A capital budget of R4.52 billion has been approved by the Tshwane Council for the 2016/17 financial year.
This is a R59.3 million increase from the R4.46 billion approved by the former ANC-led government.
The council tabled and adopted the adjustments to the City’s 2016/17 Medium-Term Revenue and Expenditure budget on Thursday.
According to the city‚ the National Treasury raised concerns regarding the City’s financial status during the mid-year assessment‚ recommending that the City must table a funded 2016/17 adjustment budget for approval by Council.
Tshwane mayor Solly Msimanga said the adjustment was necessary to rewrite the wrongs of the ANC administration.
"The implementation of this adjustment budget is to ensure effective and efficient financial management and business planning‚ aligned to deliverable key imperatives‚” said Msimanga.
The City ended the 2015/16 financial year with an operating deficit of about R2 billion which means that the City had a funding compliance gap which must now be addressed within the 2016/17 adjustment budget.
Msimanga said the city will not achieve its budgeted revenue targets due to various factors‚ such as under-billing‚ decline in electricity sales‚ reduction in water revenue due to water restrictions‚ and increased distribution losses.
The ANC argued that the budget was similar to the one approved last year‚ however‚ it had been rejected by the DA.
“Last year we had this budget but they (the DA) did not approve of this budget. What we see in this budget benefits people in the suburbs but we are not seeing any benefits for the poor in townships‚” said ANC Chief Whip Aaron Maluleka.
“We challenge the DA to tackle issues of housing and safety. We are hoping the DA can provide meaningful and long lasting jobs as they promise‚” Maluleka added.
Just R20 for the first month. Support independent journalism by subscribing to our digital news package. 