The FFC noted that national government's share of the Division of Revenue declines over the 2010/11 Medium Term Expenditure Framework, whereas the provincial and local government shares increases over the same period. The FFC commented that the current formula for determining the local equitable share (LES) is unconstitutional in respect of the Revenue-raising component (RRC). Furthermore, the FFC cautioned against potential negative effects on middle income municipalities resulting from the government's approach to focus on targeted funding for poorer municipalities to the detriment of middle income municipalities.