CoJ set to treble budget to electrify informal settlements
Finance MMC Funzela Ngobeni will present his budget speech, totaling expenditure of R58 billion for the 2019/2020 financial year.
JOHANNESBURG - The City of Johannesburg is expected to treble its budget for electrification of informal settlements from R260 million in the past three years to R750 million for the next three years.
Finance MMC Funzela Ngobeni will present his budget speech on Wednesday morning, totaling expenditure of R58 billion for the 2019/2020 financial year.
The city would replace copper cables with aluminium, due to theft, and conclude refurbishment of 11 sub-stations.
R8.3 billion would be spent on infrastructure and maintenance this financial year. R5.1 billion of the capital budget would be funded by the city, while R3.2 billion would be from grants and public contributions.
The city's proposed budget said the metro had a shortfall of R60 billion to electrify the city, and this had resulted in 170,000 power outages every year. However, over the next three years, the budget for the electrification of informal settlements would be trebled.
The city said its revenue from 2018 to 2019 was expected to increase by 12% to R58 billion.
Ngobeni explained that the city would budget for a surplus of R1.3 billion before tax and capital grants. He said that two-thirds of the city’s revenue next year would come from property rates, electricity, water, sanitation and refuse tariffs.
He said tariff increases would range between 7% and 12%, and expenditure on maintenance of infrastructure would increase to 6% compared to 3% in 2015 before the DA took over the metro.
Ngobeni said the surplus of R1.3 billion would be invested in infrastructure.