The minister made the remark while addressing delegates during a panel discussion at the two-day 2022 Local Government Summit at the Birchwood Conference Centre in Boksburg on Tuesday.
Budget cuts, said Godongwana, have created various problems, with an issue of serious concern being the worrying tendency to shift functions to local government. “The starting point in financial management is when [council] sits and decides to approve an unfunded budget. When you approve an unfunded budget, by choice, you’ve made a decision that you’re going to spend money you don’t have,” he said.The net effect of unfunded budgets, the minister said, is poor service delivery, which government can ill afford.
During this period, 25 municipalities received disclaimed audit opinions – the worst audit opinion possible.
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