Division of Revenue Act, 2023 (Act No. 5 of 2023)Chapter 3 : Conditional Allocations to Provinces and MunicipalitiesPart 1 : Conditional allocations8. Conditional allocations to municipalities |
| (1) | Conditional allocations to municipalities in respect of the 2023/24 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 municipali-ties; |
| (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 an immediate response to a classified disaster. |
| (2) | An envisaged division of conditional allocations to municipalities from the national government’s share of revenue anticipated to be raised nationally for the 2024/25 financial year and the 2025/26 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) |
| (a) | A municipality that intends to pledge a conditional allocation, or a portion thereof, as security for any obligations in terms of section 48 of the Municipal Finance Management Act, must, in addition to notifying the National Treasury in terms of section 46(3) of that Act, notify the transferring officer and the relevant provincial treasury of that intention and provide the transferring officer and National Treasury at least 21 days to comment before seeking the approval of the municipal council. |
| (b) | A municipality must submit financial and non-financial reports, in the format and on the dates determined by the National Treasury, for any project pledged to be partially or fully funded by using a conditional allocation, or a portion thereof, as security as envisaged in paragraph (a). |
| (4) |
| (a) | If any expenditure from contingencies is approved in terms of the Appropriation Act, 2023, to increase any conditional allocation to municipalities, the National Treasury must increase the allocation per municipality by notice in the Gazette. |
| (b) | The increase referred to in paragraph (a) takes effect on the date of publication in the Gazette. |
| (c) | If a conditional allocation in Part B of Schedule 5 or 6 is increased in terms of paragraph (a), the National Treasury must amend the notice published in terms of section 15 by notice in the Gazette. |
| (d) | Section 23 of this Act applies with the necessary changes in relation to the increase referred to in paragraph (a). |