Division of Revenue Act

31 March 2006 No. 28700 THE PRESIDENCY No. 318 31 March 2006 It is hereby notified that the President has assented to the following Act, which is hereby published for general information:– No. 2 of 2006: Division of Revenue Act, 2006. AIDS HELPLINE: 0800-123-22 Prevention is the cure (English te-xt signed by the President.) (Assented to 31 March 2006.) ACT To provide for the eauitable division of revenue ant.&atec to be raisec nationally among the national; provincial and local spheres of government for the 2006/07 financial year and the responsibilities of all three spheres pursuant to such division; and to provide for matters connected therewith. PREAMBLE WHEREAS section 214 (1) of the Constitution of the Republic of South Africa, 1996 requires an Act of Parliament to provide for- (a) the equitable division of revenue raised nationally among the national, provincial and local spheres of government; (b) the determination of each province’s equitable share of the provincial share of that revenue; and (c) any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and any conditions on which those allocations may be made; E IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, B as follows:- ARRANGEMENT OF SECTIONS Sections CHAPTER 1 INTERPRETATION AND OBJECTS OF ACT 1. 2. Interpretation Objects of Act CHAPTER 2 EQUITABLE SHARE ALLOCATIONS 3. 4. 5. 6. Equitable division of revenue anticipated to be raised nationally among spheres of government Equitable division of provincial share among provinces Equitable division of local government share among municipalities Shortfalls and excess revenue 5 10 15 4 No. 28700 Act No. 2,2006 GOVERNMENT GAZETI'E, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 CHAPTER 3 CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES Part 1 Conditional allocations 7. 8. Conditional allocations to provinces Conditional allocations to municipalities Part 2 Matters relating to spec$c Schedule 4, 5, 6 or 7 allocation 9. 10. 11. 12. 13. 14. Provincial Infrastructure Grant Gautrain Rapid Rail Link Municipal Infrastructure Grant Municipal Capacity Building allocations Water Services Operating and Transfer Subsidy Integrated Housing and Human Settlement Development Part 3 General matters relating to Schedule 4, 5, 6 or 7 allocation 15. 16. 17. 18. 19. 20. 21. 22. 23. Publication of allocations and frameworks Framework for Schedule 4 allocation Spending in terms of purpose and subject to conditions Withholding of allocation Stopping of allocation Re-allocation after stopping of allocation Risk management in respect of Schedule 5 or 6 allocation Unspent Schedule 5 or 6 allocation Allocations to public entities for provision of municipal service or function CHAPTER 4 5 10 15 20 25 DUTIES OF ACCOUNTING OFFICERS AND TREASURIES 24. 25. 26. 27. 28. 29. 30. Duties of transferring national officer in respect of Schedule 4 allocation Duties of transferring national officer in respect of Schedule 5,6 or 7 allocation Duties of receiving officer in respect of Schedule 4 allocation Duties of receiving officer in respect of Schedule 5 or 6 allocation Duties relating to Category C municipal budgets and allocations in terms of this Act Duties of provincial accounting officers and treasuries Duties in respect of annual financial statements and annual reports for 2006/07 35 30 DUTIES OF NATIONAL TREASURY, POWERS OF AUDITOR-GENERAL CHAPTER 5 Duties of National Treasury 3 1.

32. Power of Auditor-General 6 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006 CHAPTER 6 MATTERS RELATING TO ALL ALLOCATIONS 33. 34. 35. 36. 37. 38. 39. 40. 41. Payment schedule Amendment of payment schedule Transfers to low capacity municipalities Transfers made in error Allocations not listed in Schedules Implementation of Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 Implementation of changes to boundary, power or function of province or 10 municipality Preparations for next budget year Expenditure prior to commencement of Division of Revenue Act, 2007 5 CHAPTER 7 GENERAL 42. 43. 44. 45. 46. 47. 48. 49. 50. Allocations by public entities to provinces or municipalities Liability for costs incurred in violation of principles of co-operative governance and intergovernmental relations Unauthorised and irregular expenditure Financial misconduct Delegations and assignments Exemptions Regulations Repeal of laws Short title and commencement CHAPTER 1 INTERPRETATION AND OBJECTS OF ACT 15 20 25 Interpretation 1. (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 30 Municipal Finance Management Act has the meaning assigned to it in the Act in question and- “budget year” means the financial year commencing on 1 April 2006 and ending on 31 March 2007; “category A, B or C municipality” has the meaning assigned to each category in 35 terms of the Municipal Structures Act; “conditional allocation” means a conditional allocation to a province, local government or municipality from the national government’s share of revenue raised nationally, contemplated in section 214(l)(c) of 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 of Public Deposits Act, 1984 (Act No. 46 of 1984); “framework” means the conditions and other information in respect of an allocation published by the National Treasury in terms of section 15; “Municipal Finance Management Act” means the Local Government: Munici- pal Finance Management Act, 2003 (Act No. 56 of 2003); “municipal financial year” means the financial year of a municipality commenc- ing on 1 July and ending on 30 June; “next financial year” means the financial year commencing on 1 April 2007 and 50 ending on 31 March 2008; “payment schedule” means a schedule, which sets out- 40 45 8 No. 28700 Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 ( a ) the amount of each transfer of an equitable share or any conditional allocation in terms of this Act to be transferred to a province or municipality for the financial year; 5 to whom, and to which bank account, each transfer must be paid; (b) the date on which each transfer must be paid; and (c) “prescribe” means prescribe by regulation in terms of section 48; “primary bank account”- (a) in relation to a province, means a bank account of the Provincial Revenue Fund held with a commercial bank which the head of the department in the provincial treasury has certified to the National Treasury, as the bank account 10 into which allocations, other than the equitable share allocation and the Gautrain Rapid Link allocation, in terms of this Act must be deposited; and (b) in relation to a municipality, means the bank account of the municipality as determined in terms of section 8 of the Municipal Finance Management Act; “Public Finance Management Act” means the Public Finance Management Act, 15 1999 (Act No. 1 of 1999); “quarter” means- (a) 1 April to 30 June; (b) 1 July to 30 September; (c) 1 October to 31 December; or (d) 1 January to 31 March; “receiving officer”- (a) in relation to a Schedule 4 or 5 allocation transferred to a province, means the accounting officer of the provincial department which receives that allocation or a portion thereof for spending via an appropriation from its Provincial 25 Revenue Fund; or 20 (b) in relation to a Schedule 4 or 6 allocation transferred to a municipality, the accounting officer of the municipality; “this Act” includes any framework or allocation published or any regulation or determination made or instruction given under this Act; “transferring national officer” means the accounting officer of a national department that transfers a Schedule 4, 5 or 6 allocation to a province or municipality or makes a Schedule 7 allocation on behalf of a municipality. (2) Any determination or instruction in terms of this Act must be in writing. Objects of Act

2. The objects of this Act are to- 30 35 (a) provide for the equitable division of revenue anticipated to be raised nationally among the three spheres of government; (b) promote better co-ordination between policy, planning, budget preparation and execution processes between and within the different spheres of 40 government; (c) promote predictability and certainty in respect of all allocations to provinces and municipalities in order that such governments may plan their budgets over a multi-year period; (d) promote transparency and equity in the resource allocation process; and (e) promote accountability by ensuring that all allocations are reflected on the budgets of receiving provinces and municipalities. 45 10 No. 28700 Act No. 2,2006 ~~~ ~ DIVISION OF REVENUE ACT, 2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 CHAPTER 2 EQUITABLE SHARE ALLOCATIONS Equitable division of revenue anticipated to be raised nationally among spheres of government 3. (1) Revenue anticipated to be raised nationally in respect of the budget year must be divided among the national, provincial and local spheres of government for their equitable share allocations as set out in Column A of Schedule 1. 5 (2) An envisaged division of revenue anticipated to be raised in respect of the next financial year and the 2008/09 financial year, and which is subject to the provisions of the annual Division of Revenue Act in respect of those financial years, is set out in 10 Column B of Schedule 1. Equitable division of provincial share among provinces 4. (1) Each province’s equitable share of the provincial share of revenue anticipated to be raised nationally in respect of the budget year is set out in Column A of Schedule 2. (2) Subject to section 38, an envisaged division for each province of revenue anticipated to be raised nationally in respect of the next financial year and the 2008/09 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial years, is set out in Column B of Schedule 2. 15 (3) Each province’s equitable share allocation contemplated in subsection (1) must be 20 transferred to the corporation for public deposits account of the province, in accordance with a payment schedule determined by the National Treasury in terms of section 33. Equitable division of local government share among municipalities 5. (1) Each municipality’s share of local government’s equitable share of revenue anticipated to be raised nationally in respect of the budget year, is set out in Column A 25 of Schedule 3. (2) An envisaged division between municipalities of revenue anticipated to be raised nationally in respect of the next financial year and the 2008/09 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial years, is set out in Column B of Schedule 3. (3) Each municipality’s equitable share contemplated in subsection (1) must be transferred to the primary bank account of the municipality in three transfers before the end of July, November and February in the budget year, in accordance with a payment schedule determined by the National Treasury in terms of section 33. Shortfalls and excess revenue 30 35 6. (1) If actual revenue raised nationally in respect of the budget year falls short of the anticipated revenue set out in Schedule 1, the national government bears the shortfall. (2) If actual revenue raised nationally in respect of the budget year exceeds the anticipated revenue set out in Schedule 1, the excess accrues to the national government, to be used to reduce borrowing or pay debt as part of its share of revenue raised 40 nationally, in addition to its share in column A of Schedule 1. (3) The national government may appropriate a portion of its equitable share or excess revenue contemplated in subsection (2) to make further allocations in an adjustments budget to- (a) national departments; 45 12 No. 28700 Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 (b) provinces or municipalities, as a conditional or an unconditional allocation. CHAPTER 3 CONDITIONAL ALLOCATIONS TO PROVINCES AND MUNICIPALITIES Part 1 Conditional allocations 5 Conditional allocations to provinces 7. (1) Conditional allocations to provinces in respect of the budget year from the national government’s share of revenue anticipated to be raised nationally are set out in Column A of the following Schedules: (a) Schedule 4 specifying allocations to provinces to supplement the funding of 10 programmes or functions funded from provincial budgets; and (b) Schedule 5 specifying specific-purpose allocations to provinces. ( 2 ) Subject to section 38, an envisaged division of conditional allocations to provinces from the national government’s share of revenue anticipated to be raised nationally, for the next financial year and the 2008/09 financial year, which is subject to the annual 15 Division of Revenue Act for those years, is set out in Column B of the Schedules referred to in subsection (1). Conditional allocations to municipalities 8. (1) Conditional allocations to local government in respect of the budget year from the national government’s share of revenue anticipated to be raised nationally are set out 20 in Column A of the following Schedules: (a) Schedule 4 specifying allocations to municipalities to supplement the funding of functions funded from municipal budgets; and (b) Schedule 6 specifying specific-purpose allocations to municipalities; and (c) Schedule 7 specifying allocations-in-kind to municipalities for designated 25 special programmes. (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 next financial year and the 2008/09 financial year, which is subject to the annual Division of Revenue Act for those years, is set out in Column B of the Schedules referred to in 30 subsection (1). (3) The National Treasury must publish in the Gazette required in terms of section 15, the share of each municipality in respect of the local government allocations referred to in subsections (1) and (2). Part 2 35 Matters relating to specijk Schedule 4,5, 6 or 7 allocation Provincial Infrastructure Grant 9. (1) The Provincial Infrastructure Grant set out in Schedule 4 supplements the funding of infrastructure programmes funded from provincial budgets to enable provinces to address backlogs in provincial infrastructure. ( 2 ) A province must ensure that its provincial departments responsible for education, 40 health and roads- (a) are responsible for all capital and maintenance budgets and spending for those functions; (b) enter into, implement and manage service delivery agreements with national 45 or provincial departments, national or public entities and any other organs of state, where such departments, entities or other organs of state manage or undertake construction or maintenance on their behalf; and 14 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 ~~ Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (c) participate, together with the provincial department responsible for public works in the Infrastructure Development Improvement Programme facilitated by the National Treasury, unless the National Treasury exempts any such department from participation. (3) A province, in allocating the Provincial Infrastructure Grant- 5 (a) must take into account the capacity of the receiving provincial department to spend and manage infrastructure, based on the extent of any approved roll-overs in the 2005/06 financial year and any projected roll-overs in the 2006107 financial year; and ( 6 ) may, where a receiving provincial department lacks capacity designate a 10 percentage not exceeding one percent of the allocation for acquiring such capacity. Gautrain Rapid Rail Link 10. (1) The transferring national officer must, in addition to the duties contemplated in sections 25 and 33, take appropriate steps to ensure that transfers are made timeously 15 and in a manner that allows the province to meet its payment obligation in terms of the public-private partnership agreement entered into by the province in accordance with regulations issued under the Public Finance Management Act. (2) (a) The National Treasury must direct the establishment of a dedicated banking account configuration for the transfer of the Gautrain Rapid Rail Link allocation, that 20 may include a dedicated corporation of public deposits account. (b) The Provincial Treasury must ensure that the account configuration referred to in paragraph (a) is in place and operational by no later than I May 2006. (3) The transferring national officer must transfer the Gautrain Rapid Rail Link allocation to the bank account designated for transfer in the account configuration 25 referred to in subsection (2)(a). Municipal Infrastructure Grant 11. (1) The Municipal Infrastructure Grant set out in Schedule 4 supplements the funding of infrastructure programmes funded from municipal budgets to enable municipalities to address backlogs in municipal infrastructure required for the provision 30 of basic services. (2) The Municipal Infrastructure Grant- (a) must be transferred, directly to a category A, B or C municipality that has the powers and functions in terms of section 84 of the Municipal Structures Act to provide municipal infrastructure in respect of those powers and functions; and 35 (b) may be transferred via the relevant category C municipality to a category B municipality if- (i) the allocation to the category B municipality is less than R2 million; or (ii) the transferring national officer, in consultation with the National Treasury, identifies the category B municipality as not able to manage or 40 administer the allocation. (3) Allocations referred to in subsection (2)(b) must be listed as an allocation to the category B municipality in the publications referred to in section 15( l)(a). (4) A municipality receiving the Municipal Infrastructure Grant must table a three-year capital budget as part of its budget for the 2006107 financial year in 45 accordance with the Municipal Finance Management Act, unless exempted in terms of that Act. 16 No.28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 Municipal Capacity Building allocations 12. (1) Any transfer of an allocation aimed at developing and improving municipal systems and the capacity of municipalities to perform functions assigned to them, may only be made in terms of a framework determined by the national accounting officer responsible for local government, in consultation with the National Treasury. (2) The framework contemplated in subsection (1) must take into account the capacity requirements for implementing the Municipal Systems Act and the Municipal Finance Management Act, including integrated planning, performance management, financial management and budgeting considerations and the need to ensure that the capacity of a municipality is developed in measurable ways. (3) The annual report of the department responsible for any capacity-building allocation must indicate the extent to which the capacity of any municipality was improved in measurable ways by that allocation. 5 10 Water Services Operating and Transfer Subsidy 13. (1) The transferring national officer, subsequent to the signing of a transfer 15 agreement between the transferring national officer and the municipality for the transfer of water services assets, may with the written approval of the National Treasury adjust the Water Services Operating and Transfer Subsidy allocation to a municipality to reflect- (a) the actual personnel allocation payable to a municipality as a result of the 20 number of staff transferred from the transferring national department to the municipality; and (b) the actual operating allocation payable to a municipality as informed by the percentage or portion of assets transferred to a municipality in respect of assets shared across municipal boundaries. 25 (2) Any adjustments contemplated in subsection (1) must, together with an explanatory memorandum, be published by the National Treasury in the Gazette, within 120 days after granting approval for an adjustment. Integrated Housing and Human Settlement Development 14. (1) The provincial accounting officer responsible for housing must- (a) facilitate applications for accreditation in terms of section 10 of the Housing Act, 1997 (Act No. 107 of 1997) from all municipalities identified by the transferring national officer in respect of each province: and 30 (b) before 30 November 2006, consider the applications of the municipalities and inform their accounting officers of the granting or refusal of the application for 35 accreditation. ( 2 ) (a) A municipality whose accreditation application was refused may lodge an objection to the refusal with the transferring national officer. (b) The transferring national officer must on receipt of an objection take all necessary steps to facilitate accreditation as soon as possible, but no later than 60 days after the 40 objection was received. ( 3 ) Accreditation granted in terms of subsection (1) must- (a) at least include- (i) authority to administer housing programmes, including the administra- tion of all housing subsidy applications; 45 (ii) authority to grant subsidies and approve projects, subject to subsection (4), to be funded from uncommitted housing subsidy funds from the 2007108 financial year; (iii) an obligation to maintain compliance with the capacity and system requirements prescribed by the provincial accounting officer responsible 50 for housing; (iv) an obligation to provide reports on housing demand and delivery to the provincial accounting officer quarterly or at shorter intervals when requested; and 18 No. 28700 GOVERNMENT GAZE’ITE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (VI an obligation to provide information on the levying and collection of rental in respect of all municipal owned houses to the provincial accounting officer; and (b) be implemented progressively during the financial year. (4) An accredited municipality must, in exercising its authority in terms of subsection 5 (3)(4(ii)- the province; (a) take into account any criteria for the prioritisation of projects as determined by (b) comply with national housing policies and programmes; and (c) participate in housing programme forums established by the transferring 10 national department. (5) Accreditation in terms of the Housing Act, 1997 (Act No. 107 of 1997), does not constitute an assignment for purposes of section 3 of the Financial and Fiscal Commission Act, 1997 (Act No. 99 of 1997), section 35 of the Public Finance Management Act and sections 9 and 10 of the Municipal Systems Act. 15 Part 3 General matters relating to Schedule 4,5, 6 or 7 allocation Publication of allocations and frameworks 15. (1) The National Treasury must, within 14 days of this Act taking effect publish in the Gazette- 20 (a) the allocations per municipality for each Schedule 4 , 6 or 7 allocation to local government; and (b) the framework for each Schedules 4, 5, 6 and 7 allocation. (2) The National Treasury must publish in the Gazette any revisions or amendments to the allocations or frameworks published in terms of subsection (1) that is authorised 25 by an adjustment budget. (3) (a) The National Treasury may at any time, after consultation with or at the written request of a transferring national officer, revise or amend a framework published in terms of subsection (1) or (2) to correct any error or omission. (6) An amendment or revision takes effect on publication thereof in the Gazette. 30 Framework for Schedule 4 allocation

16. The framework for a Schedule 4 allocation must be designed to promote comprehensive outputs for a programme or function funded or partially funded by the allocation, and may not include any condition- (a) for a national department or any other organ of state, other than the relevant 35 province or municipality, to approve specific projects or budgets; or (b) requiring a report on spending or projects other than the reports required in terms of section 26 or as approved by the National Treasury. Spending in terms of purpose and subject to conditions 17. (1) Despite anything to the contrary contained in any law, an allocation referred to 40 in Schedule 4, 5 , 6 or 7 may only be utilised for the purpose stipulated in the Schedule concerned and in accordance with the framework published in terms of section 15. (2) A receiving officer may not transfer any Schedule 5 or 6 allocation or a portion of such allocation to any other entity for the performance of a function envisaged in terms of the allocation, unless- (a) it is a transfer that is approved in the budget of the receiving province or 45 municipality or a framework published in terms of section 15; (6) it is a payment for services rendered or goods received, which services or goods were procured in accordance with the supply chain management policy or procurement policy of the relevant province or municipality and for which 50 adequate documentation for payment have been received; or 20 N0.28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006 (c) it is a transfer not consistent with the budget of the receiving province or municipality, or advance payment, approved by the National Treasury on certification by the receiving officer that such transfer is not an attempt to artificially inflate its spending estimates and there are good reasons for the transfer or advance payment. 5 Withholding of allocation 18. (1) Subject to subsections (2) and (3), a transferring national officer may withhold the transfer of a Schedule 4 , 5 , 6 or 7 allocation or any portion of such allocation for a period not exceeding 30 days, if- (a) the province or municipality does not comply with the provisions of this Act 10 or conditions to which the allocation, as provided for in the relevant framework, is subject; or (b) expenditure on previous transfers during the financial year reflects significant under-spending, for which no satisfactory explanation is given. (2) Despite subsection (I), the Health Professions Training and Development and 15 National Tertiary services allocations may not be withheld in terms of this section. (3) A transferring national officer must, seven working days prior to withholding an allocation in terms of subsection (1)- (a) give the relevant receiving officer- (i) written notice of the intention to withhold the allocation; and (ii) an opportunity to submit written representations, within those seven days as to why the allocation should not be withheld; and (b) inform the relevant provincial treasury and the National Treasury of its intention to withhold the allocation. 20 (4) A notice contemplated in subsection ( 3 ) must include the reasons for withholding 25 the allocation and the intended duration of the withholding. ( 5 ) (a) The National Treasury may when a transferring national officer is withholding an allocation in terms of subsection (1) instruct or approve a request from that transferring national officer to withhold an allocation for a period longer than 30 days, but not exceeding 120 days, if the withholding will- 30 (i) facilitate compliance with this Act or the conditions to which the allocation is subject; or (ii) minimise the risk of under spending. (b) A transferring national officer must, when requesting the withholding of an allocation in terms of this subsection, submit proof of its compliance with subsection (3) 35 and any representations received from the receiving officer, to the National Treasury. (c) The transferring national officer must comply with subsection (3) when the National Treasury instructs or approves a request by him or her in terms of paragraph (4. Stopping of allocation 40 19. (1) Despite section 18, the National Treasury may in its discretion or at the request of a transferring national officer stop the transfer of- (a) a Schedule 4, 5 or 6 allocation referred to in section 18(1) to a province or municipality on the grounds of persistent and material non-compliance with the provisions of this Act, or a condition to which the allocation, as provided 45 for in the relevant framework, is subject; or (b) a Schedule 4, 5, 6 or 7 allocation referred to in section 18(1) if the National Treasury anticipates that a province or municipality will substantially under spend on that programme or allocation in the financial year. (2) The National Treasury must when stopping an allocation in terms of this section- 50 22 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (a) comply with section 18(3)(a), and in respect of a municipality, also section 38 of the Municipal Finance Management Act; and (b) inform the relevant provincial treasury of its intention to stop the allocation. (3) Any stopping of an allocation contemplated in subsection (1) must, together with an explanatory memorandum, be published by the National Treasury in the Gazette. 5 (4) (a) The Minister may, by notice in the Gazette, approve that an allocation or any portion of such allocation stopped in terms of subsection (I), be utilised to meet that province’s or municipality’s outstanding statutory and contractual financial commit- ments. (b) The utilisation of funds contemplated in this subsection is a direct charge against 10 the National Revenue Fund. Re-allocation after stopping of allocation 20. (1) The National Treasury may, where it stops an allocation in terms of section 19, after consultation with the transferring national officer, determine that a portion or the full allocation that will be under spent be reallocated to one or more provinces or 15 municipalities on condition that the allocation will be spent in the financial year or the next financial year. (2) The reallocation of a portion or the full allocation on condition that the allocation will be spent in the next financial year referred to in subsection (I), must be deemed to be a roll-over approved by the National Treasury in terms of section 22(2)(a). 20 Risk management in respect of Schedule 5 or 6 allocation 21. (1) ( a ) The transferring national officer of a Schedule 5 or 6 allocation of which the total value transferred to provinces or municipalities, exceeds R 1 billion for the budget year must, within 14 days after this Act takes effect, determine a minimum set of risks that must be taken into account and mitigated by a receiving officer in respect of that 25 allocation. (b) The internal audit plan of the receiving officer for the financial year must take into account the risks identified in paragraph (a) and any other major fiscal risks to the National Revenue Fund posed by poor implementation of legislative requirements. (2) A receiving officer of an allocation contemplated in subsection (I), or if requested 30 by any other transferring national officer, must- (a) by 30 April 2006, submit a risk management plan that includes the internal audit plan referred to in subsection (l)(b) to the transferring national officer and the National Treasury; and (b) report as part of the quarterly performance report referred to in section 35 26(3)(b) all material issues and risks that arose in respect of the spending of the allocation and the measures taken to minimise the impact thereof. (3) The internal audit unit of the transferring national department must co-ordinate and co-operate with the internal audit units of the provincial departments and municipalities to whom it transfers an allocation. 40 (4) The accounting officer of the transfemng national department, the receiving provincial department and receiving municipality must regularly report to his or her audit committee on compliance with this section. ( 5 ) (a) Subsections (l)(b), (2)(a), (3) and (4) do not apply to municipalities for whom the implementation of sections 165 and 166 of the Municipal Finance Management Act 45 was delayed by the Minister under section 177 of that Act. (b) Despite paragraph (a), a municipality referred to in that paragraph that receives an allocation contemplated in subsection (l)(a), or if requested by any other transferring national officer, must- (i) by 30 April 2006, submit a risk management plan for the 2006/07 municipal 50 financial year that takes into account the risks identified in subsection (l)(a) 24 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 and any other major fiscal risks to the National Revenue Fund posed by poor enforcement of legislative requirements, to the transferring national officer and the National Treasury; and (ii) comply with subsection (2)(b). Unspent Schedule 5 or 6 allocation 5 22. (1) Despite the provisions of the Public Finance Management Act or the Municipal Finance Management Act relating to roll-overs, a Schedule 5 or 6 allocation, excluding the Gautrain Rapid Link allocation, that is not spent at the end of a financial year, including any interest earned thereon, reverts to the National Revenue Fund, unless the relevant receiving officer can prove, to the satisfaction of the National Treasury that 10 the unspent allocation is committed to identifiable projects. (2) Despite subsection (l), the National Treasury may at the request of a transfening national officer, provincial treasury or municipality approve- (a) roll-overs from a conditional allocation to the next financial year; and (b) spending of a portion of a conditional allocation on activities related to the 15 purpose of that allocation where the province or municipality projects significant unforeseen and unavoidable over spending on its budget. Allocations to public entities for provision of municipal service or function 23. (1) No public entity may receive funds for the provision of a municipal service or municipal function on behalf of a municipality from a national or provincial organ of 20 state except via the municipality responsible for that service or function, unless the National Treasury approves otherwise in respect of municipalities it deems to have low capacity. (2) (a) Subsection (1) does not apply to Eskom Holdings Limited in respect of funds received from the Department of Minerals and Energy for the implementation of the 25 National Electrification Programme. (b) The Department of Minerals and Energy must ensure that Eskom Holdings Limited’s implementation of the National Electrification Programme within a munici- pality is aligned with the Integrated Development Plan, prepared in accordance with the Municipal Systems Act, of that municipality. (c) Eskom Holdings Limited must within 30 days after the end of each month, report to the relevant municipality, the Department of Minerals and Energy and the National Treasury on the amount spent on the implementation of the National Electrification Programme. CHAPTER 4 DUTIES OF ACCOUNTING OFFICERS AND TREASURIES Duties of transferring national officer in respect of Schedule 4 allocation 30 35 24. (1) The transferring national officer of a Schedule 4 allocation is responsible for- ensuring that transfers to all provinces and municipalities are -in accordance with the payment schedule approved in terms of section 33, unless allocations 40 are withheld or stopped in terms of section 18 or 19; monitoring expenditure and non-financial performance information on programmes funded by an allocation, provided that any monitoring programme or system- (i) is approved by the National Treasury; and (ii) does not impose any undue administrative burden on receiving provinces and municipalities beyond the provision of standard management information; and 45 26 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006 (iii) is in accordance with sections 16 and 26(2). (c) evaluating the performance of programmes funded or partially funded by the allocation and the submission of such evaluations to the National Treasury, within four months in respect of a province and six months in respect of a municipality after the end of the financial year. 5 (2) Where more than one national department have responsibilities relating to a Schedule 4 allocation, the transferring national officer must co-ordinate the roles and responsibilities of such national departments and ensure those roles and responsibili- ties- (a) are exercised in a manner that does not duplicate its responsibilities as set out 10 in subsection (1); and (b) do not impose any undue administrative burden on provinces or municipali- ties beyond the provision of standard management information. Duties of transferring national officer in respect of Schedule 5 , 6 or 7 allocation 25. (1) A transferring national officer must- 15 (a) not later than 14 days after this Act takes effect certify to the National Treasury that- (i) allocation frameworks, including conditions and monitoring provisions, are reasonable and do not impose an undue administrative burden on receiving provincial governments and municipalities beyond the provi- 20 sion of standard management information; (ii) any business plans requested in respect of how allocations will be utilised by a province have been approved prior to the start of the financial year; (iii) any business plans requested in respect of how allocations will be utilised by a municipality have been approved prior to the start of the municipal 25 financial year; transfer funds only after information required in terms of this Act has been provided to the National Treasury; transfer funds only in accordance with a payment schedule determined in accordance with section 33; deposit funds only into the primary bank account of a province or municipality, or, where appropriate into the corporation for public deposits account of a province; and ensure that ail other arrangements or requirements necessary for the transfer of an allocation have been complied with prior to the start of the financial year. 35 30 (2) The transferring national officer must submit all information and documentation referred to in subsection (l)(a) to the National Treasury within 14 days after this Act takes effect. (3) A transferring national officer who has not complied with subsection (1) must transfer such allocation as instructed by the National Treasury, including as an 40 unconditional allocation. (4) Before making the first transfer of any allocation, the transferring national officer must take note of any notice in terms of section 31(1) from the National Treasury outlining the details of the account for each province or municipality. ( 5 ) Despite anything to the contrary contained in any law, a transferring national 45 officer must in respect of any allocation, as part of the report contemplated in section 40(4)(c) of the Public Finance Management Act, not later than 20 days after the end of each month, and in the format determined by the National Treasury, submit to the National Treasury, information for the month reported on and for the financial year up to the end of that month, on- (a) the amount of funds transferred to a province or municipality; (b) the amount of funds withheld or stopped from any province or municipality, the reasons for the withholding or stopping and the steps taken by the transferring national officer and the receiving officer to deal with the matters or causes that necessitated the withholding or stopping of the payment; 50 55 28 No.28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (c) the actual expenditure incurred by the province or municipality in respect of a Schedule 5 or 6 allocation; and (d) such other issues as the National Treasury may determine. (6) The transferring national officer must evaluate the performance of programmes funded or partially funded by the allocation and submit such evaluations to the National Treasury within four months in respect of a province and six months in respect of a municipality after the end of the financial year. 5 Duties of receiving officer in respect of Schedule 4 allocation 26. (1) A receiving officer is responsible for- (a) complying with the framework for a Schedule 4 allocation as published in 10 terms of section 15; and (b) the manner in which it allocates and spends a Schedule 4 allocation. (2) The receiving officer of a municipality must- (a) ensure and certify to the National Treasury that the municipality- (i) indicates, or if required, exclusively appropriates each programme 15 funded or partially funded by this allocation in its annual budget; and (ii) makes public, in accordance with the requirements of section 21A of the Municipal Systems Act, the conditions and other information in respect of the allocation to facilitate performance measurement and the use of required inputs and outputs; 20 (b) as part of the report required in terms of section 7 1 of the Municipal Finance Management Act, report to the National Treasury and the transferring national officer on spending against programmes; and (3) The receiving officer in a province must- (a) submit, as part of the report required in section 40(4)(c) of the Public Finance 25 Management Act, reports to the relevant provincial treasury on spending against programmes; and (b) submit a quarterly performance report within 30 days after the end of each quarter to the transfemng national officer. (4) The receiving officer must report against programmes funded or partially funded 30 by a Schedule 4 allocation against the relevant framework in its annual financial statements and annual report. ( 5 ) The receiving officer must, within two months after the end of the financial year and where relevant the municipal financial year, evaluate its performance in respect of programmes funded or partially funded by an allocation and submit such evaluation to 35 the transfemng national officer. Duties of receiving ollicer in respect of Schedule 5 or 6 allocation 27. (1) The relevant receiving officer must, in respect of an allocation transferred to- (a) a province, as part of the report required in section 40(4)(c) of the Public Finance Management Act, submit a report to the relevant provincial treasury 40 and the transferring national officer; and (b) a municipality, as part of the report required in terms of section 71 of the Municipal Finance Management Act, submit a report to the relevant transferring national or provincial officer. (2) A report by a province in terms of subsection (1) must set out for that month and 45 for the financial year up to the end of that month- (a) the amount received by the province; ( 6 ) the amount of funds stopped or withheld from the province; (c) the actual expenditure by the province in respect of a Schedule 5 allocation; 30 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (d) the extent of compliance with the conditions of an allocation provided for in a framework and with this Act; (e) an explanation for any material problems experienced by the province regarding an allocation which has been received and a summary of the steps taken to deal with such problems; and such other issues and information as the National Treasury may determine. ( 3 ) A report by a municipality in terms of subsection (1) must set out for that month v) 5 and for the financial year up to the end of that month- (a) the amount of funds stopped or withheld from the municipality; (b) the extent of compliance with the conditions of an allocation provided for in 10 a framework and with this Act; (c) an explanation for any material problems experienced by the province regarding an allocation which has been received and a summary of the steps taken to deal with such problems or the effect of such variations; and (d) such other issues and information as the National Treasury may determine. (4) (a) Subsections (1) and ( 2 ) do not apply to the receiving officer of the Gautrain 15 Rapid Rail Link allocation. (b) The receiving officer of the Gautrain Rapid Rail Link allocation must at the end of each quarter submit a report to the transferring national officer, detailing the payment made in that quarter to meet its payment obligation in terms of the public-private 20 partnership agreement entered into by the province in accordance with regulations issued under the Public Finance Management Act. (c) Copies of payment certificates issued in terms of the public-private partnership agreement must be submitted together with the reports referred to in paragraph (b). (5) The receiving officer must, within two months after the end of the financial year 25 and where relevant the municipal financial year, evaluate its performance in respect of programmes or functions funded or partially funded by an allocation and submit such evaluation to the transferring national officer. Duties relating to Category C municipal budgets and allocations in terms of this Act 30 28. (1) ( a ) In addition to the requirements of the Municipal Finance Management Act, a category C municipality must, no later than 14 April 2006, submit to the National Treasury and all category B municipalities within its area of jurisdiction, its budget, as tabled in accordance with section 16 of the Municipal Finance Management Act, for the 2006/07 municipal financial year, and the two following municipal financial years. (b) The budget must indicate all allocations to be transferred to each category B municipality within its area of jurisdiction and disclose the criteria for allocating funds between the category B municipalities. 35 (2) A category C municipality must strive to ensure that it does not duplicate a function currently performed by a category B municipality, and transfer funds for 40 infrastructure development, including funds that will replace the levies referred to in section 93(6) of the Municipal Structures Act, or the provision of services to the relevant category B municipalities, taking into account any indicative allocations for such municipalities as determined or published in the Gazette by the National Treasury, and may only retain and spend funds directly if- 45 ( a ) the category C municipality retained a power or function in terms of the Municipal Structures Act; and (b) a category B municipality in the opinion of the category C municipality has weak capacity and the national department for local government and National Treasury concur with that opinion. (c) the Municipal Infrastructure Grant allocation to the category B municipality is transferred to the category C municipality in terms of section 1 l(3). 50 32 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (3) A category C municipality must before implementing any capital project for water, electricity, roads or any other municipal service consult the category B municipality on the project within whose area of jurisdiction the project will be implemented and agree on which municipality is responsible for operational costs and collection of user fees. (4) A municipality must ensure that any allocation made to it in terms of this Act, or by a province or another municipality, that is not reflected in its budget as tabled in accordance with section 16 of the Municipal Finance Management Act, is reflected in its budget to be approved in accordance with section 24 of the Municipal Finance Management Act. 5 (5) Where a function for which a province receives a Schedule 5 allocation is assigned 10 to a municipality during a financial year and the province has not appropriated funds to that municipality for the performance of that function, the province must transfer such funds to the municipality in terms of section 226(3) of the Constitution as a direct charge against that province’s Revenue Fund and must inform the National Treasury of the transfer. 15 Duties of provincial treasuries 29. (1) The head of the department in the provincial treasury must ensure and certify to the National Treasury that the province- (a) indicates or, if required, exclusively appropriates each programme funded or partially funded through Schedule 4 allocations in its Appropriation Bill or a 20 schedule to its Appropriation Bill; and (b) publishes the conditions and other information in respect of these allocations to facilitate performance measurement and the use of required inputs and outputs in its budget documents submitted to its legislature or the Gazette. (2) The provincial treasury must in respect of allocations to municipalities other than 25 allocations made in terms of this Act publish, with its annual budget and in the Gazette, not later than 14 April 2006- (a) the allocation per municipality for every allocation made by the province to municipalities; and (b) the envisaged division of the allocation contemplated in paragraph (a) in 30 respect of each municipality, for the next financial year and the 2008/09 financial year. (3) (a) Despite anything to the contrary contained in any law, a provincial treasury may, in accordance with a framework determined by the National Treasury, make allocations to municipalities that were not published in terms of subsection (2). (b) These allocations must be published in the Gazette before any transfers can be made, unless the allocations were published with its adjustments budget submitted to the provincial legislature. 35 (4) A provincial treasury must, as part of its consolidated monthly report in terms of section 32 of the Public Finance Management Act, in the format determined by the 40 National Treasury, report on- (a) actual transfers received by the province from national departments; (b) actual expenditure on such allocations, excluding Schedule 4 allocations, up to the end of that month; and (c) actual transfers made by the province to municipalities, and projections of 45 actual expenditure by municipalities on such allocations. (5) The report contemplated in subsection (4) must include reports for each quarter, and be in the format and include the information as may be determined by the National Treasury. Duties in respect of annual financial statements and annual reports for 2006/07 50 30. (1) The 2006107 financial statements of a national department transferring any funds in respect of an allocation set out in Schedule 4, 5,6 or 7 must, in addition to any requirements in terms of any other applicable law- 34 No. 28700 Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 (a) indicate the total amount of that allocation transferred to a province or municipality; (b) indicate the transfers, if any, that were withheld in respect of each province or municipality; ( c ) certify that all transfers to a province or municipality were deposited into the primary bank account of a province or municipality, or where appropriate, into the corporation for public deposits account of a province; and 5 (d) indicate the funds, if any, utilised for the administration of the allocation, and whether the transferring department retained any portion of the allocation for that purpose. 10 (2) The 2006/07 annual report of a national department transferring any funds in respect of an allocation set out in Schedule 4, 5, 6 or 7 must, in addition to any requirements in terms of any other applicable law- (a) indicate the reasons for the withholding of any transfers to a province or municipality; 15 (b) indicate to what extent a province or municipality was monitored for compliance with the conditions of an allocation provided for in the relevant framework and the provisions of this Act; (c) indicate to what extent the allocation achieved its purpose and outputs; and (d) indicate any non-compliance with this Act, and the steps taken to deal with 20 such non-compliance. (3) The 2006/07 financial statements of a provincial department receiving an allocation in terms of Schedule 4 or 5, must, in addition to any requirements in terms of any other applicable law- (a) indicate the total amount of all allocations received; (b) indicate the total amount of actual expenditure on all allocations except Schedule 4 allocations; and 25 ( c ) certify that all transfers in terms of this Act to the province were deposited into the primary bank account of the province, or where appropriate, into the corporation for public deposits account of a province. 30 (4) The 2006/07 annual report of a provincial department receiving an allocation in terms of Schedule 4 or 5, must, in addition to any requirements in terms of any other applicable law- (a) indicate to what extent the province met the conditions, provided for in the relevant framework of such an allocation, and complied with the provisions of 35 this Act; (6) indicate the extent to which the objectives and outputs of the allocation were achieved; and ( c ) contain such other information as the National Treasury may determine. ( 5 ) (a) The 2006/07 financial statements and annual report of a municipality must be 40 prepared in accordance with the Municipal Finance Management Act. (b) Municipalities for whom the implementation of section 121 of the Municipal Finance Management Act was delayed by the Minister under section 177 of that Act, must despite such delay, prepare annual performance reports in terms of section 46 of the Municipal Systems Act, by no later than 3 1 December 2006. (6) The National Treasury may determine how transferring departments and receiving municipalities report on local government allocations on a quarterly basis to facilitate the audit of allocations for both the national and municipal financial years. 45 36 No.28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 CHAPTER 5 DUTIES OF NATIONAL TREASURY, POWERS OF AUDITOR-GENERAL Duties of National Treasury 31. (1) The National Treasury must within 14 days of this Act taking effect submit a notice to all transferring national officers, containing the details of the bank accounts of each province and municipality. (2) The National Treasury must, together with the monthly report contemplated in section 32 (2) of the Public Finance Management Act, publish a report on actual transfers of all allocations listed in the Schedules referred to in sections 7 and 8 or made in terms of section 36. 5 10 Powers of Auditor-General 32. (1) Without derogating from the powers and duties of the Auditor-General in terms of the Constitution and any other law, the Auditor-General may, in the audit of financial statements on the allocations set out in Chapter 3 or in a special report to be submitted to Parliament, report on- 15 (a) the extent of compliance with this Act and frameworks published in terms of section 15 by transferring national officers and receiving officers; and (b) such other intergovernmental financial management matters as may be prescribed. (2) The Auditor-General may, when conducting the audits of the provincial 20 departments responsible for education, health, housing and roads, take appropriate measures to ensure consistency in the audit processes between provincial departments to promote comparability between the provincial departments and national departments responsible for the same functions. CHAPTER 6 MATTERS RELATING TO ALL ALLOCATIONS Payment schedule 33. (1) (a) The National Treasury determines the payment schedule for the transfer of a province’s equitable share allocation, after consultation with the head of the department in the provincial treasury. (b) In determining the payment schedule the National Treasury must take account of the monthly spending commitments of provinces, and seek to minimise risk and debt servicing costs for national and provincial government. 25 30 (c) Despite paragraph (a), the National Treasury may for cash management purposes relating to the corporation for public deposits account, or when an intervention in terms 35 of section 100 of the Constitution is taking place, on such conditions as it may determine, advance funds to a province in respect of its equitable share or a portion of it, which have not yet fallen due for transfer in accordance with the payment schedule. ( d ) Any advances in terms of paragraph (c) must be set-off against transfers to the province, which would otherwise become due in terms of that payment schedule. 40 (2) (a) The National Treasury determines the payment schedule for the transfer of a municipality’s equitable share allocation, after consultation with the accounting officer of the national department responsible for local government. (b) Despite paragraph (a), when an intervention in terms of section 139 of the Constitution is taking place in a municipality, the National Treasury may after 45 consultation with‘the accounting officer of the national department responsible for local government, on such conditions as it may determine, approve a request or direct that the equitable share contemplated in subsection (l), or a portion of it, be- 38 No. 28700 GOVERNMENT GAZETTE, 31 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (ii) (i) advanced to a municipality in terms of a financial recovery plan prepared in terms of section 141 of the Municipal Finance Management Act, in respect of any portion which has not yet fallen due for transfer; and transferred to a municipality via the province in terms of section 226(3) of the Constitution, if the municipality is unable or unwilling to implement its financial recovery plan imposed in terms of section 141 of the Municipal Finance Management Act. 5 (c) Any advances in terms of paragraph (b) must be set-off against transfers to the municipality, which would otherwise become due in terms of the applicable payment schedule. 10 (3) (a) The National Treasury must approve the payment schedules for Schedules 4, 5 and 6 allocations. (b) The transferring national officer of a Schedule 4, 5 or 6 allocation must submit a payment schedule to the National Treasury for approval before 14 April 2006. ( c ) Prior to the submission of a payment schedule in terms of paragraph (b) the 15 transferring national officer must- (i) (ii) in relation to a Schedule 4 allocation, consult the relevant receiving officer; in relation to the Gautrain Rapid Rail Link allocation ensure that the payment schedule- (ua) is consistent with the projected dates for payments to the private 20 party in terms of the public-private partnership agreement entered into by the relevant province in accordance with regulations issued under the Public Finance Management Act; and (bb) reflects the portion of any payments due under the agreement referred to in subparagraph (aa) payable from the allocation; and 25 (iii) in relation to a Schedule 5 or 6 allocation, consult the relevant province or municipality. Amendment of payment schedule 34. (1) Subject to subsection (2), a transfemng national officer of a Schedule 4, 5 or 6 allocation must within three days of the withholding or stopping of an allocation in 30 terms of section 18 or 19, amend a payment schedule as a result of the withholding or stopping of an allocation in terms of this Act. (2) The National Treasury may, in the interest of better debt and cash-flow management or to deal with financial mismanagement or financial under performance, amend any payment schedule for an allocation listed in Schedule 2, 3, 4, 5 or 6 on 35 notification t o - (a) the head of a provincial treasury, in the case of a provincial allocation; and (b) the accounting officer of the national department responsible for local government, in the case of a local government allocation. (3) A payment schedule amended in terms of subsection (1) or (2) must take account 40 of the monthly spending commitments of provinces or municipalities, the revenue at the disposal of provinces or municipalities and the minimisation of risk and debt servicing costs for all three spheres of government. (4) An amendment of a payment schedule in terms of subsection ( 2 ) prevails over any amendment made in terms of subsection (1). 45 Transfers to low capacity municipalities

35. The national accounting officer responsible for local government, in respect of a category B municipality classified as a low capacity municipality by that accounting officer and the National Treasury, may with the concurrence of the National Treasury, determine that an allocation in terms of this Act or portion of such an allocation be 50 transferred to the category C municipality, within whose area of jurisdiction the category B municipality is located, or to the relevant province, for purposes of the proper administration of the allocation. 40 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 Transfers made in error 36. (1) Despite anything to the contrary contained in any law, the transfer of an allocation to a province in error is regarded as not legally due to the province for the purpose of its Revenue Fund. (2) A transfer contemplated in subsection (l), must be recovered, without delay, by 5 the responsible transferring national officer. (3) Despite subsection (2), the National Treasury may instruct that the recovery contemplated in subsection (2) be effected by set-off against future transfers to the province, which would otherwise become due in accordance with a payment schedule. (4) Despite anything to the contrary contained in any law, the transfer of an allocation to a municipality, or a public entity in error, is regarded as not legally due to that municipality or public entity and must be recovered without delay by the responsible transfemng national officer. (5) The accounting officer of the national department responsible for local government may instruct that the recovery contemplated in subsection (4) be effected by set-off against transfers to the municipality concerned, which would otherwise become due in accordance with any payment schedule. Allocations not listed in Schedules 37. (1) An allocation not listed in the Schedules referred to in sections 7 and 8 may only be made in terms of section 6(3). (2) The National Treasury must publish the allocations and frameworks for such allocations in the Gazette, prior to the transfer of any funds to a province or municipality. Implementation of Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 38. (1) (a) Despite section 5 of the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 (Act No. 23 of 2005), a province (the releasing province) from which a particular area is relocated at the commencement of the Constitution Twelfth Amendment Act of 2005, must continue to spend its allocations for the 2006/07 financial year made in terms of this Act, in that particular area as if that area was not reallocated to another province (the receiving province), unless the affected provinces have entered into an implementation protocol provided for in section 5 of that Act or any other agreement that ensures that the relocated area is not negatively affected. (b) The transfemng national officer of an allocation made in terms of this Act and the provincial treasury of the receiving province must monitor that the releasing province complies with paragraph (a); (c) The provincial treasury of the releasing province must, at the request of the transfemng national officer, the receiving province or the National Treasury, demon- strate compliance with paragraph (a). (2) (a) The provisions of sections 18 and 19, with the necessary changes, apply where a releasing province fails to comply with subsection (l)(a) or (c) in respect of a Schedule 4, 5 or 6 allocation. (b) The National Treasury may, where it stops an allocation in terms of paragraph (a), after consultation with the transfemng national officer, determine that a portion of the allocation be reallocated to the receiving province. (3) The National Treasury may, where a releasing province fails to comply with subsection ( l ) ( a ) or (c), after complying with the provisions of section 216(3) of the Constitution, reallocate a portion of the releasing province’s equitable share allocation referred to in section 4 to the receiving province. 10 15 20 25 30 35 40 45 (4) (a) The allocations referred to in sections 4(2) and 7(2) are subject to adjustments necessitated by the implementation of the Cross-boundary Municipalities Laws Repeal 50 and Related Matters Act, 2005 (Act No. 23 of 2005). 42 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 (b) The transferring national officer of a Schedule 4, 5 or 6 allocation must by 15 September 2006 inform the National Treasury of any adjustments to the allocations referred to in section 7(2) that must be reflected in the Division of Revenue Act for the next financial year. Implementation of changes to boundary, power or function of province or municipality 5

39. Despite anything to the contrary contained in any law, any changes to the boundary or the powers and functions of a province or municipality effected in terms of a power contained in any national or provincial legislation that impacts on the allocations made under this Act take effect at the commencement of the Division of 10 Revenue Act for the next financial year only. Preparations for next budget year 40. (1) (a) The receiving officer of a Provincial Infrastructure Grant must, by 3 1 July 2006, submit detailed five-year infrastructure budgets in a format determined by the National Treasury, to the provincial treasury. (b)The five-year infrastructure budgets must indicate the prioritised projects to be funded from the allocations for the next financial year and the 2008/07 financial year as set out in column B of Schedule 4. 15 (c) The provincial treasury must review the infrastructure budgets of all receiving officers and submit the co-ordinated budgets to the National Treasury by 31 August 20 2006, together with the provincial budget submission. (d) The provincial treasury must ensure that the capital budgets of the receiving departments include allocation for project design and initiation of procurement for projects to be implemented in 2007/08. (2) The receiving officer of a Municipal Infrastructure Grant in a category C 25 municipality, must, by 1 October 2006, certify to the National Treasury that its capital budget is co-ordinated with all category B municipalities located within that category C municipality. (3) (a) The transferring national officer of a Schedule 4,5 or 6 allocation must, by 15 November 2006, submit to the National Treasury for approval the draft frameworks for 30 the allocations set out in column B of Schedules 4,5 or 6 in the format to be determined by the National Treasury. (b) Any proposed amendment or adjustment of the allocation criteria included in the draft frameworks referred to in paragraph (a) must be agreed with the National Treasury prior to the submission of the draft frameworks. (c) The transferring national officer of a Schedule 4, 6 or 7 allocation must, by 15 January 2007, submit to the National Treasury the allocation payable to each municipality in the next financial year. 35 (4) The National Treasury may, in preparation for the next financial year, instruct departments and municipalities to submit to it such plans and information for any 40 conditional allocation, as it may determine, at specified times prior to the start of the next financial year, Expenditure prior to commencement of Division of Revenue Act, 2007

41. Despite sections 3(2), 7(2) and 8(2), if the annual Division of Revenue Act for the next financial year has not commenced before or on 1 April 2007, the National Treasury 45 may, determine that an amount not exceeding 45 per cent of the total amount of each allocation made in terms of sections 3( l), 7( 1) and 8( 1) be transferred to the relevant province or municipality as a direct charge against the National Revenue Fund. , 44 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006 CHAPTER 7 GENERAL Allocations by public entities to provinces or municipalities

42. The accounting officer of a provincial department or municipality that receives funds from a public entity as a grant, sponsorship or donation, must disclose in its financial statements, the purpose and amount of each such grant, sponsorship or donation received. 5 Liability for costs incurred in violation of principles of co-operative governance and intergovernmental relations 43. (1) An organ of state involved in an intergovernmental dispute regarding any 10 provision of this Act or any division of revenue matter or allocation must, before approaching a court to resolve such dispute, make every effort to settle the dispute with the other organ of state concerned, including exhausting all mechanisms provided for the settlement of disputes in relevant legislation. (2) In the event that a dispute is referred back by a court in accordance with section 15 41(4) of the Constitution, due to the court not being satisfied that the organ of state approaching the court has complied with subsection (l), the expenditure incurred by that organ of state in approaching the court must be regarded as fruitless and wasteful. (3) The amount of any such fruitless and wasteful expenditure must, in terms of a prescribed procedure, be recovered without delay from the person who caused the organ 20 of state not to comply with the requirements of subsection (1). Unauthorised and irregular expenditure 44. (1) The following transfers constitute unauthorised expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act, as the case may be, where relevant: 25 (a) a transfer prohibited in terms of section 17(2) of this Act; or ( b ) a transfer by a transferring national officer to a bank account of a province or municipality that is not the primary bank account, or, in respect of provinces, a corporation for public deposits account. (2) Any transfer made or spending of an allocation in contravention of this Act 30 constitutes irregular expenditure in terms of the Public Finance Management Act and the Municipal Finance Management Act. Financial misconduct 45. (1) Despite anything to the contrary contained in any law, any serious or persistent non-compliance with a provision of this Act constitutes financial misconduct. (2) Section 84 of the Public Finance Management Act and section 171(4) of the Municipal Finance Management Act apply in respect of financial misconduct in terms of subsection (1). 35 Delegations and assignments 46. (1) The Minister may, in writing, delegate any of the powers entrusted to the 40 National Treasury in terms of this Act and assign any of the duties imposed on the National Treasury in terms of this Act, to an official of the National Treasury. (2) A delegation or assignment in terms of subsection (1) to an official of the National Treasury-

46 No. 28700 Act No. 2, 2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 ( a ) is subject to any limitations or conditions that the Minister may impose; (b) may authorise that official to sub-delegate, in writing, the delegated power or assigned duty to another National Treasury official; and (c) does not divest the National Treasury of the responsibility concerning the exercise of the delegated power or the performance of the assigned duty. 5 (3) The Minister may confirm, vary or revoke any decision taken by an official as a result of a delegation, subject to any rights that may have vested as a consequence of the decision. Exemptions 47. (1) The National Treasury may, on written application by a transferring national 10 or provincial officer, exempt such officer in writing from complying with a provision of this Act, if the officer satisfies the National Treasury that- (a) the duty cannot be complied with at that stage; (b) the relevant allocation and framework are properly designed; and (c) the officer is taking steps to comply with the provisions of this Act. (2) Any exemption granted in terms of subsection (1) must set out the period and conditions, if any, to which it is subject and must be published in the Guzette. 15 Regulations

48. The Minister may, by notice in the Gazette, make regulations regarding- (a) anything which must or may be prescribed in terms of this Act; and (b) any ancillary or incidental administrative or procedural matter that it is necessary to prescribe for the proper implementation or administration of this Act. 20 Repeal of laws 49. (1) Subject to subsections (2) and (3), the Division of Revenue Act, 2005 (Act No. 25 1 of 2005), is hereby repealed. (2) The repeal of the Division of Revenue Act, 2005, does not affect any duty or obligation set out in that Act, the execution of which is still outstanding. (3) (a) A municipality affected by a demarcation referred to in the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 (Act No. 23 of 2005), must, 30 despite that demarcation and the repeal of the Division of Revenue Act, 2005 (Act No. 1 of 2005), spend allocations made under the last named Act in accordance with that municipality’s budget for the 2005/06 municipal financial year in the geographical area that constituted that municipality immediately prior to that demarcation, until the commencement of the 2006/07 municipal financial year of the newly constituted 35 municipality that is the successor-in-title of that municipality in terms of the first mentioned Act. (b) Despite paragraph (a), all allocations payable to the Bohlabela District Municipality (CBDC4) in terms of the Division of Revenue Act, 2005, after 1 March 2006, must be transferred to the municipalities that are the successors-in-title of that 40 municipality in terms of the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005, (Act No. 23 of 2005), in accordance with the same criteria and formulae that informed the allocations to the Bohlabela District Municipality. (c) The National Treasury must publish the allocations made to each successor-in-title municipality in accordance with paragraph (a), in the Gazette. 45 48 No. 28700 Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 Short title and commencement

50. This Act is called the Division of Revenue Act, 2006, and takes effect on 1 April 2006 or the date of publication thereof by the President in the Gazette whichever is the later date. 50 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 1 EQUITABLE DIVISION OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY AMONG THE THREE SPHERES OF GOVERNMENT Spheres of Government Column A 2006/07 Allocation R'000 Column B Forward Estimates 2007/08 R'000 2008/09 R'000 3 6 1 3 9 3 2 5 2 National',' 187 099 825 Provincial Local 22 114 167 TOTAL 571267844

1. National share includes conditional allocations to provincial and local spheres, debi service cost 303 914 040 150 752 930 1 8 0 5 7 9 4 0 I 472724910 I 3 3 1 3 9 6 1 5 9 167 701 393 2 0 0 7 5 6 2 0 I 519173772 I I I and the contingency reserve.

2. The direct charges for the provincial equitable share are netted oui. SCHEDULE 2 DETERMINATION OF EACH PROVINCE'S EQUITABLE SHARE OF THE PROVINCIAL SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY (as a direct charge against the National Revenue Fund) Province Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape TOTAL Column A 2006/07 Allocation R'000 24 642 653 9 595 367 23 361 686 32 052 488 20 615 653 11 227 317 3 451 507 12 346 856 1 3 4 5 9 4 0 3 I 150752930 I Column B Forward Estimates 2007l08 R'000 27 188 826 10 566 691 26 071 807 35 957 286 22 992 613 12 559 148 3 790 085 13 668 888 1 4 9 0 6 0 4 9 I 167701393 I 2008/09 R'000 30 091 474 11 665 775 29 189 980 40 445 585 25 725 665 14 085 839 4 174 210 15 174 870 I6 546 421 187 099 825 I 1 52 No. 28700 Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY Number Municipality EASTERN CAPE A Nelson Mandela B B B B B B B B B C ,Total: Cacadu Municipalities EClOl ECI 02 EC103 EC104 EC105 EC 106 EC107 EC108 EC109 DClO Camdeboo Blue Crane Route Ikwezi Makana Ndlambe Sundays River Valley Baviaans Kouga Koukamma Cacadu District Municipality B B EC121 EC122 Mbhashe Mnquma National Financial Year Column A 2006107 Allocation Column B Forward Estimates 2007108 2008109 R'000 487 47 1 1 11 875 12 857 4 985 22 243 18 451 11 469' 5 I921 16 313 9 478 1 41 7351 154 597 43 841 5595091 634872- 13 457 14 390 5 451 25 209 20 847 118321 5654 18354; 103571 48 266 1 173 8161 1 35 925 i 15 288 16 337 6 169 28 635 23 683 13417 6 403 20897 11 765 54 344 196 938 40 675 54 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY Number Municipality FREE STATE Column A 2006107 Allocation Column B Forward Estimates 2007108 2008109 - I - T l FS193 FS194 FS195 Nketoana Maluti-a-Phofung Phumelela FS204 Metsirnaholo . 56 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY Number Municipality GAUTENG A A A Ekurhuleni City of Johannesburg City of Tshwane GTOZbl B B GT02b2 C DC46 Total: Metsweding Municipalities Nokeng tsa Taemane Kungwini Metsweding District Municipality B GT421 B GT422 GT423 B DC42 C Total: Sedibeng Municipalities Emfuleni Midvaal Lesedi Sedibeng District Municipality GT481 B GT482 B GT483 B C DC48 Total: West Rand Municipalities Mogale City Randfontein Westonaria West Rand District Municipality Column A 2006/07 Allocation Column B Forward Estimates 2007/08 2008/09 1 191 332 1 2 252 848 1 002 650 12 036 29 080 14 987 56 103 1 I 193 1171 19 854 140 377 369 654 68 282 31 249 44 336 91 303 235 169 1 1 3 6 4 6 6 d 2 554 033 1095 231 1 5 5 4 4 3 1 2 902 371 1245 871 13 182 32 677 17 537 63 397 22 658 161 2861 428 194 1 779911 35 186 35 1431 105 604 1 253 924 15 034 37 259 19 754 72 047 258 205 20 7561 25 781 181 597 486 339 89415 40 138 40063 118967 288 583 Total: Gauteng Municipalities 5 107 755 5 759 440 6 549 646 , 58 No. 28700 GOVERNMENT GAZETIE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY KWAZULU-NATAL KZ211 KZ212 Vulamehlo Umdoni C Total: uMgungundlovu Municipalities DC22 uMgungundlovu District Municipality KZ232 B KZ233 B KZ234 B KZ235 B KZ236 B DC23 C TotakUthukela Municipalities Emnambithinadysmith Indaka Umtshezi Okhahlamba Imbabazane Uthukela District Municipality KZ252 KZ253 Newcastle Utrecht 134 121 325 895 34 480 18 566 9 564 21 449 19 817 87 242 1 191 1181 I I I55 525 358 040 38 259 20 075 10 348 20 253 21 571 101 237 211 743 175 696 406 370 22 739 11 744 22 946 24 431 1 I4 664 239 964 , 60 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY Number Municipality National Financial Year Column A 2006107 Allocation Column B Forward Estimates 2007108 2008/09 B B B B B C Total: Umkhanyakude Municipalities Umhlabuyahngana Jozini The Big Five False Bay Hlabisa Mtubatuba Umkhanyakude Distnct Municipality KZ27 1 KZ272 KZ273 KZ274 KZ275 DC27 KZ281 B B KZ282 KZ283 €3 KZ284 B KZ285 B B E 2 8 6 DC28 C Total: uThungulu Municipalities Mbonambi uMhlathnze Ntambanana Umlalazi Mthonjaneni Nkandla uThungulu District Municipality B B B ~B ,c Total: iLembe Municipalities KZ291 KZ292 KZ293 KZ294 DC29 eNdondakusuka KwaDukuza Ndwedwe Maphumulo iLembe Distnct Municipality B B B B B C Total: Sisonke Municipalities KZ5al KZ5a2 KZ5a4 KZ5a5 KZ5a6 DC43 Ingwe KwaSani Greater Kokstad Ubuhlebezwe Umzimkhulu Sisonke Distnct Municipality 22 222 1 28 026 I 7 328 22 1351 6419, 61 982' 148 1121 I 160771 61 266, 9 675 32 935 I1 2661 22 302 1 127 361 ' 280 881 20 8701 22 271, 25 013 19 581 833151 171 049 19 139 5 040 15 055 1 190731 29 615) 61 412 149 334 I I I 16 750 22 669 4 612 18 246 5 582' 65 359 133 218 I 14 266' 69 177: 6 744 26881' 8 373 16 1361 145 389 286 965 I 22 264 24 814 20 067 15 524 96 042 178 711 16 191 ~ 4 134 16 707 16 363 ' 27 152' 77 7441 158 291 1 18 941 25 644 5 204 20 601 6 323 74 131 150 845 16 125 78 844 7 613 30 413 9 487 I8 239 164 262 324 987 25 241 28 407 22 698 17 565 108 802 202 713 18 328 4 614 18 997 18 516 30 750 88 364 179 628 Total: KwaZulu-Natal Municipalities I I I 3 091 031 3 348 717 3 802 979 , 62 No. 28700 GOVERNMENT GAZE'lTE, 3 1 MARCH 2006 Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY Number Municipality LIMPOPO B B B B B NP03a2 NP03a3 NP03a4 NP03a5 NP03a6 Makhudutharnaga Fetakgorno Greater Marble Hall Greater Groblersdal Greater Tubatse Total: Greater Sekhukhune District Municipalities B B B B B C Total: Mopani Municipalities NP33 1 NP332 NP333 NP334 NP335 DC33 Greater Giyani Greater Letaba Greater Tzaneen Ba-Phalaborwa Maruleng Mopani Distnct Municipality NP341 B NP342 B NP343 B B NP344 DC34 C Total: Vhembe Municipalities Musina Mutale Thulamela Makhado Vhembe District Municipality NP35 1 B B NP352 NP353 B NP354 B NP355 B DC35 C Total: Capricorn Municipalities Blouberg Aganang Molemole Polokwane Lepelle-Nkurnpi Capricorn District Municipality B B B B B B NP361 NP362 NP364 NP365 NP366 NP367 Thabazirnbi Lephalale Mookgopong Modimolle Bela Bela Mogalakwena Column A 2006/07 Allocation Column B Forward Estimates 2007/08 2008/09 441131 16 531 21 395' 40 658 41 826 289 322 ~ 43 469 i 1 41 303; 61 8131 20 208 18 437 152 651 337 880 9 9 1 7 ~ 73 824 158 2041 339 936 1 27 660 24 760 141 8241 381 721 ~ ~ 197921 18 671 14 875 78 251 15 242 482381 I7 226 54636 23 252 446361 42 889 312 693 I 44 8361 44 888 68 130 21 2661 17 7401 1832051 380 065, I 10 601 1 13 7591 89 313 81 5141 I84 5241 379 7101 27 226 25 239 165 458 426 679 ' 20 496 1 33 030 85001 20 525 166841 88 532 I 26 356 50 566 48 579 354 385 50 794 50 876 77 510 24 125 20 084 207 994 431 383 12 047 15 558 101 558 92 708 209 463 431 334 30 835 28 552 187 287 483 934 23 319 37 515 9656 23 344 18 956 100 665 Total: Limpopo Municipalities I 1 565 837 / 17427191 1 977 410

64 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY 1 Number Municipality 2006/07 MPUMALANGA B B B B B B B C Total: Gert Sibande Municipalities MP301 MP302 MP303 MP304 MP305 MP306 MP307 DC30 Albert Luthuli Msukaligwa Mkhondo Pixley Ka Seme Lekwa Dipaleseng Govan Mbeki Gert Sibande District Municipality B MP311 MP3 12 IP B MP313 MP3 14 B B MP3 15 MP3 16 B DC3 1 C Total: Nkangala Municipalities Delmas Emalahleni Steve Tshwete Emakhazeni Thembisile Dr JS Moroka Nkangala District Municipality B MP321 B MP322 MP323 B B MP324 B MP325 DC32 C Total: Ehlanzeni Municipalities Thaba Chweu Mbombela Umjindi Nkomazi Bushbuckridge Ehlanzeni District Municipality 49 958 34 283 31 210 21 188 26 100 65 331 398 568 1 I 16 839 60811 30611 11 890 70 806 73 423 1884281 452 809 1 24 749 I I 102 361 15 378 81 926 113 530 55 245 38 525 34 080 30 884 29 062 16 458 62 669 43 165 38 677 35 053 33 035 18 676 84 466 449 381 508 984 18 886 68 104 34 902 13 118 78 736 82 555 215 2781 511 580) 27 264 112 832 16 746 90 335 153 945 21 458 77 899 39 856 14 888 89 325 93611 242 003 579 039 ~ 30 996 128 511 19 050 102 717 175 543 Total: Mpumalanga Municipalities I 1 284 092 1 1 473 983 1 1671 009 I' /' 66 No. 28700 GOVERNMENT GAZETTE, 31 MARCH 2006 Act No. 2, BO6 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY Number Municipality NORTHERN CAPE Column A 2006/07 Allocation Column B Forward Estimates 2007108 2008109 NC061 NC062 NC064 'B NC065 B B NC066 NC067 B C DC6 Total: Namakwa Municipalities Richtersveld Nama Khoi Kamiesberg Hantam Karoo Hoogland Khai-Ma Namakwa District Municipality NC071 NC072 NC073 NC074 NC075 NC076 NC077 NC078 Ubuntu Umsobomvu Emthanjeni Kareeberg Renosterberg Thembelihle Siyathemba Sivancuma B B B B B NC081 NC082 NC083 NC084 NC085 Mier !Kai! Garib /iKhara Hais !Kheis Tsantsabane 32 449 ' 71 846 I 40121 1 1 044' 4 098 6 533 4471, 4 243 1 18 221 1 52 622 , 5 9571 9 795 I 1 598 3 954 4 887 4 671, 6 440 10763, 14 647 72 711 3 333; 15 2131 16 888 5 1951 9 1741 4 8071 26 290 1 80 901 1 50 356' 1 4 3 4 4 9 351 , 20 471 28 205, 80 038 ~ 4 388' 12 419 4 465 7 254 4 7841 4 498 20 557 ~ 58 364 , I 6 525 IO 990 13 130' 4 2921 5 340' 5 056' 7 2101 1 1 8811 16 724 81 149 ! 3 2161 15 9291 19 432 5 523, 9 557, 5 308 29 649 88 6121 58 016 I6 044' 10 526' 23 045 31 802 90 651 4 967 14 101 5 044 8 227 5 405 5 082 23 126 65 952 7 395 12 462 14 898 4 858 6 033 5 718 8 174 I3 490 18 821 91 850 3 627 18 126 22 107 6 246 9 637 6017 33 389 99 150 66 244 18 197 I 1 935 26 179 C Total: Frances Baard Municipalities DC9 Frances Baard District Municipality Total: Northern Cape Municipalities 424 513 468 496 529 471 I 1 I 68 N0.28700 Act No. 2,2006 GOVERNMENT GAZETTE, 31 MARCH 2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY I Number Municipality NORTH WEST B B B B B C Total: Bojanala Platinum Municipalities Moretele Madibeng Rustenburg Kgetlengrivier Moses Kotane Bojanala Platinum District Municipality NW371 "'372 NW373 NW374 NW375 DC37 NW381 B B NW382 "383 B B NW384 B NW385 C DC38 TotaL: Central Municipalities Ratlou Tswaing Mafikeng Ditsobotla Zeerust Central District Municipality "391 B B NW392 B NW393 NW394 B B NW395 B NW396 C DC39 Total: Bophirima Municipalities Kagisano Naledi Mamusa Greater Taung Molopo Lekwa-Teemane Bophirima District Municipality B NW401 B "402 NW403 B NW404 B B NW405 DC40 C Total: Southern Municipalities Ventersdorp Potchefstroom Klerksdorp Maquassi Hills Merafong City Southern District Municipality Total: North West Municipalities National Financial Year I Column A 2006/07 Allocation Column B Forward Estimates I 2007/08 2008/09 i 47 984' 88 000 87 839 13 363 72 634 139 081 448 901 53 117 98 600 92 464 14 978 81 570 161 441 50.2 170 20 1791 19 625 37 640 24 546 24 673 151 1241 277 787 1 I 18 837 11 034 10 052 ' 8 945. 72 694 I 156 671 1 14 585 1 1 28 189 111 882 24 000 68 625 72 047 1 319 328 1 22 079 21 531 42 446 27 018 26 979 174 893 1 314 946 1 I 19275) 12 181 10 952 32911 4 041 ' 9 743 1 83 935 1 173 038 1 1 16 302 32 404 128 716 27 198 63 499 85 3641 353 483 j 60 218 112 279 105 694 17 007 92 558 181 845 569 601 25 006 24 410 48 334 30 655 30 573 197 987 356 965 21 806 13 830 12 423 37 246 4552 11 063 95 142 196 062 18 504 37 050 146 924 30 891 72 771 96 252 402 391 70 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY ~ I I Number Municipality WESTERN CAPE A City of Cape Town B WCOl1 WC012 B WCO 13 B B WC014 B WCO15 C DC1 Total: West Coast Municipalities Matzikama Cederberg Bergrivier Saldanha Bay Swartland West Coast District Municipality B E B B B C Total: Cape Winelands Municipalities Witzenberg Drakenstein Stellenbosch Breede Valley Breede River Winelands Cape Winelands District Municipality WC022 WC023 WC024 WC025 WC026 DC2 National Financial Year C o i u m n ~ I 2006107 Allocation Column B Forward Estimates 2007/08 2008/09 I 1 280 807 10 831 9 151 7 790 12 215 9 352 43 320 92 659 15 169, 24 230 15 111 21 672 16 919 127 434 220 535 1 I 1435 058, 12 158 10 044 8 587 13 859 10 217 50 172 105 037 16 757 27 748 17 168 24 800 1 19 144 145 358 250 976 1634485 13 859 11 414 9 783 15 850 1 I688 56 527 119 120 19 080 31 955 I9 798 28 416 21 792 163 641 284 681 National Total 18 057 940 ~ 20 075 620 1 22 774 767 72 No. 28700 Act No. 2,2006 GOVERNMENT GAZETIE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 74 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 8 0 s m I k B -e 3 .- c * - a - S c ai * : 76 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 78 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 80 No. 28700 ~ Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 I- I- I- I- a 0 .I iz * - 2. s e -~ - ,/' _I_/______,,- ," 82 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 I - m > m .a V a2 R CI c t i a2 * f 84 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 0 0 0 0 0 0 0 0 8 8 8 8 8 8 8 8 : znmm-c-s2 > c W 5 0 0 0 0 8 8 8 8 w z m m 0 B e v) Q L4 M P 2 u D V E P 9 w 3 f 86 No. 28700 GOVERNMENT GAZE’ITE, 3 1 MARCH 2006 Act No. 2, 2006 DIVISION OF REVENUE ACT, 2006 zoo * z s ? o m - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 z m - N m N z - - 0 0 0 8 8 8 z z 5 0 0 0 0 0 0 0 0 0 8 8 8 8 8 8 8 8 8 g “WzrnNzrnZO‘ I Z c c 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - m w w * m w - 0 0 0 0 0 0 0 0 0 m r - 2 i - C 4 C c - 0 s C c - Y 0 5 e a 88 No. 28700 Act No. 2,2006 GOVERNMENT GAZETTE, 3 1 MARCH 2006 DIVISION OF REVENUE ACT, 2006 c t c 0 0 0 0 0 0 0 0 0 3 = 2 O N 2 c c c 0 0 0 0 0 0 < 0 0 0 0 0 0 I < 0 0 0 0 0 0 < - \ o m m o m e _ - - - Y - f 90 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 0 8 5 v) I I 8 0 g Q g Q 8 * z 2 z 2 8 z Q d m Q 2: m 0 8 E 0 m - o\ m Y * f 92 No. 28700 GOVERNMENT GAZETTE, 3 1 MARCH 2006 Act No. 2,2006 DIVISION OF REVENUE ACT, 2006 II 0 'A 0 m VI 'A N 0 5 Q 0 'A - 0 0 0 0 d 01 0 8 d 00 'A II N 9 m m 0 2 - 0 'A P II II 01 II 0 d 3 c : z 3 N c1 N N m vi 3 vi 01 z: N - F 0 3 - I- VI ~ -