Question NW3989 to the Minister of Finance
11 December 2023 - NW3989
Buthelezi, Mr EM to ask the Minister of Finance
Whether he intends to introduce a conditional grant, specifically the Local Economic Development Grant, aimed at stimulating the local economy to drive economic development and address the pressing issue of unemployment in rural areas; if not, why not; if so, what are the relevant details?
Reply:
Municipalities have the option to utilise several grants, such as the Integrated Urban Development Grant (IUDG), Municipal Infrastructure Grant (MIG), and Urban Settlements Development Grant (USDG), for infrastructure-based LED initiatives. This is an acceptable practice. However, in terms of a specific introduction of a conditional grant like the Local Economic Development Grant, created to drive economic development and alleviate unemployment in rural areas, we are unable to offer details until the conclusion of the current review. Currently, government is reviewing the structure and system of conditional grants, limiting significant changes to existing grants until the review is completed.