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‘Revenue Bill reflects trade-offs between 3 spheres of govt’

Deputy Finance Minister Mcebisi Jonas says difficult trade-offs had to be made in sharing the revenue pie between national, provincial and local government.

FILE: Deputy Finance Minister Mcebisi Jonas seenwith Finance Minister Pravin Gordhan. Picture: GCIS.

PARLIAMENT - Deputy Finance Minister Mcebisi Jonas says difficult trade-offs had to be made in sharing the revenue pie between national, provincial and local government.

Jonas was wrapping up debate on the division of Revenue Bill in the National Assembly on Wednesday afternoon.

The crucial Budget Bill was approved by a majority of 232 votes to 84 against, while there was one abstention.

Jonas says poor growth, lower revenue than expected made for difficult choices in deciding how to divide up funding across the three spheres of government.

“The division of Revenue Bill reflects difficult trade-offs that we had to make.”

Jonas says while some grants had to be cut, transfers to provinces have grown by an average 7.5% a year.

He says if their own revenue’s taken into account, municipalities total share of all revenue rises to 25%.

“So the impression that we’re running an austerity budget is unfounded.”

Jonas says the impact of spending depends on the choices provinces make in drawing up and executing their budgets.

(Edited by Zamangwane Shange)

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