After a net adjustment of R2.9 billion in the 2011/12 financial year, the total expenditure envelope grows from a revised R888 billion in the 2011/12 financial to R1 trillion by the 2014/15 financial year. Assuming the base year 2011's consumer price inflation (CPI) of 5 per cent, this would mean that expenditure increases at an average real growth of approximately 2.3 per cent. Compared to the 2010 MTBPS growth rate of 2 per cent, the provincial allocations are growing at a slower rate. As a result, the share in allocations for national and local government is projected to grow, while that of provinces declines marginally from 44.9 per cent to 44.7 per cent over the MTEF. The share of national allocations remains stable over the MTEF at an average of 46.8 per cent, increasing slightly from the initial 46.7 per cent in the 2012/13 financial year in spite of the economic downturn. The local government fiscal framework remains buoyant, growing at a real rate of 3.4 per cent in the 2012/13 financial year and 3.6 per cent in the 2014/15 financial year. Provincial baselines grow by only 1.1 per cent while local government baselines grow by a healthy 4 per cent in real terms over the medium term. The FFC agreed with government that the latter is important to assist municipalities in the provision of free basic services to the poor, while the emphasis continues to be placed on the elimination of waste, corruption and inefficiency.