The Ba-Phalaborwa Municipality has tabled a proposed revenue of R787.3 million for the 2025/26 financial year in its IDP budget that is currently available for scrutiny by residents.

The budget includes R526.3 million in own-generated revenue, which stems from municipal service charges such as property rates, electricity, and refuse removal. An additional R261.1 million is expected from capital and operational transfers and subsidies.

The total proposed budget for expenditure is R859.5 million. This includes an operational expenditure budget of R794 million and a capital budget of R65.5 million.

According to the proposed budget, employee-related costs are projected at R223.9 million, making up 28.2% of the total operating expenditure. Remuneration for councillors has been set at R19.2 million. Bulk purchases, mainly for electricity procured from Eskom, are budgeted at R150.8 million, accounting for 19% of the operational budget. These figures include annual price increases approved by the National Energy Regulator of South Africa (NERSA). Operational costs for daily municipal functions are estimated at R85.8 million, which is 10.8% of the operational budget.

The proposed budget has already received criticism from residents during a community meeting held on Friday, April 11, at the Impala Park Hall in Wards 11 and 12.

Civil rights organisation Let’s Change Ba-Phalaborwa (LCBP) strongly opposed the draft, citing its failure to address critical infrastructure concerns.

“We objected to the budget because it does not address the electricity, water, and sewage problems facing the town. We are calling for a reduction in unnecessary expenditure and a redirection of money towards infrastructure and basic services,” said a spokesperson for LCBP.

The organisation also voiced dissatisfaction over the absence of Ba-Phalaborwa Mayor Merriam Malatji and Mopani District Mayor Pule Shayi during the IDP budget meeting, stating that the Municipal Finance Management Act requires the mayor to be present at such sessions.

Municipal spokesperson Jonas Mahesu responded to the criticism, explaining that Malatji was attending a diplomatic meeting with Cristovao Gemo, the consul-general of Mozambique, at the time.

“Both mayors are permitted to delegate representatives when they are unable to attend in person,” Mahesu said.

The proposed budget remains open for further public consultation before final approval.