Local Government Organization and Finance: South Africa
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Arrangements to Facilitate Cooperative Intergovernmental Governance The constitution assumes, implies, and requires generally a cooperative relationship between the spheres, and the practice of government since 1994 has seen a number of measures to give effect to this principle. First, intergovernmental fiscal flows do not flow through the provinces, except where a municipality carries out a provincial function on behalf of the province. Second, the constitution institutionalizes the role of organized local government. The Organized Local Government Act of 1998 recognizes the South African Local Government Association (SALGA) and the nine provincial local government associations as representatives of local government. SALGA can designate up to 10 part-time representatives to the National Council of the Provinces in the national parliament, and it can nominate two members of the Financial and Fiscal Commission, which advises the Finance Ministry on budget issues. These individuals participate in intergovernmental structures and are therefore able to influence national and provincial legislation relevant to local government. Third, a number of intergovernmental forums facilitate exchange on general and sector issues. The Intergovernmental Forum, under the leadership of the President’s Office, facilitates the general relationship between the national and provincial government. The President’s Coordinating Council on Local Government includes all three spheres in discussions about policy and functional issues. Continuous exchange between the national and provincial spheres is also made possible through a series of sector-based committees for ministers and members of (provincial) executive councils (MinMECs) and parallel bodies for the officials who work under these ministers. One of these MinMECs is tasked with local government matters, is chaired by the minister of provincial and local government, and includes the participation of organized local government through SALGA. Under the minister of finance, the Budget Council and Budget Forum facilitate consultation on the budget process and on fiscal matters. The Budget Council comprises the national and provincial ministers of finance, and the Budget Forum consists of the members of the Budget Council and the national and provincial chairs of local government associations in each province.
Composition of Revenues and Expenditures: General Patterns The first budgets developed fully under the new jurisdictions after the demarcations were completed were those of 2002/03. The National Treasury has
