Constitution of the Western Cape, 1997/Chapter 7

by enacted by the Western Cape Provincial Parliament

Chapter 7

Finance

Sources of provincial funding

57.

The sources of provincial funding are—

(a)

the equitable share of revenue raised nationally and allocated to the Western Cape in terms of the national Constitution;

(b)

other allocations from national government revenue;

(c)

additional revenue raised by the Western Cape government; and

(d)

other money, resources and assets received by the Western Cape government.

Provincial Revenue Fund

58.

(1)

All money received by the Western Cape government must be paid into the Provincial Revenue Fund except such money excluded by an Act of Parliament.

(2)

Money may be withdrawn from the Provincial Revenue Fund only—

(a)

in terms of an appropriation by a provincial Act; or

(b)

as a direct charge against the Provincial Revenue Fund, when it is provided for in the national Constitution or a provincial Act.

Taxes

59.

(1)

The Provincial Parliament may impose—

(a)

taxes, levies and duties other than income tax, value-added tax, general sales tax, rates on property or customs duties; and

(b)

flat-rate surcharges on the tax bases of any tax, levy or duty that is imposed by national legislation, other than the tax bases of corporate income tax, value-added tax, rates on property or customs duties.

(2)

Provincial legislation may provide for user charges.

(3)

The power of the Provincial Parliament to impose taxes, levies, duties and surcharges, as regulated by an Act of Parliament, may not be exercised in a way that materially and unreasonably prejudices national economic policies, economic activities across provincial boundaries, or the national mobility of goods, services, capital or labour.

Provincial budget

60.

(1)

The provincial budget and budgetary process must promote transparency, accountability and the effective financial management of the provincial economy, debt and the public sector.

(2)

The provincial budget must comply with national legislation as envisaged by the national Constitution with respect to its form, when it must be tabled, the identification of the sources of revenue and proposed expenditure.

(3)

The Provincial Minister responsible for financial matters must in respect of every financial year lay before the Provincial Parliament a budget, containing—

(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.

(4)

In prioritising the allocation of funds in the provincial budget, the need to address imbalances, inequities and the development needs of the people of the Western Cape must be taken into consideration.

Provincial Treasury

61.

(1)

Provincial legislation must establish a provincial treasury and may prescribe in accordance with national legislation measures to ensure transparency, accountability and expenditure control, by introducing—

(a)

generally recognised accounting practice;

(b)

expenditure classifications; and

(c)

treasury norms and standards.

(2)

The provincial treasury, with the concurrence of the Provincial Minister responsible for financial matters, may stop the transfer of funds to a provincial organ of state only for serious or persistent material breach of the measures prescribed in terms of subsection (1).

Procurement

62.

(1)

When the Western Cape government 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 Western Cape government, within a framework of national legislation, 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.

Loans

63.

The Western Cape government may raise loans for capital or current expenditure, in accordance with conditions determined by national legislation, but loans for current expenditure—

(a)

may be raised only when necessary for bridging purposes during a fiscal year; and

(b)

must be repaid within 12 months.

Guarantees

64.

(1)

The Western Cape government may guarantee a loan in accordance with conditions determined in national legislation only.

(2)

The Western Cape government must publish a report annually on the guarantees it has granted.

Asset register

65.

Provincial legislation must provide for—

(a)

a register of provincial assets; and

(b)

the registration of assets in that register.