Division of Revenue Act, 2014 (Act No. 10 of 2014)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 7 allocations

21. Conversion of allocations

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(1)        If satisfied that—

(a)the conversion will prevent under-expenditure or improve the level of service delivery in respect of the allocation in question; and
(b)the affected national or provincial department or municipality has demon- strated the capacity to implement projects, the National Treasury may, in its discretion after consultation with the relevant transferring national officer or at the request of the transferring national officer or the affected receiving officer, convert any portion of—
(i)an allocation listed in Part B of Schedule 4 or 5 to one listed in Part B of Schedule 6;
(ii)an allocation listed in Part B of Schedule 6 to one listed in Part B of Schedule 5;
(iii)the School Infrastructure Backlogs Grant to the Education Infrastructure Grant;
(iv)the National Health Grant listed in Part A of Schedule 6 to the Health Facility Revitalisation Grant or the National Health Insurance Grant listed in Part A of Schedule 5;
(v)the Public Transport Infrastructure Grant to the Public Transport Network Operations Grant;
(vi)the Public Transport Network Operations Grant to the Public Transport Infrastructure Grant; or
(vii)the Human Settlements Development Grant listed in Part A of Schedule 6 to the Human Settlements Development Grant listed in Part A of Schedule 5.

 

(2)Any portion of an allocation converted in terms of subsection (1) must be utilised for the same province or municipality to which the allocation was originally made.

 

(3)        The National Treasury must—

(a)give notice in the Gazette of a conversion in terms of subsection (1); and
(b)provide a copy of the notice to the transferring national officer and each affected receiving officer.

 

(4)A conversion in terms of subsection (1) takes effect on the date of publication of the notice in terms of subsection (3)(a).