Division of Revenue Act, 2014 (Act No. 10 of 2014)Chapter 3 : Conditional Allocations to Provinces and MunicipalitiesPart 1 : Conditional allocations8. Conditional allocations to municipalities |
| (1) | Conditional allocations to local government in respect of the 2014/15 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 immediate disaster response. |
| (2) | An envisaged division of conditional allocations to local government from the national government’s share of revenue anticipated to be raised nationally for the 2015/16 financial year and the 2016/17 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 Infrastructure Grant listed in Column B of Part B of Schedule 5, may not be altered downwards in the Division of Revenue Acts for the 2015/16 financial year and 2016/17 financial year. |
| (4) |
| (a) | A municipality may only with the approval of the National Treasury pledge, offer as security or commit to a person or institution any envisaged conditional allocation to the municipality for the 2015/16 financial year and the 2016/17 financial year, for the purpose of securing a loan or any other form of financial or other support from that person or institution. |
| (b) | Before making a decision, the National Treasury must— |
| (i) | notify the relevant transferring national officer of the approval sought by a municipality and that the officer may submit comment to the National Treasury regarding the approval sought, within five working days after notification or such longer period as the National Treasury may approve; and |
| (ii) | consider any comment so submitted by the officer. |