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FFC Policy Brief Cover 2Policy Brief 2 - Towards Sustainable Urban Development Assessing the IUDF and CSP

Since 1994, government has introduced numerous policies driven by the urgent need to address inequality and past injustices. In spite of the many years of resolute post-apartheid urban development, the imprint of apartheid spatial geography is still evident in cities, as they remain segregated, fragmented and unequal. The Financial and Fiscal Commission has examined whether urban policies, planning processes and practices represent a sound and adequate response to urbanisation challenges at the level of cities. Not with standing policies on urban development, cities are still confronted with rapid urbanisation, urban poverty and inequality.

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FFC Policy Brief Cover 1Policy Brief 1 - Responding to South Africa's Urban Development Challenge

Urban areas are demographically, economically and politically important, being home to 62% of South Africa’s population. While cities may contribute significantly to the economy, they face serious challenges to sustainable and inclusive development. These include high levels of poverty, socio-spatial inequalities, infrastructure deficits, insufficient skills and uneven educational performance. Economic growth, poverty and inequality-reduction objectives will require harnessing the growth potential and other transformational attributes associated with urban areas. The Financial and Fiscal Commission found that certain conceptual, structural and fiscal challenges impede effective urban development spending and programmes.

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2016/17 Annual Report

The Annual Report is presented in terms of the provisions of section 220 of the Constitution, 1996, section 40 and 65 of the Public Finance Management Act, 1999 and section 26 of the Financial and Fiscal Commission Act, 1997 (as amended). The financial year 2016/17 has seen numerous successes for the Financial and Fiscal Commission as a source of high-quality expert and independent advice for equitable sharing of nationally raised revenue, in building capacity among legislators, and in consolidating its role as foremost constitutional body in promoting a sustainable and equitable intergovernmental fiscal relations system. Our annual constitutional and legislative Submissions: Division of Revenue; Response to the Medium Term Budget Policy Statement; Response to the Division of Revenue Bill; Appropriations Bill; Response to the Fiscal Frameworks and Revenue Proposals were delivered in line with our 2016/17 Annual Performance Plans.

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2018/19 Submission for the Division of Revenue

"The Intergovernmental System and Urban Development in South Africa”. Enhancing the economic performance of cities now occupies centre stage in policy discourse in South Africa. Within this context the country aims to achieve faster, more inclusive and sustainable growth. Achieving inclusiveness involves addressing poverty, group equality, regional balance, inequality and empowerment. Urban economies play a significant role in all of this. The Submission looks at how the intergovernmental fiscal relations system can be leveraged to make use of the potential of accelerated urbanisation, to drive the positive transformation of the economy toward the attainment of rapid economic growth that reduces inequality and eliminates poverty.

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Policy Brief 10 - Farm Evictions and their Impact on Local Municipalities

Improving Since 1994, government has introduced numerous laws, policies and initiatives to regulate and improve the situation and rights of farm dwellers and farm workers, who remain among the most vulnerable in society. However, unintended consequences have created a climate of uncertainty in the agricultural sector, exacerbated by the continued eviction of farm dwellers and workers from farms. The responsibility of caring for the evictees falls on rural municipalities, thereby creating an unfunded mandate. Municipalities have to use their own funds because currently the intergovernmental fiscal instruments do not cater for evictions. The Financial and Fiscal Commission (the Commission) examined the extent of the burden on rural municipalities and found that costs relating to evictions have increased over the years. In some cases, these costs are equal to 1% of the municipality’s local government equitable share (LGES).. 

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“For an Equitable Sharing of National Revenue"


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