The Ray Nkonyeni Municipality approved the 2018/2019 Adjustment Budget of R1 Billion, 94 Million, Seven Hundred Thousand Rand at the Council meeting held earlier today.
 
In terms of Section 28 of the MFMA an adjustment budget may be tabled at the Council at any time after the mid-year budget and performance assessment, but not later than end of February in that current financial year.
 
The adjustment of the budget was mainly as a result of several factors and serious challenges, some of which were highlighted in the recent Budget Speech by Minister Tito Mboweni which among others are:
  • Ongoing difficulties in the national and local economy;
  • Aging roads and electricity infrastructure;
  • Declining revenue sources;
  • Wage increase for municipal staff and Councillors that are above consumer inflation, coupled with the need to fill critical vacancies.
When presenting the Adjustment Budget, Her Worship the Mayor explained that the Adjusted Capital Budget is just more than R224 million which is distributed into municipal cluster projects municipal wide projects. This adjusted Capital Budget depicts an increase of R1 million from the original Budget and this is due to a re-prioritisation of funds towards projects which will serve to benefit community needs on the ground.  The Operating Budget was adjusted downwards to R870 million compared to the original Operating Expenditure Budget of R939.4 million which therefore represents a cut of R69.4 million.
 
The Mayor emphasised that despite the current challenges in the economy in general, the municipality had to ensure that it continues to change the lives of the communities for the better. She further highlighted that this budget will go a long way towards fulfilling the vision of the Freedom Charter that South Africa belongs to all who live in it.
 
The detailed Adjusted Budget will be accessible in the municipal website www.rnm.gov.za