ATC211117: Report of the Select Committee on Appropriations on the Financial and Fiscal Commission’s Submission for the Division of Revenue 2022/23, Dated 17 November 2021

NCOP Appropriations

Report of the Select Committee on Appropriations on the Financial and Fiscal Commission’s Submission for the Division of Revenue 2022/23, Dated 17 November 2021

 

  1. Background

The Financial and Fiscal Commission (the Commission) is a Chapter 9 institution established in terms of section 220 of the Constitution. Section 3(2)(b)(i) of the Financial and Fiscal Commission Act, 1997 mandates the Commission to undertake research and report to Parliament and provincial legislatures. Furthermore, it requires the Commission to make recommendations on the division of revenue for the following financial year. In terms of section 9(1) of the Intergovernmental Fiscal Relations Act (Act No 97 of 1997), as amended [RP 177 – 2020], the Commission has tabled the Submission for the Division of Revenue 2022/23.

 

  1. Terms of reference

This Submission was referred by the National Council of Provinces (NCOP) to the Committee for consideration and report on 02 June 2021. In terms of the powers and functions conferred on the Committee by the Constitution, the Money Bills and Related Matters Act (No. 9 of 2009) (as amended by Act No. 13 of 2018) and the Standing Rules, it has considered the Submission as tabled.

 

The Committee invited the Commission to make a presentation on its Submission, on 25 August 2021, and deliberated on it accordingly. The Commission’s delegation was led by the Chairperson of the Commission, Dr Patience Nontobeko Mbava. Other stakeholders that were invited included all Provincial Portfolio Committees on Finance and/or Treasury and National Treasury.  

 

  1. Presentation by Financial and Fiscal Commission (FFC)

The theme of the 2022/23 Submission is:” The effects of Covid-19 and the changing architecture of subnational government financing in South Africa”. The Submission is divided into four parts, containing ten chapters with a number of specific recommendations. Part 1 focuses on the macroeconomic impact of Covid-19; Part 2 discusses the Covid-19 impact on local government; Part 3 unpacks Covid-19’s impact on people’s lives (Bill of Rights); and Part 4 deals with oversight and leadership. The recommendations of the Commission should be responded to by the affected government departments, coordinated through the National Treasury and such responses would be contained in the 2022 Division of Revenue Bill.

 

  1. Committee decision

The Select Committee on Appropriations, having considered the Submission of the Financial and Fiscal Commission on the Division of Revenue Bill for 2022/23, tabled in terms of section 9(1) of the Intergovernmental Fiscal Relations (Act No 97 of 1997), as amended [RP 177 – 2020], and referred to it by the NCOP for consideration and report, hereby reports that it has taken note of the contents of the Submission, which will be incorporated in the Committee’s Report on the 2022 Division of Revenue Bill.

 

The Economic Freedom Fighters (EFF) reserved its position on this Report.

 

Report to be considered.

              

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