Composition ofRevenues and Expenditures:General Patterns

Local Government Organization and Finance: South Africa 55

Arrangements to Facilitate Cooperative Intergovernmental Governance

The constitution assumes,implies,and requires generally a cooperative relationship between the spheres,and the practice ofgovernment since 1994 has seen a number ofmeasures 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 behalfofthe province.

Second,the constitution institutionalizes the role oforganized local government.The Organized Local Government Act of1998 recognizes the South African Local Government Association (SALGA) and the nine provincial local government associations as representatives oflocal government. SALGA can designate up to 10 part-time representatives to the National Council ofthe Provinces in the national parliament,and it can nominate two members ofthe 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 ofintergovernmental forums facilitate exchange on general and sector issues.The Intergovernmental Forum,under the leadership ofthe 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 ofsector-based committees for ministers and members of(provincial) executive councils (MinMECs) and parallel bodies for the officials who work under these ministers.One ofthese MinMECs is tasked with local government matters,is chaired by the minister ofprovincial and local government,and includes the participation oforganized local government through SALGA.Under the minister offinance,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 offinance,and the Budget Forum consists ofthe members ofthe Budget Council and the national and provincial chairs oflocal government associations in each province.

Composition ofRevenues and Expenditures: General Patterns

The first budgets developed fully under the new jurisdictions after the demarcations were completed were those of2002/03.The NationalTreasury has