Division of Revenue Amendment Bill: briefing & public hearings

Budget (WCPP)

01 December 2021
Chairperson: Ms D Baartman (DA)
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Meeting Summary

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Division of Revenue Amendment Bill

The Budget Committee received a briefing from National Treasury (NT) on the Division of Revenue Amendment Bill, which focused on the adjustments to the Western Cape provincial and municipal allocations for the 2021/22 financial year.

NT stated that additional allocations for wage agreements had been done to assist provinces to implement the wage agreement of the Public Service Co-ordinating Bargaining Council. R14.7 billion had been added to provincial allocations for 2021/22. In the 2021 budget, the Presidential Youth Employment Intervention had received a provisional allocation of R11 billion, which had been set aside in order to continue with the response by government to address the impact of COVID-19 on unemployment.

In the provincial equitable share (PES), the education department had received an additional R6 billion for the employment of education assistants and general school assistants at public ordinary schools and public special schools. The funds were allocated by the Department of Basic Education, based on the number of job opportunities that would be created in the different provinces. The Department of Health had got an additional R350 million to support provinces in the health sector. The funding would be used to employ staff and assistant nurses, and had been allocated through the PES formula. The Department of Social Development had been allocated an additional R120 million for the appointment of social workers as part of addressing the backlog of unemployed graduates. The funds allocated had been based on the extent of social ills, the number of service points, and the nature of services provided.

R210 million had been rolled over for the school infrastructure backlogs grant, for the completion of projects as part of the Sanitation Appropriate for Education (SAFE) initiative for schools. R97 million had been reprioritised from the goods and services allocation for oversight of the school infrastructure backlogs grant to fund a shortfall on the workbooks project, where there was an increased demand as learners were expected to work on their own from homes. R243 million had been reprioritised from various components of the national insurance indirect grant, to the human resources and training grant, to fund the shortfall for the placement of medical interns.

There were amendments to the local government grant allocations. There had been a reduction of R1.3 billion in the Public Transport Network Grant (PTNG) to correct an over-allocation for the City of Cape Town’s MyCiTi public transport network. R81 million had been added to the Regional Bulk Infrastructure Grant to fund the potable water security and remedial works project in George Municipality. R841 million had been added to the direct Neighbourhood Development Partnership Grant (NDPG) to fund city-led public employment programmes. R90 million would be shifted from the direct component to the indirect component to fund the provision of technical assistance to ill-capacitated municipalities. 

With regard to changes to gazetted conditional grant frameworks and allocations, the Integrated Urban Development Grant had been amended to include a provision for purchasing special vehicles for waste management, to ensure alignment with the conditions in the municipal infrastructure grant, as municipalities could move between the two grants. The Municipal Infrastructure Grant had been amended to correct for the omission of the baseline allocation of R14.8 billion during 2019/20 in the past performance section of the framework.

Members wanted to know if it would be possible to maintain all the youth interventions in the long run, or if this was just a short-term poverty relief intervention; sought clarification on the form of consequence management in place to avoid over- and under-expenditures and rollovers; asked if the money was spent according to the plans submitted by the departments and municipalities; asked for clarity on the R1.3b reduction in the PTNG, and why it was always adjusted down every year;  wanted details on the R10m reduction for the Klipfontein facility; asked how the NDPG was going to be integrated with the presidential youth development initiatives because it was a youth development project associated with the revitalisation of townships; and wanted to confirm if NT was correct to state it could not accommodate gender-based violence (GBV) and community safety in the provincial equitable share because it could not rely on provincial data.

The Committee adopted the negotiating mandate report on Division of Revenue Amendment Bill – the province instructed its permanent delegate to abstain from voting on the Bill

Meeting report

Mr E Njadu (ANC, Western Cape), delegate from the National Council of Provinces (NCOP), in his introductory remarks, said that from the NCOP and medium-term budget policy statement (MTBPS) viewpoint, what was going to be presented was not the budget but a shifting of funds. The Western Cape challenges were centred on provincial and local government allocations, and gazetted conditional grant allocations. The focus of the presentation would be on the under-spending, over-spending, misuse of funds, and rollovers.

National Treasury briefing on the Division of Revenue Amendment Bill, 2021
Mr Marumo Maake, Director: Provincial Budget Analysis, National Treasury, took the Committee through the additional changes to provincial government allocations for the 2021/22 financial year. The additional allocations for wage agreements were done to assist provinces to implement the wage agreement of the Public Service Co-ordinating Bargaining Council. R14.7 billion had been added to provincial allocations for 2021/22. In the 2021 budget, the Presidential Youth Employment Intervention got a provisional allocation of R11 billion, which had been set aside in order to continue the response by government to address the impact of COVID-19 on unemployment. Applications were received from different sectors and several engagements had been held between National Treasury, the Presidency and the applicants.

In the provincial equitable share (PES), the education department had got an additional R6 billion for the employment of education assistants and general school assistants at public ordinary schools and public special schools. The funds were allocated by the Department of Basic Education (DBE) based on the number of job opportunities that would be created in the different provinces. The Department of Health (DoH) had got an additional R350 million to support provinces in the health sector. The funding would be used to employ staff and assistant nurses, and had been allocated through the PES formula. The Department of Social Development (DSD) had received an additional R120 million for the appointment of social workers as part of addressing the backlog of unemployed graduates. The funds were allocated based on the extent of social ills, the number of service points and the nature of services provided.

Concerning provincial conditional grants, the Early Childhood Development (ECD) grant got an additional R178 million to provide unemployment risk support to ECD-related workers currently employed in ECD centres.

In the budget facility for infrastructure, R10 million had been reduced from the health facility revitalisation grant for the Western Cape for Klipfontein Hospital due to delays in the appointment of professional service providers for the building design.

With regard to rollovers, reprioritisations and the conversion of grants,R210 million had been rolled over for the school infrastructure backlogs grant for the completion of projects as part of the Sanitation Appropriate for Education (SAFE) initiative for schools. R97 million had been reprioritised from the goods and services allocation for oversight of the school infrastructure backlogs grant to fund a shortfall on the workbooks project, where there was an increased demand as learners were expected to work on their own from home. R243 million was reprioritised from various components of the national insurance indirect grant to the human resources and training grant, to fund the shortfall of the placement of medical interns. R167 million had been converted from the personal services component of the national health insurance (NHI) indirect grant to the HIV/TB, malaria and community outreach grant to allow provinces to procure directly for the provision of mental health and oncology services. The services were funded from both grants, and provinces had demonstrated a readiness to take over their full funding and management.

Mr Kolisang Molukanele, Senior Economist: National Treasury, briefed the Committee on changes to the local government grant allocations. There had been a reduction of R1.3 billion in the Public Transport Network Grant (PTNG) to correct an over-allocation for the City of Cape Town’s MyCiTi public transport network. R81 million had been added to the Regional Bulk Infrastructure Grant (RBIG) to fund the potable water security and remedial works project in George Municipality. R841 million had been added to the direct Neighbourhood Development Partnership Grant (NDPG) to fund city-led public employment programmes. R90 million would be shifted from the direct component to the indirect component to fund the provision of technical assistance to ill-capacitated municipalities.  

With regard to changes to gazetted conditional grant frameworks and allocations, he reported the integrated urban development grant (IUDG) had been amended to include a provision for purchasing special vehicles for waste management to ensure alignment with conditions in the municipal infrastructure grant, as municipalities could move between the two grants. The municipal infrastructure grant (MIG) had been amended to correct for the omission of the baseline allocation of R14.8 billion during the 2019/20 in the past performance section of the framework. The NDPG had been amended to remove reference to the submission of built environment performance plans. It had also been amended to include conditions attached to the approval of funds from the Presidential Youth Employment Initiative. Conditions required cities to expand the existing Expanded Public Works Programme (EPWP) projects and enter into new partnerships with the private sector and civil society. The RBIG had been amended to include the conditions attached to the approval of funding from the budget facility for infrastructure for the implementation of the potable water security and remedial works project in George Local Municipality. The conditions require submission of a business plan, a revised cost-benefit analysis and signing of a co-founding agreement.

(Tables and graphs were shown to illustrate adjustments to Western Cape provincial allocations, a summary of changes to local government allocations, adjustments to Western Cape municipal allocations, and allocations in the Regional Bulk Infrastructure Grant)

Discussion
Deliberations with National and Provincial Treasury

Mr A Van der Westhuizen (DA) remarked that budgets were always difficult because funds were never enough to meet the needs. National Treasury (NT) had done a sterling job in trying to make ends meet. They needed to agree there were serious problems and economic systematic problems that hampered the amounts the NT needed to give to provinces. Economic growth was needed, and the province was struggling to maintain infrastructure every year because the population was growing. The additional money the province was receiving for the remuneration of public servants would cover the additional expenditure due to an agreement reached at the national level. The agreements were binding on everyone. The money was not going to fund additional bodies, but would allow the province to recover some of the additional expenditure incurred. The R47 billion allocated to provinces would do very little to put them in a better position. He wanted to know if it would be possible to maintain all the youth interventions in the long run, or if this was just a short-term poverty relief intervention.

Mr Maake said the improvement in conditions of service (ICS) had not brought many people to the table. From a national perspective, especially given the rands and cents the provinces were subjected to during the 2020/21 medium-term expenditure framework (MTEF), NT had to ensure the agreement got full funding so that it did not create an additional burden on provinces. The reason behind the fiscal consolidation was that NT wanted to try to contain expenditure on the compensation of employees (CoE) so as to make money available to other priorities of the government. Salaries of civil servants got negotiated at the bargaining council, and the outcome could either go one way or the other. NT therefore felt the agreement should be funded so that provinces did not feel the burden. The tendency was to increase the salaries of those in the system currently, without thinking about additional people. This was the balancing act NT had to do.

He said the funds for the Presidential youth interventions were allocated on a once-off basis. It was not a long-term intervention. It was a project of the presidency, and NT took guidance from it and looked at what was available on the fiscal framework. The Treasury had made it clear the implementers of the programmes must inform the beneficiaries not to expect permanent absorption, and that these were short-term interventions to deal with the impact that Covid-19 had brought.

Mr Njadu wanted to know what forms of consequence management were in place to avoid over- and under-expenditure and rollovers. He asked if the money was spent according to the plans submitted by the departments and municipalities, as this trend of spending was not acceptable.

Responses
Mr Maake responded that the NT did not have a problem with planning in the country, but the challenge was on the implementation of the plans. Budgets were aligned to what was planned. Departments came up with all sorts of excuses for not implementing. If it was a rollover, it meant that money was still committed to the programme and would be used when NT had satisfied itself with the conditions of the rollovers. The big problem came with under-expenditures. In conditional grants, consequence management from NT was that the money not spent was lost, which meant the beneficiaries lose at the end of the day. There were oversight committees and provincial treasuries to hold the executive accountable. Early warning systems were in place. To ensure money was well spent, there had to be a joint effort between provincial treasuries, the national treasury, legislatures and oversight bodies. Accounting officers had to lose their jobs if they did not spend the money because the beneficiaries suffered, but NT could not dismiss them from office. With over-spending, there were processes that were dealt with through the Standing Committee on Public Accounts (Scopa) to assess if it was justifiable.

Ms Analiese Pick, Chief Director: Public Finance, Western Cape Provincial Treasury, said the province had a good track record when it came to minimising under-spending because of the rules put in place in terms of ensuring departments understand the entire envelope of their funding votes. There were early warning systems in place to monitor under-expenditure and engage the departments. The provincial treasury met with departments on a regular basis. Some issues of under-expenditure were beyond the control of the department, and that was when the provincial treasury would step in for mitigation and understanding underlying problems. The province did not over-spend because it had got a better cash-management system than elsewhere in the country.

On rollovers, when the provincial treasury looks at implementation during year one, it engages with the department and looks at the budget process and the future budget in isolation, and feed what was happening in the correct financial year into the decision-making around the budget allocation to votes, taking into consideration the new budget. When there was under-spending, the provincial treasury asks what that meant for service delivery in terms of set targets, and then plans how it would readdress service delivery outcomes in the next financial year. It was a pre-iterative process, where the projected outcome was influencing the future decision-making in the province. Rollovers were there for commitments that had not been delivered timeously.

Mr Malcolm Booysen, Chief Director: Local Government Budget Office, Western Cape Provincial Treasury, said under-spending was a matter of concern to the province, and was caused by the number of factors. Treasury monitored the performance of the grants and the progress of the municipalities on a regular basis

Ms N Nkondlo (ANC) commented that the budget adjustment continued to indicate the serious impact of Covid-19. One could appreciate the tricky balancing act done by National Treasury. The focus was on saving lives and livelihoods, especially when one looked at rands and cents. She asked NT to explain the difference between what was termed presidential employment initiatives vs the presidential youth employment interventions. Youth interventions were appreciated, because youth unemployment was very high. She asked if these youth programmes were meant to provide employment to youth or unemployment risk support, and if they were aimed at the youth bracket as defined by the legislation in terms of age. She asked for clarity on the R1.3b reduction in the Public Transport Network Grant, and why the grant was always adjusted down every year.

Mr Maake said the definition was supposed to be “the presidential developmental youth intervention initiatives.” Definitions from other sectors and age requirements would be sent to the Committee, but the guidelines and specifics were clear on these interventions. For instance, in the DSD, it would target only the youth. The idea there was that it talked of unemployment risks to these already employed, but affected by the impact of the pandemic. Parents took out their children out of ECD centres, and that affected the salaries of the practitioners. Implementation guidelines were clear in the education sector. 

Concerning the PTNG, he said the City of Cape Town (COCT) had written to the NT to revise the case law. There were delays in the project, but the money would not be lost in the process. The targeted completion of the project had to be brought forward because of performance issues.

Mr Molukanele informed Members the PTNG was allocated on a formula basis. At times, when one allocated something on a formula basis, the formula could give one a higher amount than the allocation amount in terms of infrastructure plans. The COCT had infrastructure plans for rolling out the PTNG. Through this over-allocation, it would need to slow the expenditure of the grant. The funds had been deferred to later years, but they would not be lost. A lot of the funds came from the Budget Facility Infrastructure. The NT was working with the office of the Budget Facility Infrastructure to improve the assessments made on these projects, so that the budget was attached on the likelihood it would be spent and assist municipalities getting these grants in project preparation

R841m had been allocated to the presidential employment youth initiative grant, which had an expanded public works (EPW) programme, and more funding was going to be added to the grant as it related to the EPW initiative mentioned by the President. The purpose of this was to create youth employment opportunities with these projects.

The Chairperson remarked that the MTBPS was not a budget, but three budgets over three financial years. The Division of Revenue Act (DORA) was viewed in the context of the MTBPS, which determined how much money the province was allowed to have. Despite the fiscal framework not being a bill, the MTBPS and DORA could not deviate from the financial agreement because the MTBPS affected the criteria and formula. To get the provincial equitable share mattered.

She said that the wage bill covered the 2020/21 financial year, but not the outer two years, which had not been provided for, and there was a court case at the moment. Even though they were covering for the current year, she wondered would happen if the court said the treasury had to back pay people. The R2b was for the money that had to be paid, but not for programmes. It was going to be a drop in the ocean, because it could not cover the outer two years.

She asked for the rationale for putting the Elsenburg Agricultural College under the national government, because the province was managing it very well; asked for clarity on why the health and risk adjustment over the MTEF was going to be cut by R1.2b; wanted to understand why the incentive component in the Provincial Road Maintenance Grant (PRMG) had been removed, even though there was no specific amount for the Western Cape. She suggested NT should start considering aggregating data for youth, and assist in youth interventions.

She wanted to know if fiscal consolidation was the new word for reprioritisation, because last year the "sexy" word had been reprioritisation, and asked for clarity on what Mr Maake meant when he stated the problem NT was concerned about was the implementation of plans by departments and municipalities. She said the problem was not about implementation, but was about what they should be not spending on as a country. The issue, in her opinion, was the planning problem.

She remarked that the Auditor-General (AG) had congratulated the Committee when it had a workshop last year because of its proactive approach to finding solutions to consequence management.

Mr Maake made it clear to Members they initially negotiated for a single term agreement, and it was not supposed to have a carry-through effect. However, the way the agreement was structured was that should they not be able to reach a new agreement by end of April, then the current agreement would proceed. Another R47b had been allocated to provinces for 2022/23 so that provinces would be able to deal with that risk. It was not a multi-year thing, and depending on the outcome of the court case, the NT would see how to deal with the situation. At this stage, NT could not pre-empt the outcome of the court case.

Fiscal consolidation reduction was related to the COE. About R300bn had been reduced last year, based on the 2020/21 MTEF, and the anticipation was to have a wage freeze. That was the main assumption NT had in the main budget, but that had not been achieved. Wages were therefore negotiated in the bargaining chamber. National Treasury had had to incur costs of R20b. Furthermore, the offices of the provincial premiers had a seat and listened to the negotiations, and were given a chance to have an input.

There had been a decision from the Cabinet that agricultural colleges should be regarded as institutions of higher learning, because students attending these colleges were not getting funding from the National Student Financial Aid Scheme (NSFAS). There had therefore been a need to standardise these colleges so that students could get NSFAS funding. The Western Cape had registered its concerns regarding this matter, and that was why NT was trying to facilitate a meeting between the Minister of Agriculture and the Member of the Executive Council (MEC) for agriculture in the province to come up with a political decision because technically this had to happen. If the meeting did not happen, NT had resolved it would ask other ministers to convene the two so that a decision could be made to proceed with the matter. NT was planning to have a meeting with the national Department of Agriculture and Western Cape provincial treasury to find common ground. He did not have a straight answer to satisfy the Committee.

Regarding the health component, he said NT had concluded a revision on that component. It had had discussions with the provincial treasuries and health departments around the data that had been used and the components that were there. This would be finalised within this MTEF. In addition, they had to be neutral in the way they dealt with the equitable share, because they presented the principles to the Technical Committee on Finance (TCF) and the Budget Council, as well as the data that informed these principles. National treasury had not checked the R2b, but all the provinces wanted to gain, not lose. When technical adjustments were made, there were provinces that lost while others gained.

The problem around the provincial roads maintenance grant (PRMG) was that the Select/Standing Committees on Appropriation in Parliament had a problem with NT putting incentive money into the PRMG, and the advice was that it should be taken out of the grant. Consequently, there was no mechanism in place to use or allocate the money to the satisfaction of the Department in terms of monitoring, because it had to be earmarked and could not be allocated. Provinces lost money as a result of that.

When it came to planning, they were referring to two kinds of planning. There was a difference between choices and how one planned for those choices. One could choose a wrong priority that did not have an impact on people’s lives. Then one could plan and implement it properly, and achieve results at the end of the day. That was the planning NT was referring to. The Chairperson had been referring to projects that still had to be prioritised - initiatives that would make an impact on the lives of the people. Those were the different kinds of planning. The kind of planning NT was referring to was the one where one made a choice – whether it was a good or bad policy – and go on to achieve the results one wanted to achieve.

Mr L Mvimbi (ANC) asked about the R10m allocation for the Klipfontein facility; wanted to understand how the NTPG was going to be integrated with the presidential youth development initiatives because the NTPG was a youth development project associated with the revitalisation of townships; enquired if the NTPG money went directly to the municipalities or via the provincial treasury; and wanted to know if there had been consideration for other municipalities for the water infrastructure grant amounting to R81m allocated to George Municipality.

Mr Maake said the R10m Klipfontein project had got to do with money that was in the initial cash-flow of the Department, but it had issues with the problem of appointing a service provider for the design. The tender had been advertised for this purpose around November 2019, and later the Department had withdrawn the tender because of problems with the Central Procurement Office (CPO) and other business groups. This had necessitated a revision of the R10m, but this did not mean the R10m had been lost. It had been deferred.

Referring to the presidential projects and NDP, he said the presidential youth employment projects could not be done in isolation. For instance, the ECD programme had always been there. In this case, the ECD programmes had been implemented through the NDPG. The people would still work within the framework of the NDPG.

Mr Molukanele added that one had to find programmes within the existing grants, and the NDPG was one of those. Last year, municipalities had submitted business plans to upscale expanded public works programmes (EPWPs) within the NDPG. Those applications had been considered for the presidential youth development initiatives. There was an adjustment because there was an EPWP component in the grant which the presidential developmental funding would go towards. The money would then go directly to the municipality as part of the NDPG.

About the R81m allocation to the George Municipality, he said that other municipalities were considered, but George happened to be the municipality that had ticked the criteria that were needed and how money would be allocated. Factors that had been considered, amongst other things were whether the project fell within the presidential youth development commission; the long-term effects of the project; if the project was in the water and sanitation sector, and the project's cost.

Mr Van der Westhuizen commented that the short-term poverty relief grants were an interruption, because they were not in the best interests of the youth. For example, the assistant teacher programme was a good example, because young people got jobs, but could not continue when the contracts came to an end. Their income was interrupted, even though some continued on a voluntary basis. He added that tertiary institutions were a national competency according to the constitution, but one needed to acknowledge that agricultural colleges served regional needs, especially Elsenberg, which had a strong focus on viticulture. The Committee was recording its concern in this regard because the decision had been taken unilaterally. It looked like some of the grants for the Western Cape would be decreased and eventually be removed.

He enquired to what extent the DORA formula provided for services rendered to people from other provinces -- services like oncology, heart-transplants, kidney operations, etc -- because not all provinces had the same high level of medical treatment. As a result, many people had begun to use Western Cape addresses to be on the waiting list. He asked if the formula provided for services rendered by provinces to national departments or entities when they failed. He cited three examples. Firstly, the SAPS budget was located in the national department, but the province had to employ law enforcement services to fight crime. Secondly, the Western Cape government had had to step in to provide health screening services to the George Airport during the pandemic in an effort to stimulate economic activity. Thirdly, the Passenger Rail Agency of South Africa (PRASA), the Cape Town Harbour, and the Deeds Office were some examples of where the province had to be involved to build more taxi ranks, etc.

Mr Maake said the youth initiatives would not on their own eradicate the problems of youth unemployment as a fundamental challenge that needed to be addressed as a country. The government alone could not solve the problem without the help of other stakeholders or role players. This had come to the attention of NT when lockdown came and lots of industries were not operating normally, and people started losing jobs. This was just a short-term intervention from the presidency to protect the income of people. The social relief of distress grant (R350) was implemented as a short-term intervention. NT had had to find the money to respond to the problem. Youth unemployment initiatives could not be projectised, because it had always been there. National treasury was guided by the presidency on how to proceed with this. The presidency would have to evaluate data and then approach NT in order to move forward and see if money was available. This needed a multi-sector approach if it was to be made permanent and sustainable. Concerning the movement of people from one province to the next, he said the health space is compensated through the health component which looks at hospital outputs that are indicated in the technical data. If it was an interprovincial referral, the receiving province can bill the referring or sending province and this is dealt with through the intergovernmental debt mechanisms. For services rendered on behalf of other national departments and entities, he explained the formula is based on a number of components indicated on collected data. The matter cannot be addressed through the formula only. National Treasury cannot rely on each data received from provinces. It would be better to have a centrally collected data to create a component for these situations on behalf of national departments. Currently, it would not be feasible to put a component that deals with that.

Ms Nkondlo said she would like to get information on the available education and health guidelines on financial decisions on public statements; asked NT to provide the Committee with a write up on the Neighbourhood Development Partnership Grant and PNTG, asked if the youth aggregation was included in these grants; enquired if the revision of the equitable share formula had been completed; and wanted to establish if the under-spending on COE was a phenomenon they were closing on, or managing well.

Mr Maake said departments would have to give National Treasury data that show the aggregation on the profile of people hired in each sector, including gender. The education one is clear in terms of guidelines and targets; and a write-up on PTNG would be shared with the Committee in writing. About managing COE under-expenditure, within the health and education space, currently, there is a lot of over-expenditure. As of end of September 2021, provinces were projecting over-spending of about R20b on COE. The issue here is that one cannot rollover on COE. If one under-spent, one surrenders the money to the revenue fund. There are various factors that contribute to under-expenditure on COE. One reason is that the department would budget to hire teachers/nurses for the full year, starting in April. Then the process takes long to take place and the department ends up hiring people in June. This means for the three months they were not hired, money was being saved. People are not back-paid for not being in the system. So, National Treasury looks at these reasons when it engages with the departments, and checks the impact of service delivery and mitigation strategies in place in order to hire the required people. 

Mr Molukanele said there was a review to be concluded within the MTEF. It was the biggest review to be done, where the focus would be on data updates, structure and impact. This was being done through a piece-meal approach.

Mr G Bosman (DA) wanted to confirm if NT was correct to state it could not accommodate gender-based violence (GBV) and community safety in the provincial equitable share, because it could not rely on provincial data.

Mr Maake said he was not referring specifically on GBV and crime matters, but was just talking about all services rendered by provinces on behalf of national departments and entities. In the case of GBV, NT allocated these funds as an add-on to provinces outside of the formula.

Adoption of Negotiating Mandate Report

The Chairperson tabled the Negotiating Mandate Report on the Division of Revenue Amendment Bill, and asked Members if they were satisfied with it.

Mr Mvimbi supported the Bill, as proposed by the provincial treasury.

Mr America proposed the adoption of the report.

Mr Van der Westhuizen seconded the motion.

The report was adopted with minor amendments. The negotiating mandate instructed the permanent delegate of the province in the NCOP to reserve the rights of the province to vote on the Bill.

Resolutions

The Committee resolved to request a written input from National Treasury on how GBV and community safety was considered in the provincial equity share, and how data was given consideration, and to give the Committee a full report on the Neighbourhood Development Grant and Transport Plan, including the beneficiaries of the grants. Lastly, it resolved the National Treasury should forward the Committee a report on the municipalities that failed and succeeded in their applications for the municipal infrastructure grants.

Adoption of minutes

The Committee adopted the minutes of its meeting on 5 November 2021.

The meeting was adjourned.

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