Question NW970 to the Minister of Finance

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07 July 2020 - NW970

Profile picture: Van Minnen, Ms BM

Van Minnen, Ms BM to ask the Minister of Finance

By what date will the Madibeng Local Municipality (a) complete and (b) submit the 2019-20 Medium Term Revenue and Expenditure Framework budget, which the National Treasury advised that it be revised after having assessed it and found it to be unfunded and unsustainable?


(a)(b) The Madibeng Local Municipality revised their 2019/20 Medium Term Revenue and Expenditure Framework as part of the Special Adjustments Budget process initiated by the National Treasury on 8 November 2019. Subsequent to the Provincial Treasury’s assessment, the municipality’s 2018/19 MTREF budget reflected a positive cash position of R69 million from a negative balance of R209 million in the first year of the 2019/20 MTREF period while the two outer years showed marginal surpluses. These surpluses are reflective of the municipality’s strategy to prioritise arrear debt owed to bulk suppliers.

Following the mid-year budget performance assessment in December 2019, the municipal council did not deem it necessary to further adjust the 2019/20 budget.

However, it is important to note that all municipalities are now afforded a further opportunity to adjust their budgets in response to the changes in revenue and expenditure as a result of the COVID-19 pandemic. The deadline for this process is 15 June 2020.

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