18 Oct 2018

The national budget for the financial year 2019/2020 is projected to have a deficit of P5.1 billion, says  Assistant Minister of Local Government and Rural Development, Mr Kgotla Autlwetse.

He noted that the deficit would affect the ministry’s share of the budget and the Revenue Support Grant (RSG) for local authorities.

Addressing council chairpersons and mayors in Francistown on October 16, Mr Autlwetse said preliminary indications were that the RSG for 2019/2020 would be cut from P3.7 billion to P3.5 billion.

He said it called for local authorities to strengthen revenue collection as well as to introduce new sources of revenue to mitigate the effects of the budget cuts.

Mr Autlwetse noted that during the 2018/19 financial year the budget for councils from own source revenue amounted to over P396 million, and that out of the figure, councils had collected only over P49 million against the anticipated P165 million by August 31, 2018.

He said the ministry was concerned by the low level of performance, and urged councils to strengthen their revenue collection strategies.

The assistant minister also noted that collection of rates was low across all councils, saying at the beginning of the current financial year,  total rates owed stood at over P584 million but that as at August 31, 2018 only P53 million was collected.

“This, therefore, means that on average, the councils’ combined rates debtors collection amounts to a paltry P10 782 163 per month.

This outcome poses a serious threat to the cash flow of councils given that rates income is the major source of revenue for urban councils,” he added.

Mr Autlwetse also said the challenge of under collection extended to service levy, adding that by the end of August  this year, service levy arrears amounted to over P29 million and that only about P1 million had been collected so far.

On other issues, Mr Autlwetse said the current developmental challenges coupled with increasing citizen demand for a robust local government system and the advent of technology, called for the ministry’s leaders to embark on a robust and comprehensive local government reform programme.

He said such a reform programme shoud focus on local governance, economic development, social development, development and maintenance of municipal infrastructure, environmental health/waste management, strengthening bogosi institutions, organisational efficiency through automation and resilient communities.

“We should ensure that the reforms programme is in sync with and a catalyst for NDP 11 implementation, Vision 2036 and the Sustainable Development Goals.

He said in view of global economic inter connections, the world was changing and presenting new challenges.

“We must respond to these challenges and turn them into opportunities,” he said.

Mr Autlwetse said the Ministry of Local Government and Rural Development should be exemplary in promoting good governance, which espouses principles such as accountability, transparency, participation and predictability.

“It is against this backdrop that while committed to building robust institutional structures and sustainable local communities, empowering all citizens to participate in the decision making process remains one of our primary objectives,” he added.

The assistant minister also raised concern regarding project delivery, saying although government spent huge sums of money on project consultants and supervisors, they continue to receive reports of projects delay which cost government millions which could have been utilised elsewhere to support needy people.

He challenged the local authorities leadership to diligently monitor and supervise projects because that was what the electorates expected from them. ENDS