{"id":779568,"date":"2024-07-01T19:00:00","date_gmt":"2024-07-01T17:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=779568"},"modified":"2024-07-01T22:06:02","modified_gmt":"2024-07-01T20:06:02","slug":"how-municipalities-spend-every-r100-of-your-tax-money-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/779568\/how-municipalities-spend-every-r100-of-your-tax-money-in-south-africa\/","title":{"rendered":"How municipalities spend every R100 of your tax money in South Africa"},"content":{"rendered":"\n

Stats SA has published its financial census of municipalities for 2023, showing how much money they collected from South African residents and what they spent it on. <\/p>\n\n\n\n

Stats SA noted that 99% of municipalities responded for the 2023 financial year per province, with the expectation being Ditsobotla local municipality in the North West. <\/p>\n\n\n\n

According to the data, Municipal revenue climbed by 8.9% from R585 billion in 2022 to R637 billion in 2023.<\/p>\n\n\n\n

The report stated that the largest source of total municipal revenue, amounting to R517 billion for the year ending 30 June 2023, was from government transfers and subsidies (27.7%).<\/p>\n\n\n\n

This was followed by revenue from electricity sales (25.6%), property rates received (16.6%), and other revenue (12.7%), which includes income from fines, penalties, forfeits, licenses, permits, and other transfers and subsidies. <\/p>\n\n\n\n

Additionally, revenue from sales of water accounted for 10.5%, while refuse removal charges contributed 2.7% and sewerage and sanitation charges contributed 4.3%.<\/p>\n\n\n\n

According to the report, the municipalities’ expenditure matched their revenue despite the 8.9% increase, meaning they spent everything they received. <\/p>\n\n\n\n

According to Stats SA, employee-related costs (26.4%) were the largest contributor to municipal total operating expenditures of R505 billion (total expenditure less surplus). <\/p>\n\n\n\n

This was followed by purchases of electricity (22.6%), debt impairment (10.9%), contracted services (9.5%), depreciation, amortisation, and impairment (8.2%), other operational costs (7.5%) – including travel and subsistence, external audit fees, bank charges, facility and card fees, communication, wet fuel, hire charges, insurance underwriting, etc. – and purchases of water (5.8%). <\/p>\n\n\n\n

The smallest contributors were councillor remuneration (0.9%), transfers and subsidies (1.1%), inventory consumed (1.9%), other expenditures (2.1%) – encompassing loss on disposal of assets, operating leases, etc. – and finance costs (3.2%).<\/p>\n\n\n\n

Stats SA mentioned that the sum of percentages might not add up to 100% due to the rounding-off of figures.<\/p>\n\n\n\n

This means that every R100 note paid through rates and taxes goes to<\/strong>:<\/p>\n\n\n\n