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Trollip announces adjustments to 2017/2018 budget

By Afikile Lugunya - Feb 26, 2018
Trollip announces adjustments to 2017/2018 budget

Nelson Mandela Bay Municipality Executive Mayor, Athol Trollip, and MMC for Portfolio, Budget & Treasury, Retief Odendaal, on Monday announced that the Metro will be making adjustments to its 2017/2018 budget, due to be tabled for consideration by Council on Tuesday.

Mayor Trollip said that he was very confident the council will adopt the adjustments budget, which aims to see, amongst many other things, tens of millions of Rand redirected to the Metro's major service delivery projects.

Cllr Odendaal said that the original amount budgeted for 2017/18 was R9.3 billion, due to increases in water sales through rates where they were able to raise the budget to around R9.65 billion - an increase of around R300 million.

Apparently the budget was set on a deficit of R125 million; now they have been able to bring down that deficit to just R25 million rand, which is a R100 million improvement on the books and were also able to allocate money for service delivery and projects where money is much needed.

“The capital budget has been increased from R1.6 billion to R1.66 billion rand, which is monies that we were not able to spend in the previous months and in certain projects that we had to roll over,” Cllr Odendaal said.

Mayor Trollip said that they studied and analysed trends and requirements, which led to the decision of redirecting money to where it’s needed most.

He further added that the focus was on service delivery areas as they have noticed that the Minister of Finance, Malusi Gigaba, in his recent 2018 Budget Speech, had decreased the amount of money budgeted for the Metro from National Treasury.

“So, we are redirecting some money to ensure that the impact on that is not severe here on communities. We also made sure that we monitor our wage bill,” he described.

Trollip said that R10 million had also been deducted from the money budgeted for its development agency, the Mandela Bay Development Agency (MBDA).

“There was a R10 million deduction in the money that was allocated to the MBDA. This time, a year ago, Councillor Odendaal warned them that if they didn’t spend all the money allocated to them, then they were going to lose some of their the allocations," he said.

“Now it’s a big blow to the MBDA to lose R10 million, but the reality is that the MBDA didn’t perform well last year, and they are not performing well now, while they were cautioned last year."

Trollip further said that he understands that the MBDA had a very difficult time as they didn’t have a CEO for a very long time.

See the adjusted budget HERE.