The City’s R68.1-Billion budget for the 2020/2021 fiscal period places housing and the continuation of bulk infrastructure development at the top of its considerations. Dubbed “the government of local unity budget”, it prioritises tariffs relief and rebates for pensioners, job creation
and youth development amid the impact of the Covid-19 pandemic on residents of Johannesburg.
Member of the Mayoral Committee (MMC) for Finance, Jolidee Matongo says the budget exceeds’ expectations despite the global economic downturn. Matongo notes that the ripple effects of a worldwide economic melt-down brought on by the Covid-19 pandemic, and the subsequent national lockdown in South Africa are evident in the decline of the City’s revenue since April.
“The tariff setting process, which was presented through a public participation engagement took into consideration the likely impact the initially proposed tariff increases had on the local economy, businesses and residents,” he explains.
Matongo says tariffs contained in the budget demonstrate the City’s commitment to inclusivity and accountability to residents.
The overall budget comprises an operating expense of R60.6-billion and a capital expenditure of R7.5-billion. Over R1-billion has been set aside for job creation, while youth development receives seed funding of R50-million. The budget report was adopted by the majority of political parties in Council, who also adopted the IDP and Business Plan processes.
Other budgetary allocations include:
• R1-billion for job creation and SMMEs engagement through the roll-out of high-impact projects that include sewer upgrades, storm water upgrades, tarring of roads and housing developments in Orange Farm, Lakeside, Drieziek, Kapok, Ivory Park, Ebony Park, Mayibuye, Riverlea and Kliptown
• R1.2-billion to formalise informal settlements over the medium term
• R200-million for the procurement of fire engines
• R800-million to procure new buses for the Rea Vaya Bus Rapid Transit system to ease the current demand pressure on the existing fleet, and continue to offer a cheap and reliable public transport system to the people of Johannesburg
• R156-million for hostel upgrades and R105-million for the upgrade of flats and old age homes
• R45-million for the roll-out of Free Joburg Wi-Fi, an additional R40-million to expand access to free Wi-Fi across the City, including in hostels, flats, student villages and old age homes
• R780-million for the tarring of gravel roads across Johannesburg
• R820-million for storm water upgrades
• R440-million for the construction and upgrading of bridges
• R12.8-billion in 2020/21 – with a three-year capital budget of R3.1 billion for the continuous supply of water and sanitation both in formal and informal settlements where rudimentary services in a form of chemical toilets and water tanks will be added and serviced regularly
• City Power has been allocated a three-year capital budget of R2.6-billion to fund the provision of public lighting at R205-million, the electrification of informal settlements at R498-million and the electrification of Mega Projects at R100-million
• R22.7-million for the maintenance and refurbishment of existing electricity infrastructure, supporting infrastructure such as ICT and integrated security and fire protection systems
• R3-billion for Pikitup will go towards the ward-
