The draft legislation would require governments to set and report against their own fiscal objectives, with Parliament and the Financial and Fiscal Commission given stronger oversight roles.
The release of R7.1 billion buys time, but December’s equitable share assessment will determine whether non-compliant municipalities face another funding freeze.
The FFC says a system-wide breakdown in collecting and paying bills is fuelling arrears that more than a decade of government interventions has failed to contain.
Lawmakers want legal questions over withheld equitable-share allocations resolved as Treasury begins releasing billions of rand to compliant municipalities.
