The Tshwane Metropolitan Municipality has made no cuts to the budget it tabled for 2017-18 — in fact, the council is expecting its revenue to increase by R450.8m. Tshwane mayor Solly Msimanga said during a council sitting on Thursday the metro’s operating expenditure would rise by R679.5m in order to tackle some of the shortfalls the city has on, for example, contractually obligated expenditure. He said contracts to be honoured included spending of R200m that is needed for the lease and rental of the city’s fleet, as well as expenditure on leased buildings such as Tshwane House. The city was in the process of reviewing these contracts for operational efficiencies, Msimanga said. He said the cost of bulk electricity purchases was estimated to rise by R123m in line with consumption patterns and increased losses on the sale of electricity. Additional grants for the bus subsidy and funding for houses would also contribute to expenditure.
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