Municipalities are living beyond their means, says Treasury
Main cost drivers are employee-related expenses and materials and bulk purchases
05 December 2022 - 20:14
Local governments are living beyond their means and are due to spend much more than their budgeted revenue this year. The National Treasury says this is the first sign that they are experiencing financial challenges.
Finance minister Enoch Godongwana said in July more than 150 of the 257 municipalities nationally were bankrupt or insolvent with unfunded budgets the primary catalyst for financial distress. The situation was compounded, he added, by widespread political dysfunction...
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