Treasury publishes municipal budgets

South Africa's 278 municipalities are expected to generate, in aggregate, revenue of about R264 billion in 2012/13, National Treasury said on Monday.

This was expected to increase to R284 billion in 2013/14, and R311 billion in 2014/15.

File photo: AP

Treasury on Monday published the operating and capital budgets of 278 municipalities as adopted by their respective councils.

These budgets give an overview of expected revenue and expenditure trends in local government over the next three years, referred to as the 2012/13 medium-term revenue and expenditure framework (MTREF).

Treasury said total municipal spending in 2012/13 was estimated to be R281.1 billion, which would increase to R297.1 billion in 2013/14, and R324.6 billion in 2014/15.

Spending for 2012/13 had increased by 12.7 percent compared to the 2011/12 MTREF.

In the 2012/13 financial year, a net deficit of R372.9 million was indicated, but expected to improve significantly to reflect surpluses of R2.1 billion and R3.1 billion respectively in the two outer years of the MTREF period.

Municipal operating spending on the trading services consisting of water, electricity, waste water management, and waste management was budgeted to increase from R104.9 billion in 2011/12 to R120.9 billion in 2012/13.

In 2012/13, this equated to just over half the total operating expenditure.

Bulk purchases of electricity and water totalled R69.1 billion of the aggregated operating expenditure of R229.8 billion, or 30


Bulk purchases were expected to grow to R91.9 billion by 2014/15, representing 33.9 percent of total operating expenditure. Bulk purchase of electricity from Eskom was a significant contributing factor to this growth.

Operational repairs and maintenance had been allocated R11.9 billion in 2012/13.

This would increase to R13.1 billion and R14.1 billion in the two outer years of the MTREF.

Capital spending had increased by 16.5 percent compared to the 2011/12 MTREF.

Of the overall budget of municipalities, capital expenditure in aggregate represented 18.4 percent in 2012/13, 17.2 percent in 2013/14, and 16.9 percent in 2014/15.

Total capital spending for 2012/13 was R51.8 billion and comprised R24.2 billion for trading services consisting of electricity, water, waste water management, and waste management.

Spending on the four trading services would increase to R25.5 billion and R27.6 billion in the outer years of the MTREF.

The 2012/13 capital budget reflectd a R38.9 billion investment in new infrastructure, which was 75.2 percent of the total capital budget.

Investment in renewing existing assets would be about approximately R12.9 billion, or 24.8 percent of the capital budget. -Sapa