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2022 Division of Revenue Act Signed

June 17, 2022

The Presidency

President Ramaphosa has assented to the 2022 Division of Revenue Act.

Parliament passed the Division of Revenue Bill and sent it for assent in May 2022.

The bill was tabled in parliament in February during Budget 2022.

The national assembly gave the green light to the bill and sent it to the national council of provinces for concurrence in March.

During a briefing on the bill to the standing committee on appropriations in March, national treasury pointed out that substantive changes in the 2022 bill include clarification of the funding source for additional allocations to provinces and municipalities; expediting spending of transfers funded from the contingency reserve; enforcement measures for transfers made to Eskom and water boards and finalisation of allocations to municipalities, schools, hospitals and entities from provincial budgets.

In an earlier statement, parliament indicated that the committee noted and welcomed the proposed additional R24.6 billion over the medium term to the Provincial Equitable Share to support provincial education departments in addressing teacher numbers and other shortfalls within the sector.

The committee expressed concern at the proposed reduction of R1.7 billion from the Provincial Roads Maintenance grant in 2022/23 for the incentives portion allocated to provinces.

“The Committee further noted and welcomed the proposed additional R1.7 billion to the direct Neighbourhood Development Partnership grant to fund the continuation of government’s response to job losses due to the impact of Covid-19 through city-led public employment programmes as part of the Presidential Employment Initiative over the next two years.”

The select committee on appropriations passed the bill without amendments.

The act aims to provide for:

• the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2022/23 financial year;
• the determination of each province’s equitable share;
• allocations to provinces, local government and municipalities from national government’s equitable share;
• the responsibilities of all three spheres pursuant to such division and allocations; and
• matters connected therewith.

The act, published in Government Gazette 46549, came into effect on the date of publication.