{"id":205668,"date":"2019-05-29T06:00:00","date_gmt":"2019-05-29T04:00:00","guid":{"rendered":"https:\/\/germistoncitynews.co.za\/205668\/what-the-metros-r48-9-billion-budget-will-be-spent-on\/"},"modified":"2019-05-29T13:16:06","modified_gmt":"2019-05-29T11:16:06","slug":"what-the-metros-r48-9-billion-budget-will-be-spent-on","status":"publish","type":"post","link":"https:\/\/develop.citizen.co.za\/germiston-city-news\/news-headlines\/2019\/05\/29\/what-the-metros-r48-9-billion-budget-will-be-spent-on\/","title":{"rendered":"What the metro\u2019s R48.9-billion budget will be spent on"},"content":{"rendered":"

The MMC for Finance and Economic Development, Clr Doctor Xhakaza, kept the running theme of the metro, Building a Local Economy That Grows in the Hands of the People, when delivering the metro’s budget speech on Thursday.<\/p>\n

Delivered at the Germiston Civic Centre, the speech emphasised the metro’s pro-poor agenda, tariffs, social packages and gentrification of townships and towns for future economic stimulation.<\/p>

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In a direct response to the shocking statistics revealed by Stats SA, recently, stating that 6.2 million South Africans are unemployed, Xhakaza said, \u201cAt metro level, the rise of unemployment, the rising fuel and energy costs and consumer inflation continue to exert pressure on the revenue generation and collection levels of the municipality.<\/p>\n

\u201cThis calls for innovative ways to increase revenue base and policy amendments that are responsive to the plight of indigent households, not omitting stringent credit control measures to those consumers who can afford to pay but choose not to.\u201d<\/p>

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Xhakaza presented an annual budget of R48.9-billion for the 2019\/20 financial year, with an operating expenditure of R41.5-b, which has increased by R3-b.<\/p>\n

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The MMC for Finance and Economic Development, Clr Doctor Xhakaza and the executive mayor of the metro, Mzwandile Masina, walking towards the council chambers at the Germiston Civic Centre, where the MMC delivered the budget speech on Thursday.<\/figcaption><\/figure>\n

ALSO READ:\u00a0State of the City Address to take place in Germiston next week<\/a><\/strong><\/h4>\n

The operational expenditure is funded as follows:<\/p>\n

\u2022 Revenue generated internally: R32.82-b<\/p>\n

\u2022 Operating grants: R5.9-b<\/p>\n

\u2022 Capital grants: R2.78-b<\/p>\n

“The metro’s capital budget will be growing by R900-m from R6.5-b in the current financial year to R7.4-b in the 2019\/2020 year, a clear determination by the metro to invest on capital and infrastructure projects,” said Xhakaza.<\/p>\n

This amount will be funded as follows:<\/p>\n

\u2022 Revenue generated internally: R884-m (11 per cent)<\/p>\n

\u2022 Government grants: R2.8-b (38 per cent)<\/p>\n

\u2022 Loans: R3.74-b (51 per cent)<\/p>\n

The MMC cautioned against the relatively high proportion on loans as a source of funding.<\/p>\n

\u201cIncreasing borrowings impact negatively on the operating budget by depleting the cash reserves due to loan repayments and interest thereof,\u201d he said.<\/p>\n

\u201cThis paradox requires even more prudent management of the metro’s finances, striking a balance between the need to fund service delivery and financial sustainability.<\/p>\n

\u201cNonetheless, it remains critical for the metro to invest in its infrastructure and productive sectors to progressively meet the needs of the communities and grow the economy.\u201d<\/p>\n