Budget 2023
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Municipalities to extend free basic services

Cape Town - Provinces will receive R469bn next year, rising to R527bn in 2017/18, according to the mini budget.

The allocation to local government is R91bn next year. It will increase to R110bn in 2017/18. Over the three-year period national government will receive 48%, provinces 43% and local government 9% of the budget.

The Medium Term Budget Policy Statement (MTBPS) mentions personnel-related expenditure is the largest category of spending in provinces (62% in 2014/15). Therefore, tight management of compensation spending will be essential to improve efficiency.

National Treasury has been working with provincial treasuries to improve management of personnel spending and as a result, provincial staff numbers declined from 931 471 in December 2012 to 917 061 in August 2014.

Although staff costs have risen as average wages have increased, slower growth in headcount saw compensation spending remain within budget in 2012/13 for the first time since 2007/08.

Minister of Finance Nhlanhla Nene said in his speech support will be provided to municipalities to improve revenue collection and management of infrastructure, financed from both own revenue and grants.

The local government equitable share continues to fund the cost of providing free basic amounts of electricity, water, sanitation and refuse removal to the about 59% of households that have incomes below the value of two old-age grants.

In many municipalities greater emphasis will be placed on ensuring that free basic services are extended to reach all poor households, according to the MTBPS.

* Visit Fin24's Mini Budget Special for all the news.

 - Fin24




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