13 Feb 2020

Councillors have appealed to the Central District Council (CDC) to device strategies to generate revenue to address the issue of running at a deficit.

Speaking during a special full council meeting on Wednesday, councillors Nametso Senku of Patikwane, George Makhura of Khurumela and Solomon Dikgang of Tidimalo ward said it was high time the council took drastic steps to find strategies that could help it make money

Councillor Makhura suggested that the council should make money from the bus rank by making bus and taxi owners pay a certain amount of money.

He said the council should concentrate on income generating initiatives rather than depending on what the government offered.

He said every year councillors plead with the council to find ways of generating income and make suggestions, but that their suggestions were never considered.

Councillors were responding to the chairperson of the finance, development and planning committee, Mr Aaron Baitsemang’s speech.

He presented the over P910 million 2020/21 recurrent budget proposal which the CDC approved.

Mr Baitsemang said the budget proposals comprised of over P33 million from the council’s coffers and P876 million from government as Revenue Support Grant (RSG).

He said the RSG represents 96 per cent of the total estimated income, and that council’s own source of revenue represents only four per cent.

Mr Baitsemang said the proposed total budget has increased by about P70 million from the 2019/20 budget of over P840 million.

He said income from own sources for 2020/ 2021 has insignificantly decreased as it was currently about P33 million as opposed to P34 million from the 2019/2020 budget.

“Rent, interest on investment, trade licenses, insurance commission and tender fees are expected to contribute large amounts,” he said.

Mr Baitsemang said the process of preparing the budget was not without challenges due to the fact that the allocated ceiling was attributed to personal emoluments and not adequate to cover the running and establishment expenses. ENDS