In addition to this, Masondo said, many municipalities approve unfunded budgets, or councils approve budgets that are not credible. They also approve budgets that are not based on realistically anticipated revenue and expenditure, and by so doing, they effectively begin their financial years through failure.
“The solution to this problem is that municipalities should only budget for and spend revenue that they have received or which they are realistically likely to receive,” said the deputy minister. Masondo also lamented that a large portion of conditional grants year on year go unspent, saying this robs communities of much needed infrastructure and services. “This is largely due to lack of forward planning by municipalities in appointing service providers to execute these projects,” he said.
Those that appoint service providers either appoint incompetent service providers or they poorly manage these contractors due to technical incapacity.Masondo said the municipal finance improvement programme was in its third phase of implementation as an intervention to assist local government in improving its spending on conditional grants and to assist municipalities in building sound revenue management systems.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Action needed on inept municipalities and meddling politicians: MasondoDeputy finance minister David Masondo wants municipal leaders be held accountable for poor financial management and decision-making.
Source: TimesLIVE - 🏆 28. / 59 Read more »
Ecsponent begins legal action after probe into R100m MyBucks investmentThe group had internally probed an investment it made into redeemable preference shares of VSS Financial Services in 2018
Source: BDliveSA - 🏆 12. / 63 Read more »
Ecsponent begins legal action after probe into R100m MyBucks investmentThe group had internally probed an investment it made into redeemable preference shares of VSS Financial Services in 2018
Source: BDliveSA - 🏆 12. / 63 Read more »
Action needed on inept municipalities and meddling politicians: MasondoDeputy finance minister David Masondo wants municipal leaders be held accountable for poor financial management and decision-making.
Source: TimesLIVE - 🏆 28. / 59 Read more »