Budget 3.0: Squeezed municipalities receive R552 billion

By Thebe Mabanga

The local government sector, now under intense scrutiny as the next focus of government reforms, is set to receive R552.7 billion in equitable shares from the fiscus over the next three years, with provinces slated to receive R2.4 trillion.

This was revealed by Minister of Finance Enoch Godongwana when he tabled the third iteration of the Budget in Parliament on Wednesday.  

Godongwana said that the division of nationally raised revenue among the three tiers of government remains a bone of contention.

Organisations such as the South African Local Government Association (SALGA), which represents municipalities, continue to call for the sector to receive 40% of nationally raised revenue, as opposed to the current level of just under 10%.

At the recent launch of Operation Vuindlela II, the second phase of the government reform one of the objectives is to “improve the performance of local government.

This includes