Municipalities expect R4.7bn budget deficit
Minister of Finance Tito Mboweni. Picture: Phando Jikelo/African News Agency(ANA)
JOHANNESBURG – The revenue for South African municipalities is expected to rise to R431.5 billion in 2019/20 and R462.5 billion in 2020/21 from a budgeted R404.6 billion for 2018/19, the National Treasury said on Thursday.
In a statement on the medium-term revenue and expenditure framework for municipalities, the National Treasury said total municipal expenditure in 2018/19 was estimated at R441.6 billion, up 5.7 percent from 2017/18, and would increase to R467.9 billion in 2019/20 and R495 billion in 2020/21.
This would lead to a 2018/19 financial year net deficit of R4.7 billion, a shortfall of R2.8 billion in 2019/20 and a surplus of R41.3 million in 2020/21.
The Treasury said municipal operating expenditure on water, electricity, waste water management and waste management was budgeted to increase from R174.7 billion in 2017/18 to R184.3 billion in 2018/19, equating to half of the total operating expenditure of municipalities.
African News Agency (ANA)
Source: iol.co.za
