| a) | the conversion will prevent under-expenditure or improve the level of service delivery on the allocation in question; and |
| b) | the affected national or provincial department or municipality has demonstrated the capacity to implement projects, |
the National Treasury may, in its discretion or at the request of the transferring national officer and the affected receiving officer, convert any portion of-
| i) | an allocation listed in Part B of Schedule 5 to one listed in Part B of Schedule 6; |
| ii) | an allocation listed in Part B of Schedule 6 to one listed in Part B of Schedule 5; |
| iv) | the National Health Grant listed in Part A of Schedule 6 to the relevant component of the Health Facility Revitalisation Grant or the National Health Insurance Grant listed in Part A of Schedule 5. |
| 2) | Any portion of an allocation converted in terms of subsection (1) must be utilised for the same province or municipality to which the allocation was originally made. |
| 3) | The National Treasury must- |
| a) | give notice in the Gazette of a conversion in terms of subsection (1); and |
| b) | provide a copy of the notice to the transferring national officer and each affected receiving officer. |
| 4) | A conversion in terms of subsection (1) takes effect on the date of publication of the notice in terms of subsection (3)(a). |
