Parliament, Wednesday 20 November 2019 – The National Assembly agreed to the Division of Revenue Amendment Bill, 2019 at its plenary sitting today and the Bill will now be sent to the National Council of Provinces for concurrence.

The Bill is made necessary because the proposed national adjustment budget for the 2019/20 financial year makes changes to the Division of Revenue Act, 2019. This affects the division of revenue between the national, provincial and local spheres of government.

Minister of Finance Mr Tito Mboweni tabled the Bill on 30 October, when he presented the Medium Term Budget Policy Statement to a plenary sitting of the National Assembly.

The Division of Revenue Amendment Bill’s schedules address the following for the 2019/20 financial year:

  1. adjusting the equitable share among the three spheres of government
  2. changes to supplementary allocations to provinces
  3. changes to specific-purpose allocations to provinces
  4. changes to specific-purpose allocations to municipalities
  5. introduction of a new grant
  6. changes to allocation-in-kind to provinces for designated special programmes
  7. changes to allocation-in-kind to municipalities for designated special programmes

The Standing Committee on Appropriations, in its report recommending that the National Assembly adopt the Bill without amendment, also raised concerns. These included continued underspending of the School Infrastructure Backlog Grant.

The committee received submissions on the Bill from the Organisation Undoing Tax Abuse and from Equal Education.

Enquiries: Moloto Mothapo 082 370 6930