Picture: Matthews Baloyi

Johannesburg - The City of Johannesburg's R59 billion budget for the 2018\19 financial year has finally been passed, the city said on Monday. 

The comes after mayor Herman Mashaba agreed to a last minute tariff increase adjustment following the Economic Freedom Fighters' (EFF) demands for lower water and electricity tariff hikes for the city's residents. 

Mashaba had presented his R59 billion budget for the 2018\19 financial year at council last week, but its tariffs increases were largely rejected by the ANC and EFF. 

 The budget had proposed a 7.37% increase for electricity tariff and 14.2% for the water tariffs. The meeting ended without the budget being adopted.  

The city in a statement confirmed that council had passed the multi-party coalition government’s operational and capital budgets and Integrated Development Plan (IDP) for the 2018/19 financial year in full compliance with the Municipal Finance Management Act.

READ: War over City of Johannesburg's R59bn budget

"This is the second budget passed under the combined leadership of the DA, IFP, ACDP, UDM, COPE and VF+, with the support of the EFF, as well as the AIC who have broken ranks with the ANC and supported this budget.

"After engagement between political parties in council over the past few weeks, an approach was taken to reduce the tariffs for water and electricity. By doing, Council has achieved a caring and sensitive approach to household income which is under strain from various decisions of national and provincial government.