End of the Road: A Critical Review of the Local Government Fiscal Framework

A report by Tracy Ledger and Mahlatse Rampedi analyzing the failure of the post-1994 local government fiscal framework in South Africa, arguing that municipalities cannot generate sufficient revenue to cover operating expenditures and provide basic services.

• Local government in South Africa has failed to lead transformative service delivery or sustainably improve living standards 25 years after 1994, with many municipalities currently experiencing financial distress.
• There is a significant gap between the assumed and actual revenue-raising capacity of local governments. While the White Paper on Local Government assumed municipalities could fund 73 per cent of operating expenditure from property taxes and service sales, research indicates they likely fund less than 50 per cent.
• The current fiscal framework is eroding the 'social wage'—the provision of affordable and subsidised basic services intended to reduce living costs for poor households—which is increasing poverty and inequality.
• The funding gap in local government cannot be closed through reducing expenditure 'leakages' or increasing national transfers, necessitating a redesign of the basic structure of local government based on 20 years of empirical data.

APA

Ledger, T., & Rampedi, M. (2020). End of the Road: A Critical Review of the Local Government Fiscal Framework. Public Affairs Research Institute. https://pari.org.za/end-of-the-road-a-critical-review-of-the-local-government-fiscal-framework/

Chicago

Ledger, Tracy, and Mahlatse Rampedi. End of the Road: A Critical Review of the Local Government Fiscal Framework. Public Affairs Research Institute, 2020. https://pari.org.za/end-of-the-road-a-critical-review-of-the-local-government-fiscal-framework/.

Wikipedia

{{cite report |last1=Ledger |first1=Tracy |last2=Rampedi |first2=Mahlatse |title=End of the Road: A Critical Review of the Local Government Fiscal Framework |publisher=Public Affairs Research Institute |date=26 August 2020 |url=https://pari.org.za/end-of-the-road-a-critical-review-of-the-local-government-fiscal-framework/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ledger2020end, author = {Ledger, Tracy and Rampedi, Mahlatse}, title = {{End of the Road: A Critical Review of the Local Government Fiscal Framework}}, institution = {Public Affairs Research Institute}, year = {2020}, month = aug, url = {https://pari.org.za/end-of-the-road-a-critical-review-of-the-local-government-fiscal-framework/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }