Answer to Question #215407 in Finance for Fiona

Question

As a result of imbalance in revenue generation by provincial governments and local municipalities in 

South Africa, intergovernmental grants have been a important source of finance for Local 

Governments. The allocations of these funds for use in the local authorities have been questionable, 

some doubting if the funds are use for what they were earmarked for. Critically discuss, with the aid

of diagrams the conditional no -matching grants with unconditional nonmatching grant

Answer 1

conditional grants helps in build up of public infrastructure to an acceptable level and thereafter to maintain it as required. Conditional grants is also useful as a means of assisting in the development of the capacity of the provinces and municipalities to deliver