City adjusts budget to maximise delivery

The City of Cape Town notes today's criticism by the ANC caucus of the Adjustments Budget put before Council today. The responses from DA councillors provided clarity on the hollowness of ANC claims.

An Adjustments Budget is a standard and expected process in municipalities around the country and even in National Government. The fact that the ANC caucus tries, every year, to find impropriety on the part of this administration with regards to this very normal procedure points to the dearth of areas of criticism that they have at their disposal.

The City of Cape Town has, for the financial year 2012/2013, spent 92.9% of its capital budget demonstrating once again why Cape Town stands head and shoulders above other municipalities with regards to service provision and financial management.

It is noteworthy that the City of Cape Town's actual capital spend is higher than that of any other municipality in South Africa. The City's capital spend has been R23 billion over the past five years.

The content of a rollover adjustments budget is strongly regulated by the National Treasury. The budget contains primarily:

* The rollover of unspent capital from the previous financial year.

* The inclusion of additional grant funding.

* The shifting of funds between votes.

Only 2.2% of last year's capital budget has been rolled over to the new financial year, equating to R137m. A further R25m of new capital grant funding is added to the budget.

The rollover is essential to enable projects that were funded in last year's budget to be completed.

These budget amendments will have no detrimental impact on the provision of basic services, other than the changes to the implementation timeframes of capital works.

Adjustments Budget by funding source: Capital (R ‘000)

Statement issued by Executive Deputy Mayor of Cape Town, Ian Neilson, August 21 2013

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