Division of Revenue Act, 2020 (Act No. 4 of 2020)

Chapter 1 : Interpretation and Objects of Act

1. Interpretation

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(1) In this Act, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in the Public Finance Management Act or the Municipal Finance Management Act has the meaning assigned to it in the Act in question, and—

 

‘‘accreditation’’

means accreditation of a municipality, in terms of section 10(2) of the Housing Act, 1997 (Act No. 107 of 1997), to administer national housing programmes, read with Part 3 of the National Housing Code, 2009 (Financial Interventions: Accreditation of Municipalities);

 

"allocation"

means the equitable share allocation to the national sphere of government in Schedule 1, a province in Schedule 2 or a municipality in Schedule 3, or a conditional allocation;

 

"category A, B or C municipality"

means a category A, B or C municipality envisaged in section 155(1) of the Constitution;

 

"conditional allocation"

means an allocation to a province or municipality from the national government’s share of revenue raised nationally, envisaged in section 214(1)(c) of the Constitution, as set out in Schedule 4, 5, 6 or 7;

 

"Constitution"

means the Constitution of the Republic of South Africa, 1996;

 

"corporation for public deposits account"

means a bank account of the Provincial Revenue Fund held with the Corporation for Public Deposits, established by the Corporation for Public Deposits Act, 1984 (Act No. 46 of 1984);

 

"declared disaster"

means a national, provincial or local state of disaster declared in terms of section 27, 41 or 55 of the Disaster Management Act, 2002 (Act No. 57 of 2002);

 

"Education Infrastructure Grant"

means the Education Infrastructure Grant referred to in Part A of Schedule 4;

 

"financial year"

means, in relation to—

(a) a national or provincial department, the year ending 31 March; or
(b) a municipality, the year ending 30 June;

 

"framework"

means the conditions and other information in respect of a conditional allocation published in terms of section 16 or 26;

 

"Health Facility Revitalisation Grant"

means the Health Facility Revitalisation Grant referred to in Part A of Schedule 5;

 

"housing emergency"

means a housing emergency as defined in paragraphs 2.3.1 (a) and (b) of the Emergency Housing Programme contained in the National Housing Code published in terms of section 4 of the Housing Act, 1997 (Act No. 107 of 1997);

 

"Human Settlements Development Grant"

means the Human Settlements Development Grant referred to in Part A of Schedule 5;

 

"Integrated City Development Grant"

means the Integrated City Development Grant referred to in Part B of Schedule 4;

 

"integration zone’’

means the integration zone as defined in the Built Environment Performance Plan Guideline issued by the National Treasury;

 

"legislation’’

means national legislation or provincial legislation as defined in section 239 of the Constitution;

 

"level one accreditation’’

means accreditation to render beneficiary management, subsidy budget planning and allocation, and priority programme management and administration, of national housing programmes;

 

"level two accreditation’’

means accreditation to render full programme management and administration of all housing instruments and national housing programmes in addition to the responsibilities under a level one accreditation;

 

"Maths, Science and Technology Grant’’

means the Maths, Science and Technology Grant referred to in Part A of Schedule 5;

 

"medium term expenditure framework"

means a budgeting framework applied by the National Treasury which—

(a) translates government policies and plans into a multi-year spending plan; and
(b) promotes transparency, accountability and effective public financial management;

 

"metropolitan municipality"

means a metropolitan municipality as defined in section 1 of the Municipal Structures Act;

 

"Municipal Demarcation Act"

means the Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998);

 

"Municipal Finance Management Act"

means the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003);

 

"Municipal Structures Act"

means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);

 

"Municipal Systems Act"

means the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);

 

"Neighbourhood Development Partnership Grant"

means the Neighbourhood Development Partnership Grant referred to in Part B of Schedule 5 or Part B of Schedule 6;

 

"organ of state"

means an organ of state as defined in section 239 of the Constitution;

 

"overpayment"

means the transfer of more than the allocated amount of an allocation or the transfer of an allocation in excess of the applicable amount in a payment schedule;

 

"payment schedule"

means a schedule which sets out—

(a) the amount of each transfer of a provincial equitable share or a conditional allocation for a province or municipality to be transferred in terms of this Act;
(b) the date on which each transfer must be paid; and
(c) to whom, and to which bank account, each transfer must be paid;

 

"prescribe"

means prescribe by regulation in terms of section 37;

 

"primary bank account"

in relation to—

(a) a province, means a bank account of the Provincial Revenue Fund, envisaged in section 21(2) of the Public Finance Management Act and which the accounting officer of the provincial treasury has certified to the National Treasury; or
(b) a municipality, means the bank account of the municipality as determined in terms of section 8 of the Municipal Finance Management Act;

 

"Provincial Roads Maintenance Grant"

means the Provincial Roads Maintenance Grant referred to in Part A of Schedule 4;

 

"Public Finance Management Act"

means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

 

"Public Transport Network Grant"

means the Public Transport Network Grant referred to in Part B of Schedule 5;

 

"Public Transport Operations Grant"

means the Public Transport Operations Grant referred to in Part A of Schedule 4;

 

"quarter"

means, in relation to—

(a) a national or provincial department, the period from—
(i) 1 April to 30 June;
(ii) 1 July to 30 September;
(iii) 1 October to 31 December; or
(iv) 1 January to 31 March; or
(b) a municipality, the period from—
(i) 1 July to 30 September;
(ii) 1 October to 31 December;
(iii) 1 January to 31 March; or
(iv) 1 April to 30 June;

 

"receiving municipality"

means a municipality incorporating another municipality or part thereof as a result of a redetermination in terms of section 21(1)(b) of the Municipal Demarcation Act;

 

"receiving officer"

means, in relation to—

(a) a Schedule 4, 5 or 7 allocation transferred to a province, the accounting officer of the provincial department which receives that allocation or a portion thereof for expenditure through an appropriation from its Provincial Revenue Fund; or
(b) a Schedule 4, 5 or 7 allocation transferred or provided in kind to a municipality, the accounting officer of the municipality;

 

"receiving provincial department"

in relation to a Schedule 4, 5 or 7 allocation transferred to a province, means the provincial department which receives that allocation or a portion thereof for expenditure through an appropriation from its Provincial Revenue Fund;

 

"releasing municipality"

means a municipality or part thereof which is incorporated into another municipality as a result of a redetermination in terms of section 21(1)(b) of the Municipal Demarcation Act;

 

"School Infrastructure Backlogs Grant"

means the School Infrastructure Backlogs Grant referred to in Part A of Schedule 6;

 

"this Act"

includes any framework or allocation published, or any regulation made, in terms of this Act;

 

"transferring officer"

means the accounting officer of a national department that transfers a Schedule 4, 5 or 7 allocation to a province or municipality or spends a Schedule 6 allocation on behalf of a province or municipality;

 

"Urban Settlements Development Grant"

means the Urban Settlements Development Grant referred to in Part B of Schedule 4; and

 

"working day"

means any day, except a Saturday, a Sunday or a public holiday as defined in the Public Holidays Act, 1994 (Act No. 36 of 1994).

 

(2) Any agreement, approval, certification, decision, determination, instruction, notification, notice or request in terms of this Act must be in writing.