Question NW970 to the Minister of Finance
07 July 2020 - NW970
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?
Reply:
(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.