Finance Minister Tito Mboweni
Photo by: Creamer Media's Donna Slater
National government has made more than R5-billion available in support to municipalities to assist them in responding to the Covid-19 pandemic in the 2019/20 municipal financial year.
The support is assisting municipalities to provide additional access to basic services for vulnerable communities during the lockdown and to sanitise public transport facilities as the South African economy undergoes a phased reopening.
The largest amounts have been made available through the reallocation of conditional grant funds already allocated to municipalities for 2019/20.
While the 2019/20 national and provincial financial years ended on March 31, the municipal financial year will run until June 30.
The National Treasury has granted approval that funds transferred to municipalities but not contractually committed can be reallocated to be used to respond to the Covid-19 pandemic.
The reallocations approved in terms of Section 20(6) of the Division of Revenue Act, include R2.4-billion in Urban Settlements Development Grant allocations to metropolitan municipalities.
According to the National Treasury, these funds will be used for providing water and sanitation, mainly in under-serviced informal settlements and to cover the increased costs of more frequent waste management and other services.
About R1.5-billion in Municipal Infrastructure Grant allocations can also be reallocated for the provision of water and sanitation, including where urgent maintenance is needed to restore the functionality of water infrastructure.
The balance comprises R970-million in Public Transport Network Grant allocations which may be reallocated, mainly for sanitisation of public transport facilities; as well as R306-million in the indirect Regional Bulk Infrastructure Grant that was reallocated at the end of the 2019/20 national financial year and transferred to Rand Water to fund the roll-out of water tanks to supply communities without reliable access to water services.
A further R151-million has been approved for release from the Municipal Disaster Relief Grant to support non-metropolitan municipalities with the costs of sanitisation, and increased provision of other municipal services.
Government is also supporting municipalities to reallocate funds from other conditional grants that are projected to be underspent.
Details of further support to municipalities in the 2020/21 municipal financial year will be announced when Finance Minister Tito Mboweni tables the special adjustment Budget to respond to the Covid-19 pandemic, as was announced by President Cyril Ramaphosa.