During the supplementary budget by the Minister of Finance, Tito Mboweni, he announced the increment or adjustment to the national budget share for 2020/21. The national share has increased from R758 billion to R790 billion, the provincial share has declined from R649 billion to R645 billion while the local government share is expected to increases from R133 billion to R140 billion.

In May, president Cyril Ramaphosa also announced a R20 billion relief fund for municipalities to help alleviate their strained finances amidst the Covid-19 pandemic which is expected be a huge blow to the country's dwindling economy. Municipalities across the country, including those in Central South Africa - which includes the Northern Cape, Free State and North West - have been ravaged by a lack of revenue collection and serious corruption which has since made it hard for them to be self-sufficient over the years. 

Mboweni also announced that municipalities will adjust their budgets to take into account the sharp decline in revenue as a result of the pandemic which have had a ripple effect on the economy of the country. 

"Local government is at the heart of our response to the pandemic and accordingly, an additional R11 billion is allocated to local government through the equitable share. A further R9 billion will be reprioritised within allocated conditional grants to fund additional water and sanitation provision and the sanitisation of public transport," he adds.

"We urge communities to hold councils accountable for the spending of Covid-19 funds. National Treasury will also monitor the spending through monthly and quarterly reports," he further adds. 

Meanwhile, OFM News' Katleho Morapela previously reported that the breakdown of financial controls, irregular procurement processes and a lack of accountability within municipalities are amongst some of the major concerns raised by the Auditor-General (AG) Kimi Makwetu during a briefing at the National Council of Provinces (NCOP) on the 2018/19 Local Government Audit Outcomes. 

The AG's found that the majority of municipalities with clean audits were found in the Western Cape while the Free State and the North West failed to produce any clean audits, similar to the previous years.

OFM News