The country’s 257 municipalities, which are grappling with fiscal pressures, systemic corruption and poor governance, are set to receive R379.6bn (95.9%) from the department of co-operative governance & traditional affairs’ (Cogta’s) allocated budget of R395.7bn over the medium-term expenditure framework (MTEF).
Delivering his budget vote speech in Cape Town on Tuesday, Cogta minister Velenkosini Hlabisa said the R379.6bn was designated for transfers to local councils and affiliated entities.
“However, there are planned reductions in total expenditure, decreasing by R3.7bn in 2024/25, R4.5bn in 2025/26, and R5bn in 2026/27, at an average annual rate of 3.2%,” Hlabisa said.
“Despite the reductions, overall expenditure is expected to increase at an average annual rate of 4.6%, from R125.3bn in 2024/25 to R137bn in 2027/28. Transfers to provinces and municipalities account for an estimated 95.9% (R379.6bn) of the department’s total budget over the MTEF period, primarily for the local government equitable share, disaster relief grant and the municipal infrastructure grant.”
The local government sector is at the coalface of service delivery, but maladministration, looting, incompetence and poor financial controls have resulted in deteriorating services in many municipalities.
Others struggle to pay staff salaries and employment benefits, deliver basic services such as refuse collection, or provide drinkable water and sanitation. Of the 257 municipalities, more than 120 have cases of corruption under investigation by the Hawks.
Regarding the traditional affairs portfolio, Hlabisa said the appropriated budget for 2024/25 is R187.3m.
“There is a budget reduction of R5.8m compared to the previous year’s allocation due to a mandatory budget cut implemented by the National Treasury. However, this allocation is expected to increase to R194.650m in 2025/26 and R203.972m in the outer year of 2026/27. Out of this allocation, 25% is a transfer payment to the Cultural, Religious and Linguistic Rights Commission, which translates to R45.6m in 2024/25, R47.7m in 2025/26 and R49.9m in 2026/27,” the minister said.
He said a report to be tabled in the cabinet soon would indicate considerable progress in stabilising distressed municipalities. “Time for lamenting is over, we have to join hands to make an impact by turning dysfunctional municipalities around and improve support for institutions of traditional and Khoisan leadership.
“The seventh administration has opened a new chapter, which must be a turning point for the Cogta sector post 30 years of freedom and democracy,” Hlabisa said.
ANC MP Zweli Mkhize said while the budget cuts would affect the provision of services, the ANC supported the proposed budget.
Freedom Front Plus MP Wouter Wessels said municipalities owed Eskom R75bn and water boards R21bn. He said financial unsustainability must be addressed as it affected service delivery.
Rise Mzansi MP Makashule Gana said: “We can’t play marbles with local government. We are sending, possibly, the worst people to run municipalities ... the problem of local government was started by people who got greedy and started to steal. If you deploy unqualified cadres to municipalities we will not support you.”
EFF MP Hlengiwe Mkhaliphi said: “The EFF rejects this proposed budget as Cogta, over the years, has failed to perform its oversight role expected of all spheres of government.”
She said there were no monitoring tools for local governance, instability was rife and there were no co-ordinated disaster management systems in the country.
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