Funding framework. The budgets of municipalities vary significantly according to the funded mandates, the share of MIG and the Equitable Share, the revenue from services and the broader resource base of the municipality. These variables inform the priorities to ensure that the review of the intergovernmental fiscal system results in a deeper understanding of these spatial and functional differences, with resource support varying accordingly. A key assumption informing the review of the inter-governmental fiscal system is that resource allocation to local government is not sufficiently equitable and supportive of poorer rural municipalities. This will receive priority attention going forward. The management systems for outcome 7 are captured in the following diagram:
Appears in 2 contracts
Sources: Delivery Agreement, Delivery Agreement