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MMC Makhubo presents a R54.8-billion budget

25 May 2016

 

We have delivered on our 2011 electoral mandate,” the City of Johannesburg’s Member of the Mayoral Committee for Finance, Councillor Geoffrey Makhubo, said as he presented his R54.8-billion budget for 2016-2017 during a special sitting of council at the Turbine Hall in Newtown yesterday, Tuesday May 24.

 

The figure represents a R2.2-billion increase compared with the current financial year’s budget, which stands at R52.6-billion.

 

MMC Makhubo said the City had, under the leadership of Executive Mayor Councillor Parks Tau, delivered on its mandate to turn Johannesburg into a world-class African city through infrastructure development, economic growth and poverty alleviation programmes in line with its Growth and Development Strategy 2040 (GDS 2040), whose vision “is to grow the economy and improve people’s lives”.

 

“I can say today without fear of contradiction that we have delivered … This is a view shared by a wide range of ratings agencies, including both Fitch and Moody’s,” he said.

 

The new financial year's budget consists of a R45.3-billion operating allocation and a R9.5-billion capital expenditure.

 

MMC Makhubo said more than R30-billion of the City’s R100-billion infrastructure investment had already been spent.Some of the achievements MMC Makhubo said the City made during the current five-year municipal term include the following:

 

  • About 94% of households in informal settlements have access to basic water services;

  • Water and sanitation coverage across the city stands at 99.4% and 94.5% respectively;

  • Several informal settlements have been electrified; 

  • More than 16 000 housing opportunities were created and 28 000 homes in informal settlements upgraded;

  • About 1 900km of roads have been resurfaced and 107km upgraded;

  • The number of people going to bed hungry has been reduced from 42% to 24.5%; and

  • More R3.5-billion was spent on the Rea Vaya Bus Rapid Transit (BRT) system infrastructure and the purchase of buses to ensure communities have a safe, reliable and affordable public transport.

Unpacking the budget allocations, MMC Makhubo said City Power would receive an operating budget of R16.7-billion for 2016-2017 and a multi-year capital budget of R3.9-billion to, among other projects, cover the electrification of some of the City’s 181 informal settlements such as Elias Motsoaledi, Lehae, Kliptown and Princess Plot.

Johannesburg Water will receive R8.6-billion for its operations in the new financial year, while R3.1-billion has been set aside for capital projects over the next three years. These include the ongoing upgrading of water infrastructure, reservoirs and bulk water treatment plants.

 

Pikitup has received R2.1-billion and a multi-year capital budget allocation of R273-million.

 

The Human and Social Development Cluster’s budget is R6.3-billion, while that of Community Development stands at R1.7-billion, with an amount of R566-million set aside for multi-year capital projects.

 

Social Development has been allocated R196.6-million, while Health receives R775-million operating expenditure and a three-year capital budget of R361-million.

 

The Economic Development Cluster will receive R4.5-billion for its operating expenditure and R11.6-billion for its rolling capital budget. This will go towards the expansion of Rea Vaya, the acquisition of more environmentally-friendly Metrobus fleet; the urban renewal programme of the Johannesburg Development Agency and major road construction projects by the Johannesburg Roads Agency.

 

Environment and Infrastructure will receive R195-million and a multi-year capital allocation of R155-million. Housing has been allocated more than R1.1-billion and R3.4 million set aside for capital projects over three years.

 

Johannesburg City Parks & Zoo has received an operating budget of R839.9-million and a capital allocation of R220-million. Joburg City Theatres will get R139.8-million for operations and almost R21-million for capital projects.

 

The MMC said the Corridors of Freedom project had been a huge success and would be further expanded this financial year. The City, he said, was also running programmes to improve residents’ health, literacy and skills.

 

He added that through interactions with communities under the Integrated Development Plan (IDP) process, the City had managed to keep rates down.

 

“The voices of the people of Johannesburg are also reflected in our tariff policy, which has to strike a balance between consumer affordability and the cost of providing services,” MMC Makhubo said. He said property rates would increase by 5.9%, electricity by 6.93% and water and sewerage by 13.2%.

 

“We’ve heard the voices of our citizens and we responded. We’ve more than 124 000 households currently registered for free basic services in terms of our Extended Social Package. The number is expected to increase to 290 000,” he said.



 

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