30 Jul 2020

Serowe Sub-district council has been experiencing a budget deficit for a long time.

Presenting the proposed recurrent budget for the financial year 2020/2021 during a sub-district council special meeting in Serowe on July 29 (Wednesday), Mr Goabamong Sethaba said the proposed budget of revenue support grant was reduced by more than P6 million from about P121 million to over P114 million.

Councillor Sethaba said the total budget allocated to Serowe Administrative Authority was about P119 million for the financial year 2020/2021, which councillors had approved. 

Mr Sethaba stated that the gap between the proposed and approved budget was wide and that extreme over expenditure was incurred.

“Even if we can have insufficient funds, services for votes such as relief of destitute, food and accommodation, school fees and uniform have to be met so that service delivery is not comprised,” he said.

He said the budget was categorised into four expenditure items namely: personnel emoluments, running expenses, establishment expenses and special expenses.

Mr Sethaba said the priorities for the budget was inclusive of maintenance of public facilities such as improving water reticulation in primary schools, refuse contracts, VDC allowances, food and accommodation for destitute persons and school stationery for pupils. 

Councillors were informed that the cost structure was arranged such that the largest share of 53.37 per cent of the recurrent budget was allocated to personnel emoluments. Personnel emoluments cater for staff salaries and councillors’ benefits. It also includes overtime for staff and pension.

Councillor Sethaba said the second largest share went to special expenses at 29.93 per cent, which covered the purchasing of school books and equipment, relief of destitute persons, school uniform and projects for RADs. It also includes replacement of school furniture and security services.

The third largest share went to running expenses at 10.99 per cent and consists of maintenance of buildings, roads and equipment, payment of water and electrical charges and the purchase of fuel and protective clothing.

Establishment expenses, which has a share of 5.70 per cent, encompasses travelling expenses, telephones, training, rent subsidy, insurance, VDC allowance and civic entertainment. ENDS