The new formula and service delivery Section 227 of the Constitution says: Local government and each province is entitled to an equitable share of revenue raised nationally to enable it to provide basic services and perform the functions allocated to it. The equitable share is unconditional, but it is intended to fund the delivery of basic services The new formula structure: –is more transparent about the funds available for basic services –Has more realistic cost estimates –Will have its data updated annually –Includes more realistic levels of institutional and community services funding This will make it easier to hold municipalities accountable for how they budget for and use LGES funds 9 Formula divides LGES allocation among 278 municipalities (like slicing a R34bn cake) Formula determines size of each 'slice' Municipalities determine how funds are used to deliver services to their residents LGES DELIVERY CHAIN: From formula to services
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