National Treasury has today released local government’s revenue and expenditure for the fourth quarter of the 2013/14 financial year, as well as spending on conditional grants for the same period. This report covers the twelve months (1 July 2013 - 30 June 2014) of the municipal financial year ending on 30 June 2014.
This report is part of the In-year Management, Monitoring and Reporting System for Local Government (IYM) which enables provincial and national government to exercise oversight over municipalities, and identify possible problems in implementing municipal budgets and conditional grants.
In-year reporting is now well institutionalised with most municipalities consistently producing quarterly financial reports. The reporting facilitates transparency, better in-year management as well as the oversight of budgets, making these reports management tools and early warning mechanisms for councils to monitor and improve municipal performance.
Key trends:
Aggregate trends
On aggregate, municipalities spent 89.3 per cent, or R281.9 billion, of the total adjusted budget of R315.7 billion as at 30 June 2014 (fourth quarter YTD results for the 2013/14 financial year). This translates into a net under spending of R33.8 billion, or 10.7 per cent of adjusted budgets for municipalities. The under spending is R1.4 billion lower than that of 2012/13 when municipalities under spent by R35.2 billion or 12.2 per cent of their budgets. In respect of revenue, aggregate billing and other revenue amounted to 91.9 per cent, or R317 billion, of the total adjusted revenue budget of R345 billion.
Full document [PDF].
