Revenue bill: parties unite in opposition
Opposition parties united in the National Assembly on Tuesday to oppose proposed legislation that allocates a share of national revenue to the three spheres of government.
A common theme of the opposition to the Division of Revenue Amendment Bill was that local government received an inadequate share (9%) of the pie, even though it is at the coalface of service delivery.
The second reading of the bill was nevertheless adopted by the ANC majority and it will now be sent to the National Council of Provinces for concurrence.
The proposed amendments to the Division of Revenue Act, which were based on the February budget, were tabled together with the medium-term budget policy statement in the National Assembly in October.
The act divides government revenue among the three spheres of government and includes the amounts allocated to provinces and municipalities by way of various grants.
Additional provisions have been made in the amendment bill for drought and disaster relief for provinces and municipalities; funding for infrastructure backlogs and capacity building; and allocations to address critical staff shortages in the health sector as well as to procure beds and linen.
Deputy finance minister Mondli Gungubele emphasised in his speech concluding the debate that government remained committed to maintaining the expenditure ceiling; decreasing the budget deficit over time; continuing with the transformation of state-owned enterprises; and engaging on how to deal with the public sector wage bill.
In his maiden speech, DA MP Michael Shackleton noted that many people had no running water, basic sanitation or refuse removal, which was due to the “inefficiency of spending and failure to monitor how spending has been carried out.
“Efficiency of spending is exceedingly poor.”
The EFF criticised the use of the Division of Revenue Bill as a mechanism to address the country’s developmental challenges. Municipalities were not given an adequate share of national revenue, the party said.