2018/19 Annual Report

The Annual Report is presented in terms of the provisions of Section 222 of the Constitution 1996, sections 40 and 65 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) (as amended) and section 26 of the Financial and Fiscal Commission Act, 1997 (Act No. 99 of 1997) (as amended). During the year under review the Commission continued with its important constitutional mandate of furnishing high quality expert and independent advice on financial and fiscal matters regarding the equitable sharing of nationally raised revenue, particularly in building capacity among legislators. The Commission ensured timeous delivery of its constitutional and legislative submissions through tabling in parliament: Submission for the Division of Revenue; Response to the Medium-Term Budget Policy Statement (MTBPS); Response to the Division of Revenue Bill (DoRB); and Response to the Appropriation Bill.

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2020/21 Submission for the Division of Revenue

The theme of the Financial and Fiscal Commission’s (FFC) 2020/21 annual submission is: Repositioning Local Government Public Finances. The Commission argues that the Local Government Fiscal Framework is not in synchronisation with the constitutional mandate of the sphere and requires renewal and rebuilding. The departure point of the submission is a thorough and systematic assessment of local government. In shaping the contents of this Submission, the Commission drew on the knowledge and insights of municipalities, which participated in an online questionnaire survey or which agreed to a case study. The Commission also acknowledges local government stakeholders who participated in workshops and discussions providing valuable information and support.

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Policy Brief 11 - Potential Financing Options for Large Cities

In South Africa large cities face a myriad of challenges including rapid urbanisation, poverty, inequality, unemployment and huge infrastructure needs. Although these are not unique to large cities, the magnitude of the challenges in large cities is greater and is increasingly becoming a major risk to the socioeconomic development of the country. The ability of cities to deal with these challenges depends, to a large extent, on their ability to generate more of their own revenues. As transfers and own revenues for large cities are heavily constrained, it is critical that cities leverage non-traditional and other innovative financing mechanisms. This policy brief summarises the findings of a study that evaluated different non-traditional revenues sources for South Africa’s large cities. Findings from the study suggest different options to enhance borrowing for large cities as well as strategies to improve public private partnership (PPP) deal flows in large cities. In addition, the study brings to the fore the value of land value capture mechanisms.

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