Only 14 % of the national budget goes to Municipalities

Where does your tax money go after it has entered the state coffers?

Stats SA’s most recent release of data on national government finances shows that national government spent a total of R 1,33 trillion in 2016/17.

This is 4 % higher than the R 1,28 trillion spent in 2015/16.

The biggest spending item was financial grants.

Not to be confused with social grants, financial grants are transfers from one government unit to another government unit, or to an international organisation.

Grants are the financial fuel that keeps the wheels of government turning.

In 2016/17, national government transferred R 764 billion (57 % of total spending) in the form of grants to other levels of government and international organisations.

Provincial government received the bulk of grants in 2016/17, almost two-thirds of the R 764 billion.

This was 6% more than the amount received in 2015/16. This is expected, as the nine provinces are responsible for administering some of the core functions of government (for example, education and health).

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Only 14% of the financial grants were transferred to the 257 municipalities.

Kouga Municipality receives about R 115 million of this amount. This represents 15 % of the total income of Kouga.

Just over 11% (or R87 billion) was paid to South Africa’s 252 extra-budgetary accounts and funds (8% more than in 2015/16).

R46 billion (6%) was paid to foreign organisations and international institutions.

R39 billion of this amount was paid to the Southern African Customs Union (SACU), of which South Africa is a member.

The New Development Bank (NDB), established by countries belonging to the BRICS group (Brazil, Russia, India, China and South Africa), received R3,5 billion.

South Africa’s 26 higher education institutions received R28 billion (4%) of national government grant transfers in 2016/17.

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