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Division of Revenue Act, 2013 (Act No. 2 of 2013)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 7 allocations

19. Reallocation of funds

 

 

1)
a) When a Schedule 4 or 5 allocation or a portion thereof is stopped in terms of section 18, the National Treasury may, after consultation with  the transferring national officer and the relevant provincial treasury, determine that the allocation or a portion thereof be reallocated, as the same type of allocation as it was allocated originally, to one or more provinces or municipalities, on condition that the allocation must be spent in the financial year or the next  financial year.
b) The National Treasury must-
i) give notice in the Gazette of a reallocation; and
ii) provide a copy of the notice to the transferring national officer and each affected receiving officer.
c) The reallocation of an allocation or a portion thereof on condition that it must be spent in the next financial year, must be regarded as a roll-over approved by the National Treasury in terms of section 21(2), and any regulations regarding the process for roll-overs, made in terms of section 76 of the Public Finance Management Act, do not apply.

 

2)
a) When an intervention in terms of section 100 or 139 of the Constitution or section 137, 139 or 150 of the Municipal Finance Management Act takes place, the National Treasury may, despite subsection (1) and on such conditions as it may determine, authorise, in relation to-
i) section 100 of the Constitution, the transferring national officer to spend an allocation stopped in terms of section 18 on behalf of the relevant province;
ii) section 139 of the Constitution or sections 137 and 139 of the Municipal Finance Management Act, the intervening province to spend an allocation stopped in terms of section 18 on behalf of the relevant municipality; or
iii) section 150 of the Municipal Finance Management Act, the relevant transferring national officer to spend an allocation stopped in terms of section 18 on behalf of the relevant municipality.
b) An allocation that is spent by the transferring national officer or intervening province referred to in paragraph (a) must, for the purposes of this Act, be regarded as a Schedule 6 allocation from the date on which the authorisation is given.

 

3) When a function is assigned by a province to a municipality, as envisaged in section 10 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), the National Treasury must, after consultation with the transferring national officer, determine the portion of the allocation to be reallocated in terms of subsection (1).

 

4)
a) If  it  is  unlikely  that  a  conditional  allocation  related to  infrastructure in Schedule 4, 5 or 6, or a portion thereof, will be spent by the end of the financial year, the National Treasury may, after consultation with the national transferring officer and the national department responsible for local government, authorise that any part of the likely unspent portion of the allocation be reallocated to pay for the reconstruction and rehabilitation of infrastructure damage caused by a disaster.
b) The reallocated funds must be utilised in the financial year and for the same conditional allocation and the same province or municipality to which the allocation was originally made.
c) The national transferring officer must determine the conditions for spending the reallocated funds, after consultation with the national department responsible for local government and with the approval of the National Treasury.