All 30 Western Cape municipal budgets successfully passed

All 30 municipalities in the Western Cape have successfully approved their 2022/23 budgets before the start of the municipal financial year.

Municipal budgets set out both the financial plan and policy direction, including what each municipality plans to achieve and the priority service delivery areas, across the medium term.

In terms its legislative mandate, the Western Cape Government assessed the draft budget, Integrated Development Plan (IDP), Spatial Development Framework (SDF) and other budget related policies and documentation of the 30 municipalities.

The municipal budgets and associated documents are considered to determine the extent to which it firstly, conforms to guiding legislative prescripts and secondly, is deemed to be responsive, credible, and sustainable.

The Western Cape Government’s comments and recommendations are communicated to each municipality via a detailed assessment report which is discussed at one-on-one engagement with the respective municipalities. Municipalities consider these findings ahead of the final approval of their budgets.

Municipal budgets and IDPs are furthermore informed by the 2021 Municipal Economic Review and Outlook, tabled by my predecessor, Minister David Maynier.

The Good news is that most of the municipalities which received clean audits, were in the Western Cape. In fact, 90% of municipalities in the Western Cape achieved clean (73.3%) and unqualified audits (16.7%). The Auditor-General specifically stated that “firm leadership tone and strong control environment contributed to positive outcomes”.

Sound financial management of municipal resources is a pre-requisite for economic growth, which leads to job creation. Which is why the Provincial Treasury officials work hand-in-hand with municipal officials, to achieve these impressive outcomes. Municipalities also receive ongoing support from the Department of Local Government to strengthen internal governance arrangements which are crucial to ensure improved audit outcomes.

The recent audit outcomes show that with the right approach and systems in place, it is possible to achieve good audit outcomes.

The Western Cape Government is absolutely committed to continuing to improve on these outcomes so that we create the right conditions for the private sector, including small businesses, to create more jobs in our Province. Support mechanisms are furthermore in place to guide vulnerable municipalities towards improved financial performance.


 

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