Yesterday National Government announced that employee gross earnings across South Africa are down by R19 Billion rand in the first quarter of 2017. (See: Employee Gross Earnings down by R19 Billion)
Later National Government announced that Municipal revenue across South Africa increased by R27 Billion in the 2016 financial year in comparison to 2015.
The frightening number in the revenue streams is that the largest contributor (at 30.9%) to municipal ‘revenue’ was Grants and Subsidies received. Someone help me here – how can money from the taxpayer become ‘revenue’ in the hands of the municipality?
More concerning is the statement that Grants and Subsidies paid represent 2% of the total contribution to municipal total operating expenditure – without sight of the actual numbers received and paid out the percentages paint a bleak picture.
Putting the two announcements together makes for more concern and illustrates a continuing squeeze on the beleagured consumer struggling to keep their head above water.
Municipalities across the country received an income of R333 billion from all sources of 2016 income, which represents an increase of R27 billion compared to R306 billion in 2015:
“The largest contributor to municipal revenue for the year ended 30 June 2016 was grants and subsidies received (30.9%), followed by electricity sales (28.3%), property rates received (14.7%), other revenue (11.0%), water sales (8.9%), sewerage and sanitation charges (3.5%) and refuse removal charges (2.7%),” Statistician-General of South Africa Dr Pali Lehohla said.
The revenue for metropolitan municipalities in 2016 was R191 billion compared to R178