Section 213-219 Constitution of South Africa 1996

Section 213, 214, 215, 216, 217, 218, and 219 of the Constitution of South Africa 1996 (as amended) are under ‘General Financial Matters‘ of Chapter 13 of the Constitution. Chapter 13 is titled ‘Finance‘.

Section 213 Constitution of South Africa 1996

National Revenue Fund

1. There is a National Revenue Fund into which all money received by the national government must be paid, except money reasonably excluded by an Act of Parliament.

2. Money may be withdrawn from the National Revenue Fund only ­

a. in terms of an appropriation by an Act of Parliament; or

b. as a direct charge against the National Revenue Fund, when it is provided for in the Constitution or an Act of Parliament.

3. A province’s equitable share of revenue raised nationally is a direct charge against the National Revenue Fund.

(Date of commencement: 1 January 1998.)

Section 214 Constitution of South Africa 1996

Equitable shares and allocations of revenue

1. An Act of Parliament must provide for ­

a. the equitable division of revenue raised nationally among the national, provincial and local spheres of government;

b. the determination of each province’s equitable share of the provincial share of that revenue; and

c. any other allocations to provinces, local government or municipalities from the national government’s share of that revenue, and any conditions on which those allocations may be made.

2. The Act referred to in subsection (1) may be enacted only after the provincial governments, organised local government and the Financial and Fiscal Commission have been consulted, and any recommendations of the Commission have been considered, and must take into account ­

a. the national interest;

b. any provision that must be made in respect of the national debt and other national obligations;

c. the needs and interests of the national government, determined by objective criteria;

d. the need to ensure that the provinces and municipalities are able to provide basic services and perform the functions allocated to them;

e. the fiscal capacity and efficiency of the provinces and municipalities;

f. developmental and other needs of provinces, local government and municipalities;

g. economic disparities within and among the provinces;

h. obligations of the provinces and municipalities in terms of national legislation;

i. the desirability of stable and predictable allocations of revenue shares; and

j. the need for flexibility in responding to emergencies or other temporary needs, and other factors based on similar objective criteria.

(Date of commencement: 1 January, 1998.)

Section 215 Constitution of South Africa 1996

National, provincial and municipal budgets

1. 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.

2. National legislation must prescribe ­

a. the form of national, provincial and municipal budgets;

b. when national and provincial budgets must be tabled; and

c. 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.

3. Budgets in each sphere of government must contain ­

a. estimates of revenue and expenditure, differentiating between capital and current expenditure;

b. proposals for financing any anticipated deficit for the period to which they apply; and

c. an indication of intentions regarding borrowing and other forms of public liability that will increase public debt during the ensuing year.

(Date of commencement: 1 January, 1998.)

Section 216 Constitution of South Africa 1996

Treasury control

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

a. generally recognised accounting practice;

b. uniform expenditure classifications; and

c. uniform treasury norms and standards.

2. The national treasury must enforce compliance with the measures established in terms of subsection (1), and may stop the transfer of funds to an organ of state if that organ of state commits a serious or persistent material breach of those measures.

[Sub-s (2) substituted by s. 5 (a) of Act No. 61 of 2001.]

3. A decision to stop the transfer of funds due to a province in terms of section 214 (1) (b) may be taken only in the circumstances mentioned in subsection (2), and-

a. may not stop the transfer of funds for more than 120 days; and

b. may be enforced immediately, but will lapse retrospectively unless Parliament approves it following a process substantially the same as that established in terms of section 76(1) and prescribed by the joint rules and orders of Parliament. This process must be completed within 30 days of the decision by the national treasury.

[Sub-s. (3) amended by s. 5 (b) of Act No. 61 of 2001.]

4. Parliament may renew a decision to stop the transfer of funds for no more than 120 days at a time, following the process established in terms of subsection (3).
5. Before Parliament may approve or renew a decision to stop the transfer of funds to a province ­

a. the Auditor-General must report to Parliament; and

b. the province must be given an opportunity to answer the allegations against it, and to state its case, before a committee.

(Date of commencement: 1 January, 1998.)

Section 217 Constitution of South Africa 1996

Procurement

1. When an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.

2. Subsection (1) does not prevent the organs of state or institutions referred to in that subsection from implementing a procurement policy providing for ­

a. categories of preference in the allocation of contracts; and

b. the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination.
 

3. National legislation must prescribe a framework within which the policy referred to in subsection (2) must be implemented.

[Sub-s. (3) substituted by s. 6 of Act No. 61 of 2001.]

Section 218 Constitution of South Africa 1996

Government guarantees

1. The national government, a provincial government or a municipality may guarantee a loan only if the guarantee complies with any conditions set out in national legislation.

2. National legislation referred to in subsection (1) may be enacted only after any recommendations of the Financial and Fiscal Commission have been considered.

3. Each year, every government must publish a report on the guarantees it has granted.

(Date of commencement: 1 January, 1998.)

Section 219 Constitution of South Africa 1996

Remuneration of persons holding public office

1. An Act of Parliament must establish a framework for determining-

a. the salaries, allowances and benefits of members of the National Assembly, permanent delegates to the National Council of Provinces, members of the Cabinet, Deputy Ministers, traditional leaders and members of any councils of traditional leaders; and

b. the upper limit of salaries, allowances or benefits of members of provincial legislatures, members of Executive Councils and members of Municipal Councils of the different categories.

2. National legislation must establish an independent commission to make recommendations concerning the salaries, allowances and benefits referred to in subsection (1).

3. Parliament may pass the legislation referred to in subsection (1) only after considering any recommendations of the commission established in terms of subsection (2).

4. The national executive, a provincial executive, a municipality or any other relevant authority may implement the national legislation referred to in subsection (1) only after considering any recommendations of the commission established in terms of subsection (2).

5. National legislation must establish frameworks for determining the salaries, allowances and benefits of judges, the Public Protector, the Auditor-General, and members of any commission provided for in the Constitution, including the broadcasting authority referred to in section 192.

See also:

Section 211-212 Constitution of South Africa 1996

Section 220-222 Constitution of South Africa 1996