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Division of Revenue Act, 2018 (Act No. 1 of 2018)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 1 : Conditional allocations

8. Conditional allocations to municipalities

 

(1) Conditional allocations to municipalities in respect of the 2018/19 financial year from the national government’s share of revenue raised nationally are set out in—
(a) Part B of Schedule 4, specifying allocations to municipalities to supplement the funding of functions funded from municipal budgets;
(b) Part B of Schedule 5, specifying specific-purpose allocations to municipalities;
(c) Part B of Schedule 6, specifying allocations-in-kind to municipalities for designated special programmes; and
(d) Part B of Schedule 7, specifying funds that are not allocated to specific municipalities that may be released to municipalities to fund an immediate response to a disaster or housing emergency.

 

(2) An envisaged division of conditional allocations to municipalities from the national government’s share of revenue anticipated to be raised nationally for the 2019/20 financial year and the 2020/21 financial year, which is subject to the annual Division of Revenue Acts for those years, is set out in Column B of the Schedules referred to in subsection (1).

 

(3) If approved by the National Treasury after consultation with the national Department of Transport, allocations for specific transport contracts for capital projects from the envisaged conditional allocations for the Public Transport Network Grant listed in Column B of Part B of Schedule 5, may not be altered downwards in the Division of Revenue Acts for the 2019/20 financial year and 2020/21 financial year.

 

(4)

(a) A municipality that intends to pledge a conditional allocation, or a portion thereof, as security for any obligations in terms of section 48 of the Municipal Finance Management Act, must, in addition to notifying the National Treasury in terms of section 46(3) of that Act, notify the transferring officer and the relevant provincial treasury of that intention and provide the transferring officer and National Treasury at least 21 days to comment before obtaining the approval of the municipal council.
(b) A municipality must submit financial and non-financial reports, in the format and on the dates determined by the National Treasury, for any project pledged to be partially or fully funded by using a conditional allocation, or a portion thereof, as security as envisaged in paragraph (a).