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Economy News South Africa

MTBPS focus: make local government a priority

Citing a Southern African Institute of Government Auditors (SAIGA) that found only seven municipalities in the country doing well, the Institute has called on the Minister of Finance, Enoch Godongwana to present a clear strategy to revive South Africa's torpid economy and return public finances to a sustainable path when he presents his first mid-term budget later today.
Source: ©51660435  Repairing potholes in Bloemfontein
Source: ©51660435 123rf Repairing potholes in Bloemfontein

The report found that only 30% of municipalities were functional, with 31% dysfunctional and 32% in distress.

SAIGA CEO, Russell Morena says the organisation believes that, following the recent local elections, the minister needs to focus on the challenges of the local government.

He says that the minister will have to focus on the reallocation of funds towards local government in order to address these issues and gaps that have to do with capacity and skills.

Morena adds that it is a well-known fact that about 62% of previous local councilors had lacked basic computer skills to enable the passing of crucial municipal budgets.

He also points out that poor financial management, with many municipalities being flagged by the Auditor-General, is plaguing the local government sphere.

This, Morena says, is a clear indication that there are a number of challenges in local government that need the minister to ensure that there is sufficient funding allocated towards the development of local government.

“As SAIGA we believe that the minister's first mid-term budget should amongst other issues give priority to local government.”

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