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Introduction
The Local Government Fiscal Framework (LGFF) has 2 components, a capital funding component and an operating funding component. Capital funding is legislated through the Local Government Fiscal Framework Act and is allocated to eligible local governments based on a formula. Local governments may use the funds for infrastructure priorities, within program rules. Operating funding is also allocation-based, and eligible local governments can use the funds in support of capacity-building activities to improve efficiency and effectiveness, municipal services and planning activities. This funding is not legislated.