The National Treasury has recently released its comprehensive local government revenue and expenditure report for the third quarter of the 2022/23 financial year. This analysis provides an overview of the performance of local governments against adjusted budgets, including conditional grant allocations, up to 31 March 2023.
The report highlights the use of the In-year Management, Monitoring, and Reporting System for Local Government (IYM), which allows for effective oversight of municipalities and identification of potential challenges in implementing municipal budgets and grants. Despite concerns over the reliability of the data, measures are being taken to improve its credibility.
As of 31 March 2023, municipalities spent 61.8% (R350 billion) of the total adjusted expenditure budget of R566 billion. The financial situation of municipalities continues to evolve, with some key trends emerging:
The report also provides insight into the performance of billed revenue for core services. The aggregated revenue for secondary cities was 65.9% (R52.6 billion) of the total adjusted revenue budget of R79.9 billion. Additionally, municipalities owed their creditors R85.7 billion as of 31 March 2023, indicating potential liquidity and cash challenges affecting the settlement of outstanding debts.
The report also includes an overview of grant funding performance and various adjustments to baseline allocations approved during the 2022/23 financial year. Municipalities reported an expenditure of 32.3% against the R43.7 billion transferred to them in the third quarter. However, only 54.4% expenditure was reported against the Municipal Infrastructure Grant (MIG), which benefits over 200 municipalities across the country.
National and provincial treasuries are prioritizing the improvement of data string credibility. They analyze submitted data strings monthly and communicate any errors to municipalities for correction.
This report serves as a crucial management tool and early warning mechanism for councils, provincial legislatures, and municipal management to monitor and improve municipal performance in a timely manner.
Cape Town officials and South African Police Service (SAPS) have launched new law enforcement facilities…
The maintenance of vast sewage and river systems is a strategic priority, particularly as a…
Cape Town is ushering in a new era of affordable housing with the Bonteheuwel Infill…
The EPWP Entrepreneurship Trainee Programme in Cape Town is a successful initiative that fosters economic…
Happy Jele, the legendary player of Orlando Pirates, has retired from professional football at the…
The criminal justice system in South Africa is dedicated to protecting its community members, as…