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Thupeyo Muleya
Beitbridge Bureau
The Beitbridge Municipality has adopted a $1,3 billion annual budget for 2022 which will see rates and tariffs being hiked by 50 percent.
The local authority had maintained the same tariffs between 2018 and 2020.
Presenting the budget statement on Friday evening, Deputy Mayor Councillor Agnes Tore said the budget was prepared on a cost-recovery basis to provide sustainable, affordable, and efficient services.
“In coming up with the 2022 budget estimates, the municipality engaged key stakeholders and key clusters, these include 6 Wards, political parties, women and youths, businessmen, small to medium enterprises (SMEs), religious leaders and the various residents associations,” said Cllr Tore.
“The budget estimate seeks to address key service delivery issues like water and sanitation, roads, social services and housing, at the same time ensuring sustainable service provision.”
In formulating the budget, council had also taken into consideration its ability to continue offering services on a cost-recovery basis, economic indicators and liquidity of council.
She said there was need to strengthen the linkage between funding and results, with a view to improving effectiveness and the efficiency of public expenditures.
“The proposed 2022 budget of $1,3 billion, will see tariffs and rates going up by 50 percent,” said Cllr Tore.
“We have taken into consideration the existing macro-economic fundamentals and are also informed by the need to provide service delivery at a cost-recovery basis for exchange transactions and a fair tax for non-exchange services in order to adequately fund this budget.
“Our tariffs for the exchange transactions are backed up by cost build-ups. These tariffs since the 2020 supplementary budget, are stated in local and foreign currency by the ruling official exchange rate in line with Statutory Instrument 185 of 2020.”
She said the local authority was anticipating a total income of $1,350, 35,462, and a total expenditure of $1,348,250,267 giving a surplus of $2 million.
The surplus, Cllr Tore said, satisfied the requirements of the Public Finance Management Act which remains of paramount importance in both budget formulation and implementation.
She said they would spend $382 million on governance, and administration, $500 million on water, sanitation, and hygiene, $293 million on social services, $92,2 million on roads and $71,1 million on public lighting.
“The Municipality has also committed funds on the construction of a new water pipeline between Genter and Tower lane to address perennial water losses along that route, a new primary school, clinic, upgrading sewer reticulation facilities, public lighting at crime red zones, among other things,” said the Deputy Mayor.
Chairperson of the public works committee, Councillor Takaitei Mahachi said it was important for residents to pay up their bills for the local authority to be able to meet its obligations.
“We have noted with concern that we are carrying forward the same debtors, year in year out.
“It is very critical that we establish a relationship where each party commits to meeting its side of the bargain.
“This entails the ratepayers paying for services and the council delivering the services,” said Cllr Mahachi.
As at 30 September this year, residents and ratepayers owed the local authority $364 million, with $148 million being water arrears, $97 million for rates and service charges, $111 million for stands servicing, $1 million for housing leases and $6 million for business licences
Online Reporter