“LET US make the impossible possible by making Joburg a centre for economic growth and development”.
That’s the theme for year’s 2023/24 respectively, following the budget tabling of the City of Joburg today.
Close R80.9 billion budget was presented by Member of Mayoral Committee (MMC) for Finance in the City of Johannesburg, Dada Morero.
Morero painted a dire financial state of the City from its unaffordable levels of debt and water and electricity losses.
He added the City needs a minimum of R4.3 billion a month to fund its operations and deliver services to survive and unfortunately, there is no R4.3 billion to achieve that.
“At a financial level, we inherited a City that was in arrears with supplier payments; had no cash in the bank; was not servicing its long-term debt; low levels of operating and capital budget; had a deficit of R 291 million; and had wastage caused by fraud in housing, water, non-essentials and bad management,” says Morero.
The City’s operational expenditure sits at R73.3 billion; while capital expenditure stands at R7.6 billion for 2023/24, with a three-year capital budget of R24.4 billion.
A capital budget of R14.9 billion is spread across the medium-term and an operational expenditure budget of R45 billion in the 2023/2024 financial year, has been allocated to the Sustainable Services Cluster.
- Environment and Infrastructure Services Department is allocated an operational expenditure budget of R133.7 million and R57 million for the three-year capital budget. The allocated budget will focus on air quality, waste, water and biodiversity management initiatives.
- Pikitup’s focus has been allocated R3.9 billion for operations and a capital budget of R681 million. Its operational expenditure budget allocation is R3.4 billion, and the entity is allocated R179.7 million for capital spend.
- The Human Settlements Department has been allocated an operational expenditure budget of R1.2 billion, and a multi-year capital budget of R5.5 billion over the medium-term.
- JOSHCO has been allocated a three-year capital budget of R1.2 billion and an operating budget of R357 million for the 2023/24 financial year.
- City Power has been allocated a R23.7 billion operational budget and a three-year capital budget of R4.3 billion.
- Johannesburg Water’s allocation for operational budget is R15.6 billion.
The Human and Social Development Cluster’s operating expenditure budget for the 2023/24 financial year is R10.9 billion. Across the three-year medium term, the cluster’s capital budget amounts to approximately R1.3 billion.
- Community Development has been allocated an operating budget of R1.4 billion.
- The revenue budget for Health Department increases by 4.5% to R199.8 million mainly due to an increase in the Provincial Primary Health grant allocation. The operating expenditure budget increases by 6.7% to R1.5 billion mainly due to an additional allocation of R10 million for the roll-out of sanitary pads programme.
- Social Development Department is allocated R359 million
- Public Safety is allocated a three-year capital budget of R146 million.
- Johannesburg City Parks and Zoo (JCPZ) is allocated a multi-year capital budget of R205 million. The allocation is set to cover upgrades to the zoo infrastructure, various parks citywide as well as cemeteries inclusive of the Olifantsvlei cemetery.
- Joburg Theatres receives an operating expenditure budget of R263 million, which is an increase of 9.7% from the previous year
A total of R7.7 billion has been proposed for the Economic Growth Cluster by increasing to 7.8% from the 2022/23 financial year.
- The Economic Development Department has been allocated an operational expenditure budget of R256 million for 2023/24 and R11.5 million capital budget over the medium-term.
- Transport Department is allocated a multi-year capital budget of R1.6 billion.
- The Johannesburg Roads Agency (JRA) is allocated a three-year capital budget of R2.5 billion and an operating budget of R1.5 billion for the 2023/24 financial year.
- Metrobus is allocated an operating expenditure budget of R663 million,
- Development Planning is allocated an operating expenditure budget of R458 million.
- The Joburg Market is allocated an operating expenditure of R567 million and a three-year capital budget of R356 million.
- The Johannesburg Tourism Company has been re-established and allocated an operating budget of R73 million and a three-year capital budget of R11.7 million
- Metropolitan Trading Company is allocated an operating expenditure budget of R594 million,
- Johannesburg Property Company is allocated an operating expenditure budget of R1.1 billion, and a three-year capital budget of R254 million.
- Johannesburg Development Agency is allocated an operating expenditure budget of R119 million, and a three-year capital budget of R1.3 billion.
Morero said he was confident the City’s finances will be rebuilt.
“We will rebuild the finances of this City by following stringent financial principles and present our City as an investment attractive destination and partner to our financial institutions and the broader investor base of the Country and beyond.
“We wish to assure the People of this City that our ‘belt-tightening’ approach in this budget will provide a solid foundation for the future and the City will be well positioned to counter the economic downturn and provide improved protection to our most vulnerable members of our community.”
Image (Belt-tightening. Finance MMC Dada Morero presented his 2023/24 R80.9 billion budget today).
