Municipality passes funded budget for 2024/25 financial year
Stringent methods and fiscal discipline are required for the municipality to not only retain its budget financing position, but also to raise the rate of sustainable service provision while reducing fraud, corruption, and maladministration.
For the first time in four years, the Newcastle municipality has approved a funded budget.
The previous budgets have all been unfunded and have included a ‘budget funding plan, cost containment strategies, and various other revenue enhancement initiatives.’
However, the municipality said in a statement that the municipality still ‘faces service delivery challenges and a below-national treasury collection rate norm of 95%.’
“This calls for intensive efforts to collect property rates and service charges based on water, electricity, and waste collection among revenue sources,” read the statement.
Stringent measures and fiscal discipline are need for the municipality not only to maintain its budget funding position but also to increase its rate of sustainable services, provision, and curb fraud, corruption, and maladministration.
“The municipality has been facing severe financial challenges, which resulted in the implementation of the unfunded budget. Hence, passing the funded budget in the recent council seating marked the victory of the coalition government led by the IFP. This achievement shows that we are on course to achieve our vision of ensuring that by 2035, Newcastle will be a resilient and economically vibrant city.”
Mayor Cllr. Xolani Dube, said that passing a funded budget for 2024–25 was achieved through several interventions that the municipality introduced to improve its financial position, including prioritising expenditure, monitoring high cost drivers, and implementing revenue enhancement strategies.
“Our efforts show that we are committed to building a local government system that is developmental in the way it provides services to communities and is accountable and responsive to the needs of the community,” concluded Mayor Dube.
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