Delivering the 2021/22 Budget speech, Mboweni expressed concern at the state of municipalities in the country, saying that the local government equitable share is set to increase to 9.7 percent of the division of revenue in 2023/24. Mboweni further announced that the Municipal Systems Improvement Grant is extended for the rollout of the District Development Model, which not only seeks to bring financial stability to municipalities, but improve their governance and provision of service delivery. 

Mboweni's remarks on the state of municipalities comes just weeks after Eskom reiterated that the non-payment by municipalities is amongst challenges leading it to a deeper financial rut.

Municipalities in the Free State are amongst those that have recently been outlined by Eskom as those owing it billions of rands. Municipalities in the province collectively owe the power utility over R12 billion, making it the province with the highest number of defaulting municipalities.

Meanwhile, Mboweni has highlighted that the government must encourage collaboration and partnerships between municipal councils, labour, communities, and the private sector around the principles of shared risk and shared rewards.

"There needs to be a transition to smart local government and innovation. At the same time, well-functioning municipalities require that residents pay for services rendered," he added.

OFM News