governments and municipalities in order that such governments 10 and municipalities may plan their budgets over a multi-year period;
the criteria for their division;
transfers are reflected on the budgets of benefiting provincial governments 15 and municipalities; and
government are avoided as far as is possible.
(e) to promote transparency and equity in all allocations, including in respect of
(fl to promote accountability for the use of public resources by ensuring that all
(8) to ensure that legal proceedings between organs of state in the three spheres of
CHAPTER 2
EQUITABLE SHARE ALLOC TIONS 20
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 shar s as set out in Column A of Schedule 1. 25
(2) An envisaged division of revenue anticipated to be raised in respect of the next financial year and the 2006/07 financial year, and which will be subject to the provisions of the annual Division of Revenue Act in respect of those financial years, is set out in Column B of Schedule 1.
until the commencement of the annual Division of Revenue Act for that financial year, determine that an amount not exceeding 45 per cent of the envisaged division for the next financial year as set out in Column B of Schedule 1, be transferred as a direct charge against the National Revenue Fund to each province and municipality.
(3) Despite subsection (2), the Minister may, in respect of the next financial year and 30
Equitable d vision of provincial share amongprovinces 35
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.
(2) An envisaged division for each province of revenue anticipated to be raised nationally in respect of the next financial year and the 2006/07 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial 40 years, is set out in Column B of Schedule 2.
(3) Subject to section 28(2), each province’s equitable share contemplated in subsection (1) must be transferred to the province in weekly instalments in accordance with a payment schedule determined by the National Treasury, after consultation with the head official of the relevant provincial treasury. The payment schedule must take 45 reasonable account of the monthly spending commitments of provinces, the revenue at the disposal of provinces, and the minimisation of risk and debt servicing costs.
(4) Despite subsection (3) , the Minister may, on such conditions as the Minister may detemune, advance funds to a province in respect of its equitable share contemplated in subsection (l), which have not yet fallen due for transfer in accordance with the payment 50 schedule referred to in subsection (3) in respect of that province.
8 No. 26222 GOVERNMENT GAZETTE, 31 A4ARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
(5) The advances contemplated in subsection (4) must be set-off against transfers to the province which would otherwise become due in terms of the applicable payment schedule.
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 of Schedule 3.
(2) An envisaged division between municipalities of revenue anticipated to be raised nationally in respect of the next financial and the 2006/07 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) Subject to subsection (4), each municipality’s equitable share contemplated in subsection (1) must be transferred to the primary bank account of the municipality in quarterly instalments before the end of May, August, November and February in the budget year, in accordance with a payment schedule determined by the National Treasury.
(4) If a provincial executive has intervened in a municipality in terms of section 139 of the Constitution, the Minister responsible for local government may, with the concurrence of the Minister, and on such conditions as the Minister may determine, advance funds to a municipality in respect of its equitable share contemplated in subsection (1) which have not fallen due for transfer in accordance with the applicable payment schedule referred to in subsection (3) in respect of that municipality.
(5) Any advances in terms of subsection (4) must be set-off against transfers to the municipality which would otherwise become due in terms of the applicable payment schedule.
(6) Despite subsection (3), the National Treasury may direct the accounting officer of the national department for local government to delay or withhold the transfer of an instalment on the grounds of a municipality’s serious or persistent material breach of uniform treasury norms and standards.
(7) Such uniform treasury norms and standards referred to in subsection (6) may include a requirement that a municipality must-
(a ) submit to the Auditor-General, not later than 30 April 2004, any outstanding financial statements in respect of municipal financial years preceding the 2003104 municipal financial year;
(b) submit to the National Treasury, by not later than 30 June 2004, its budget for the 2004105 municipal financial year and such other budgetary information as may be required by the National Treasury, including, but not limited to, information on the nature and extent of basic services to be provided for water, sanitation, electricity, and municipal infrastructure, including free basic services, to be provided by that municipality;
(c) submit to the Auditor-General and the National Treasury, not later than 30 September 2004, financial statements in respect of the 2003/04 municipal financial year, in a format determined by the National Treasury;
(d) submit to the National Treasury, by not later than 20 days after the end of each quarter starting 1 July 2004, information on the implementation of its budget, including information up to the end of that quarter on actual- (i) total revenue collected, borrowings and all allocations received in terms
(ii) total spending, including on water, sanitation, electricity, free basic
(e) in the case of local and district municipalities, co-operate on financial, budget and fiscal matters with other municipalities within the district in which it is located in order to eliminate duplication in the provision of services, reduce wastage, and ensure effective and efficient spending for purposes of sustainable delivery of municipal services in that municipal district.; and
(“ make timely payment of all statutory commitments including all taxes, levies, audit fees, medical aid and pension fund commitments.
of this Act; and
services and municipal infrastructure;
5
10
15
20
25
30
35
40
45
50
55
10 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
(8) Payments of the quarterly equitable share instalments referred to in subsection (3), may be made subject to the accounting officer of a municipality submitting any information required in terms of subsection (6) or (7) to the National Treasury, and certifying how the municipality is complying with subsection (6) or (7), not later than 21 days before the date of transfer of such instalment. 5
(9) Despite subsections (6) and (7), the National Treasury may direct that funds be transferred to a municipality, where it-
(a) provides a written explanation which the National Treasury determines as
(b) is in danger of failing to deliver basic services as a result of such delays or 10 reasonable; or
withholding.
Shortfalls and excess revenue
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 is in excess of the 15 anticipated revenue set out in Schedule 1, the excess accrues to the national government and forms part of its equitable share.
(3) Despite subsection (2), the national government may, by means of an adjustments budget or any other appropriation legislation, and additional to the allocations in sections 4 and 5 , and the allocations contemplated in Chapter 3, make in the budget year 20 further allocations to provinces and municipalities from its equitable share of nationally raised revenue or contingency reserve.
CHAPTER 3
OTHER ALLOCATIONS TO PROVINCES AND MUNICIPALITIES
Other allocations 25
7. (1) Other 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, which contains allocations to provinces for general and nationally
(b) Schedule 5, which contains specific-purpose allocations to provinces. assigned functions; 30
(2) An envisaged division of allocations to provinces from the national government’s share of revenue anticipated to be raised nationally, for the next financial year and the 2006/07 financial year, which is subject o the annual Division of Revenue Act for those years is et out in Column B of the Schedules referred to in subsection (1). 35
(3) Despite subsection (2), the Minister may, in respect of the next financial year and until the commencement of the Division of Revenue Act for that financial year, determine that an amount not exceeding 45 per cent of the envisaged division of the allocation for the next financial year, as set out in Column B of the Schedules referred to in subsection (1). be transferred to a province as a direct charge against the National 40 Revenue Fund.
(4) Other 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 in Column A of the following Schedules:
(a) Schedules 6 and 6A, which contain specific-purpose allocations to local 45
(b) Schedule 7, which contains allocations-in-kind to municipalities for desig-
(5) An envisaged division of allocations to local government from the national government’s share of revenue anticipated to be raised nationally for the next financial 50 year and the 2006/07 financial year, which is subject to the annual Division of Re,venue Act for those years, is set out in Column B of the Schedules referred to in subsection (4).
government; and
nated programmes.
12 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004
(6) The Minister must, not later than 1 April 2004, publish in the Gazette required in terms of section 24( l), the share of each municipality in respect of the local government allocations referred to in subsections (4) and (5 ) .
(7) Despite subsection (5) , the Minister may, in respect of the next financial year and until the commencement of the Division of Revenue Act for that financial year, 5 determine that an amount not exceeding 45 per cent of the envisaged division of the allocation for the next financial year, as set out in Column B of the Schedules referred to in subsection (4), be transferred to a municipality as a direct charge against the National Revenue Fund.
Transfers to entities 10
8. (1) Where a national or provincial organ of state has to provide funds to a public entity for the provision of a municipal service or function after 30 June 2004, it must do so by transferring such funds to the relevant municipality directly, and in accordance with subsection (2), unless the National Treasury has directed otherwise.
provincial organ of state for the provision of a municipal service in a municipality after 30 June 2004, unless such public entity has by 30 June 2004 notified the National Treasury in writing that it acts as an external mechanism for a municipality in terms of Chapter 8 of the Municipal Systems Act. Where a public entity and relevant municipality fail to come to an agreement by the above date, the public entity and 20 municipality must inform the National Treasury when such an agreement will be completed.
(3) The National Treasury may withhold the payment of any grant to a public entity if the public entity fails to comply with subsection (2).
(4) A public entity that receives a grant, directly or indirectly, from a national or 25 provincial organ of state for the provision of a municipal service in a municipality must report to that municipality and to the National Treasury, within seven working days fter the end of each month, the amount spent on such municipal service and for which it has received funds, or is entitled to reimbursement from the funds transferred to the municipality. 30
( 5 ) If a municipality fails to reimburse a public entity in terms of this section, the National Treasury may direct the withholding of funds due to the municipality, and reimburse the public entity directly.
(2) A public entity may not receive funds directly or indirectly from a national or 15
Transfers not listed in Schedules
9. An allocation not listed in the Schedules referred to in section 7 may only be made 35 in terms of section 6 (3) or in terms of an adjustments appropriation, and must be published in the Gazette by the Minister before the transfer of any funds to a province or municipality, and must comply with such monitoring and reporting requirements as may be determined by the National Treasury.
Provincial infrastructure grant 40
10. A provincial treasury must, in respect of an allocation for provincial infrastructure listed in Schedule 4, submit to the National Treasury, not later than 1 April 2004, and in the format determined by the National Treasury, a plan on proposed spending for the budget year, the next financial year and the 2006107 financial year.
Municipal Infrastructure Grant 45
11. (1) Allocations for addressing backlogs in basic municipal infrastructure development and the carrying out of municipal services are set out in Schedule 6A.
(2) Any allocation contemplated in subsection (1) which is intended, entirely or in part, for the construction, maintenance or rehabilitation of municipal infrastructure, mmt only be i: teras cf a pdicy framework, a d allocations piibhhed iii ismis of 50 section 24( 1).
14 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
(3) A municipality must, in respect of an allocation for the Municipal Infrastructure Grant listed in Schedule 6A, submit to the National Treasury with its budget in terms of section 5(7), by not later than 30 June 2004 or such other date as may be determined by the National Treasury, a three-year capital plan on proposed spending for the 2004/05, 2005/06 and 2006/07 municipal financial years. The National Treasury may direct 5 additional conditions on the transfer of funds to a municipality failing to comply with this provision, including transferring funds destined for the municipality via a district municipality or another organ of state.
(4) The three-year capital plan of a municipality must include the following information, in a format determined by the NationalTr asury: 10
(i) how the municipality has prioritised the payment of commitments on the previous consolidated municipal infrastructure and water capital grants as at 30 September 2003, to the extent that it will receive allocations directly from the Municipal Infrastructure Grant to incur such payments;
(ii) projections on future operational costs for new or upgraded infrastructure; 15 (iii) operational budgets for maintenance and operating costs on existing
(iv) how a municipality’s operational budget takes account of future commit- infrastructure; and
ments. (5 ) A district municipality receiving the Municipal Infrastructure Grant must, in its 20
budget and three-year capital plan, indicate all transfers and allocations-in-kind to local municipalities. Transfers between district and local municipalities must be approved in both their budgets, and any allocations in-kind must comply with section 12.
(6) Each recipient municipality must, not later than 20 worlung days after the end of each quarter after 1 July 2004, submit a report to the National Treasury, which provides 25 details on the implementation of the capital budget, and any other details requested by the National Treasury as set out in the frameworks for municipal infrastructure grants.
(7) The accounting officer of the national department for local government may, with the approval of the National Treasury, and after consultation with the responsible sector departments, make direct payments to creditors against the Municipal Infrastructure 30 Grant allocation to a municipality for commitments incurred on previous consolidated municipal infrastructure and water capital grants as at 30 September 2003, if-
(i) the receiving municipality is unable, unwilling or fails to pay for such
(ii) it is to fulfil contractual obligations entered into before 30 September 2003. 35 commitments; or
Transfer of assets to municipalities
12. (1) A transferring national officer or a transferring provincial officer may not make any transfer to a municipality, of assets or any other financial resource, including an allocation-in-kind or the future transfer of an asset, intended, entirely or in part, for the construction, installation, maintenance or rehabilitation of municipal infrastructure 40 without-
(a ) a realistic estimate of the value of the asset and future potential liability, including reflection on the budget of the benefiting municipality of the associated operating costs;
(b) a resolution of the municipal council that it will take transfer of such asset and 45 future operating costs;
(c) the written approval of the relevant treasury, in terms of a framework required in subsection (3).
(2) The transferring national officer or the transferring provincial officer, as the case may be, must, within such period as may be determined by the National Treasury, report 50 to the National Treasury on the actual transfers effected in respect of the allocations contemplated in subsection (1).
16 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 ~~~
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
(3) The Minister may, with the concurrence of the Minister responsible for local government, develop a framework for transfer of assets. To the extent that the framework affects the restructuring of water services or electricity distribution, the Minister must consult with the relevant Minister prior to the determination of the framework. 5
Municipal capacity building allocations
13. (1) Any transfer of an allocation, other than an allocation on the vote of the National Treasury, 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 responsible for local 10 government, in consultation with the National Treasury.
(2) The framework contemplated in subsection (1) must take into account integrated planning, performance management, financial management, budgeting and spatial planning considerations, and ensure that the capacity of a municipality is developed in measurable ways. 15
(3 ) The transferring national or provincial officer responsible for a municipal capacity building allocation must, in the annual report of the relevant department, indicate the extent to which the capacity of any municipality was improved by that allocation and the extent to which such allocation was spent on non-public providers providing services or assistance to a municipality. 20
CHAPTER 4
DUTIES OF ACCOUNTING OFFICERS AND TREASURIES
Duties of transferring national officers
14. (1) A transferring national officer must, not later than 14 days after this Act takes effect, certify to the National Treasury that- 25
(a) allocation frameworks, conditions and monitoring provisions are reasonable and do not impose an undue administrative burden on benefiting provinces and municipalities;
(b) funds will only be transferred after information required in terms of this Act from the transfening national officer has been provided; 30
(c) funds will only be deposited by the transferring national officer into the primary bank account of a province or municipality; and
(d) all other arrangements or requirements necessary for the transfer of an allocation have been complied with.
(2) A transferring national officer who has not complied with subsection (1) must 35 transfer such funds as directed by the National Treasury.
(3) A transferring national officer must transfer all allocations to a province or municipality by depositing such funds into the primary bank account of the province or municipality, unless the National Treasury has directed otherwise for reasons related to better cash management. Before transferring the first allocation of any grant, the 40 transferring national officer must take note of any notice in terms of subsection 19(2) from the National Treasury outlining the details of the primary bank account for each province or municipality.
(4) 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 45 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 and the relevant executive authority, 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; 50 (6) the amount of funds delayed or withheld from any province or municipality
(c) the actual expenditure incurred by the province or municipality in respect of
(d) such other issues as the National Treasury may determine. 55
and the reasons for such delay or withholding;
the allocations listed in Schedule 5, 6 and 6A; and
18 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DMSION OF REVENUE ACT, 2004
Duties of transferring provincial officers
15. A transferring provincial officer must, as part of the report contemplated in section 40(4)(c) of the Public Finance Management Act, and in respect of any allocation to be transferred to municipalities, within 15 days after the end of each month and in the format determined by the National Treasury, submit to the national transferring officer, 5 the relevant treasury and the executive authority responsible for that department, information on-
(a ) the amount of funds transferred to a municipality in the month reported on and
(b) the amount of funds delayed or withheld from any municipality in the month 10
(c) actual expenditure incurred in respect of that allocation in the month reported
(d) such other issues as the National Treasury may determine.
for the financial year up to the end of that month;
reported on;
on and for the financial year up to the end of that month; and
Duties of receiving officers 15
16. (1) The relevant receiving officer must, in respect of an allocation to be transferred
(a) a province, and as part of the report contemplated in section 40(4)(c) of the Public Finance Management Act, within 15 days after the end of each month, submit a report to the relevant provincial treasury, the relevant provincial 20 executive authority and the transferring national officer; and
the relevant transferring national or provincial officer.
to-
(b) a municipality, within 10 days after the end of each month, submit a report to
(2) The reports contemplated in subsection (1) must set out for that month and for the financial year up to the end of that month- 25
(a ) the amount received by the province or municipality, as the case may be; (b) the amount of funds delayed or withheld from the province or municipality, as
(c) the actual expenditure by the province or municipality, as the case may be, in
(d) the extent of compliance with the conditions of an allocation and with this Act; ( e ) an explanation for any material problems experienced or variations effected
by the province or municipality, as the case may be, 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 35
the case may be;
respect of allocations set out in the Schedules 5, 6 and 6A; 30
(f) such other issues and information as the National Treasury may determine. (3) The accounting officer of a municipality must submit to the National Treasury, in
(a) immediately after the commencement of this Act, the details of the relevant
(b) immediately upon opening a new primary bank account, the details of that
(4) The receiving officer of a district municipality which intends to transfer to a local municipality, and vice versa, an allocation transferred to it in terms of this Act, or any portion of such transfer, may only effect such a transfer provided all allocations are 45 reflected in both municipality’s annual budgets by 1 July 2004, or if later, as approved by the National Treasury.
(5) The Minister may prescribe additional duties for a receiving officer contemplated in subsection (4).
writing-
municipality’s primary bank account; and 40
municipality’s new primary bank account.
20 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
Duties of provincial accounting officers and treasuries
17. (1) The provincial treasury must publish, with its annual budget or in the provincial Gazette, not later than 1 April 2004, the allocations per municipality for every allocation made by the province to a municipality in that province.
contemplated in subsection (l), also indicate the envisaged division of the allocation contemplated in that subsection in respect of a municipality, for the next financial year and the 2006/07 financial year.
(3) A provincial treasury must, within 22 days after the end of each month, and in the format determined by the National Treasury, and as part of its consolidated monthly 10 report, report on-
(2) The MEC responsible for financial matters in the province must, in the publication 5
(a) actual transfers received by the province from national departments; (b) actual expenditure on such allocations, excluding the allocations set out in
Schedule 4, up to the end of that month; (c) actual transfers made by the province to municipalities, and projections on 15
actual expenditure by municipalities on such allocations; and (d) any problems of compliance with this Act, by transferring provincial officers
and receiving officers, and the steps taken to deal with such problems. (4) The report contemplated in subsection (3) must, in respect of the provincial
infrastructure allocation, include reports for each quarter and be in such format as may 20 be determined by the National Treasury.
(5) Despite anything to the contrary contained in any law, a provincial treasury may, in accordance with any reporting framework determined by the National Treasury, make allocations to municipalities that were not published in terms of subsection (1).
Gazette before any transfers can be made. (6) The allocations contemplated in subsection (5) must be published in the provincial 25
Annual financial statements for 2004105
18. (1) The annual financial statements for the 2004105 financial year of a department transferring any funds in respect of an allocation set out in Schedules 4, 5,6,6A, and 7, must, in addition to any requirements in terms of any other applicable law- 30
(a ) indicate the total amount of that allocation transferred to a province or municipality;
(b) indicate the funds, if any, that were withheld and the reasons for such withholding in respect of each province or municipality;
(c) certify that all transfers to a province or municipality were deposited into the 35 primary bank account of a province or municipality;
(d) indicate to what extent a province or municipality was monitored for compliance with the conditions of an allocation and the provisions of this Act;
(e) indicate to what extent the allocation achieved its purpose and outputs; (’ indicate the funds, if any, utilised for the administration of the allocation, and 40
whether any portion of the allocation was retained by the transferring department for that purpose; and
(g) indicate any non-compliance with this .4ct, and the steps taken to deal with such non-compliance.
(2) The annual financial statements of a provincial department receiving grants in 45 respect of an allocation set out in Schedules 4, 5, 6 and 6A, must, in addition to any requirements in terms of any other applicable legislation-
(a) indicate the total amount of all allocations received; (b) indicate the total amount of actual expenditure on all allocations, except
(c) certify that all transfers in terms of this Act to a province or municipality were Schedule 4 allocations; 50
deposited into the primary bank account of such province or municipality;
22 No. 26222 GOVERNMENT GAZ 'ITE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENLJE ACT, 2004
(d) indicate to what extent a province or municipality met the conditions of such
(e) indicate the extent to which the objectives of the allocation were achieved;
u) contain such other information as the National Treasury may determine. (3) The annual financial statements and annual report of a municipality for the
2004/05 financial year must be in accordance with the Municipal Finance Management Act.
(4) The National Treasury may determine how transfening 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.
an allocation, and complied with the provisions of this Act;
and
CHAPTER 5
DUTIES OF NATIONAL TREASURY AND AUDITOR-GENERAL
Duties of National Treasury
19. (1) The National Treasury must, together with the 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 section 7 or made in terms of section 9.
(2) The National Treasury must, by 1 April 2004, submit a notice to all transferring national officers, containing the details of the primary bank account of each province and municipality.
(3) The Minister may, in writing, delegate any of the powers entrusted to the National Treasury in terms of this Act, to the Director-General of the National Treasury.
(4) The Director-General of the National Treasury may, in writing, subdelegate any of the powers delegated in terms of subsection (3) to an official of the National Treasury.
Duties of Auditor-General
20. (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. reDort on-
the extent of compliance with this Act by transferring national officers, transferring provincial officers and receiving officers; whether there was compliance with the certification and reporting require- ments of this Act; the evaluation of evidence supporting the amounts and disclosures in monthly and annual reports contemplated in this Act; whether a transferring national officer or transfening provincial officer made unauthorised transfers to any province or municipality or to any public or other entity; whether the monitoring systems of the transfemng departments were in compliance with this Act; whether each allocation to a province or municipality was made in accordance with this Act; and such other intergovernmental financial management matters as may be Drescribed.
, I
(2) The internal audit unit of a department or municipality and its audit committee must establish procedures, systems and mechanisms to facilitate the external audit contemplated in subsection (1).
5
10
15
20
25
30
35
40
45
24 No. 26222 GOVERNMENT GAZETIT, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
CHAPTER 6
GENERAL
Delaying of payments
21. (1) Subject to subsection (2), a transferring national officer may, after consultation with the National Treasury and the relevant provincial treasury, for a period not 5 exceeding 30 days, delay the payment of an allocation in terms of Chapter 3, or any portion of such allocation, if-
(a) the province or municipality does not comply with the conditions to which the allocation is subject;
(bj the municipality is in serious or persistent material breach of the measures 10 contemplated in section 5(6) or 5(7) ; or
(c) expenditure on previous transfers reflects significant under-spending for which no satisfactory explanation is given.
(2) The National Treasury may, after consultation with the relevant provincial treasury for a grant to that province, allow the transfer to be delayed for a period 1.5 exceeding 30 days if such delay will ensure compliance with the conditions to which an allocation is subject or will ensure significant spending on that allocation.
(3) The transferring national officer must, in the monthly reports contemplated in this Act, inform the National Treasury of the steps taken to deal with the causes of the payment delay. 20
Withholding of payments
22. (1) The National Treasury may, subject to section 216 of the Constitution,
(a) an allocation set out in Schedules 4, 5, 6 and 6A, or any portion of such
(6) an allocation in terms of section 5; or (c) an allocation in terms of section 9,
withhold the transfer of-
allocation; or 2.5
if the transferring national officer has submitted to the province or municipality, as the case may be, a written report, at least 21 days before such allocation is due to be transferred, setting out facts reflecting a serious or persistent material breach of the 30 conditions to which the allocation is subject or upon receipt of audit reports for previous financial years which indicate serious or persistent material breach of this Act.
(2) The Minister may approve that an allocation, or any portion thereof, withheld from a municipality in terms of subsection (I), be utilised to meet that municipality's outstanding statutory financial commitments. 35
(3) The utilisation of money contemplated in subsection (2) is a direct charge against the National Revenue Fund.
Interim arrangements for reallocation
23. (1) A transferring national officer or a transferring provincial officer may, in the case of local and district municipalities, with the written consent of the National 40 Treasury and after consultation with the affected municipalities, reallocate an allocation referred to in section 7, or a portion of such an allocation, from one municipality to another municipality within that district-
( a ) if the reallocation is necessary to give ffect to the division of functions within
(b) if the affected district and local municipalities fail to agree on the performance that district and to reduce the risk of under-spending; or 45
of any municipal service.
26 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
(2) A transfemng national officer may, with the written consent of the National Treasury and after consultation with the affected provinces, reallocate the grant for the Comprehensive HIV and Aids grant, or a portion of such an allocation, from one province to another province, if the reallocation is necessary to shift funds from provinces spending less per month than as agreed with the transferring national officer at the beginning of the financial year.
(3) The National Treasury must publish in the Gazette particulars of any reallocation of an allocation in terms of subsection (1) or (2) before any transfer of funds to give effect to the re-allocation.
Spending in terms of purpose and subject to conditions
24.( 1) The Minister must, with regard to an allocation referred to in Schedule 4, 5 , 6, 6A or 7, publish in the Gazette, by 1 April 2004, the conditions of, and any other information in respect of, the allocations. Such publication must also include all allocations per municipality for each of the Schedule 6, 6A or 7 grants to local government.
(2) Despite anything to the contrary contained in any law, an allocation referred to in Schedule 4 ,5 ,6,6A or 7 may only be utilised for the purpose stipulated in the Schedules Concerned and in accordance with the allocations or conditions published by the Minister in the Gazette. The Minister must publish in the Gazette any revisions after 1 April 2004 in the allocations or conditions in terms of sections 9 and 23.
(3) The utilisation of an allocation set out in the Schedules for purposes other than those set out in the Schedules concerned, constitutes a breach of the measures established in terms of section 216(1) of the Constitution.
(4) Despite subsections (1) and (2), the National Treasury may authorise a province or municipality to retain and utilise such portion of the funds of an allocation set out in the Schedules listed in section 7, which remains after the fulfilment of that allocation’s purpose, and compliance with the conditions to which it is subject.
Transfers made in error
25.(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 (1) must be recovered without delay by the responsible transferring national officer.
(3) The National Treasury may direct that the recovery contemplated in subsection (1) 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, within a reasonable period, be recovered by the responsible transferring national officer or transferring provincial officer.
(5 ) The accounting officer of the national department responsible for local government may direct 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.
Transfers to municipalities with weak administrative capacity
26. (1) If the national accounting officer responsible for local government has
(a) a local municipality is not able to effectively administer an allocation referred to in section 7, or a portion of such an allocation, that officer may, for purposes of proper administration of the allocation, transfer such allocation, or portion thereof, to the relevant district municipality or to another local municipality within the district, after consultation with the municipalities concerned; or
reasonable grounds to believe that-
5
10
15
20
25
30
35
40
45
50
28 No. 26221- GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
(b) a district municipality is not able to effectively administer an allocation referred to in section 7, or a portion of such an allocation, that officer may, for purposes of proper administration of the allocation, transfer such allocation, or portion thereof, to a local municipality within the district, after consultation with the municipalities concerned.
(2) Any allocation, or portion thereof, contemplated in subsection (1) must be administered by the district or local municipality to which it has been transferred, in accordance with any directions issued by the accounting officer of the national department responsible for local government.
(3) The accounting officer of the national department responsible for local government must publish in the Gazette particulars of the transfer of any allocation in terms of subsection (1).
Funds to follow transfer of functions or obligations
27. (1) Despite anything to the contrary contained in any law, the transfer of functions or obligations from an organ of state in one sphere of government to an organ of state in another sphere of government or from one municipality to another municipality must take place only with the prior written approval of the Minister and the Minister responsible for provincial and local government.
(2) The transfer of functions or obligations contemplated in subsection (1) must, unless the Minister directs otherwise, include the transfer of funds available to the transferring organ of state or sphere of government for the purposes of performing such transferred function or obligation.
(3) No financial function or obligation of a national or provincial department may be imposed on a municipality without-
(a) that municipality’s prior written acceptance by resolution of its council; and (b) the prior written approval of the National Treasury.
(4) A province must utilise its own funds for any function or obligation arising from a transfer by that province, which is in conflict with subsections (1) and (3).
(5) Any liability arising from a determination of functions between a district and local municipality by a province in terms of section 84 or 85 of the Municipal Structures Act is a liability of that province and not of the national government.
Amendment of payment schedule and transfer mechanism
28. (1) Subject to subsection (2) , a transferring national officer may, in respect of an allocation set out in Schedule 4 , 5 , 6 or 6A, after consultation with the National Treasury and the relevant provincial treasury, amend a payment schedule due to the under- spending of funds or on the grounds of under-performance or non-compliance with the conditions of an allocation.
(2) The National Treasury may, in the interest of better debt and cash-flow management, or to deal with financial mismanagement, amend any payment schedule for an allocation listed in Schedule 2, 3, 4, 5, 6 or 6A after consultation with -
(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 and with organised local government, in the case of a local government allocation.
(3) A payment schedule revised in terms of subsection (1) or (2) must take reasonable account 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.
(4) An amendment of a payment schedule in terms of subsection (2) prevails over any amendment made in terms of subsection (1).
Exemptions by National Treasury
2?. (I) The Nathnal Treasury mzy, on applicatior? ir? writin. bTi 2 transferrinu nntiona! or provincial officer, exempt in writing a transferring national or provincial officer from the duty to comply with reporting requirements or any other requirement regarding an allocation set out in a Schedule referred to in section 7 or envisaged in section 9: Provided that such officer satisfies the National Treasury that-
b J - ----& .2 ^----
5
10
15
20
25
30
35
40
45
50
55
30 No. 26222 GOVERNMENT GAZETIE, 3 1 MARCH 2004
Act No. 5,2004 DMSION OF REVENUE ACT, 2004
( a ) the duty cannot be complied with at that stage; (b) the allocation programme is properly designed; and (e) the accounting officer is taking steps to comply with the provisions of this Act.
(a ) may only be granted if the accounting officer provides reasons why 5 information was not included in respect of an allocation set out in a Schedule referred to in section 7; and
(b) must set out the conditions, if any, to which it is subject and must be published in the Gazette.
(2) Any exemption contemplated in subsection (1)-
Non-compliance with Act constitutes financial misconduct 10
30. Despite anything to the contrary contained in any law, any serious or persistent non-compliance with a provision of this Act, or the conditions, which an allocation in terms of this Act is subject to, constitutes financial misconduct. Any wilful act by a national transfemng officer or provincial transferring officer to deposit funds in an account other than the primary bank account of a province or municipality constitutes an 15 offence, and such a person is, on conviction, liable to imprisonment or a fine as provided for in section 86 (1) of the Public Finance Management Act.
Liability for costs incurred in violation of principles of co-operative governance and intergovernmental relations
31. (1) An organ of state involved in an intergovernmental dispute regarding any 20 provision of this Act or any financial or fiscal matter must, before approaching a court to resolve such dispute, make every effort to settle the dispute with the other organ of state concerned, including by making use of the structures established in terms of the Intergovernmental Fiscal Relations Act.
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 30 of state not to comply with the requirements of subsection (1).
Acts performed before Act took effect
(2) In the event that a dispute is referred back by a court in accordance with section 25
32. Despite anything to the contrary contained in any law, any act performed prior to 1 April 2004 or in accordance with any prescribed requirements in fulfilment of the objects of this Act is regarded as having been done in terms of the relevant provisions of 35 this Act.
Regulations
33. 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 matter which it is necessary to prescribe for the effective implementation 40
of the provisions and achievement of the objects of this Act.
Repeal of laws
34. (1) Subject to subsection (2), the Division of Revenue Act, 2003 (Act No. 7 of
(2) The repeal of the Division of Revenue Act, 2003, does not affect any duty or 45 2003), is hereby repealed with effect from the date on which this Act takes effect.
obligation set out in that Act, the execution of which is still outstanding.
32 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
Roll-overs from past Conditional grants
35. (1) All provincial departments which received conditional grants during the 2001/02,2002/03 or 2003/04 financial years must report on actual spending against such grants, including spending on roll-overs in subsequent years on such grants, in their 2003104 annual report, and o therelevant treasury b 31 May 2004. 5
(2) A provincial department that transferred a portion of a conditional grant to a municipality or public entity in 2001/02, 2002/03 or 2003/04, must submit a report on actual spending by that municipality or public entity to the relevant provincial treasury by 31 May 2004.
(3) The relevant treasury must submit the report contemplated in subsection (1) to the 10 National Treasury by 15 June 2004.
(4) The Minister may, after consultation with a Minister esponsible for an infrastructure conditional grant underspent in previous financial years, review such grant if a roll-over from such grant is projected to lead to significant under-spending on the amounts allocated in this Act for the 2004/05 financial year, and direct that any 15 projected surplus be shifted to fund existing infrastructure budgets in that province, subject to the province passing an adjustments appropriation: Provided that the province will be responsible for funding any future commitments for that conditional grant that the province has failed to anticipate during the rmiew, up to the maximum of the total shifted funds. 20
Short title and commencement
36. This Act is called the Division of Revenue Act, 2004, and takes effect on 1 April 2004.
34 No. 26222 GOVERNMENT GAZ TTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
SCHEDULE 1
EQUITABLE DIVISION OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY AMONG THE THREE SPHERES OF GOVERNMENT
Column A Column B
Spheres of Government 2004105 Forward Estimates Allocation 2005106 2006107
R'000 R'000 R'000 National'
TOTAL 7 677 546 8 643 3 19 364 941 Local
159 971 402 173 851 535 186 391 726 Provincial 201 254 978 222 158 651 243 300 856
368903926 404653527 439057523
1. National share includes conditional grants to provincial and local spheres, debt service costs and the contingency reserve.
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)
I Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West
Province Column A
2004105 Allocation
R'000 26 990 176 10 551 267 24 547 021 33 058 939 21 788 865 11 606 061 3 838 795
13 270 464
Column B Forward Estimates
2005106 R'000 29 082 907 11 378 197 26 643 833 36 105 489 23 730 291 12 748 274 4 124 972
14 409 922
30 913 625 12 103 992 28 530 264 38 900 829 25 496 547 13 812 776 4 372 227
15 436 497 Western Cape
159971402 1 173851535 I 186391726 TOTAL 14319814 1 15 627650 I 16 824 969
36 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT. 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
Category Number Municipality
IEASTERN CAPE EClOl EC102 EC103 EC I04 EC 105 EC106 EC107 EC108 EC109
Camdeboo Blue Crane Route Ikwezi Makana Ndlambe Sundays River Valley Baviaans Kouga Koukamma
C DClO Cacadu District Municipality Total: Cacadu Municipalities
EC121 EC 122 EC 123 EC 124 EC 125 EC126 EC 127 EC128
Mbhashe Mnquma Great Kei Amahlathi Buffalo City Ngqushwa Nkonkobe Nxuba
C DC12 Amatole District Municipality Total: Amatole Municipalities
B EC131 Inxuba Yethemba B EC132 Tsolwana B EC133 Inkwanca B EC 134 Lukhanji B EC135 Intsika Yethu B EC136 Emalahleni B EC137 Engcobo B EC138 Sakhisizwe C DC13 Chris Hani District Municipality Total: Chris Hani Municipalities
B EC141 Elundinl B EC142 B EC143
Senqu Maletswai
B EC144 Gariep C DC14 Ukhahlamba District Municipality Total: Ukhahlarnba Municipalities
B EC151 Mbizana E EC152 Ntabankulu B EC153 Qaukeni B EC154 Port St. Johns B EC155 Nyandeni B EC156 Mhlontlo B EC157 King Sabata Daiindyebo C DC15 O.R. Tambo District Municipality I 0-1: i3.R Tambo Municipaiities
B EC05bl Umzimkhulu B EC05b2 Umzimvubu
r n l .
C DC44 Alfred Nzo District Municipality Total: Alfred Nzo Municipalities
Total: Eastern Cape Municipalities
Column A ~ Column B
Allocation 1 2005/06
R'000 1 R'000 2006/07
R'000
2004/05 I MTEF Outer Yea s
I
161 0751 155 9761 174 21
8 555 10 717 4 168
15 855 13 4201 12 436
11 099 7 627
7 298 9 067 ~ 3 766
13 562 11 808 9 998 4 074
10 380 7 5401
8 01 9 88 4 00
15 14 13 15 10 74 4 34
11 58 8 25
4 730 80 8831 87 3793 686 3 3901 2 25
I 49 641 54 81 1 10 014 27 472
192 698 20 213 24 982 6 266
41 216' 45 253
8 872 22 327
168 569 I6 549 22 460' 5 4511
41 67 48 40
9 37 23 68
178 42 16 99 23 71 5 75
87 6531 73 0361 80 21 473 751 1 403 734 1 428 23
I
8 5891 9 074, 5 5831
26 289 44 919 26 659 30 544 11 3981
8 306 7 141 4 910
24311 37 325 21 519 25 177 10 142;
9 06 7 16 5 19
25 57 35 52 20 99 25 58 10 68
94 387 221 7961 228 98 257 441
82 9641 89 20
25 332 ~~~~~1 2ili;l 2627 26 91 6 166 6 86 6 950 6 333; 6 74
50 301 i 45 3721 47 99 123 1171 108 2211 114 79
I I 41 7801 35 20 25 903 ~ 21 574 44 752 37 078' 38 92 30 252 24 930 24 11
39 182i 32 3341 33 48 71 146' 57 7541 55 09
34 6 7 5 1 22 79 51 1841 42 576 ~ 4343
, 184 659; 151 209 I59 49 46s 857; 4% 130, 4i2 54
I
32 603 ~ 26 815; 28 08 78 134i 65 279i 64 63 73 249 61 216i 64 52
183 986 153 309' 157 25
1781 9131 1 526 050 1 603 40
38 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
Column A
2005/06 1 2006/07 Allocation
Column B 2004/05 MTEF Outer Years
Category Numbe Municipality R'OOO i ~ ' 0 0 0 R'000 ~~
FREE STATE
B FS161 B FS162
Letsemeng
B Kopanong
FS163 Mohokare
12 357 10 787 11 8.57 16 9061 16 0511 17 9271 17 044 13 166 11 867
C DC16 Xhariep District Municipality 3 142 3 3801 3 158 Total: Xhariep Municipalities 44 193 49 687 I 43 163
i
B FS171 Naledi 9 198 9 097 11 948 B FS172 Mangaung
1 000 1041 1 038 C DC17 Motheo District Municipality 15 126 13 898 18 019 B FS173 Mantsopa
148 678 143 829 204 286
Total: Motheo Municipalities 174 002 161 864 235 291
B FS181 Masilonyana
174 167 165 701 214 293 Total: Lejweleputswa Municipalities
28 369 25 684 30 431 B FS185 Nala 98 847 92 220 121 457 'B FSl84 Matjhabeng
10 018 9 507 12 372 B FS182 Tokologo 21 432 20 590 26 813
~B FS 183 Tswelopele 14 502 16 634 21 556
IC DC18 Lejweleputswa District Municipality 1 000 1 066 1 658
B FS191 B
Setsoto FS192 Dihlabeng
B FSl93 Nketoana
B FS 195 Phumelela B FS194 Maluti-a-Phofung
39 563
13 619 12 555 15 135 88 036 103 763 131 286 17 669 20 207 26 140 26 824 23 944 26 752 35 808 32 588
C DC19 Thabo Mofutsanyana District Municipality 12 897 13 248 13 622 Total: Thabo Mofutsanyane Municipalities 194 853 206 305 252 499
B FS201 Moqhaka 32 7771 42 731 I 32 476
~B FS203 Ngwathe 29 616 29 383 39 052 IB FS204 Metsimaholo
97 2271 100 876122 754 ITotal: Northern Free State Municipalities
16 003 14 534 18 061 B FS205 Mafube 21 780 19 492 21 75 1
C DC20 Northern Free State District Municipality 1 000 1041 1 159
I I , I
Total: Free State Municipalities
1. All allocations arefor the natlonaifinancial year
874 5241 680 2601 688 691
40 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 ~~~
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
Column A Column B 2004/05 MTEF Outer Years
Allocation 2006/07 2005/06
Category Numbe Municipality R'000 R'000 R'000
lGAUTENG A Ekurhuleni
300 956 269 776 201 389 A City of Tshwane 613 393 540 445 391 161 A City of Johannesburg 485 023 305 5151 425 108
GT02bl CBLC2
Nokeng tsa Taemane Kungwini 7 3261 21 587
9 7871 10 9451 14 986 24 145
C CBDC2 Metsweding District unicipality 1 099 1 663 2 586 Total: Metsweding Municipalities 36 189 33 036 24 897
GT421 Emfuleni GT422 Midvaal GT423 Lesedi
B GT411 Mogale City B GT4 12 Randfontein B GT414 Westonaria B CBLC8 Merafong Citv
32 985
68 625 61 046 42 752 43 106 38 498 27 282 22 3 14 19 626 14 225 52 914 46 587
C CBDC8 West Rand District Municipality 2 1311 1 927 188 550 119 3751 167 683 Total: West Rand Municipalities
1591 I _
~. ~~.
I
Total: Gauteng Municipalities
I . All allocations are for the nationalfinancial year
1 140 1151 1 565 358) 1 770 20
I
42 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 D M S I O N OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY '
ColumnA I Column B
Allocation C 2 0 n 5 / 0 h 1 2006107 2004/05 MTEF Outer Years
Category Numbe Municipality R'000 R'000 R'000
KWAZULU-NATAL
A eThekwini 52.5 556 474 524 392 243
B KZ21 I Vulamehlo B Kz212
13 672 13 284 14 045 Umdoni 4 904 6 709 1 7345
B KZ213 B
Umzumbe KZ214
19 114 27 012 29 134
B uMuziwabantu 11 610 14 643 15 676
KZ215 Ezingolweni 7 535 B KZ216
9 456 10 022
C Hibiscus Coast
DC21 15 394 22 77 1
DC22 8 927
C Richmond
11 682 10 863 7 472 KZ227
Mkhambathini B
KZ226 91 769 86 475 74 873 Msunduzi
B
7 404 7 030 B E 2 2 5
5 337 Impendle 7 082 6 525 4 768 Mpofana
B KZ224
9 489 9 866 7 822 B KZ223
uMngeni 17 936 19 354 12 600
B Kz222 B KZ22 1 uMshwathi
158 441 146 429 110 909 57 432
Total: Ugu Municipalities 52 554 38 680 Ugu District Municipality
24 794
10 473 I1 211 uMgungundlovu District Municipality 20 830 28 040 32 068
Total: uMgungundlovu Municipalities 142 629 176 832 190 437
B KZ232 26 677 24 895 B
Emnambithinadysmith KZ233 Indaka
B a 2 3 4 16 102
B E 2 3 5
17 278
C KZ236
20 346 18 981 13 082 Okhahlamba B
8 762 8 663 7 714 Umtshezi
Imhahazane 11 658 16 529 17 634 DC23 Uthukela District Municipality 32 937 45 274 49 712
TotakUthukela Municipalities 95 448 130 443 140 409
18 537 11 519
B E 2 4 1 Endumeni 5 996 4 523 B a 2 4 2
6 594 Nquthu
B E 2 4 4 14 919
C DC24
25 321 1 27 149 22 142 Msinga 20 975 19 830 14 7901 15 818
Umzinyathi District Municipality 36 259 42 8931 45 847 Total: Umzinyathi Municipalities 93 853 108 83OI 116 384
B E 2 5 3 Utrecht 50 828 ~ 55 422
B E 2 5 4 5 231
Dannhauser 5 528
C DC25 13 412 14 326
Amajuba District Municipality 6 452 9 053 10 049 -Total: Amajuba Municipalities 59 932 78 525 I 85 326
B KZ245 Umvoti 16 009
, 8 Kz252 Newcastle 39 663
4 089 9 727
44 No. 26222 GOVERNMENT GAZElTE, 3 1 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
Column A 1 Column B __ 2004105 MTEF Outer Years
I , Allocation b T 2006/07 Category Numbe Municipality
R'000 ! R'000 1 R'000 B E 2 6 1 eDumbe 8 157 B KZ262 uPhongolo 4 4 9 1 19 622 12 960 12 356 B KZ263 B
Abaqulusi KZ265
15 081
DC26 Ulundi
C
25 030 23 590 17 067 Nongoma B KZ266
21 804 20 417
19 729 26 365 21 7 10 Zululand District Municipality 41 824 56 476 61 108
Total: Zululand Municipalities 114 818 156 623, 167 630
18 326.
I B KZ27 I Umhlabuyalingana
19 404 1 j22 38:; 14 692 B KZ272 B a 2 7 3
Jozini
B E 2 7 4 The Big 5 False Bay
24 1 16 944
KZ275 13 221 Hlabisa
B
6 775 4 879
131 485 91 9041 123 210 Total: Umkhanyakude Municipalities 51 422 48 377 36 943 Umkhanyakude District Municipality
5 801 DC27
5 225 Mtubatuba C
20 211 6 3 9 1 1 5 898 18 822 B KZ28 1 Mbonambi 14 777 13 739 B E 2 8 2 uMhlathuze B
35 308 E 2 8 3
47 73 1
B
51 036
KZ284 Ntambanana
C
10 799 KZ286
10 095 B
7 294 Mthonjaneni KZ285 30 730 28 763 20 246 Umlalazi
B
1 8 894 8 463 6 554
Nkandla 14 401 19 567 20 897 DC28 uThungulu District Municipality 25 676 38 611 42 443
Total: uThungulu Municipalities 119 0651 166 969' 179 577
9 587
B KZ291 eNdondakusuka 19 513 18 642 B
16 727 E 2 9 2 KwaDukuza
B KZ293 21 101
B KZ294 Ndwedwe
20 481 19 016
123 119 114 035 103 086 41 192
Total: nembe Municipalities 37 192 31 945 Ilembe District Municipality
18 488 17 337 15 592 DC29
Maphumulo C
23 444 21 848 17 722
B KZ5al Ingwe 16 915' 18 099 13 407 B KZ5a2 Kwa Sani B KZ5a3
4 645 Matatiele Kokstad
B
4 4 1 9 1 67 4479 3 381
89 008 81 1471 61 334 Total: Sisonke Municipalities
i: 17 876 12 269 Ubuhlebezwe KZ5a5 4 114
B KZ5a4
27 6461 31 173 19 998 C DC43 Sisonke District Municipality
12 737 8 105
Total: KwaZulu-Natal Municipalities
1. All allocations are for the nationalfinancial year
1 757 5671 1 907 379 1 385 221,
~- ~~~
46 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY '
I column^ I Column B 2004/05 MTEF Outer Years
Allocation 2005/06 1 2006/07 I Category Number Municipality 1 R'OOO 1 R'OOO i woo0 LJMPOPO
B NP03A2 Makhuduthamaga B NP03A3 Fetakgomo B CBLC3 Greater Marble Hall B CBLC4 Greater Groblersdal B CBLC5 Greater Tubatse
I I ~
I 23 870
: 36 784 39 41C 25 397 33 91c 24 452 19 461 13 943 15 17F 14 218 10 666 37 862 35 183
I
I
C CBDC3 Greater Sekhukhune Cross Boundary 96 36C 65 791' 89 332 Total: Greater Sekhukhune Cross Boundary Municipalities 242 180 226 813 164 119
B NP04Al Maruleng
61 255 56 142 42 162 C CBDC4 Bohlabela District Municipality 74 065 72 187 60 176 B CBLC6 Bushbuckridge 17 188 16 044 11 285
Total: Bohlabela Municipalities 152 512 144 374, 113 623
B NP33 1 Greater Giyani B NP332 Greater Letaba B NP333 Greater Tzaneen B NP334 Ba-Phalaborwa
36 820
18 701 18 851 16 491 55 937 60 141 37 926 35 263 37 60 1 24 710 41 134 40 925
C DC33 Mopani Disbict Municipality 81 999 71 518 48 144 Total: Mopani Municipalities 239 517 222 554 164 092
B NP341 Musina 7 302
B
9 345
NP343 15 051 15 332
Thulamela 56 884 76 720 81 421 B NP344 Makhado 50 831 67 75 1 70 483 C DC34 Vhembe District Municipality
184 982 Total: Vhernbe Municipalities 95 225 82 918 56 494
271 806 251 086
B NP342 Mutale 647i 13 470 B NP35 1 Blouberg
14 491 B NP3S2 Aganang 26 134 24 592 19 752
B NP354 Polokwane 65 244 97 541
52 128 45 369 30 344 C DC3S Capricorn District Municipality 33 699 31 378 21 432 B NP355 Lepelle-Nkumpi
107 801 B
21 308 NP353
22 887 Molemole 20 027 18 674 12 807
Total: Capricorn Municipalities 238 8621 262 676 164 070 I
B NP36 1 B
Thabazimbi NP362 Lephalale
B NP364 B
Mookgapong NP365 Modimolle
B NP366 B
Bela Bela NP367 Mogalakwena
13 786i 17 074 ' 18944 16 350 23 134 25 792 4 945 I 6 844
63 654 38 425 1 57 568 7 538
14 877 11 155 8 159 9 990 16 582
C DC36 Waterberg District Municipality 5 6681 3 6441 2 409 Total: Waterberg Municipalities 97 8681 133 1311 146 075
Total: Limpopo Municipalities 1216 8201 1314 766 888 752
1. All allocations arefor the nationalSinancia1 year
48 No. 26222 GOVERNMENT GAZETTE, 3 I MARCH 2004
Act No. 5,2004 D M S I O N OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY '
Category Numbe Municipality
MPUMALANGA
B MP301 B
Albert Luthuli MP302 Msukaligwa
B MP303 Mkhondo B MP304 Seme B MP305 Lekwa
B MP307 Govan Mbeki B MP306 Dipaleseng
c DC30 Gert Sibande District Municipality Total: Gert Sibande Municipalities
B MP311 Delmas B MP3 12 Emalahleni B "313 Steve Tshwete B MP3 14 Highlands B MP3 15 B
Thembisile MP3 16 Dr JS Moroka
C DC3 1 Nkangala District Municipality Total: Nkangala Municipalities
B MP321 B
Thaba Chweu MP322 Mbombela
B MP323 B
Umjindi MP324 Nkomazi
Total: Ehlanzeni Municipalities C DC32 Ehlanzeni District Municipality
Total: Mpumalanga Municipalities
Column A 2004/05
Column B MTEF Outer Years
R'000 ' R'000 ROO0 I i 1 31 4241 39 0271 42 460 17 9291 22 819' 25 735 17 4781 25 835l 28 632 12 628 I 17 245 I4 131
19 188 18 365
79111 20 743
10 276 34 8131
11 312 47 1201 53 376
3 368 2 1651 139 681
1431 182 8511 202 877
I 8 385 1 11 494'
34 422 12 879
48 1391 54 242 17 375 20 937 23 655 7 545 9 640
35 784 56 020 34 902 49 939 54 014
1 299 1 050 139 713
1 003 191 825 211 453
18 600 19 604 21 832 63 561 91 405 99 964 10 690 2 9361 14 397 47 021 71 7131 79 300
55991 36051 2 3 8 1 145 470 199 263 217 881
, 424 8641 573 9381 632 211
1. AI1 allocations are for the national financial yea1
50 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERk'S SHARE OF REVENUE RAISED NATIONALLY
Column A
2005/06 I 2006/07 Allocation Column B
2004/05 - MTEF Outer Years
Category Numbe Municipality R'000 1 R O O 0 1 R'000 NORTHERN CAPE
~ I I B NCOlBl Gamagara I: NWla l Moshaweng CBLCl Ga-Segonyana 1 18 52401 496 16 39441 461 050 17 566 14 090 15 287 16 507 C CBDCl Kgalagadi District Municipality 14 230 14 808 16 590 Total: Kgalagadi Cross Border Municipalities 51 353 50 499 54 415
B NC061 Richtersveld
26 106 26 486 33 071 Total: Namakwa Municipalities 1 397 1 930 2 520 C DC6 Namakwa District Municipality 3 572 3 354 3 439 B NC067 Khai-Ma 3 616 3 868 5 132 B NC066 Karoo Hoogland 4 784 5 048 6 710 B NC065 Hantam 2 762 3 128 4 183 B NC064 Kamiesberg 7 032 6 365 7 145 B NC062 Nama Khoi 2 942 2 795 3 342
NC07 1 NC072 NC073 NC074 NC075 NC076 NC077 NC07 8
Ubuntu Umsobomvu Emthanjeni Kareeberg Renosterberg Thembelile Siyathemba Siyancuma
6 919 8 320 9 403 4 715 4 594 4 582 6 340
10 448
5 465 6 550 6 980 3 530 3 412 3 387 4 740 8 363
4 868 7 049 7 431 3 201 3 502 3 536 4 517 9 078
C DC7 Karoo District Municipality 3 7511 2 9091 1 993 Total: Karoo Municipalities 59 073 1 45 3351 45 174
I I , B NC081 Mier
6 676 7 118 B NC085 Tsantsabane 4 639 4 362 4 796 B NC084 ! Kheis 9 408 8 375 10 087 B NC083 //Khara Hais
14 577 13 219 12 099 B NC082 Kai ! Garib 2 938 2 848 3 412
C DC8 Siyanda District Municipality 4 246 3 714 3 584 B NC086 Kgatelopele ::::I 3037 5 017 Total: Siyanda Municipalities 42 381 I 44 859 46 775
I
B NC091 Sol Plaatje n NC092 Thusanang B NC093 Magareng B CBLC7 Phokwane
29 126
14 138 16 800 6 625
lX1! 15 223
9 986 10 827 12 119 32 5371 35 981
8 157
C DC9 Frances Baard District Municipality 2 5561 2 3421 1 868 Total: Frances Baard Municipalities 68 7581 65 184i 70 523
I I I I
Total: Northern Cape Municipalities 262 0921 229 886' 238 015
1. All allocations are for the nationalfinancial year
52 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act N ~ . 5,2004 DIVISION OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY
Column A Column B 2004/05
Allocation
Category Numbe Municipality R'000 , ' R'oon I R'onn ~
B NW371 Moretele B NW372 Madibeng B NW373 B
Rustenburg
B Nw375 Moses Kotane Nw374 Kgetlengrivier
C DC37 Bojanala Platinum District Munic pality Total: Bojanala Platinum Municipalities
B NW381 Ratlou B NW382 Tswaing B NW383 Mafikeng B NW384 Ditsobotla B NW385 C
Zeerust DC38 Central District Municipality
Total: Central Municipalities
B Nw39 1 Kagisano B NW392 Naledi B NW393 Mamusa B NW394 Greater Taung B NW395 Molopo B NW396 C
Lekwa-Teemane DC39 Bophirima District Mun ipality
Total: Bophirima Municipalities
B NW401 Ventersdorp
B NW403 Klerksdorp B NW404 Maquassi Hills
B W 4 0 2 Potchefstroom
C DC40 Southern District Municipality Total: Southern Municipalities
Total: North West Municipalities
I I
37 1661 40 721 61 973 70 577
87 839 58 978' 79 234 77 718
8 495 ~ 9 248 10 194 43 764 51 2501 55 503
9 2091 2 9861 1 805 207 115) 250 4611 273 779
I 17 9821 16 4071 7 212 14 010 15 6721 16 636 26 209 29 149 31 579 14 322 18 419) 19 815 17 247' *' 07')( 59 503 21 234 51 813, 53 910
141 5831 153 637 165 979
18 712 15 848 16 744 6 849 ~ 7845 8 579 8 100' 8 194 8 782
30 524 26 667 27 938
5 9801 7 203 7 785 4 133 3 7451 3 877
37 6991 35 1891 39 266 111 996i 104 691 1 112 971
I
9710!
10 506 11 512 15 128 18 065 20 425 53 496 71 220 80 967 13 421 1 15 743 ~ 17 447
1 244 1 0441 1 000 92 999 I 116 5791 131 350
I I
1. All allocations are for the nationalfinanclal year
54 No. 26222 GOVERNMENT GAZEITE, 31 MARCH 2004
Act No. 5,2004 DMSION OF REVENUE ACT, 2004
SCHEDULE 3
DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY '
Column A 1 Column B
Allocation 2005/06 I 2006/07 2004105 , MTEF Outer Years
Category Numbe Municipality R'000 1 R'000 R'000 1
WESTERN CAPE
A City of Cape Town
5 033 5 688 B WC013
7 809 6 970 6 3161 B WCOll Matzikama
311 970 275 550 205 778
B wc012 Cederberg 6 6621 5 061 7 397 Bergrivier
B WC014 B WC015
Saldanha Bay 4 443 7 148 Swartland 6 997 :::2"1 7304
Total: West Coast Municipalities 28 621
12 123 10 816 8 939 B WC023
36 741 I 33 121
DC2 Breede River Winelands
C
16 331 14 536 WC026 B
Breede Valley 11 976 10 590 8 153 Stellenbosch
B WC025
18 488 16 347 WC024 B
Drakenstein
8 286 10 103 11 508 Boland District Municipality 2 493 2 250 1 807
Total: Boland Municipalities 54 411 64 643 72 233
B WC031 B
Theewaterskloof WC032 9 3 1 7 1 6844 11 466 12 952 Overstrand 4 921 7 839
B WC034 2 748 3 136
C Swellendarn
DC3 4 042 4 432 4 874
Overberg District Municipality 1 053 1 046 Total: Overberg Municipalities
1 003 21 668 26 537 29 805
B Kannaland
wc042 5 474
Langeberg B WC043
3 916 4 521 5 127
B w c o 4 4 Mossel Bay 4 980 6 903 7 916
B George
WC045 10 488 14 734 16 783
Oudtshoorn 5 762 7 859 8 936
4 014
C DC1 West Coast District Municipality 1 634 1 395 1 790
B WC022 Witzenberg 13 366
13 174
B WC033 Cape Agulhas 2 335,
B WC04 1 5 048 4 189
1. All allocations are fo r the nationulfinancial year
56 No. 26222 GOVERNMENT GAZ TTE, 3 1 MARCH 2004
Act No. 5,2004 DMSION OF REVENUE ACT, 2004
EL e ; 61
I I - - 1 '
58 No. 26222 GOVERNMENT GAZE'ITE, 31 MARCH 2004
Act M I . 5,2004 DMSION OF REVENUE ACT, 2004 -___
60 No. 26222 GOVERNMENT GAZ TTE, 3 1 MARCH 2004
Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004 -___
Q)
a a'
!
3
L
62 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DMSION OF REVENUE ACT. 2004
i
64 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5,2004 DMSION OF REVENUE ACT, 2004 -
Y
." 8
a e
Y Y
8
66 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
I
J
k
68 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5, 2004 DMSION OF REVENUE ACT, 2004 -
1
C C
0 3 C
0 0
2 N
z O Z
m
O N z
I -
C 0 0 t- m e
p7 m C C 0 Ii 0 rn f m \
70 No. 26222 GOVERNMENT GAZE'ITE, 31 MARCH 2004
Act No. 5,2004 DIVISION OF REVENUE ACT, 2004
M
0 - 00
N
Pi
o r -
r- r- o o
v3
O Z ;(n
cd C 0 .-
0 r- N N 2
J
3 3 3 30 .A N
. . n . 3
12 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004
Act No. 5.2004 DMSION OF REVENUE ACT, 2004
u3 N h
g F , 2 5
h rn e
Q = : d
t- v3 In
N v3
3 e c.l 13 13
0 0 w? 0 o\ o\
e m e * m h
n
3
h
W t-
00 m 3