30 Jan 2018

The Southern District Council (SDC) has approved a tentative Revenue Support Grant of about P390 million from the Ministry of Local Government and Rural Development for the 2018/19 financial year.

Presenting the budget on January 29, SDC finance committee chairperson, Mr William Masibi explained that the budget was a seven per cent increase from the previous one but 2.79 per cent less than the ideal budget of P401 million

Mr Masibi explained that the council had to prioritise needs from the ideal budget with a view to do more with less.

He said the proposed budget was informed by the need to stimulate economic growth, maintain dilapidated infrastructure and to create employment opportunities in the district in line with the local economic development policy.

Faced with a shoe string budget, Mr Masibi said the council raised over P13 million through advertising fees, insurance commission, interest on investments, Matimela funds, sale of sundary items and trade licenses among others to augment the budget.

He said the hike had resulted in an increase of P510 174.

Mr Masibi also informed the council that revenue had declined by four per cent from P13 693 730 for the 2017/18 financial year to P13 148 10 for the 2018/19 financial year.

He attributed the slump to a decline on interest rates offered by financial institutions on invested funds and a decrease in staff housing rentals due to dilapidated buildings.

Mr Masibi also encouraged councillors to think outside the box and to come up with innovative ways to create revenue streams for the council. ENDS