KZN budgets: The problems

2008-08-11 00:00

According to the KZN provincial treasurer, Sipho Shabalala, trends underpinning expenditure patterns in municipalities include employee-related costs are rising.

Salaries are supposed to be 30% of budget, but in some cases this rises to between 50% and 80%.

Municipalities are not putting enough money towards capital expenditure from their own internal sources. Operating costs are crowding out capital expenditure.

Integrated development plans (IDPs) are still not being aligned with budgets

Under-spending is still a problem, indicating a lack of skills in budgeting.

Last week The Witness reported that the Msunduzi Municipality increased the limit for exemption from rates from R30 000 to R60 000. This meant that R62,6 million in debts accrued to people classified as indigent has had to be written off.

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