The Division of Revenue Act/Bill is an account of all of the revenue collected in South Africa through direct and indirect taxes. It is broken into National, Provincial and Local spheres of government.
In decentralised countries/federations your local allocations of revenue are higher than your national allocations. Therefore, local communities have more money and more control over how it is spent. In centralised systems of government your national allocations are higher than your local allocations. Therefore, local communities have less money and less control over how it is spent.
Here is South Africa’s division of revenue through the three spheres of government:
Total revenue collected: R1.3 Trillion
National Allocation: R855 Billion (65%)
Provincial Allocation: R410 Billion (30%)
Local Allocation: R52 Billion (5%)
This is an extremely centralised system, and it does not work. So, how much are we losing?
The Western Cape pays: R185 Billion
The Western Cape gets: R45 Billion
We are allocated a mere 24% of what we pay in!
The other 76% is controlled by the National sphere of government, in other words, the ANC!
We “survive” on R45 Billion!
If we were independent we would have an additional R140 Billion at our direct disposal!
In an independent Cape we could cut taxes in half… …and still double services!