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The economic slowdown and significant tariff increases have weighed on consumers ability to pay for municipal services, leaving municipalities chasing debts of R93.3-billion by December.
According to the National Treasury’s ‘Local government revenue and expenditure’ report for the second quarter of the year, aggregate municipal consumer debts were R2.8-billion more than the R90.5-billion reported in September 2013.
While government’s share of the outstanding debtors represent 4.4%, or R4-billion, the largest component related to households, which accounted for 63.2% or R59-billion.
Higher fuel, water and electricity prices continued to reduce the affordability and, therefore, the ability of consumers to pay for services.
The National Treasury, which started collecting detailed outstanding debt information from July last year, noted that metropolitan municipalities were owed R52-billion by December.
“This represents an increase of R4.7-billion, or 9.9%, from the second quarter of the 2012/13 financial year. The City of Johannesburg is still owed the largest amount at R17.6-billion, followed by the Ekurhuleni metropolitan municipality at R10-billion, Cape Town at R6.3-billion and City of Tshwane at R6-billion,” the report said.