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In a pivotal session held at the Municipal chambers in Mogwase on Friday, May 31, 2024, Mayor Nketu Nkotswe of Moses Kotane Local Municipality unveiled and secured approval for the budget slated for the upcoming financial year 2024/2025.
The municipality’s financial outlook for the next fiscal period presents a mixed bag of challenges and strategic initiatives aimed at maintaining financial stability and fostering growth. According to the budget presentation:
Total operating revenue is projected to decrease significantly by R17,114 million compared to the 2023/2024 Adjustments Budget, amounting to R1,061,075 billion for the 2024/2025 financial year. However, a positive trajectory is expected in subsequent years, with operating revenue forecasted to increase to R1,093,450 billion in 2025/2026 and further to R1,118,280 billion in 2026/2027.
Mayor Nkotswe attributed these fluctuations to specific adjustments within key revenue streams:
- Equitable Share: Notably, an increase of R33,983 million, representing a 6% rise from the current financial year.
- Property Rates: Witnessed a reduction of R9,840 million, reflecting adjustments in local property valuation assessments.
- Service Charges: Experienced a decrease of R27,339 million, primarily due to challenges related to inconsistent water supply management.
The municipality’s capital budget for the 2024/2025 financial year is earmarked at R252,554 million, with plans to escalate to R266,897 million in 2025/2026. This allocation underscores Moses Kotane’s commitment to infrastructure development and strategic investments aimed at enhancing community services.
In terms of operating expenditure, the municipality anticipates a notable increase, projecting a total of R1,346,501 billion for the 2024/2025 financial year, up by R134,143 million from the 2023/24 Adjusted Budget. Looking ahead, operating expenditure is expected to further rise to R1,403,812 billion in 2025/2026, indicating ongoing financial commitments and operational costs.
Mayor Nkotswe emphasized that despite the revenue challenges in the short term, Moses Kotane Municipality remains steadfast in its efforts to ensure prudent financial management and sustainable growth for its residents. The budget approval marks a critical step towards realizing these objectives, setting the stage for responsible governance and community-focused development in the years ahead.
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