Newcastle Municipality receives a share of R33.9 billion

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Municipalities across the country have received their share of the R33.9 billion first tranche of the Local Government Equitable Share (LGES).

Cooperative Governance and Traditional Affairs spokesperson, Lungi Mtshali, confirmed that the tranche was transferred to the primary bank accounts of the municipalities.

In a statement, the ministry said the LGES allocation will be transferred in three tranches during the current local government financial year, which begins in July.

The transfer of the LGES to all municipalities is premised on Section 216 of the Constitution. The section provides for National Government to transfer resources to municipalities in terms of the annual Division of Revenue Act (DORA) to assist them in exercising their powers and performing their functions.

Mtshali explained the equitable share provided funding for municipalities to deliver free basic services to poor households and subsidises the cost of administration. It also covered other core services for those municipalities with the least potential to cover these costs from their own revenues.

“The basic services component of the LGES provides a subsidy of R488.42 per month in 2022/23 for the cost of providing basic services to each of these poor households,” said Mtshali.

The subsidy included funding for the provision of:

  • Free basic water (six kiloliters per poor household per month) (R168.22 per household below the affordability threshold).
  • Energy (50 kilowatt-hours per month) (R107.04 per household below the affordability threshold).
  • Sanitation (R115.95 per household below the affordability threshold).
  • Refuse removal (R97.20 per household below the affordability threshold).

“The allocation to municipalities will assist them in, amongst other things, delivering free basic services to poor households through, for example, indigent support programmes. These programmes ensure that qualifying households, who are unable to pay for certain basic services, and have access to water, electricity, sanitation and refuse removal receive these services for free or at greatly reduced rates,” he added.

Moreover, he said COGTA Minister, Dr Nkosazana Dlamini Zuma, called on those households who are unable to pay for basic services to contact their local municipalities to determine if they qualify to be beneficiaries of their local indigent support programme.

The Minister has further urged municipal councils to ensure that Municipal Public Accounts Committees (MPACs) are established and fully functional to facilitate the proper oversight of expenditure in municipalities, as stipulated in the Municipal Structures Act.

Furthermore, Mtshali said the Department will continue to coordinate National and Provincial government support for local municipalities to deliver basic services and implement better audit mechanisms. The department, he said, “is coordinating and collaborating with sector departments to support municipalities, as envisaged by Section 154 of the Constitution, through the District Development Model (DDM) approach”.

However, revenue collection remains a critical determinant of the financial viability of municipalities. Citizens are still responsible for paying municipalities for the services they receive.

“We urge citizens to pay for the services they receive so that municipalities can collect revenue and provide quality services to the communities, as municipalities need to have access to adequate sources of revenue to enable them to undertake the functional responsibilities assigned to them,” he concluded.

The question now stands, how much did Newcastle Municipality and neighbouring municipalities receive?

With budgets now pouring in, accountability is required. Therefore, we will as always, hold the municipalities responsible, ensuring our Newcastillian community reaps the rewards thereof. 

 What are your thoughts on the above-mentioned? Share views in the comment section below?

5 thoughts on “Newcastle Municipality receives a share of R33.9 billion

  1. Now we all must wonder, how mich of this allocation will line the pockets of the people who are supposed to use this money to help the needy households.

  2. Good day

    I am happy that our Municipality received budget for this current financial year. Hope that our delegated officials and accounting authorities , accounting officers and executive authority would spend these fund according. The statement that funds are transferred to bank account is controversial to MFMA, funds are requested monthly to treasury. The amount that is mentioned on the statement that Newcastle received 33. Billion differ from your allocation below. My request to provide us with the allocation of budget to each wards and regions. I also request district and municipality to give us more details how are their go to spend the funds. If possible to publish the progress and send to Newcastillian on their monthly bill and on local news paper that is economical. Please may provide us with a three expenditure plan. I thank for the great effort although we are too behind.

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