MunicipalNews

R1.9-b adjustment budget for RNM

The mayor said that despite the current challenges in the economy, the municipality had to ensure that it continued to change the lives of communities for the better.

Nearly R2-billion has been approved by Ray Nkonyeni Municipality council for its 2018/2019 adjustment budget.

At a council meeting on Tuesday this week, the budget was adjusted by R1 094 700 000.

ALSO READ : Infographic: A summary of the National Budget Speech 2019

In terms of Section 28 of the Municipal Finance Management Act, an adjustment budget may be tabled in council any time after the mid-year budget and performance assessment, but not later than end of February in that financial year.

The DA voted against the approval, saying the budget contained discrepancies with which the party was unhappy.

However, mayor Cynthia Mqwebu said whenever the budget was tabled, the DA always raised issues, but stressed that all caucuses had a right to call the municipal manager to ask questions or for clarification on any issues before a budget was passed.

The DA was outvoted and the budget was approved.

Ms Mqwebu said that the adjustment of the budget was as a result of several factors and serious challenges the country faces, some of which were highlighted in the recent Budget Speech by finance minister Tito Mboweni. These included:

* Ongoing difficulties in the national and local economy;

* Aging roads and electricity infrastructure;

* Declining revenue sources;

* Wage increases for municipal staff and councillors that are above consumer inflation, coupled with the need to fill critical vacancies.

When presenting the budget, the mayor explained that the adjusted capital budget was currently more than R224-million which was distributed into municipal projects.

“This adjusted capital budget shows an increase of R1-million from the original budget and this is due to a re-prioritisation of funds towards projects which will serve to benefit community needs.

“The operating budget was adjusted downwards to R870-million, compared to the original sum of R939.4- million, a cut of R69.4- million.”

She emphasised that despite the current challenges in the economy, the municipality had to ensure that it continued to change the lives of communities for the better.

“This budget will go a long way towards fulfilling the freedom charter’s vision that South Africa belongs to all who live in it.”

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