The National Treasury issued a directive for the City of Tshwane municipality to cut its expenditure by at least R3 billion to move from an unfunded budget status.
The metro’s budget is currently in unfunded status.
This means its expenditure is expected to exceed its projected revenue.
Councillors from Tshwane are meeting Thursday to vote on the city’s proposed adjustment budget.
Tshwane Executive Mayor Cilliers Brink said the municipality had massively under collected in its revenue.
In the adjustment budget presented by Brink on Thursday, the city proposed tariff increases to services like sanitation and refuse.
Brink said difficult choices would have to be made to financially stabilise the city.
“We have taken the advice of National Treasury that they will support this adjustment budget provided that the city works on a funding plan. The details of this funding plan will be released in the coming months.”
The African National Congress, Economic Freedom Fighters coalition has indicated that it will be voting against the adjusted budget as the projections are unrealistic.
-EWN
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