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City spending up by R300 million

Posted on March 7 2021 by Gert Minnaar in City of Johannesburg

Councillors of the City of Johannesburg have approved the 2020/21 Adjustment Budget, which prioritises major infrastructure projects, economic revival, and continued service delivery.

The Member of the Mayoral Committee responsible for Finance, Councillor Jolidee Matongo, indicated that the budget would go some way to stimulate the local economy and boost socio-economic development amidst the impact of the ongoing Covid-19 pandemic.

The adjustment budget comes at a time when there has been a prolonged deterioration of metropolitan economies, which have contracted by at least 8% in 2020. 

Councillor Matongo explained that it was the City’s responsibility to cushion residents who are already hard-hit by the Covid-19 pandemic. 
“There is therefore a need to revive our local economy through investment in major infrastructure projects, housing and continued service delivery – hence the Government of Local Unity has prioritised allocations to these priorities,” he said.

Some of the highlights of the Adjustment Budget include:

• Allocation of R12.8 million for the Alexandra Automotive Hub

• R9 million under City Power for Enterprise Supplier Development

 • R5.5 million for the re-establishment of the Joburg Tourism Company

• R92 million for employees’ protective tools, vaccination roll-out campaign and the expansion of extended clinic hours 

• Increased expenditure for social development by R18.1 million, which includes R15 million for the purchase and provision of vegetable packs for indigent communities. 

• An additional R10 million for Pikitup for personal protective equipment• Allocation of R12 million for Brixton, Paterson Park and Kliptown multipurpose centres, 

• R7.3 million for new libraries in Lehae, Noordgesig and Paterson Park 

• Allocation of R90 million to compliment fleet requirements for street cleaning, illegal dumping, and greening 

• R53.5 million to the Joburg Roads Agency’s pothole patching programme 

• R9 million to City Power to cater for the Technical Strategy for Network Health Assessment to keep the lights on in the City 

• R98 million for planned replacement of water mains in the Sandton/Alexandra area  

• Orange Farm Turnkey Project has also been allocated R128 million.

In October 2020, the City approve​d an operational budget of R61.3 billion and R7.3 billion capital budget for 2020/21. 

In the Adjustment Budget, the revenue budget is reduced by R272.6 million and expenditure increased by R301.2 million.  The net effect of the adjustments has resulted in a surplus of R104.2 million before capital transfers and taxation – compared with the initially approved Budget’s surplus of R678.1 million.