admin
Innocent Ruwende Municipal Reporter
Government will not approve budgets for local authorities that do not comply with the 70:30 percent threshold for service delivery and employment costs respectively, Secretary for Local Government, Public Works and National Housing Engineer George Mlilo said on Thursday.
In an interview Eng Mlilo said local authorities would not be allowed to spend any money as of January 1 next year without an approved budget.
Most local authorities, including Harare had their 2015 budgets approved recently, mainly because salaries were gobbling more than half of the total revenue.
“The key thing in budget preparations is that any budget must reflect 70:30 ratio in favour of service delivery. All salaries should be aligned to meet the ratio.
“They (budgets) should be in by the November 5 for approval before December 10. There will be no expenditure as of January 1 without an approved budget,” he said.
The directive comes as most local authorities are consulting residents in the process of budget formulation.
Former Local Government, Public Works and National Housing Minister Dr Ignatius Chombo, only approved the Harare City Council budget recently, but separated the city’s executive salaries from the financial plan.
Minister Chombo was refusing to sign the city’s budget because the city’s directors failed to comply with Government’s directive for local authorities bosses to cap their salaries at $9 000, including allowances.
According to the city’s pay schedule confirmed by Harare mayor Bernard Manyenyeni, the city had 16 grades of employees with former town clerk Dr Tendai Mahachi earning $21 000, excluding vehicles, housing, cellphone and workshop allowances.
The Harare Residents Trust (HRT) accused the city of overpaying its senior management saying it explained why the city could not balance the incomes and expenditures.
HRT lobby and advocacy officer Miss Esther Chimanikire, said the key issues raised by residents in pre-budget consultations, were for the city to prioritise water, road maintenance, refuse collection, drainage system, primary schools, tower lights, street lighting, road humps, boreholes and removal of green ways.
“Residents of Harare want council to carry out projects within their communities. This can only be best achieved if the much talked about 10 percent retention funds are given to each ward. So far only four wards have been given this fund out of the 46 wards in Harare.
“What should be happening in communities is that the funds should be in the hands of a stakeholder group that will concentrate on priorities set by the respective community. The City of Harare gets income from vendor fines and clamping of vehicles. The city officials should consider using such funds to provide essential services to residents,” she said.
Most local authorities are failing to provide basic services owing to huge employments costs and residents debts.
Online Reporter