The National Assembly has passed the Division of Revenue Bill by 211 votes against six votes. The Bill proposes to provide for the equitable division of revenue among national, provincial and local spheres of government.
It will now be sent to the NCOP for concurrence.
Deputy Minister of Finance Mondli Gungubele says they had to made cuts in this 2019’s budget to fund other projects in order to stimulate the economy.
“Yes, we have made cuts where we had to, to free up resources to invest in infrastructure. And then around Eskom, our reason is simple; we understand that to deal with this current situation tough fiscal measures alone without stimulating the economy will not assist us.”
Gungubele says the amounts allocated to the three spheres of government have been growing faster than inflation.
The bill funds infrastructure investment across the country to the tune of over R200 billion.
Gungubele says although the country is emerging from a long period of stagnant growth, it is however determined to revive the economy as soon as possible.
He says belt-tightening measures that were introduced, as a result low revenue collection, will not have any impact on the delivery of basic services.
But opposition parties slammed the Bill. Others say it continues to allocate less funds where they are needed most, at municipal level, while others say it continues to burden South Africans with higher taxes, which they can’t afford any longer.
They say municipalities continue to be ignored and are expected to raise their own taxes while others say taxing the people is no longer an option.