Gold Membership
R
Division of Revenue Act, 2010 (Act No. 1 of 2010)Chapter 4 : Matters relating to all Allocations26. Preparations for next financial year and 2012/13 financial year |
| 1) |
| a) | A provincial department responsible for implementing the Infrastructure Grant to Provinces must, by a date determined by the provincial treasury, submit detailed infrastructure plans in a format determined by the National Treasury, to the provincial treasury, and the provincial treasury must submit the infrastructure plans to the National Treasury by 31 August 2010. |
| b) | The infrastructure plans must indicate the prioritised projects to be funded from the allocations for the next financial year and the 2012/13 financial year, as set out in Column B of Schedule 4. |
| c) | The provincial treasury must – |
| i) | review the infrastructure plans of all receiving officers, and must assess the extent to which those plans are aligned to the Integrated Development Plan of each affected municipality, and submit the integrated plans to the National Treasury by 27 August 2010, together with the provincial budget submission; |
| ii) | ensure that the infrastructure budgets of the receiving departments include an allocation for project design and the initiation of procurement for projects to be implemented in the next financial year and the 2012/13 financial year, and that infrastructure budgets are aligned with the cash flow requirements of the planned projects in a given year; and |
| iii) | ensure that the infrastructure budgets of the receiving departments make adequate provision for operations and maintenance associated with newly constructed or upgraded infrastructure. |
| 2) |
| a) | A category C municipality that receives an equitable share, a conditional allocation, or both, in terms of this Act must, using the envisaged conditional allocations to that municipality for the next financial year and the 2012/13 financial year as set out in Column B of the Schedules, by 1 October 2010— |
| i) | agree on the provisional allocations and the projects to be funded from those allocations in the next financial year and the 2012/13 financial year with each category B municipality within the category C municipality’s area of jurisdiction; and |
| ii) | submit to the transferring national officer – |
| aa) | the provisional allocations referred to in subparagraph (i); and |
| bb) | the prioritised projects contemplated in subparagraph (i) listed per municipality to be funded from the allocations for the next financial year and the 2012/13 financial year. |
| b) | Where a category C municipality and a category B municipality cannot agree on the allocations and projects referred to in paragraph (a), the category C municipality must request the relevant transferring national officer to facilitate agreement. |
| c) | The transferring national officer must take all necessary steps to facilitate agreement as soon as possible, but no later than 60 days after receiving a request referred to in paragraph (b). |
| d) | Any proposed amendment or adjustment of the allocations published in terms of section 29(3)(b) must be agreed with the relevant category B municipality, the transferring national officer and the National Treasury, prior to the submission of the allocations referred to in paragraph (a)(ii). |
| e) | Should agreement not be reached between the category C municipality and the category B municipality on the provisional allocations and projects referred to in paragraph (a) prior to 1 October 2010, the National Treasury may proceed to determine the provisional allocations and provide those provisional allocations to the municipalities concerned and the transferring national officer. |
| f) |
| i) | The final allocations based on the provisional allocations referred to in paragraphs (a)(i) and (ii) and (e) must be submitted to the National Treasury by 7 December 2010. |
| ii) | If the transferring national officer fails to submit the allocations referred to in subparagraph (i) by 7 December 2010, the National Treasury may determine the appropriate allocations, taking into consideration the envisaged allocations for the next financial year. |
| 3) |
| a) | The transferring national officer of a conditional allocation, using the envisaged conditional allocations for the next financial year and the 2012/13 financial year as set out in Column B of the Schedules to this Act, must, by 1 October 2010, submit to the National Treasury for approval – |
| i) | the provisional allocations to each province or municipality in respect of new conditional allocations to be made in the next financial year; |
| ii) | any amendments to the envisaged allocations for each province or municipality set out in Column B of the Schedules in respect of existing conditional allocations; and |
| iii) | the draft frameworks for the allocations referred to in subparagraphs (i) and (ii) in the format to be determined by the National Treasury. |
| b) | Any proposed amendment or adjustment for the next financial year of the allocation criteria of an existing conditional allocation must be agreed with the National Treasury prior to the submission of the provisional allocations and draft frameworks referred to in paragraph (a)(ii) and (iii). |
| c) | The National Treasury may, if the transferring national officer fails to comply with paragraph (a) by 1 October 2010, determine – |
| i) | the provisional allocations referred to in paragraph (a)(i); |
| ii) | any amendments to the envisaged allocations referred to in paragraph (a)(ii); and |
| iii) | the draft frameworks for the allocations referred to in paragraph (a)(iii), and submit that information to the relevant provinces or municipalities. |
| d) |
| i) | The final allocations based on the provisional allocations referred to in paragraph (a)(i) and (ii) must be submitted to the National Treasury by 7 December 2010. |
| ii) | If the transferring national officer fails to submit the allocations referred to in subparagraph (i) by 7 December 2010, the National Treasury may determine the appropriate allocations, taking into consideration the envisaged allocations for the next financial year. |
| 4) | The National Treasury may, in preparation for the next financial year, instruct transferring national officers, receiving officers and municipalities to submit to it such plans and information for any conditional allocation as it may determine at specified times prior to the start of the next financial year. |
