Thabiso Goba30 October 2024 | 7:42

Gauteng govt concerned by City of Tshwane's low spending on capital projects

As of the end of September, the municipality has spent 14% of its R2.3 billion capital budget.

Gauteng govt concerned by City of Tshwane's low spending on capital projects

Jacaranda trees in the City of Tshwane. Picture: South African Tourism/Flickr

JOHANNESBURG - The Gauteng government says it’s concerned by the low spending on capital projects by the City of Tshwane.

As of the end of September, the municipality has spent 14% of its R2.3 billion capital budget.

Provincial Treasury said this level of spending was considered poor, since the first quarter of the financial year has already passed.

At a media briefing on Tuesday, Gauteng Finance MEC Lebogang Maile said the capital had also underspent on its allocated conditional grants from National Treasury.

"The lack of spending on the Urban Settlements Development Grant (USD) is cause for concern. The USD is a substantial conditional capital allocation to metropolitan municipalities and the only supplementary grant at local government.

"The city's low spending on the USD and the Programme and Project Preparation Support Grant (PPPSG), including the negligible spending on the Neighbourhood Development Partnership Programme Grant (NDPG) at the end of the first quarter, significantly enhance the likelihood that some funds may be forfeited during the stopping and reallocation of funds process. Through our various intergovernmental structures, the GPT (Gauteng Provincial Treasury) will continue to monitor the situation and provide technical advice to the municipality."