24 Mar 2022

Kgatleng District Council e preliminary budget estimate for the coming financial year shows a reduction of one per cent.

According to the council’s chairperson, Mr Daniel Molokwe there is a high likelihood that the budget would be  further reduced, “as the country is not yet out-of-the-woods from the COVID-19 consequential impact.”

Officiating during the full council meeting in Mochudi on Monday, Mr Molokwe said the council had decided to tighten the purse strings by stopping some activities that “are considered extravagant.”

“In that regard, activities that are of no impact in the value chain should be ceased and improve only on those that are very critical in executing the President’s Reset agenda.

He said this against the backdrop of financial constraints as some votes were inadequately budgeted for due to the budget ceiling set by the ministry, adding that the council was in excess of negative P7million and was operating under inter-fund indebtedness.

“To that effect, the Council had to plead with the Ministry for immediate assistance on the aforesaid situation,” he said.

Mr Molokwe said the most affected votes were amongst others, the relief destitute, lighting/gas/water, VDC allowances, members internal travelling & subsistence and employer›s pension contribution.

Regarding revenue collection as of February 2022, he said P4.8million was collected against the set target of P7.4million, showing a below collection of P2.6million.

This, he said was an indication that the council was struggling to collect as anticipated resulting in a budget deficit.

Cllr Molokwe said the council’s preliminary Revenue Support Grant (RSG) ceilings for the 2022/23 financial year have been received from the Ministry of Local Government & Rural Development and Kgatleng District Council has been allocated over P147.7million, translating to a decrease of P2.1million from this year’s RSG.

Earlier on, he apprised the councillors that the 2021/22 financial year was characterized by unpopular fiscal adjustments due to successive preliminary budgetary cuts from the initial budget estimate of P279.1million against the approved or running budget of P158million. ENDS