Page:Constitution of the Republic of South Africa 1996 from Government Gazette.djvu/98



Chapter 13—Finance

the fiscal capacity and efficiency of the provinces and municipalities; developmental and other needs of provinces, local government and municipalities; economic disparities within and among the provinces; obligations of the provinces and municipalities in terms of national legislation; the desirability of stable and predictable allocations of revenue shares; and the need for flexibility in responding to emergencies or other temporary needs, and other factors based on similar objective criteria.

National, provincial and municipal budgets

National, provincial and municipal budgets and budgetary processes must promote transparency, accountability and the effective financial management of the economy, debt and the public sector.

National legislation must prescribe —

the form of national, provincial and municipal budgets; when national and provincial budgets must be tabled; and that budgets in each sphere of government must show the sources of revenue and the way in which proposed expenditure will comply with national legislation.

Budgets in each sphere of government must contain —

estimates of revenue and expenditure, differentiating between capital and current expenditure; proposals for financing any anticipated deficit for the period to which they apply; and an indication of intentions regarding borrowing and other forms of public liability that will increase public debt during the ensuing year.

Treasury control

National legislation must establish a national treasury and prescribe measures to ensure both transparency and expenditure control in each sphere of government, by introducing —

generally recognised accounting practice; uniform expenditure classifications; and uniform treasury norms and standards.

The national treasury, with the concurrence of the Cabinet member responsible for national financial matters, may stop the transfer of funds to an organ of state only for serious or persistent material breach of the measures established in terms of subsection (1).

A decision to stop the transfer of funds to a province may be taken only in terms of subsection (2), and —