THE eThekwini Municipality draft budget for the 2016/17 financial year has been released for public comment, with a proposed rates increase of 6.9% and a focus on reducing infrastructure and service needs backlogs.
The consolidated draft budget of R41.6-billion was tabled by mayor, Councillor James Nxumalo and is made up of a capital budget of R6.7-billion and an operational budget of R34.9-billion.
The proposed tariff increases are:
- Rates 6.9%
- Water – domestic 12.5%
- Water – business 15.9%
- Electricity 7.64%
- Sanitation 9.9%
- Refuse removal 7.9%.
“Taking heed of treasury and the belt tightening measures made in the national budget speech we have proposed an across the board cut be made to vacancies, overtime, security, vehicle costs, consultants, eventing, seminars and conferences to curb expenditure,” said Nxumalo.
He highlighted the R14.8-billion medium term capital budget allocated to eradicating infrastructure and household service needs and backlogs. R3.4-billion of this will be used for new housing developments and interim servicing of informal settlements.
“Provisions in this medium term budget continue to support government’s commitment to broadening service delivery, attracting investors and expanding investment in infrastructure, while taking into account the constrained fiscal environment.”
Nearly 71% of the capital budget will be spent on utility services, such as water and sanitation, electricity and refuse removal together with housing provision over the medium term expenditure framework.
Upwards of R80-million has been budgeted for youth development and R49.5-million will increase the expanded public works programme.
The full draft budget is available to the public for comment through public participation programmes throughout the municipality in April, by visiting city hall or www.durban.gov.za.
