National Assembly approves the Division of Revenue Bill

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The National Assembly has approved the Division of Revenue Bill but the Bill was opposed by some opposition parties. The House has also adopted the Second Adjustment Appropriation Bill. Both these proposed pieces of legislation will be sent to the National Council of Provinces for concurrence.

The DORA Bill gives allocations to the three spheres of government, provides for public workers wage increases as well as addressing infrastructure backlogs.

The government’s over R2 trillion budget will be to allocate 48. 5 % to national government, 41. 8 % to provinces and 9. 3 % to municipalities.

“Of the R2.37 trillion total consolidated expenditure, a whopping R1.1 trillion is for the social wage. This means that this is the money which goes to education, health, human settlements, public transport and social grants. This is 60% of the total budget. This money ensure that our people get free education, our children eat at school. They have access to free healthcare, there’s grants for the elderly, our children and the unemployed,” says Sfiso Buthelezi, Chairperson: Appropriations Committee.

“The provincial equitable share, the lifeblood of provincial services is being slashed by billions. R19 billion in one year. R20 billion the second year. R21 billion further down the line in three years and let’s not forget the conditional grants reduced by R6 billion, R9 billion and R11. 8 billion in the medium term. This isn’t about tightening, it is strangulation,” says Jan de Villiers, DA MP.

“One of the first things that we will do is to get rid of this useless layer called provinces where one people don’t know what to do with it. In North West, instead of using the money properly they buy donkeys and carts. In the Eastern Cape, instead of using the money properly they are busy with some useless scooter ambulances project. The EFF will ensure that proper equitable share is sent to the local government where it matters where the rubber hits the road,” says Mzwanele Manyi, EFF MP.

“We need to place emphasis on critical issues that have long been neglected, the prioritization of local government in revenue allocation. It’s imperative that we recognize the pivotal role that local government plays as the forefront of service delivery and community development,” says Inkosi Mzamo Buthelezi, IFP MP.

“80 % of our roads are in a horrible state because they have passed their lifetime. 80 %, 90 % of wastewater treatment works are dysfunctional, does this bill address that? No, it does not. Does the ANC government take that seriously and really consider the fact that we need to invest in infrastructure, that we need new plans to get our infrastructure going? No, you don’t. You rather go and spend money on wrong priorities,” says Wouter Wessels, FF Plus MP.

“Chairperson in view of the fact that we have the severe challenge of provinces with reduction of R19 billion as well as the distressed state of municipalities whilst we appreciate the minister’s efforts in this regard, we believe more could have been done and therefore we will not support this bill,” says Steve Swart, ACDP MP.

“The deductions we have made, the cuts we have made over the long term relates to performance. Let me take you back in 2022, we had R28 billion underspending. In previous year we had R36 billion underspending where was that coming from? It was coming from conditional grants. We have tailored the expenditure on conditional grants in line with the performance of the relevant departments. So, when you make reference, no provinces have lost on its equitable share. This government has these things without increasing tax for the past few years. Compliance Revenue is performing very well. We have done this whilst maintaining our fiscal sustainability. We are on track to maintain that,” says Finance Minister Enoch Godongwana