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R2,2 billion budget focuses on services and job creation


Polokwane Municipality, during its Council meeting on Friday, announced a R2,2 billion budget that is focused on basic service delivery and also contributes to job creation.
Announcing the budget and Integrated Development Plan (IDP) Rasepuetja Molepo, Chairperson of the Finance and Local Economic Development Portfolio Committee, said that the municipality knows that provision of services and job creation are priorities set by the national government and that this budget therefore aims to drive the Integrated Development Plan (IDP) towards addressing these priorities.
Molepo said that in comparison with the 2014/15 adjustment budget, the operating expenditure has grown with 8,3%. This indicates a surplus of R116,6 million which will be utilised to fund capital projects. The amount provided for repairs and maintenance increased from R170,6 million to R177,2 million to ensure that the maintenance of infrastructure is catered for. This represents 23,8% for renewal of existing assets as a percentage of the total capital expenditure.
The capital budget of R580,1 million is 26,3% more than the 2014/15 adjustment budget and is due to the incorporation of roll over amounts in the adjustment budget.
Capital projects will be funded from grants to the amount of R465,5 million whilst expenditure of R114,5 million will be funded from own funds.
The capital budget includes R46,5 million for sport and recreation, for roads and transport R292,6 million, for electricity R14,8 million and for water R171 million.
The budget for sanitation amounts to R500 000.
The tariff increases as proposed in the draft budget, were also approved. Electricity will go up by 12,2% and water and sanitation and refuse removal by 10% as from 1 July.