REPORT ON EQUITABLE SHARE FOR LOCAL GOVERNMENT

Issued by: Government Communication and Information System

RELEASE OF THE ANNUAL REPORT ON THE EQUITABLE SHARE FOR LOCAL GOVERNMENT FOR THE 1998/99 FINANCIAL YEAR, INCLUDING "EQUITABLE SHARE" ALLOCATIONS FOR THE 1999/2000 FINANCIAL YEAR

On Tuesday, 13 April 1999, the Minister for Provincial Affairs and Constitutional Development, Minister Moosa, will officially release the Annual Report on the "equitable share" for local government for the 1998/99 financial year. The "equitable share" allocations to municipalities for the 1999.2000 financial year will be included as Annexures to the Annual Report.

As from the 1998/99 financial year, for the first time intergovernmental transfers flowed directly from National Government to local government according to an objective formula that embodies the principles of equity, efficiency and democracy and replaced the previous system of transfers via the provinces.

In order to give municipalities sufficient time to adapt to the new system of transfers, it will be phased-in over a five-year period in respect of urban municipalities and a seven-year period for rural municipalities.

The 1999/2000 financial year comprises of:

municipalities other than R293 towns; and

For the 1999.2000 financial year, municipalities will receive not less than 70% of the "equitable share" allocations received in the 1998/99 financial years, with some municipalities receiving more.

Members of the media re invited to attend the launch.

VENUE: Rainforest Room

Ground Floor

120 Plein Street

Cape Town

Time: 09:15

Issued by the Ministry for Provincial Affairs and Constitutional Development on 12 APRIL 1999

For more details, please contact: Ongopotse JJ Tabane at 082 4656166