Johannesburg’s R73.3 billion budget focuses on people

Johannesburg’s people-centered budget – to the tune of Rand 73.3 billion – is designed to jump-start the delivery of quality services in the aftermath of the devastation of the Covid-19 pandemic to the city’s coffers.

Municipal Committee (MMC) member for finance Cllr Jolidee Matongo said the approved budget for 2021/22 is anchored on residents’ pleas for affordability, the increased need for expedited service delivery and reconfiguration of the spatial design of the city.

Mr. MC Matongo added that the budget is also designed to stimulate the socio-economic development of Johannesburg.

“A difficult balance in our budget has allowed the City to take into account residents’ calls for minimum rate increases in finalizing the rates and rates proposed for 2021/22 amid the economic impact of Covid-19 on livelihood of residents, ”he explains.

The City has kept the new annual rate increases as small as possible, with real estate rates only expected to increase by 2%, which is lower than the current land charge of 4%.

Water and sanitation increases by 6.8%, which is equivalent to the passed on cost of Rand Water. The City will continue to provide all residents with 6 kl of free water each month.

Garbage collection increased by 4.3%, which is lower than the increase of 5.2% for the current year. Electricity tariffs increase by 14.59%, a lower projection than the 15.09% that Nersa granted to Eskom.

Cllr Matongo says the rate increases come after the city has already implemented several relief measures to help taxpayers who are struggling to pay their municipal bills while extending the benefit period for residents who are on the social package. expanded from the hard lock.

“Aid measures also include the expansion of retiree rebates and, more recently, the enhanced Debt Rehabilitation Program to cover more beneficiaries, including churches, nonprofits and small businesses,” did he declare.

Mr MC Matongo notes that the budget is also designed to support the local unity government’s reconstruction program to transform Johannesburg into a prosperous city after the Covid-19 pandemic – through accelerated service delivery, and also the reintroduction of co-production of municipal services with residents. .

“This is a people-focused budget, which is engaged in several infrastructure projects across the city with the aim of reviving our local economy and changing the face of our communities,” he said, adding that the budget will operationalize community service facilities, including shelters for people, especially children, affected by gender-based violence and addressing homelessness.

The 2021/2022 budget includes operational expenditure of R65.1 billion, with capital expenditure of R8.2 billion and a three-year investment budget of R25.5 billion to enable the municipality to maintain itself. focus on turnkey priority strategic infrastructure projects in poor regions. regions, including Orange Farm, Ivory Park and Kliptown.

“These projects are essential to increase the economic nodes of the City in accordance with our GDS 2040 strategy on socio-economic and spatial transformation”, explains Matongo.

The MMC describes the budget as a balancing act between the interests of Johannesburg’s residents, the city’s ability to continue to provide quality basic services, and the institution’s financial viability.

“The City faces multiple challenges related to youth unemployment and spatial design issues that continue to block access to opportunities for disadvantaged communities. We had to prioritize investments in poor areas which also include Eldorado Park, Alexandra, as well as Zandspruit and Meriting, ”explains MMC Matongo.

The full budget speech, which presents the state of the City’s finances and the 2021/2022 budget allocations, is available at

About Mitchel McMillan

Check Also

TAKE A LOOK | Netcare auctions off two of its former hospitals in Joburg

Netcare Clinton Hospital (Supplied) Netcare’s Union and Clinton hospitals, both south of Johannesburg, will go …