Grants Available From National Government
There is a complex range of grants of different kinds, with different sources, purposes, allocation criteria and spending conditions.
The three clusters are as follows:
•The Equitable Share with its related grants (including the water operating grant)
•The Municipal Infrastructure Grant (MIG) with other capital grants (including the water capital grant), and
•The Municipal Systems Improvement Grant (MSIG) with other capacity-building and restructuring grants.
The Treasury has begun to publish three-year allocations of grants to increase grant-flow. The conditions under which municipalities will receive a grant are more clearly defined, including the formulation of IDPs and their use to identify projects. This is in line with the changes in financial management practices which will be required by the MFMA. Grants made in kind rather than cash, and indirect grants made to municipalities through intermediaries are now listed in the DORA. The aim is to regulate the flow of grants from the intermediary to the municipality so that each party can be held properly accountable for spending. All grant transfers made to a municipality have to be reflected in its budget, which is passed by a resolution of the council. In-kind transfers are reflected as transfers of assets, with a clear indication of how their operating costs will be funded. These measures are aimed at improving delivery planning, and financial planning and accountability.
National Grant Allocations for the period 2008 - 2011:
•Municipal Infrastructure Grant
•Integrated National Electrification Programme
•Public Transport Infrastructure Syetem
•2010 FIFA World Cup™ Stadium Development Grant
•Neighborhood Development Partnership Grant
•Local Government Financial Management Grant
•Water Services Operating and Transfer Grant
•Municipal Systems Improvement Grant
•2010 FIFA World Cup™ Host City Operating Grant