The Frances Baard District Municipality (FBDM) tabled its adjustment budget for the 2021/22 financial year on 23 February.
According to the Municipal Finance Management Act, 32 of 2000, municipalities may revise their approved annual budgets through an adjustment budget at mid-term.
The annual exercise is critical as it assists municipalities to improve their cash flow management, limit non-priority spending, implement stringent cost-containment measures and improve service delivery based on mid-term performance assessment.
The district municipality recorded savings on its operating and capital budget of R6.2m and R4.6m respectively. The savings on the operating expenditure was due to; salaries from vacant positions not filled during the first 6 months of the financial year as well as completed and un-materialised projects caused by Covid-19 restrictions.
The capital expenditure was adjusted was from completed projects which had savings and projects that will be rolled over to the next financial year.
Council resolved that the monies be allocated to the local municipalities as follows:
- An additional R1.5m will be allocated to Magareng local municipality towards their capital budget. The local municipality already requested an additional R1.5m for operation and maintenance (O&M) for cleaning of water reservoirs, procurement of chemicals and other material for water treatment and repairs of sewer pump stations.
- An additional R1.5m is allocated to Dikgatlong local municipality for Operation and maintenance.
- An additional R1m is allocated to Phokwane local municipality for Operation and maintenance.
- An additional R1m is allocated to Sol Plaatje local municipality for Operation and maintenance.
A further R5m has been set aside from the savings at mid-term for FBDM’s special capital programmes for the improvement of service delivery in the local municipalities as per their needs.
The council requested that the spending of the budget be monitored to ensure proper spending.
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