No Additional Funds For Nooitgedagt Low Level Scheme

OCTOBER 23, 2014

Nelson Mandela Bay will have to wait for next year’s National Budget to discover whether National Government is going to provide additional funding for the Nooitgedagt Low Level Scheme.

Yesterday’s Medium Term Budget Policy Statement (MTBPS), not unexpectedly, contained no additional funding allocation, which means the municipality will have to rely on its own resources.

The metro received one allocation of R450 million that was described in the budget documentation at the time as being a “once-off” amount.

Presenting his MTBPS yesterday, Finance Minister Nhlanhla Nene also announced that baseline allocations for local government conditional grants would be reduced by R920.6 million in 2015/16 and R1.4 billion in 2016/17.

Just how this will affect Nelson Mandela Bay in financial terms will be revealed when the Division of Revenue Bill is tabled with the National Budget in the first quarter of next year.

Nene said that following years of rapid growth in the value of local government transfers, the rate of growth “will moderate over the period ahead”.

Nene said that National Treasury was leading “a collaborative review of the local government infrastructure grant system”.

The aim, he spelled out, was “to make evidence-based reforms that maximise value for money from existing resources, while improving the sustainability of the system and the assets created,” adding that work on this would continue in 2015.

He added that proposals had already been received in three area, one of which was for the number of grants each municipality received to be rationalised.

At the same time, Nene added, greater differentiation between the types of grants and “accompanying level of over-sight for different types of municipalities was proposed”

Another proposal, the Minister said, was lifecycle asset management “to sustain the functionality of existing infrastructure”.

Also to be introduced during the course of the Medium Term Expenditure Frame-work period, Nene stated, was standardised reporting “to increase accountability and improving monitoring and benchmarking of performance”. - MetroMinutes