03 Feb 2015

The South East District Council (SEDC) has approved a P134 million budget for the 2015/16 financial year.

The budget comprises P125.4 million from the government revenue support grant and about P9 million from the council’s own revenue.

Presenting the council’s proposed budget on January 30 SEDC chief finance and development planning officer, Ms Queen Swapo, said provision for the revenue support grant budget had increased minimally from the previous budget. 

Nonetheless, Ms Swapo noted that the council still depended heavily on the revenue support grant, which made up to 93 per cent of the total council budget. “The district has proposed to raise an income amounting to P9.381 million ,which is seven per cent of the total budget,” she added.

Furthermore, she said the council’s own revenues had been dwindling for the past three years due to economic conditions among other reasons. She said the 2015/16 budget indicated that the district’s own source of income depended mainly on interest on deposit, sanitation and staff housing rents.

Council Secretary Mr Goleba Kgari said although there had not been significant increase in the council budget, community members still expected to be serviced. Mr Kgari said there would be no new projects during the 2015/16 budget and added that the bulk of the money would go towards paying staff salaries.

However, he said the council needed to come up with revenue generating avenues if it is to be able to service its clients. He also lamented that businesses operating in the south east had not been paying rates to the council which could also help to generate money.

Mr Kgari said they were still waiting for the regulations which will facilitate the processes from the ministry of local government and rural development. During comments, Councillor Matshidiso Fologang said the budget strategy was old fashioned as it was devised when the country had plenty, adding that it needed to change.

He said for a long time, the council had been talking about generating income but nothing had taken shape to support that. Councillor Fologang further added that there was need to fastback the notion of generating own revenue especially that the current council economic advisors were educated.

Councillor Nnaniki Nkwe said although the council was expected to generate revenue, this was hampered by the shortage of staff.The special full council sessionended on Friday. ENDS