WATER projects of the Capricorn District Municipality got more funding after Council increased spending on infrastructure for the financial 2019-20. In presenting the adjustment budget during a special council meeting on Wednesday 26 February 2020, Executive Mayor Cllr John Mpe said there was an expenditure strain that was experienced in respect of water projects this financial year and as a result, some funds were moved from operational expenditure (such as salaries and other general expenses) to capital expenditure (infrastructure) in order to fund more water projects, which thus got an increase of R56m.
“An analysis was done on the expenditure trends throughout the seven months of this financial year, and there was a need to make adjustments and reprioritise infrastructure spending. The total budget has adjusted from R 1,029 540 000 to R 1 073 734 000 to include roll-overs amounting to R 44 194 000.
On operating revenue, the municipality realised a decrease of R65m that consists of adjustments in which R7,7m was from equitable share, R9,8m from municipal infrastructure grant (MIG) and further R47,5m from water services infrastructure grant (WSIG) to fund more infrastructure projects. Total operating expenditure has thus decreased from R731m to R666,7m as a result of the adjustment in order to increase the overall capital budget from R309m to R407m, to the additional equitable share rollovers amounting to R 28m which led to an overall increase of R65m.
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