https://www.engineeringnews.co.za

Treasury reveals billions owed to municipalities

Treasury reveals billions owed to municipalities

Photo by Bloomberg

29th August 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

The amount owed to municipalities for services has continued to rise, reaching R94-billion by June, compared with the R93.3-billion recorded in December.

Households still accounted for the bulk of the aggregate municipal consumer debts; however, this had declined from 63.2% or R59-billion of the total debt in December, to 61.6% or R57.9-billion as at June.

Government debt owed to municipalities had increased to 4.8% or R4.5-billion of the total outstanding debtors, a rise on the 4.4%, or R4-billion, owed as at December.

According to National Treasury’s ‘Local government revenue and expenditure’ report for the 12 months to June, the continued economic slowdown and “substantial increases” associated with municipal cost drivers such as fuel and bulk purchases, including water and electricity, continued to impact affordability and the ability of consumers to pay for services.

Metropolitan municipalities were owed R52.9-billion in outstanding debt as at June 30 – a year-on-year increase of R4.2-billion or 8.7% compared with the corresponding period the year before.

The report showed that the City of Johannesburg was still owed the largest amount at R17.4-billion, followed by Ekurhuleni at R10.7-billion, the City of Tshwane at R6.6-billion and Cape Town at R6.5-billion.

“Secondary cities are owed R17.1-billion, which is an increase of 4.9% on the R16.3-billion reported in the corresponding period for the 2012/13 financial year,” National Treasury said, noting that households accounted for R12.1-billion or 70.8% of the outstanding debt.

Nearly 84% of the total debt had been outstanding for more than 90 days.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.176 0.237s - 178pq - 6rq
Subscribe Now