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Highlights
of the DPLG's budget
Katharine Mckenzie, 2 June 2004
Investing in infrastructure, job creation and improved intergovernmental
relations are among the highlights of the Department of Provincial
and Local Government’s budget and for the 2004/05 financial
year, and the Medium Term Expenditure Framework (MTEF) period.
Addressing
Parliament’s ad hoc portfolio committee for provincial and
local government, Ms Lindiwe Msengana-Ndlela, Director General
of DPLG, provided an overview of the department’s budget
highlights.
Announcing
the R12,8 billion budget (R42, 2 billion over MTEF period), she
noted that, “the department has utilised 99,7% of its (2003/04)
budget and has gone a long way to improve the quality of spending.”
Of
the R12,8 billion total allocation DPLG has received for the new
financial year, R7,6 billion represents the equitable share that
will be transferred directly to municipalities.
The
DPLG, will work with National Treasury and the Financial and Fiscal
Commission (FFC) to refine the intergovernmental fiscal relations
system as it relates to local government in particular. This will
entail a major review of the local government equitable share
and formula and assessing the institutional capability to manage
these resources at municipal level.
R15 billion over the MTEF period has also been set aside for infrastructure
investment and job creation.
To
support this DPLG will launch the Municipal Infrastructure Grant
(MIG) whose major expected benefits include:
-
Improving access to basic levels of service, especially to the
poor;
- Creating an enabling environment for local economic development;
and;
- Increasing opportunities for job creation through close collaboration
with the Expanded Public Works Programme.
The
MIG is a rationalisation of several national government infrastructure
programmes and grants. Over the next three years an amount of
R15, 6 billion has been allocated for the Municipal Infrastructure
Grant with R4,4 billion earmarked for the 2004/5 financial year.
In
addition R21, 8 million has been allocated to the Municipal Infrastructure
Investment Unit (MIIU). This Unit was established in 1998 to assist
municipalities find innovative solutions to infrastructure investments
and management. The immediate focus of government's infrastructure
programme will be in the 21 rural development and urban renewal
nodes.
The Department also aims to achieve better co-ordination of national
government’s social grant mechanisms with municipal indigent
policies that should target the poor.
In
the 2004/5 financial year, DPLG will also finalise a national
policy on the indigent and mobilise national and provincial government
to assist municipalities in implementing government policy. This
will involve determining the cost of free basic services at levels
that have been approved by government. The results of this work
will also contribute to the review of the local government equitable
share.
All
of these initiatives, at local level, will be undertaken with
the Department’s associated institutions. These include
the South African Local Government Association (SALGA), which
will receive R55,1 million over the MTEF period, the Municipal
Demarcation Board that will receive R46,7 million and the South
African Cities Network, which will receive R4,5 million over the
same period.
Another
important focus of the financial year will be the alignment of
Provincial Growth and Development Strategies with the Integrated
Development Plans of municipalities as well as the National Spatial
Development Perspective (NSDP).
“The
benefit of this alignment will be a better targeting of the poor
and more prudent resource allocation by all spheres of government
in addressing the challenge of economic growth and development,”
said Msengana-Ndlela.
Regarding
government's broad framework on Intergovernmental Relations, extensive
work was undertaken in the 20030/4 financial year, including a
draft Bill on Intergovernmental Relations, which will be presented
to Cabinet soon.
On the regional and international front, the Department has taken
steps to ensure greater participation within the formal structures
of SADC.
The
SADC Local Government Forum of Ministers, under the chairpersonship
of Minister, Mr FS Mufamadi, recently affirmed a decision to institutionalise
the local government structure within SADC.
“We
hope that through this programme, South Africa will contribute
towards the successful implementation of regional and continental
priorities. With regard to the continent, the current departmental
focus is on contributing towards the establishment of a technical
committee to the African Union, comprising Local Government Ministers
continentally. In the long term, international initiatives will
bring further impetus to our domestic programme on good governance,”
said the Director General.
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