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Adjustment budget set to boost local economy approved by COJ
JOBURG – MMC Matongo pointed out that the adjustment budget comes at a time when there has been a prolonged deterioration of metropolitan economies, which have contracted by at least eight per cent in 2020.
City of Johannesburg Metropolitan Council has approved the 2020/21 Adjustment Budget which prioritises major infrastructure projects, economic revival, and continued service delivery.
MMC for Finance media liaison officer Gosebo Mathope said MMC for Finance, councillor Jolidee Matongo indicated in his presentation of the adjusted budget in council on 26 February that the prioritised items for adjustment were a bid to stimulate the local economy and boost socio-economic development amid the ongoing Covid-19 pandemic.
Mathope said Matongo pointed out that the adjustment budget came at a time when there had been a prolonged deterioration of metropolitan economies which have contracted by at least eight per cent in 2020.
“As a City, it is our responsibility to cushion residents who are already hard-hit by the Covid-19 pandemic. There is, therefore, a need to revive our local economy through investment in major infrastructure projects, housing and continued service delivery – hence the Government of Local Unity (GLU) has prioritised allocations to these priorities,” Matongo said.
Mathope explained that the Adjustment Budget included the allocation of R12.8 million for the operationalisation of the Alexandra Automotive Hub, which includes a component shop, tyre fitment and alignment, panel beating, auto electrical work and services and maintenance workshops.
“The GLU government has further allocated R9 million under City Power for Enterprise Supplier Development to stimulate the SETA entities and to boost enterprise development. This is alongside the investment of R5.5 million for the re-establishment and operationalisation of the Johannesburg Tourism Company,” Matongo said.
“We have also increased expenditure for social development by R18.1 million, which includes R15 million for the purchase and provision of vegetable packs for indigent communities.
“Furthermore, under Pikitup, an additional R10 million has been allocated for personal protective equipment (PPE) to ensure that staff members are provided with sufficient PPEs.”
ASLO READ: A look at Joburg’s major budget adjustments
Mathope added that the budget also allocated R53.5 million to the revival of the city’s roads by the Joburg Roads Agency, which will see more work on pothole patching, curb maintenance and storm water inlet cleaning. A further R9 million has been allocated to City Power to cater for the Technical Strategy for Network Health Assessment to keep the lights on in the city.
Furthermore, the Adjustment Budget included the allocation of R98 million for the planned replacement of water mains in the Sandton/Alexandra area, with R50 million also set aside for projected electricity charges for Wastewater Treatment Plants across the city.
