The adjustment budget will bolster revenue generation across essential services
‘With this budget we are laying the groundwork for a more resilient, efficient, and financially sound city that works for all our residents.’ – Mayor
The City of Johannesburg (CoJ) has taken a significant step towards enhancing its service delivery and promoting financial stability by approving its adjustment budget during a council meeting on March 13.
This was done under Section 28 of the Municipal Finance Management Act (MFMA), which allows municipalities to revise their budgets for improved operational effectiveness and efficiency.
In preparing for this adjustment, the city leadership undertook a rigorous mid-year performance review to evaluate financial and operational achievements over the first half of the financial year.
The review underscored the urgency and necessity of an adjusted budget to respond to the evolving needs of the city and its residents.
During the council session, they approved the adjustment capital budget and the adjustment operating budget, alongside a comprehensive funding plan for the 2024/25 medium-term capital budget.
It passed with a vote of 138 in favour and 105 against.
The adjustment capital budget is strategically designed to bolster revenue generation across essential services, including electricity, water and waste management.
This budget helps to create a more robust and financially sustainable municipality, positioning Johannesburg to meet the demands of its residents.
Key investments will enhance the capabilities of City Power and Joburg Water, addressing persistent infrastructure challenges related to electricity and water supply.
Furthermore, the city aims to strengthen its financial operations through enhanced expenditure management. This includes improving billing systems to ensure accuracy and efficiency, as well as implementing robust revenue collection strategies to ensure residents meet their municipal rate obligations.
To safeguard the city against potential financial risks, the CoJ will initiate a comprehensive budget risk mitigation plan. This plan emphasises implementing efficiency measures across various departments and municipal entities essential for absorbing shortfalls.
In addition, stricter expenditure controls will be enforced to uphold responsible financial management practices.
Introducing a financial recovery plan is expected to improve the city’s liquidity and bolster its long-term financial health.
Mayor of Johannesburg, Dada Morero, said: “The approval of the adjustment budget is a testament to our unwavering commitment to delivering quality services while maintaining fiscal discipline. With this budget, we are addressing immediate infrastructural needs and are laying the groundwork for a more resilient, efficient, and financially sound city that works for all our residents.
“The CoJ remains steadfast in its mission to enhance service delivery, ensure financial stability, and build a future-ready city. The approved adjustment budget marks a pivotal moment in the city’s journey towards sustainable growth and improved quality of life for its citizens.”
