The committee was established in terms of Section 4(3) of the Money Bills and Related Matters Act 09 of 2009 [as amended in 2018]. Part of the committee’s mandate includes, but is not limited to, processing the Division of Revenue Bill as tabled by the Minister of Finance.
The Bill is one of the most crucial pieces of legislation for the National Council of Provinces (NCOP), given its role and impact on all three spheres of government. The Bill takes approximately six weeks to be processed, encompassing the National Assembly, the NCOP, and the provincial legislatures’ public participation process.
The Bill:
- Provides for the equitable division of nationally raised revenue among the national, provincial, and local spheres of government for a Medium-Term Expenditure Framework (MTEF).
- Determines each province’s equitable share and allocations to provinces and local government from the national government’s equitable share.
- Outlines the responsibilities of all three spheres pursuant to such division and allocations, as well as other related matters.
- Both the Division of Revenue and Appropriation Bills allocate resources for priorities and projects outlined in the State of the Nation Address (SONA) by the President for the medium term.
The Six-Week Cycle of the DORB Process:
Week One
- Once the Minister of Finance tables the Budget, the Finance Committees from both Houses adopt the Fiscal Framework, paving the way for the Committee’s briefing by the National Treasury on the Bill.
- Relevant information is circulated among stakeholders to ensure inclusive public participation.
- Once the National Assembly passes the Bill, it is referred to the NCOP Select Committee on Appropriation.
Week Two
- After the committee is briefed by the National Treasury, permanent delegates in the Select Committee on Appropriation brief their respective provincial legislatures, as required by the Mandating Procedures of Provinces Act 52 of 2008.
- These briefing highlights specific areas in the proposed Bill that impact their respective provinces.
Week Three
- Provincial legislatures conduct public participation processes and consider their committee reports on the Bill.
Week Four
- Provincial legislatures submit provincial negotiating mandates to the Select Committee on Appropriation to consider during its process.
- The provincial negotiating mandate contains critical issues affecting the province, requiring a response from the National Treasury before the Committee adopts its report, and National Treasury is expected to respond to each issue raised.
Week Five
- After National Treasury responds to the issues, provincial legislatures prepare their final voting mandates, which are submitted to the committee for processing.
- The Select Committee on Appropriation consolidates and adopts the final provincial negotiating or voting mandates and finalizes its report on the Bill.
Week Six
- Once the Committee adopts its report, the NCOP plenary considers and adopts the Committee’s report and the provincial negotiating mandates.
- The Bill is sent to the President for assent.
Lobbying provinces to support the Bill is crucial, as the Bill will only be adopted if at least 5 provinces vote in favour.
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