According to a report tabled by mayor Mxolisi Kaunda the eThekwini Metro has increased its annual budget by more than R1billion, with the vast majority of the funding to be directed towards infrastructure spending and job creation. Picture: Nqobile Mbonambi/ Africannewsagency(ANA)
Durban - The eThekwini Metro has increased its annual budget by more than R1billion, with the vast majority of the funding to be directed towards infrastructure spending and job creation - an effort to change the city’s financial trajectory, following the economic fallout of the Covid-19 outbreak.
According to a report tabled by mayor Mxolisi Kaunda before a full council yesterday, the adjustment budget was needed because of changes in the city’s grant allocations from national government, an additional R500million loan that is expected to be taken out this year, and the reprioritisation of projects - mainly in the human settlements, engineering, water and electricity units.
Adjustment budgets in September are considered highly unusual, as the city adopted its annual budget as recently as May 27, 2020, otherwise referred to as the Medium-term and Revenue Expenditure Framework (MTREF) 2020/21.
Budgets are normally only adjusted at the end of January.
Kaunda said the increased budget was to “improve our infrastructure for quality service delivery”.
He said the increase could be found in the capital budget, used to fund catalytic infrastructure projects, which increased from 4.8billion to R5.5billion.
The operating budget, used to fund the general running of the municipality, increased from R44.07billion to R44.4billion.
“The adjustment budget will go towards the improvement of human settlements, public transport, water, electricity and sanitation infrastructure.
“This ANC-led municipality has been able to stabilise collection of rates and cash flow during this uncertain period.
“We are proud to have been able to weather the storm and, through a sound economic recovery plan that we have developed and approved, we will continue to improve and attract investment, and continue to grow and provide much-needed jobs out there,” said Kaunda.
He said that developing the adjustment budget “has not been an easy process, given the challenges brought on by the Covid-19 pandemic, which has destroyed our economy and livelihoods”.
He conceded that the hard lockdown was a primary reason that the city and country were facing increased unemployment and a diminished economy.
“Guided by our economic recovery plan, we are working hard to persuade big businesses in the city to retain and expand their investments, to grow our economy and create much-needed jobs.”
Kaunda said that the national government had been “prudent in the handling of state resources” during the lockdown, which had enabled the city to secure additional funding.
He cautioned individuals who saw the increase in spending from the city as an “opportunity to enrich themselves” through corruption.
“We remain committed to the principles of accountability and clean governance, and anyone who steals - by misappropriating state resources - will face the law.”
The Mercury