Bulawayo City Council yesterday proposed a standstill 2017 budget of $153 million with zero tariff increases, as the city fathers sought to cushion residents against the harsh economic environment coupled with unemployment levels and depressed industrial activity.
BY KHANYILE MLOTSHWA
Ward 1 councillor and chairperson of the finance committee, Malandu Ncube, said the economic conditions under which the local authority was operating were “fundamentally weaker than in the past year, as evidenced by the mid-term fiscal policy presented to Parliament on September 8, 2016”.
“In his (mid-term policy) statement, the Minister of Finance and Economic Development [Patrick Chinamasa] revised the projected growth rate downwards from 2,7% to 1,2%, indicating that targets initially set could not be met in the year 2016,” he said.
“Industrial and economic activity is largely subdued, adversely affecting the buying power. These factors, unfortunately, have a negative impact on council’s budget performance, as residents and companies are finding it difficult to settle their bills on time, constraining improvements in service delivery.”
Ncube said the challenges were exacerbated by the liquidity crunch that gripped the economy in the first half of this year, “further dampening council cash collections”.
“This budget has been crafted according to the ministerial guidelines contained in Local Government Circular Number 2 of 2016, the highlights, which include cost control measures to cut on unnecessary wasteful spending, the capital budget is expected to be 15% and not more than 25% of the total budget,” he said.
Ncube said the proposed 2017 capital budget stood at $48 109 346.
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“The budget to be funded from grants is $26 939 252, leaving council to fund $21 170 094, which translates to 17,5% from own resources,” he said.
Ncube said direct labour costs would consume $38 121 218, which is 36% of the budget, and the indirect labour costs of administration would be $19 117 564, accounting for 18%.
“Council is committed to reducing labour costs by mechanising processes and outsourcing services where possible,” he said.
According to the budget, the revenue budget stood at $105 457 120, and the capital budget at $48 109 346.
“I would like to mention that the 2017 proposed budget is a standstill budget, with no tariff increases,” Ncube said.
“However, the effectiveness of this budget hinges on the availability of funds. I, therefore, want to encourage council consumers to take the payment for services as a priority in order for council to continue providing services. Our slogan is: More pay, more services, no pay, no services.”
