Mthuli launches inter-governmental fiscal transfers system administrative manual
CLOUDINE MATOLA
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, yesterday launched the Inter-governmental Fiscal Transfer System Administrative Manual (IGFT) that will provide the required regulatory framework to ensure equitable fiscal transfers to local tiers of government and the effective implementation of the devolution agenda, Business Times can report.
Speaking at the IGTF launch, Professor Ncube, said the decentralisation ensures equitable, sustainable and shared responsibilities that will benefit the public.
“Government is, therefore, implementing the devolution agenda with the main objective to achieve economic growth and development through a system which is community based and people centred that ensures equitable, sustainable and shared responsibilities to benefit the citizens nationwide,” Prof Ncube said.
He added: “It is irrefutable fact that this trajectory being taken by the government will drive productivity, growth, jobs creation and ultimately result in improvements in the welfare of ordinary citizens over the long-term horizon.”
According to Professor Ncube, communities will be actively involved in addressing issues that directly impact them, such as the availability of social amenities like water and sanitation, health care, and education.
“The path which government is taking of devolving powers and resources from the central government to its lower tiers offers space for communities to actively contribute and dissect towards issues directly affecting their livelihoods ranging from provision of educational services, health care, water and sanitation, roads and other social amenities, among others,” Prof Ncube said.
Additionally, the primary goal of the IGFTis to provide technical guidance to lower tiers of government to effectively and efficiently manage fiscal grants as well as guide Central Government entities responsible for administering the same.
”This initiative will further ensure accountability and transparency in the utilisation of the fiscal grants and will further capacitate Government to disburse resources timeously at the same time in the right proportion in order to make meaningful impact towards infrastructure and service delivery,” Professor Ncube said.
He continued: “The formula will be reviewed every five years or when necessary, in order to align with emerging contextual changes. The thrust by Government is to ensure the use of IGFT allocative formula that brings fairness in terms of resource allocation and utilisation within the lower tiers of Government.”
