2.2 Conditional grants to local government Conditional grants to local government, which aim to eradicate backlogs and build institutional financial capacity, have been revised. The total value of the conditional grants directly transferred to local government, including the water operating subsidy, increases from R27.5 billion in the 2011/12 financial year, to R30.4 billion in 2012/13 and R32.7 billion in the 2013/14 financial year.