INTRODUCTION
1. Chapter 14 of the Constitution lays the foundation for a unitary but decentralised system of intergovernmental relations by providing for three distinctive, interdependent and interrelated tiers of Government. These comprise of the Central Government, Provincial/Metropolitan Councils (PMCs) and Local Authorities (LAs).
2. Section 301 of the Constitution provides for Intergovernmental Fiscal Transfers (IGFTs) from central to subnational tiers of government to support the devolution of governmental powers and responsibilities. It stipulates that an Act of Parliament must provide for an equitable allocation of capital transfers between provincial and metropolitan councils (PMCs) and local authorities (LAs) and any other allocations to provinces and local authorities and any conditions on which those allocations may be made.
3. Section 301(3) further stipulates that not less than five percent of the national revenues raised in any financial year must be allocated to the provinces and local authorities in a particular financial year. This provision entails that funding should be appropriated to subnational tiers of government under the Constitutional and Statutory Appropriation section in the Estimates of Expenditure Book (Bluebook...