TRANSFER REDUCTIONS BUDGET
Provincial and local government allocations fall in Gigaba’s budget
Provincial and local government budgets saw declines of R5.2bn and R3.2bn, respectively, in allocations in Finance Minister Malusi Gigaba’s budget speech. He said provincial and local governments, which have either underspent or misspent their allocations from national government, would have to rely on their own revenue for more funds and would be given the capacity to generate revenue. The budget makes cuts to provincial and local government allocations and social infrastructure projects to allow for the financing of the first phase of free higher education and National Health Insurance. Provincial governments have been hard at work for the past two years trying to prevent their staff numbers from growing to unwieldy numbers, while municipalities continue to grapple with billions in debt, which they owe largely to Eskom and water boards. Municipal finances have posed a headache for national government, mostly because of councils’ inability to pay creditors for water and electricity...
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