2017-2018 BUDGET: Service delivery gets the lion’s share
24 May 2017
The City of Johannesburg’s Sustainable Services Cluster, the municipality’s primary pillar responsible for enhancing quality service delivery, received the biggest slice of the cake when it was allocated a whopping R28.7 billion – or more than half – of the R55.9 billion 2017-2018 Budget tabled by Member of the Mayoral Committee for Finance Cllr Rabelani Dagada on Tuesday May 23.
Delivering his maiden Budget speech, MMC Dagada said the Sustainable Services Cluster was the primary driver for advancing pro-poor development and an important strategic pillar for the new administration. He said the 2017-2018 Budget was made up of a R47.3 billion operating expenditure budget and an R8.6 billion capital expenditure budget.
Of this, City Power has been allocated R15.5 billion as an operating budget for the 2017-2018 financial year and a multi-year capital budget of R3.8 billion to meet the electricity supply needs of residents, especially those living in poor communities.
Johannesburg Water has been allocated an operating budget of R9.6 billion and a three-year capital budget of R2.3 billion.
MMC Dagada said R40 million of this had been set aside to enhance sanitation in informal settlements. This, he said, was a major increase from last year’s R17 million budget. He said this highlighted the City’s commitment to restoring the dignity of “Johannesburg’s forgotten people”.
“This budget is in line with our strategic pillar to advance pro-poor development that gives meaningful redress to our people. I am happy to announce that as part of the 2017-2018 financial year, R162.7 million is to be allocated to providing electricity and water connections to poor residents in informal settlements throughout the City.
“This, again, is a major increase from last year’s budget allocation of R120 million and is in line with our strategic pillar to advance pro-poor development,” Cllr Dagada said.
He said R357 million had been budgeted for this purpose over the next three financial years. This, he said, would boost other efforts to bring power to “forgotten communities” such as Slovo Park, which had been allocated R50-million for electrification.
Pikitup has been allocated an operating budget of R2.4 billion and a multi-year capital budget of R218.7-million.
Of this, R482 million has been set aside for cleaning informal settlements over the next three years. About R150 million is to be spent in the 2017-2018 financial year alone.
A further R50 million will fund Pikitup’s third cleaning shift in the Johannesburg inner city. This is expected to increase to R82 million in the mid-term.
The Housing Department has been allocated an operating budget of R847 million in the 2017-2018 financial year and a multi-year capital budget of R3.5 billion over the medium term.
Cllr Dagada said the City had identified suitable land in Univille, Lawley, and Ennerdale that would serve as primary pilot sites for a site-and-service housing development – the first for the City.
The Johannesburg Social Housing Company (JOSHCO) has been allocated an operating budget of R152 million and a multi-year capital budget of R1.9 billion. JOSHCO’s 2017-2018 projects will be undertaken in Turffontein, Nancefield, Lufhereng and Dobsonville. A portion of its budget will be spent on purchasing buildings in the inner city.
The Economic Development Department will receive an operating budget of R228 million in the 2017-2018 financial year and R35 million in the mid-term to turn Johannesburg into an engine room of South Africa’s economy.
The Environment and Infrastructure Services Department will receive an operating budget of R194.8 million for 2017-2018 and a multi-year capital allocation of R103.6 million.
The Development Planning Department has been allocated an operating budget of R327 million and a three-year capital budget of R1.5 billion.
The Public Safety Department has been allocated an operating budget of R3.3 billion and a three-year capital budget of R537 million for both Emergency Management Services and the Johannesburg Metropolitan Police Department.
The Health and Social Development Department will receive an operating budget of R1.149 billion for 2017-2018 and a three-year capital budget of R395 million.
Group Finance has been allocated R4.3 billion for 2017-2018 and multi-year capital budget of R15 million.
Corporate and Shared Services will receive R1.4 billion for 2017-2018 and a three-year capital budget allocation of R2.1 billion.