12 Aug 2020

Serowe Sub-council has approved a budget proposal of over P196 million for the 2021/2022 financial year.

It would be financed by estimated Revenue Support Grant of over P192 million and income from own source of over P4 million.

When presenting the amended recurrent budget proposal on Monday at a special meeting, finance and works committee chairperson, Mr Goabamang Setlhaba said the sub-district was advised by the executive committee to consider revising its budget to be consistent with other sub-districts.

He, however, said the revenue support grant represented 97.77 per cent of the total estimated income and council’s own source of revenue at about two per cent.

Mr Setlhaba said the proposed total budget had increased by P64 418 730 representing 55 per cent from the 2020/21 budget of P125 989.

He said income from own source was anticipated to decrease by one per cent from the previous year and the main sources of own revenue funding for the sub-council included staff house rentals, trade licenses, abattoir fees and insurance commission.

Mr Setlhaba said Serowe Administration Authority (SAA) cost structure was arranged such that the largest share of 36.49 per cent of the recurrent budget was allocated to personnel emoluments to cater for staff salaries, councillor’s benefits and staff overtimes and pensions.

The second largest share, he said, catered for special expenses at 32.8 per cent and special vote covers purchase of school books and equipment, relief of destitute persons, replacement of vehicles, school uniform and projects for RADS, replacement of school furniture and security services.

Furthermore, he indicated that the largest was to run expenses at 25.5 per cent and it consisted of maintenance of buildings, roads and electrical and equipment, payment of water and electrical charges, repairs of vehicles, purchase of fuel and protective clothing.

He said establishment expenses would have a share of 5.15 per cent and encompassed travelling expenses, printing stationery, telephones, training, rent subsidy, insurance, VDC allowances and civic entertainment.

Mr Setlhaba said he was hopeful that with such a method of budgeting, the deficit that the council had been experiencing year in and out would be reduced resulting in the sub-district being able to provide for its people.

He said prudent financial management by the sub-council was still necessary to avoid a lapse into deficits again at the end of the financial year. ENDS