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Cape Town - Municipalities underspent their budgets by R18.9bn in the year ending June 30, the National Treasury said on Tuesday.
The underspending is almost 8.9% of the total municipal budget and represents no improvement compared to previous years, according to The Treasury's fourth quarter local government budget statement.
"When compared to previous years, no improvement in the level of underspending has been noted," The Treasury said.
In 2008/09 aggregate net underspending was R16.6bn or 9.1% of the total municipal budget.
Underspending was highest (in percentage terms) in the Free State and North West at 18.8% and 11.8%.
The Treasury said municipalities underspent their capital budgets in 2009/10 by R8.5bn or 17.1%, indicating "either weaknesses in the ability of municipalities to compile credible budgets, or to manage the implementation of their infrastructure programmes".
In 2009/10 municipalities underspent their conditional grants by R3.6bn or 15.9%, compared to 2008/09 when net underspending of conditional grants was R3.2bn or 17.1%.
Municipalities collected 95.1% or R210.8bn of the R221.8bn total adjusted revenue budget.
Overspending occurred in eThekwini at 112.6% or R6.7bn out of a R6.0bn adjusted capital budget, followed by Cape Town at 83.3% or R4.7bn out of a R5.6bn adjusted capital budget and City of Tshwane at 82.0% or R2.2bn of a R2.7bn adjusted capital budget.
The lowest capital spending was in the Nelson Mandela Bay at 78.9%.
Metropolitan municipalities were owed R30.6bn as at 30 June 2010, an increase of R1.2bn or 3.9% from the same period in the previous year.
The City of Johannesburg was owed the largest amount at R8.4bn, although this was a decrease of R713m when compared to the same period in the previous year.
Ekurhuleni Metro was owed R7.8bn, Cape Town R5.0bn and eThekwini R4.6bn.
