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FS municipalities owed most to creditors in 2015

───   ANDRE GROBLER 15:09 Wed, 29 Jun 2016

FS municipalities owed most to creditors in 2015 | News Article

Bloemfontein - Free State municipalities have shown the highest increase in debt owed to suppliers and creditors between 2014 and 2015.


This information is contained in the Financial Census of Municipalities report that was released by Stats SA on Wednesday. 


The report said nationally municipalities owed their suppliers and other creditors R196 billion. This is 11.6 percent higher than in 2014. 


The Free State shows the highest percentage increase between 2014 and 2015 of 40.4 percent. The North West Province was second and Gauteng third. 


Statistician-General of South Africa, Pali Lehohla, further indicated that municipalities relied heavily on national grants and subsidies as a revenue stream. This was followed by electricity sales, property rates received and other revenues consisting of fines, licences and permits, public contributions and donations. 


Municipalities across South Africa had received an income of R309 billion from all sources of income, which represented an increase of R25.5 billion compared with R283.5 billion in 2014. The main expenditure for municipalities was employee related costs, followed by electricity purchases. 



The report also indicates that municipalities spent more on buying bulk water and electricity in 2015 than in 2014. Purchases of electricity increased from R58.5 billion in 2014 to R61.9 billion in 2015.



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