Municipal revenue expected to soar

2012-12-03 14:57

Cape Town - South Africa's 278 municipalities are expected to generate, in aggregate, revenue of about R264bn in 2012/13, National Treasury said on Monday.

This was expected to increase to R284bn in 2013/14, and R311bn in 2014/15.

Treasury on Monday published the operating and capital budgets of 278 municipalities as adopted by their respective councils.

These budgets give an overview of expected revenue and expenditure trends in local government over the next three years, referred to as the 2012/13 medium-term revenue and expenditure framework (MTREF).

Treasury said total municipal spending in 2012/13 was estimated to be R281.1bn, which would increase to R297.1bn in 2013/14, and R324.6bn in 2014/15.

Spending for 2012/13 had increased by 12.7% compared to the 2011/12 MTREF.

In the 2012/13 financial year, a net deficit of R372.9m was indicated, but expected to improve significantly to reflect surpluses of R2.1bn and R3.1bn respectively in the two outer years of the MTREF period.

Municipal operating spending on the trading services consisting of water, electricity, waste water management, and waste management was budgeted to increase from R104.9bn in 2011/12 to R120.9bn in 2012/13.

In 2012/13, this equated to just over half the total operating expenditure.

Bulk purchases of electricity and water totalled R69.1bn of the aggregated operating expenditure of R229.8bn, or 30%.

Bulk purchases were expected to grow to R91.9bn by 2014/15, representing 33.9% of total operating expenditure. Bulk purchase of electricity from Eskom was a significant contributing factor to this growth.

Operational repairs and maintenance had been allocated R11.9bn in 2012/13.

This would increase to R13.1bn and R14.1bn in the two outer years of the MTREF.

Capital spending had increased by 16.5% compared to the 2011/12 MTREF.

Of the overall budget of municipalities, capital expenditure in aggregate represented 18.4% in 2012/13, 17.2% in 2013/14, and 16.9% in 2014/15.

Total capital spending for 2012/13 was R51.8bn and comprised R24.2bn for trading services consisting of electricity, water, waste water management, and waste management.

Spending on the four trading services would increase to R25.5bn and R27.6bn in the outer years of the MTREF.

The 2012/13 capital budget reflectd a R38.9bn investment in new infrastructure, which was 75.2% of the total capital budget.

Investment in renewing existing assets would be about approximately R12.9bn, or 24.8% of the capital budget.


  • afrikeni - 2012-12-03 16:00

    If the municipalities revenue increase by -efficient collection of rates & tax & bills -efficient use of resources - arresting rampant corruption etc I will applaud the increase but NO it's most likely charging more for same service (Eskom increase power to municipality say by 17% in turn municipality increase by 22% to consumer), error billing,etc.

  • sminx.r.mandla - 2012-12-03 16:37

    I'm assuming their NPAT will be 0.00001% of Revenue due to irregular and fruitless expenditure and Corruption!!!

  • dorette.forrester - 2012-12-03 17:42

    I would love to see something for the money we pay. Robots are forever out of order, only saw the grass being cut when it was world cup. The only time I actually have seen people picking up litter and cutting the grass was the month before world cup and never again. Ridiculous set-up!!

  • apgreeff - 2012-12-03 18:33

    NO! No more. Can someone tell us how much of the revenue is spent on payroll and consulting services? Bet you it is the biggest single expense on the income statement! Getting fat on tax payers money (again)!

  • sipho.zuma.796 - 2012-12-03 20:07

    Hahaha, Revenue may increase but the doubtful debtors balance will just increase by the same amount.

  • kamogelo.majoe - 2012-12-03 22:50

    i hope that they will be able to account to the auditor general at the end of the financial year.for the past 18 years, municipalities have always been a problem.

  • jason.rom.9 - 2012-12-04 11:52


  • leonard.rom.7 - 2012-12-04 14:50

    and still no service delivery why must we pay rates and taxes bla bla bla does this government really think we just going pay and pay!there is no more money cant afford any more!

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