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Division of Revenue Act, 2021 (Act No. 9 of 2021)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 3 : Matters relating to Schedule 4 to 7 allocations

21. Unspent conditional allocations


(1) Despite a provision to the contrary in the Public Finance Management Act or the Municipal Finance Management Act, any conditional allocation, or a portion thereof, that is not spent at the end of the 2021/22 financial year reverts to the National Revenue Fund, unless the roll-over of the allocation is approved in terms of subsection (2).


(2) The National Treasury may, at the request of a transferring officer, receiving officer or provincial treasury, approve a roll-over of a conditional allocation to the 2021/22 financial year if the unspent funds are committed to identifiable projects.



(a) The receiving officer must ensure that any funds that must revert to the National Revenue Fund in terms of subsection (1), are paid into that Fund by the date determined by the National Treasury.
(b) The receiving officer must—
(i) in the case of a provincial department, request the roll-over of unspent funds through its provincial treasury; and
(ii) inform the transferring officer of all processes regarding the request.



(a) The National Treasury may, subject to paragraphs (b) and (c), offset any funds that must revert to the National Revenue Fund in terms of subsection (1), but not paid into that Fund by the date determined in terms of subsection (3)(a)—
(i) in respect of a province, against future transfers of conditional allocations to that province; or
(ii) in respect of a municipality, against future transfers of the equitable share or conditional allocations to that municipality.
(b) Before any funds are offset in terms of paragraph (a), the National Treasury must give the relevant transferring officer, province or municipality—
(i) notice of the intention to offset amounts against future allocation, the intended amount to be offset against allocations, the intended date for the offsetting and the reasons for the offsetting; and
(ii) an opportunity, within 14 days of receipt of the notice, to—
(aa) propose an alternative date for offsetting;
(bb) make written submissions why the full or a part of the amount should not be offset; or
(cc) propose an alternative date or dates by which the amount, or portions thereof, must be paid into the National Revenue Fund.
(c) The National Treasury must—
(i) accept the date or dates proposed in terms of paragraph (b)(ii)(aa) or (cc) or determine a different date or dates; or
(ii) accept or reject the submissions made in terms of paragraph (b)(ii)(bb).



(a) The National Treasury may amend the amount of the equitable share or a conditional allocation offset in terms of subsection (4).
(b) If the amendment envisaged in paragraph (a) results in an underpayment to a municipality—
(i) in respect of the equitable share of the municipality, the department responsible for local government must, despite section 5(3), transfer the difference to the municipality within 10 days; or
(ii) in respect of a conditional allocation of the municipality, the transferring officer must, despite the payment schedule envisaged in section 22(3), transfer the difference to the municipality within 10 days.
(c) If the amendment in terms of paragraph (a) results in an overpayment to a municipality, section 24 applies.