19 Jul 2017

The Central District Council (CDC) has approved P873.3 million as recurrent budget for the 2018/19 financial year.

Presenting the budget at a special council sitting, CDC chairperson for finance, planning and development committee, Mr Onalepelo Kedikilwe said the budget proposal would be financed by the estimated revenue support grant of P840.2 million.

“The revenue support grant represents 96 per cent of the total estimated income and council’s own source of revenue represent only four per cent,” he said.

Mr Kedikilwe noted that the proposal increased by P79.4 million or 10 per cent from the 2017/18 budget.

“The income from our own source decreased by 0.3 per cent from the previous year.

We were not able to collect as per our budget due to various factors such as decrease in demand for some services we offer, which includes hiring of classrooms, auction and insurance commission and seasonal votes such as matimela,” he said.

Making a summary of revenue sources, he said there were increases and decreases as per their votes.

He said they had a 19.03 per cent decrease in income sources for abattoir fees due to frequent breakdown of equipment at the Gweta abattoir which required major maintenance.

“We have anticipated an increase in revenue sources of fees such as advertising signs, community centre, insurance commission, sanitation fees, staff housing rent, trade licenses, school fees and tender fees, with a decrease in fees such as in day care, bye-law fines, matimela fund, plan perusal and the sale of sundry items,” he said.

Mr Kedikilwe noted that the council had anticipated an increase of 16.5 per cent as it had negotiated lower rates with commercial banks with the hope that more employees would acquire loans.

“A new contract with lower rates will be signed with Standard Chartered Bank before end of July,”  he said.

He said Social and Community Development proposed the largest share of P209 million or 29 per cent of the budget, and an increase of 23.94 per cent from the previous budget mainly because of the increase in the budget for food and accommodation given to Remote Area Dwellers Programme as well as the increase of beneficiaries under the social welfare programme.

“The second largest share will go to human resources and administration department with an amount of over P132 million.

This is attributed to increase in pension and the need to procure software licences under the Information Technology unit,” he said. Civil and mechanical and education were mentioned as the fourth and fifth with a share of 13.57 and 13 per cent respectively, with the rest of the departments sharing the remaining 34.3 per cent of the recurrent budget.

Mr Kedikilwe said CDC was experiencing a deficit as they were spending more than what was in their basket.

He further said it was necessary for them to forgo some activities.

“During the last council sitting of April 2017 an investment committee was established hence committee member should be encouraged to come up with new sources of income to augment council revenue base. There is, therefore, need for a budget rationalisation exercise at the ministerial level,” he said.

He noted that the country discussed identifying new sources of revenue, and that it was time to act.

“Rome was not built in one day, we can start small and gradually reach out target,” he stated.  BOPA