The Minister of Cooperative Governance and Traditional Affairs (CoGTA), Thembi Nkadimeng has welcomed the payment of the first tranche of the Local Government Equitable Share (LGES).
The LGES allocation will be transferred in three tranches during the current local government’s financial year which begins in July. On Friday, 7th July2023, CoGTA paid R37,8 billion to all municipalities as part of the subsidy for the provision of free basic services to poor household.
Ahead of the 8th DDM Presidential Imbizo in Limpopo, an amount of R5,3 billion of this was paid to Limpopo municipalities of which R1,1 billion was paid to the host district, Sekhukhune District Municipality, and its locals.
The transfer of the LGES to all municipalities is premised on Section 216 of the Constitution which provides for national government to transfer resources to municipalities in terms of the annual Division of Revenue Act (DORA) to assist them in exercising their powers and performing their functions.
The division of revenue provides equitable shares to local government to enable them to meet their basic service obligations. The equitable share is an unconditional allocation and provides funding for municipalities to deliver free basic services to poor households and subsidises the cost of administration and other core services for those municipalities with the least potential to cover these costs from their own revenues. A total of R96,5 billion is allocated to all 257 municipalities in the current financial year.
Municipalities are responsible for the provision of basic services to households, and they have the autonomy to allocate resources to meet basic needs and respond to local priorities, while giving effect to national objectives.
The allocation to municipalities will assist to ensure that qualifying households who are unable to pay for basic services, have access to water, electricity, sanitation and refuse removal for free or at greatly reduced rates.
“We urge the municipal councils across the country to ensure that Municipal Public Accounts Committees (MPACs) are operational and functioning effectively to provide oversight of expenditure for this funds and the entire municipal budget as stipulated in the Municipal Structures Act”, said Minister Nkadimeng.
The Department of Cooperative Governance (DCOG) will continue to ensure an effective and efficient functioning municipalities which deliver on its constitutional mandate.
Notwithstanding the transfer of the LGES to municipalities, revenue collection remains a critical determinant of the financial viability of municipalities. To this effect, Minister encourages municipalities to use resources prudently in response to the needs of communities.
“Guided by the District Development Modal (DDM), which advocates for all of government and society approach, Minister urged all role players and stakeholders to join hands to ensure an effective and efficient functioning ideal municipalities”’, said Minister Nkadimeng.
Enquiries:
Tsekiso Machike
Cell: 078 237 3900
Legadima Leso
Cell: 066 479 9904
