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The National Council of Provinces (NCOP), in its final sitting of 2025 today, passed the Division of Revenue Amendment Bill (DORA), paving the way for the equitable adjustment of financial resources across national, provincial and local government for the 2025/26 financial year.

The Minister of Finance tabled the Bill alongside the 2025 Medium Term Budget Policy Statement (MTBPS) on 12 November. Following approval in the National Assembly, the Bill was referred to the NCOP. This follows the constitutional process for money bills affecting provinces, requiring the NCOP to consider and pass the legislation before it is referred to the President for assent.

The DORA makes technical adjustments to the equitable share of revenue and conditional grant allocations for the current financial year. Some of the key changes include an additional R2.9 billion for local government conditional grants to repair municipal infrastructure damaged by disasters and to support metro trading services reforms, among others.

The Bill aims to stabilise frontline service delivery by providing targeted disaster recovery funding and supporting critical reforms in metropolitan municipalities. However, the Select Committee on Appropriations, which processed the Bill in the NCOP, highlighted that these adjustments are occurring against a backdrop of significant structural challenges.

The NCOP process involved extensive public participation, with written and oral submissions from a wide range of stakeholders, including the Financial and Fiscal Commission, the South African Local Government Association, the Parliamentary Budget Office, and civil society organisations.

By passing the Bill, the fiscal framework can now be adjusted in line with the adjusted budget. Parliament acknowledges the urgent need for these allocations, especially for disaster recovery, while also recognising that deeper, systemic reforms are required to ensure sustainable and equitable service delivery for all South Africans.

Issued by the Parliament of South Africa