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Covid-19 forces council to revise budget

02 Aug 2020

Francistown City Council’s revenue support grant has been revised downward by 5.5 percent due to COVID-19 pandemic.

Finance and Administration Committee chairperson, Councillor Lesego Kwambala explained during a special full council meeting that the grant had been reduced from over P200 million to P100 million.

Mr Kwambala, who is also councilor for Itekeng ward, explained that consequently the council responded in different ways in order to address the budget cut.

He said one such response was a recommendation of a 0.20 per cent reduction of personal emoluments vote thus reducing it from P139.8m to P139.5m, with reduction being made on the overtime vote.

Councillor Kwambala said there was  an overall decrease of 7.21 per cent on the running expenses vote thus reducing it from over P37 to P34 million.

He further noted that the special expenses vote had an approved budget of over P37 million which had a recommended reduction of 10.74 per cent, adding that the significant effects would be on replacements of vehicles, workshops and seminars and purchase of computers.

Mr Kwambala said due to the 2020/2021 budget revision, there would be a reduction in cash flow leading to reduced service provision and reprioritisation of planned activities.

This, he said, would also lead to deferral of some  projects.

Mr Kwambala said it was time the council re-evaluated its approach and embarked on robust measures to collect outstanding council revenues and ensure belt tightening.

He further appealed to the councillors and staff to work together to explore new sources of revenue in an effort to augment the funding from government, saying they must also be robust in implementing the discussed measures.

He said a task force would be established, comprising three councilors and three staff members, to ensure that the city raised revenue to enhance the lives of Francistown residents.

For their part, councilors adopted the budget revision and expressed that implementation remained a challenge in executing the council’s projects.

They therefore, urged all stakeholders to partake in raising revenue for the council and further appealed for a strategic management plan that would monitor how funds were being used to avoid over spending and delaying implementation of projects.

Councilor for Gerald Ward, Mr Gilbert Boikhutso said the council was capable of raising money because of the abundance of natural resources citing the iconic stones found in Gerald Estate which had been used as monuments in various sites such as the Tropic of Capricorn.

Ntshe ward Councillor, Mr Eric Mabengano suggested that the council engage the informal sector as an economic and development partner.

Specially elected councilor, Mr Modiri Lucas also called for private-public-partnerships (PPP) to address the city’s challenges. Ends

Source : BOPA

Author : Keneilwe Ramphotho

Location : Francistown

Event : Full council meeting

Date : 02 Aug 2020