Record R47bn budget for Joburg

2014-05-27 13:03

The City of Johannesburg’s combined operational and capital budget has grown to a record R47.1 billion, after exceeding R40 billion last year, finance MMC Geoffrey Makhubo has said.

“The massive increase in this budget bears testimony to the determination of the city to confront the social deficits in various areas and for new infrastructural development around the Corridors of Freedom,” he said today.

Ahead of the presentation of the budget, he told reporters in Braamfontein that Joburg was financially in its best shape yet.

“The city has a healthy cash balance. We built up substantial cash reserves through more stringent cash management. Despite monthly expenditure of R2.2 billion, the city has a monthly cash balance in excess of R5 billion.”

The city’s capital expenditure over the next three years would equal R32 billion, R10.4 billion of which is budgeted for the 2014/2015 financial year.

It was also on track to invest R100 billion in infrastructure over a 10-year period, with the infrastructure capital budget having grown from an initial R4.5 billion in the 2012/2013 financial year to R10 billion this coming financial year.

“This is a key tool for improved service delivery that gives the city the ability to change the urban environment for the better through infrastructural development,” he said.

Regarding rates and tariffs, electricity would increase by an average of 7.05%, which would provide the city with revenue of R13.6 billion.

“Registered indigents will continue to receive free electricity, free water and free sanitation in terms of Joburg’s extended social package,” Makhubo said.

“The tariffs for waste removal services will increase by 6% for domestic households and 8% for businesses and commercial customers.”

The proposed increases would generate sufficient revenue to ensure Pikitup could sustain its current service levels and extend services to new areas and housing developments.

Properties valued at less than R200 000 and households registered for the extended social package would continue to receive free refuse removal services.

The property rates tariff would increase by 5%, while water and sewerage tariff increases would be around 8.9%.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.