1 March 2005

1 Main Features of the 2005/06 budget.

2 MTEF 2005/08 Trends.

1 MAIN FEATURES OF THE 2005/06 BUDGET

• Increase in total budget: R2,44 billion (18,5%)

• Increase in Current payments: NIL
• Increase in transfers :R2 44 billion (18,5%)

• Local Government Grants Increase from RI 2,84 billion to R1 5,28 billion.
• Fiscal transfers Increase from R72,26 million to R78,03 million.

• Total Budget: R7,07 billion (54%)
• Transfer Payment: R7,02 billion(54%)
• Current Payments: R41 7 million (18%)
• Capital Assets: R 1,0 million (20%)

• Equitable Share R3,69 billion (48%)

• Municipal Infrastructure Grant R3,82 billion (85,3%)

Fiscal Transfers

· Allocations reflect mainly inflationary increases.

· Municipal Demarcation Board increases in 2005/06 for the municipal elections and then reverts back.

· MIIU operation ceases in March 2006.

Thank you.