Adjustments Appropriation Bill & Special Appropriation Bill: committee reports; Report on proposed division of revenue & conditional grant allocations to Provinces and Local Government

Meeting report

The Chairperson welcomed everyone to the meeting. She proposed that the Committee deliberate on its timetable for the next year.

Mr D Ryder (DA, Gauteng) supported the proposal.

The Chairperson said this had been a year filled with challenges. Despite those challenges, the Committee has worked towards serving the citizens. The Committee convened to consider and adopt its draft reports on the 2024 Adjustments Appropriation Bill and Special Appropriation Bill. Additionally, the Committee will discuss the proposed division of revenue and conditional grant allocations to the provinces and local governments. Each of these is vital in shaping the fiscal landscape and ensuring that the government and Parliament allocate resources effectively to meet the needs of communities over the Medium-Term Expenditure Framework (MTEF).

The Adjustments Appropriation Bill is significant as it reflects the government’s agility in responding to economic conditions and emerging priorities. The committee had to assess the adjustments to ensure that they enhanced its capacity to deliver on its commitments and supported the long-term sustainability of the government’s programmes.

In discussing the proposed division of revenue grants, the Committee has a responsibility to ensure resources are allocated equitably and effectively. The provinces and local municipalities rely on these funds to deliver essential services and stimulate economic growth and local development. It was crucial that the allocations address the immediate needs and empower local municipalities to foster long-term growth and resilience.

She thanked each Member and the Committee support staff for their invaluable insights into the matter.

After making those remarks, she asked if any apologies had been received.

Mr Lubablo Nodada (Committee Secretary) said no apologies were received.

Mr Ryder asked to be excused by 11:30.

The Chairperson noted the request and invited the Secretary to walk Members through the Committee report on the Adjustments Appropriation Bill.

Committee Report on the Adjustments Appropriation Bill

Mr Nodada took the Committee through the report.

Mr J Majola (MK, KwaZulu-Natal) expressed his concern that the government is yet to release a Medium-Term Development Plan (MTDP).

The Chairperson requested a mover to adopt the report.

Ms S Nxumalo (ANC, Mpumalanga) was pleased with some adjustments made to the bill for road maintenance and other service delivery areas. As such, she moved to adopt the report.

Ms S Ndhlovu (ANC, Limpopo) seconded the mover.

Mr Majola said the MK rejected the report.

The report was duly adopted, noting the MK’s objection.

Read: ATC241210: Report of the Select Committee on Appropriations on the Adjustments Appropriation Bill [B14 – 2024] [National Assembly (Section 77)], Dated 10 December 2024

Mr Phelelani Dlomo (Content Advisor: Public Finance) mentioned that concerns around the MTPD have been raised in the Proposed Division of Revenue and Conditional Grants for Provinces and Municipalities report. Once the MTPD is published it will inform the MTEF budget going forward. Whereas the Committee report deals with the revisions made to the budget tabled by the Sixth Administration.

The Chairperson noted the point made and invited the secretary to take Members through the Committee report on the Special Appropriation Bill.

Committee Report on the Special Appropriations Bill

Mr Nodada took the Committee through the report.

Mr Ryder felt that the poorly run public participation process was a key reason why the Gauteng Freeway Improvement Project (GFIP) failed. He hoped that the government would learn from this experience and ensure a robust public participation process in the future. After saying that, he moved for the adoption of the report.

Mr Majola agreed that the government had not conducted a thorough public participation process on the GFIP. He added that certain sectors, like the agricultural sector, are struggling, which has led to the economy shrinking by 0.3% in the third quarter. He expressed the MK’s objection to the report.

The Chairperson felt that the Member would have been better placed to have made his points in previous Committee discussions on the Bill.

Ms Nxumalo seconded the mover.

The report was duly adopted, noting the MK’s objection.

Read:

ATC241210: Report of the Select Committee on Appropriations on the Special Appropriation Bill [B19 – 2024] [National Assembly (Section 77)], Dated 10 December 2024

The Chairperson invited the secretary to take Members through the Committee report on the proposed division of revenue and conditional grant allocations to provinces and municipalities.

Committee report on the proposed division of revenue and conditional grant allocations to provinces and municipalities

Mr Nodada took the Committee through the report.

Mr Dlomo highlighted that this report mentioned the Committee’s concern about the lack of a Medium-Term Development Framework (MTDF).

Mr Majola indicated that the MK objected to the report because the government failed to adopt an MTDP, which would make it difficult for Parliament to monitor the adjustments made.

Ms Nxumalo moved to adopt the report.

Mr P Swart (DA, Western Cape) seconded the mover.

The report was duly adopted, noting the MK’s objection.

Read: ATC241210: Report of the Select Committee on Appropriations on the Proposed Division of Revenue and Conditional Grant Allocations to Provinces and Municipalities as contained in the 2024 Medium Term Budget Policy Statement, Dated 10 December 2024

The Chairperson indicated that the Committee would then adopt its outstanding minutes.

Draft minutes for the meeting held on 06 December 2024

Mr Nodada took the Committee through the minutes.

The Chairperson requested a mover to adopt the minutes.

Mr Majola moved for their adoption.

Ms Nxumalo seconded the mover.

The minutes were duly adopted.

Draft Committee programme

Mr Nodada took the Members through the programme.

The Chairperson stressed that this was a draft document and could be amended anytime.

Mr Majola asked what a lock up session was.

Mr Dlomo explained that it is intended to prepare Members for processing legislation associated with the budget.

Mr Nodada added that the lock-up session is a courtesy provided by the Minister of Finance to the Members of the finance and appropriations so that they can be taken through the budget documents before the actual budget is announced.

The Chairperson thanked Members and other stakeholders who had contributed to the committee's work and then closed the meeting.

The meeting was adjourned.