. An additional allocation of R4.2 billion over the 2011 MTEF to the LGES is requested on the basis of complementing the institutional component of the LGES by funding critical skills in municipalities, prioritising water and sanitation over the MTEF in order to build long-term municipal institutional capacity through the proposed reconfigured Municipal Systems Improvement Grant (MSIG) into the Local Government Institutional and Systems Support Grant (LGISSG).