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Draft Division of Revenue and Explanatory Memorandum Bill


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The 2001 Medium Term Budget Policy Staternent tabled in Parliament on 30 October 2001 contained  the 2002 Budget  proposals.  Chapter 5 and 6 of that document  provided infomation on the  proposed  division  of  revenue  between the three spheres of government,  including  all grants to provincial  and  local  governments for their 2002103 to 200405 budgets.

This document expands on the Medium Term Budget Policy Statement, and provides more detailed  information,  including
the division  of  grants.  between  provincial  and  local  governments.


A draft of the Division-of Revenue Bill, together WitKan explanatory  memorandum, .is published in this  document.  These  documents  have in the past  only  being  published on Budget Day -the earlier publication  for  the  next  budget  will enable various stakeholders a  second  opportunity to comment on the  various  grants.

The main  component of the 2002 Division of Revenue  Bill is its Schedules,  which  contain  all  the allocations.  The  memorandum  provides further information on the various formulae for dividing such  grants, and  any conditions that may  apply.  It also outlines the process of consultation to determine  this  division of revenue,  and the response of the national  government  to proposals presented by the Financial  and  Fiscal  Commission. This is also a  legal  requirement in terms of the Constitution  and  related  legislation.



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