National Treasury has released its latest Local Government Revenue and Expenditure review for the third quarter of the 2016\/17 financial year.<\/p>\n
On aggregate, municipalities spent 61.3%, or R245.1 billion, of the total adjusted expenditure budget of R400.2 billion as at 31 March 2017.<\/p>\n
In respect of revenue, aggregate billing and other revenue amounted to 70% or R276.1 billion of the total adjusted revenue budget of R394.4 billion.<\/p>\n
Capital expenditure amounted to R33.1 billion or 47.1% of the adjusted capital budget of R70.3 billion – a significant under-performance for the first three quarters of the year, Treasury said.<\/p>\n
Of the adjusted operating expenditure budget amounting to R329.9 billion, R212 billion or 64.3% was spent by 31 March 2017.<\/p>\n
The report also details the levels of debt in South Africa, noting that consumer debt has hit R128.3 billion as at 31 March 2017 – most of which is owed by households.<\/p>\n
According to Treasury, R86 billion is carried by households, while R6.6 billion is carried by government, with the balance owed to creditors. Debt increased by R10.6 billion from the R117.7 billion reported in the same quarter in 2015\/16.<\/p>\n
“It needs to be acknowledged that not all the outstanding debt of R128.2 billion is realistically collectable as these amounts are inclusive of debt older than 90 days, interest on arrears and other recoveries,” Treasury said.<\/p>\n
Of the R128.3 billion, only R24.1 billion is ‘realistically collectable’ Treasury said, as this represents the total debt that is younger than 90 days.<\/p>\n
Households in metropolitan areas were reported to account for R43.4 billion or 66% of outstanding debt to metros, followed by businesses which accounted for R18.8 billion or 28.6% of the outstanding debt.<\/p>\n
Major metropolitan debt has increased to R65.7 billion (up from R57 billion in the previous quarter), with the City of Johannesburg remaining the biggest carrier.<\/p>\n
Secondary cities accounted for R26.434 billion of the monies owed.<\/p>\n
These are the major metros with the highest outstanding debt (inclusive of debt older than 90 days):<\/p>\n
In the period under review, approximately R1.6 billion was written off as bad debt.<\/p>\n