16 Feb 2020

The under collection of Selebi Phikwe Town Council’s own sources has been blamed for the 20192020 financial year budget deficit.

Delivering the recurrent budget proposal for the 2020/2021 financial year during a full council session recently, chairperson of the finance committee, Mr Oageng Makgosa said a deficit budget was anticipated, partly as a result of increment of members’ salaries and allowances as well as ward development committees’ allowances, which effected in April and October 2019.

He explained that for the 2019/2020 financial year, the council collected P11 219 508 out of the P14 500 990 of total revenue budgeted for.

Mr Makgosa said the council’s total budget amounted to P136 006 330 against the submitted budget requirements of P166 118 520.

He said the budget proposal stood at P146 840 490 to be financed by an overall estimated revenue support grant of P132 006 330.

Furthermore, Mr Makgosa highlighted that the revenue support grant constituted 90 per cent of the total estimated income, while the council’s own source of revenue represented only 10 percent.

He explained that the original budget could not be met due to financial constraints, making it evident that the funding will not be able to carry out all activities as intended in the tentative budget.

Mr Makgosa said abattoir fees income increased by more than 100 percent, due to the new rates that were introduced in April 2019, while the tender fees income increase of 26 per cent was due to anticipated procurement on work, supplies and services to be undertaken in the year 2019/2020 as a result of Economic Stimulus Programme (ESP), constituency projects, destitute housing projects and other special funds.

He explained that the budget for school fees for 2019/2020 has increased by 33 percent as the council anticipated an increase in the number of foreign students as investors set up businesses in Selebi Phikwe.

Mr Makgosa said the service levy income was still the same as the number of plot holders paying service levy had not changed, adding that the council anticipated no change in the stadium fees vote as well.

Furthermore, he said there was no increase anticipated for the staff housing fees income, as the council was still undertaking renovations.

For his part, Selebi Phikwe mayor, Mr Lucas Modimana said it was clear from the budget that the council needed to broaden its revenue income base and intensify its revenue collection efforts.

He challenged councillors to mobilise the constituents to pay their rates, saying the town’s existence depended on it. ENDS