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Salga unhappy with budget allocation

Salga is disappointed by the amount of money National Treasury has set aside for municipalities.

FILE: Finance Minister Pravin Gordhan delivered his Budget Speech in Parliament on 26 February 2014. Picture: GCIS

CAPE TOWN - South African Local Government Association (Salga) Chairperson Thabo Manyoni is disappointed by the amount of money the National Treasury has set aside for municipalities.

In his Budget Speech on Wednesday, Finance Minister Pravin Gordhan said national government departments would get 48 percent of available funds from the fiscus and municipalities get nine percent.

Salga says more money is needed to improve the efficiency of local government and speed up service delivery.

Manyoni says, "It could have been more. Obviously there are limited resources, but really if we are going to change local government and make sure that we speed up service delivery I really think we should allocate more fiscus to local government."

Meanwhile, Old Mutual analyst Derick Ferreira says consumers are going to feel the financial squeeze as disposable incomes are shrinking.

Ferreira says the new fuel levies due to be implemented at the beginning of April are going to put even more pressure on consumers.

"A 12 cents per litre on fuel tax, eight cents per litre on Road Accident Fund so in essence additional 20 cents per litre. Now see that in the context of the recent announcements on fuel price increases, certainly extra pressure on the consumer."