Home » Industry News » SA municipalities expect budget deficit of R4.7bn in 2018/19 – National Treasury

SA municipalities expect budget deficit of R4.7bn in 2018/19 – National Treasury

The revenue for South African municipalities is expected to rise to R431.5 billion in 2019/20 and R462.5 billion in 2020/21 from a budgeted R404.6 billion for 2018/19, the National Treasury said on Thursday.

In a statement on the medium term revenue and expenditure framework for municipalities, the Treasury said total municipal expenditure in 2018/19 was estimated at R441.6 billion, up 5.7 percent from 2017/18, and would increase to R467.9 billion in 2019/20 and R495 billion in 2020/21.

This would lead to a 2018/19 financial year net deficit of R4.7 billion, a shortful of R2.8 billion in 2019/20 and a surplus of R41.3 million in 2020/21.

The Treasury said municipal operating expenditure on water, electricity, waste water management and waste management was budgeted to increase from R174.7 billion in 2017/18 to R184.3 billion in 2018/19, equating to half of the total operating expenditure of municipalities.

This article was sourced from IOL/BusinessReport; the original publication can be viewed here.

To enquire about Cape Business News' digital marketing options please contact

Related articles

Business is booming in Cape Town’s CBD

Business is experiencing strong growth in the Cape Town’s Central City with 135 new entities opening in 2022, bringing the total number of businesses...

WC outperforms other provinces on service delivery

The DA in the Western Cape welcomes the release of the “non-financial census of municipalities” report by StatsSA. The report, which measured service delivery of...


Two SAB plants get R5.8 billion upgrades

The R5.8 billion investment commitment made by South African Breweries (SAB) has been utilised to increase capacity at two of its plants. The company said...


Cape Business News
Follow us on Social Media