02 Feb 2020

Serowe Sub-council has approved over P126 million budget proposal for the 2020/2021 financial year.

Finance and works committee chairperson, Mr Goabamang Setlhaba said the budget proposal comprised about P4.4 million from the sub-council’s coffers and close to P121.9 million from government as Revenue Support Grant (RSG) amounting to P126.3 million.

Mr Setlhaba said the RSG represented 96.05 per cent of the total estimated income and council’s own source of revenue, representing only 3.95 per cent.

He said the proposed total budget had increased by about P9.9 million from the 2019/20 budget of P116.5 million

Mr Setlhaba said the Serowe Administration Authority (SAA) cost structure was arranged such that the largest share of 52.22 per cent of the recurrent budget was allocated to personnel emoluments such as staff salaries and councillors benefits as well as benefits and staff over time allowances.

He said the second largest share had been allocated to special expenses at 20.92 per cent to cover purchase of school books and equipment, relief of destitute persons, workshops and seminars, school uniform, RADs projects as well as replacement of school furniture and security services.

The third largest share, he said, was allocated to running expenses at 12.96 per cent for maintenance of buildings, roads and electrical equipment, payment of water and electrical charges, repair of vehicles, purchase of fuel and protective clothing.

He said the last share was the establishment expenses share of 5.9 per cent that encompassed travelling expenses, printing stationery, telephones, training, rent subsidy, insurance, VDC allowances and civic entertainment.

He however expressed concern that year after year the sub-council experienced a budget deficit though in the past financial year the deficit was minimal compared to the previous years.

Mr Setlhaba said the gap between the proposed or realistic budget and approved budget was so wide that extreme over expenditures were incurred.

He said even if SAA would have insufficient funds, services for votes such as relief of destitute, food and accommodation, school fees and uniform had to be met so that service delivery was not compromised.

Therefore, he said an overall prudent financial management by the sub-council was still necessary to avoid deficit. 

Meanwhile, about eight opposition councillors had earlier walked out of the meeting after pleading with the sub-council chairperson, Mr Lesedi Phuthego to postpone the session because they were not given enough time to study the budget proposal document.

They argued that they were only given the document on the same day of the session upon their arrival at the chamber and they needed time to peruse it because it was voluminous. 

Councillor for Mogatsapoo Ward, Mr Vuyo Yane asked Mr Phuthego to give the councillors at least one day to read the budget proposal because it was important. 

“We cannot agree with something that we do not know. We have to be careful because we are also not in the council committees and the committee members are the ones who know what is inside the budget proposal,” he said.   

Cllr Yane said as councillors they represented people who voted for them and they had to be responsible.

Cllr Solomon Dikgang of Tidimalo Ward concurred with Cllr Yane, saying there would come a point where they would be expected to endorse it, hence the need to have time to read and be conversant with it.

However, Mr Phuthego called for voting in order for them to reach some consensus whether they should continue with the sub council session or not. 

During the voting process, 15 out of 20 councillors voted in favour of proceeding with the session. The sub-council however proceeded with 12 councillors including the chairperson. ENDS