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8,9% of Municipal Budgets Not Spent
| News by Staff ReporterMetropolitan municipalities have shown no improvement on underspending from previous years
The National Treasury yesterday said underspending by municipalities showed no improvement compared with previous years, with municipalities having underspent by a combined R18,9 billion, or nearly 8,9 percent of the total municipal budget.The National Treasury released their fourth quarter local government budget statement on Tuesday 31 August, indicating large amounts of underspending by municipalities, including underspending of 17,1 percent (R8,5 billion) of municipal capital budgets and 15,9 percent (R3,6 billion) of conditional grants in 200910.
Aggregate net underspending of the total municipal budget in the 200809 financial year was 9,1 percent (R16,6 billion).
The National treasury said in the budget statement that a weakness in the ability of municipalities to compile credible budgets, or to manage the implementation of their infrastructure programmes was evident.
The Free State's underspending was the highest at 18,8 percent, followed by the North West at 11,8 percent.
The budget statement also said that various municipalities had overspent, most notably the eThekwini municipality (112,6 percent, or R6,7 billion out of a R6,0 billion adjusted capital budget), Cape Town (83,3 percent, or R4,7 billion out of a R5,6 billion adjusted capital budget) and the City of Tshwane (82,0 percent, or R2,2 billion out of a R2,7 billion adjusted capital budget).
An increase of R1,2 billion was owed to metropolitan municipalities from the same period last year, bringing the total to R30,6 billion, the largest portion of which, at R8,4 billion, was owed to the City of Johannesburg, followed by Cape Town (R5,0 billion) and eThekwini (R4,6 billion).
Source: www.bizpremises.co.za
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