The Committee raised concerns with the incentive approach for grant allocations and emphasized the need to ensure that those provinces and municipalities facing delivery challenges should not be unduly penalized through reductions in allocations. This may have the unintended results of re-enforcing inefficient historical spatial development patterns with poor and under-resourced areas receiving ever declining funding resources. The Committee notes the National Treasury's submission indicating that it may take time for municipalities to understand the aim and purpose of grant incentives and also notes the FFC's input stating that incentives should reward the attainment of delivery targets rather than the attainment of individual/department programme objectives.