Division of Revenue Act, 2018 (Act No. 1 of 2018)Chapter 3 : Conditional Allocations to Provinces and MunicipalitiesPart 3 : Matters relating to Schedule 4 to 7 allocations20. Reallocation of funds |
| (1) | When a Schedule 4 or 5 allocation or a portion thereof is stopped in terms of section 19(1)(a) or (b), the National Treasury may, after consultation with the transferring officer and the relevant provincial treasury, determine the portion of the allocation to 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 by the end of the 2018/19 financial year. |
| (2) |
| (a) | When a Schedule 4 or 5 allocation, or a portion thereof, is stopped in terms of section 19(1)(c), the National Treasury must, after consultation with the transferring officer and the relevant provincial treasury, determine the portion of the allocation to be reallocated, as the same type of allocation as it was allocated originally, to the affected municipalities, on condition that the allocation must be spent by the end of the 2018/19 financial year. |
| (b) | The portion of the allocation reallocated in terms of paragraph (a) is, with effect from the notice in the Gazette in terms of subsection (3)(a), regarded as having been converted to an allocation in Part B of the same Schedule it appears before the reallocation. |
| (3) |
| (a) | If the transferring officer of a Schedule 6 allocation indicates in writing to the National Treasury that a portion of the allocation is likely to be underspent, or needs to be reprioritised to meet a priority, the National Treasury may, at the request of the transferring officer, determine that the portion be reallocated, as the same type of allocation as it was allocated originally, to a provincial department of another province or to another municipality. |
| (b) | Before requesting a reallocation, the transferring officer must notify the affected provincial department or municipality of the proposed reallocation and give the provincial department or municipality at least 14 days to provide comments and propose changes. |
| (c) | When making a request in terms of paragraph (a), the transferring officer must submit to the National Treasury comments and proposed changes provided by the affected provincial department or municipality in terms of paragraph (b). |
| (d) | The reallocated portion must be spent by the end of the 2018/19 financial year. |
| (e) | The reallocated portion is regarded as having been converted to an allocation to the relevant provincial department or municipality with effect from the date of the notice in the Gazette in terms of subsection (4)(a). |
| (4) |
| (a) | The National Treasury must— |
| (i) | give notice in the Gazette of a reallocation in terms of subsection (1), (2) or (3); and |
| (ii) | provide a copy of the notice to the transferring officer and each affected receiving officer. |
| (b) | The reallocation of a portion of an allocation not spent by the end of the 2018/19 financial year is eligible for a roll-over in terms of section 22(2). |
| (5) |
| (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 officer to spend an allocation stopped in terms of section 19 on behalf of the relevant province; |
| (ii) | section 139 of the Constitution or section 137 or 139 of the Municipal Finance Management Act, the intervening province to spend an allocation stopped in terms of section 19 on behalf of the relevant municipality; or |
| (iii) | section 150 of the Municipal Finance Management Act, the relevant transferring officer to spend an allocation stopped in terms of section 19 on behalf of the relevant municipality. |
| (b) | An allocation that is spent by the transferring 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. |
| (6) |
| (a) | On a joint request by the transferring officer and the National Disaster Management Centre, established by section 8 of the Disaster Management Act, 2002 (Act No. 57 of 2002), the National Treasury may approve that a conditional allocation in Schedule 4, 5 or 6, or a portion thereof, be reallocated to pay for the alleviation of the impact of a disaster or the reconstruction or rehabilitation of infrastructure damage caused by a disaster. |
| (b) | Before the National Treasury approves a reallocation, the receiving officer of the conditional allocation in Schedule 4 or 5 or the transferring officer of a Schedule 6 allocation must confirm that the affected funds are not committed in terms of any statutory or contractual obligation. |
| (c) | The reallocated funds must be used in the 2018/19 financial year in the same sphere the allocation was originally made and for the same functional area that the original allocation relates to. |
| (d) | The transferring officer must determine the conditions for spending the reallocated funds, after consultation with the National Disaster Management Centre and with the approval of the National Treasury. |
| (e) | Subsection (4) applies with the necessary changes to a reallocation in terms of this subsection to another province or municipality. |