Newsletter 98-Budget under-spending equates poor service delivery-19 November 2010
Each of the 283 municipalities receives a municipal infrastructure grant (MIG). This grant is aimed purely at the provision of basic services such as water and sanitation. However, some municipalities do not spend this money or use it on other unrelated things.
The Department of Co-operative Governance and Traditional Affairs (CogTA) this week revealed that 24 municipalities failed to spend R920 million in municipal infrastructure grants (MIGs) in the financial year ended 30 June 2010.
Municipalities’ inability to spend all the allocated money means that they failed to provide proper services for residents. In addition to under-spending, some municipalities simply redirected the MIG funds to expenses such as salaries or other operating costs.
However, municipalities in the Free State, Eastern Cape, KwaZulu-Natal, and Limpopo provinces have spent close to 98% of their MIGs. Municipalities in Gauteng, Mpumalanga, and the North West have spent only 79% of their MIGs. Municipalities in the Northern Cape spent only 72% of their MIGs. The spending of municipalities in the Western Cape was not provided in CogTA’s statement.
Poor planning and lack of technical skills are some of the reasons for under-spending. This means that although the money is there, it is not appropriately allocated to meet the needs of communities.
-Nachi Majoe
by
nmajoe
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last modified
2010-11-19 12:14
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