Tshwane expects big cuts to grants
Housing and infrastructure set to be hit worst by shrinking budget
The City of Tshwane is expecting R500m-R1bn to be cut from its grant allocation from the national government, Tshwane mayor Solly Msimanga says. It expects the critical areas of housing and infrastructure to be affected by these cuts. Local and provincial government were dealt a blow when former finance minister Malusi Gigaba announced in his budget speech in February that government spending for 2018-19 would be affected by the reprioritisation and reductions undertaken in the medium-term budget policy statement. Provincial and local government budgets saw declines of R5.2bn and R3.2bn, respectively. Gigaba said that provincial and local governments, which had either underspent or misspent their allocations from national government, would have to rely on revenue for more funds and would be capacitated to generate revenue. Msimanga said in an interview with Business Day that the metro was expecting cuts to be made in its housing and infrastructure grants. He said they did not have s...
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