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Budget not adequate to cover council business

22 Mar 2023

There is need to to raise revenue for the Kgatleng District as it only managed to collect P6.4 million against the targeted P8.3 million.

Addressing the full council session on Monday, Kgatleng District Council chairperson, Mr Daniel Molokwe said the under collection of over P2.4 million was a cause for concern.

Mr Molokwe said for the 2023/2024 financial budget, the Council had received a revenue support grant of over P155.7 million. He explained that was inclusive of the five per cent salary increase value of over P6.4 million, VDC allowance increase of P196 053, new posts salaries of P372 096 and insurance value of P572 684. He said due to the limited budget, the council would have to rationalise services.

For the current financial year 2022/23, he said the council financial position was not adequate to cover the overall running of the council needs.

Mr Molokwe said as at February 28, the council expenditure stood at a little over P165.2 million against the budget of P156.8 million. 

He said that simply indicated that the council was in the red and the matter had been worsened by poor performance of own source revenue collection initiatives.

In order to rationalise services, he said the council was in the process of ceasing issuance of cheques as they had currently migrated to electronic payments like e-wallet services to pay Village Development Committee sitting allowances.

The chairperson said consultations were ongoing regarding the exercise and the goal was to discontinue the use of cheques by December 31 this year. ends

Source : BOPA

Author : Booster Mogapi

Location : MOCHUDI

Event : Council meet

Date : 22 Mar 2023