Provincial Government Western Cape Provincial Treasury BUDGET 2010 LOCAL GOVERNMENT ALLOCATIONS PR: 21/2010 ISBN: 978-0-621-39114-5 To obtain additional information and/or copies of this document, please contact: Western Cape Provincial Treasury Directorate Budget Office Private Bag X9165 15 Wale Street Cape Town Tel: (021) 483-5618 Fax: (021) 483-6601 E-mail:
[email protected] This publication is also available online at http://www.capegateway.gov.za/eng/pubs/budgets/ Printed in the Republic of South Africa For the Government Printers Cape by Formeset Printers Cape Foreword Municipalities play a critical role in furthering government’s objective of providing services to communities, while facilitating local economic development. Over the next three years, provincial transfers to local government grow to assist with the delivery of these basic services and to improve municipal planning, financial capacity and to achieve greater efficiency in delivery and expand service access to households. Municipal own revenue sources are supplemented by the local government equitable share, which is the main fiscal instrument that is used to redistribute local government’s share of nationally raised revenue. In addition, municipal own revenue is supplemented by national and provincial conditional grants. The Municipal Finance Management Act, 2003 (MFMA) requires that the MEC for Finance must, to the extent possible, when tabling the provincial budget in the provincial legislature, make public particulars of any allocations due to each municipality in terms of the provincial budget, including the amount to be transferred to the municipality during each of the next three financial years. In addition, the annual Division of Revenue Act (DORA) requires that the Provincial Treasury must, on the same day that its budget is tabled in the provincial legislature, but not later than 14 April of that budget year, publish in a Gazette the indicative allocation per municipality for every allocation to be made by the Province to municipalities from the Province’s own funds.