adminOVER six months after the Bulawayo City Council completed its budget making process, Government is still yet to formally approve it just a couple of months before the local authority begins consultations for its 2016 budget, it has been learnt.
The local authority unveiled a $158 million 2015 budget with tariffs set to be increased by a marginal four percent last year in November, an increase from $156 million in 2014.
However, six months on the Local Government, Public Works and National Housing Ministry is yet to approve this year’s budget with the local authority in a catch-22 scenario as they fail to implement certain tariff increases that were included in the budget proposals.
Confirming the latest development the local authority’s senior public relations officer, Mrs Nesisa Mpofu said this was impacting negatively on the local authority’s planning.
“Yes, the last time I spoke to the finance director the budget had not been approved which I believe is still the current scenario,” said Mrs Mpofu.
Speaking during a recent media briefing, the city’s Mayor Councillor Martin Moyo also confirmed that the budget was still to be approved noting that numerous efforts were being made to ensure it was approved.
“There are a number of costs that heavily rely on the budget being approved which is why we are frantically working to ensure that it is approved,” said Clr Moyo.
Contacted for comment, Local Government, Public Works and National Housing Minister Dr Ignatius Chombo said all was in place regarding the city’s budget noting that officials from his Ministry were looking into it.
“As you might know some of these things are handled by my officials but I am sure everything is in place regarding the city of Bulawayo’s budget proposals,” said Dr Chombo.
Last week the Government ordered the Gweru City Council to slash its salaries for their budget to be approved.
Meanwhile, the debt owed by domestic, commercial and the Government has since ballooned to over $100 million amid revelations that the local authority was directing over 90 percent of their monthly collections towards their wage bill.
According to the latest council report, as at March 31, the local authority was owed $102 560 637, with residents owing the bulk at $56 920 342, industrial and commercial debtors owe the council $42 989 064 while Government departments owe $2 651 231.
In terms of Government indebtedness to the local authority, the Ministry of Primary and Secondary Education owes the bulk of the figure at $1 343 114, followed by the Ministry of Home Affairs, who owe $669 443 and the Zimbabwe National Water Authority (Zinwa) which owes the local authority $438 949. The Ministry of Transport and Infrastructural Development owes the least amount of $31.
For the same month the local authority managed to collect a total of $6 250 672 of which $5 910 801 went towards cash obligations, which include salaries and allowances ($2 580 438), salary creditors ($1 121 173), utilities ($15 490), taxes ($454 532), trade creditors ($1 334 570) and financial institutions ($404 598).
This figure therefore means after all costs are covered the local authority is left with just $339 871 which is then directed towards service delivery. This, therefore, means 94,5 percent of what council collected for the month of March went towards servicing of other costs not related to service delivery with just 5,5 percent being the money left for service delivery.
Online Reporter