Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)Chapter 13 : FinanceGeneral Financial Matters214. Equitable shares and allocations of revenue |
| (1) | An Act of Parliament must 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. |
| (2) | The Act referred to in subsection (1) may be enacted only after the provincial governments, organised local government and the Financial and Fiscal Commission have been consulted, and any recommendations of the Commission have been considered, and must take into account— |
| (a) | the national interest; |
| (b) | any provision that must be made in respect of the national debt and other national obligations; |
| (c) | the needs and interests of the national government, determined by objective criteria; |
| (d) | the need to ensure that the provinces and municipalities are able to provide basic services and perform the functions allocated to them; |
| (e) | the fiscal capacity and efficiency of the provinces and municipalities; |
| (f) | developmental and other needs of provinces, local government and municipalities; |
| (g) | economic disparities within and among the provinces; |
| (h) | obligations of the provinces and municipalities in terms of national legislation; |
| (i) | the desirability of stable and predictable allocations of revenue shares; and |
| (j) | the need for flexibility in responding to emergencies or other temporary needs, and other factors based on similar objective criteria. |