SOUTH AFRICAN TREASURY CALLS FOR URGENT APPROVAL OF DIVISION OF REVENUE BILL
The South African National Treasury on Friday warned of the dire implications if the Division of Revenue Amendment (DORA) Bill is not passed before year end.
While expressing confidence that the Bill will be passed before the end of 2016, after it was stalled for two days in a row last week when the National Assembly could not achieve a quorum, the Treasury said in a statement here Friday that failure to pass this Bill and the Adjustments Appropriation Bill could affect the provision of services to several government institutions.
The DORA Bill proposes revisions to the national government equitable share and to conditional grants to provinces and municipalities.
"Delayed departmental spending of increased allocations may hamper service delivery, and may even mean that departments are unable to spend funds effectively before the end of the 2016/17 financial year. This may result in under-spending," the Treasury said.
"Where the Bills propose allocation reductions, these are not yet approved and institutions may spend the funds before the Bills are law. If so spent, institutions will be unable to return the required funds to the fiscus after the Bills have become law. Ultimately institutions would then be deemed to have overspent their budget allocations at financial year end."
The DORA Bill has been rescheduled and will be put on the agenda for Tuesday's National Assembly sitting.
Source: NAM NEWS NETWORK.