Chairperson and hon members, I hereby present to this august House the Division of Revenue Amendment Bill. The Bill was tabled in Parliament on 27 October 2010 by the Minister of Finance during the tabling of the 2010 Medium-Term Budget Policy Statement. This process was followed by engagements between the committee and provinces which culminated in the consideration of negotiating mandates on 5 November 2010, followed by consideration of the final mandates on 10 November 2010, where the majority of provinces supported the Bill.
During the adjustment period, expenditure estimates were adjusted downwards by R2,464 billion from R818,143 billion to R815,679 billion. The reduction in the expenditure estimates has primarily been effected in the national government sphere, whereby the equitable share allocation of national departments has been adjusted downwards by R7,021 billion from R527,001 billion to R519,981 billion.
On the other hand, the equitable shares of the provincial and local government spheres have increased by R4,166 billion to R265,139 billion and R390,860 million to R30,559 billion respectively. It should be noted that no adjustments were made to the national sphere as, in respect of the financial year, it exceeds the anticipated revenue set out in Schedule 1. The excess accrues to the national government, subject to subsection 3.
The additional allocation of R4,166 billion to the provincial government sphere was distributed among the nine provinces. The additional allocation of R390,860 million to the local government sphere was distributed among the municipalities within each province. During the adjustment period, municipalities within the boundaries of Gauteng province did not receive additional allocations to their equitable share. The additional allocations to the local government equitable share is for the purpose of supporting funding related to the extension of free basic services to indigents.
The following new allocations and amendments were noted in respect of specific purpose grants to provinces. In terms of the agriculture disaster management grant, R50 million was allocated to the Western Cape province for expenditure related to agriculture disasters such as drought. This grant is allocated as the need arises.
In terms of the provincial infrastructure disaster relief grant, R214,398 million was allocated to KwaZulu-Natal for the rehabilitation of infrastructure destroyed by flooding. This grant is also allocated as needs arise. The comprehensive HIV/Aids grant increases by R40 million from R6,012 billion to R6,052 billion. The human settlement development grant increases by a net amount of R15 million. Gauteng province receives an additional allocation of R115 million and the North West province's allocation is adjusted downwards by R100 million.
The devolution of the property rates fund grant increases by R769,035 million, from R1,096 billion to R1,865 billion. This grant could assist in reducing the current debt by government departments to municipalities. The committee appreciates the co-operation it received from provinces in dealing with this particular Bill, and we have noted the concerns from the provinces. Chairperson, we therefore move for the adoption of the Bill without amendments. I thank you.
Debate concluded.
Question put: That the Bill be agreed to.
IN FAVOUR: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West, Western Cape.
Bill accordingly agreed to in accordance with section 65 of the Constitution.