The South African Local Government Association (SALGA) has welcomed National Treasury’s decision to begin releasing the remaining withheld July 2026 Local Government Equitable Share allocations from Friday.
The association says it has consistently advocated for a balanced approach when municipal funding is withheld, arguing that compliance measures should not undermine the delivery of essential services to communities.
SALGA spokesperson Motalatale Modiba said the association would continue working with National Treasury, the Department of Cooperative Governance and Traditional Affairs (CoGTA), and municipalities to strengthen local government finances.
This includes improving revenue collection, strengthening budgeting processes, enhancing liquidity and cash-flow management, and supporting municipalities facing financial difficulties.
Modiba said withholding equitable share allocations must balance the need for municipalities to comply with financial requirements with their constitutional responsibility to provide basic services.
“We have consistently maintained that any withholding of the equitable share must balance compliance objectives with the constitutional imperative of sustaining service delivery and protecting vulnerable communities,” Modiba said.
He added that protecting access to free basic services and support for indigent households remains essential while municipalities implement corrective measures.
SALGA says it will continue engaging with government and municipalities to support financial recovery and improve the long-term sustainability of local government.