National Assembly approves Division of Revenue Bill
The National Assembly has passed the Division of Revenue Bill, a cornerstone of South Africa’s 2025/26 budget, which governs how funds will be distributed among the national, provincial, and local spheres of government.
The Bill outlines equitable distribution of funds across government spheres to boost service delivery and economic development
Introduced by Finance Minister Enoch Godongwana during his 2025 Budget Speech, the Bill responds to the country's fiscal pressures and prioritizes funding for healthcare, education, housing, water, sanitation, and infrastructure.
Chairperson of the Standing Committee on Appropriations, Mmusi Maimane, said the division of funds balances national priorities with economic constraints, especially those affecting provinces and municipalities.
“Funds are allocated in the form of equitable shares, which are distributed through a formula that factors in demographic and developmental considerations, and conditional grants,” he said.
The Bill’s structure is guided by Section 214 of the Constitution, ensuring that all spheres of government are adequately resourced to fulfil their responsibilities.
According to Parliament, the Bill also aims to “promote inclusive economic growth, combat poverty and inequality, and build a more capable, responsive state.”
The legislative process now moves to the National Council of Provinces (NCOP), where further deliberation and final approval are expected.
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