Finance Minister Enoch Godongwana says the National Treasury will intensify efforts to improve municipal performance and strengthen revenue collection for trading services during the current financial year.
Speaking during Treasury’s budget vote speech in Parliament on Friday, Godongwana revealed that government departments owing municipalities billions of rand will come under pressure as part of plans to stabilise local government finances.
He said national and provincial departments collectively owe municipalities more than R22 billion, a burden Treasury now intends to address while also intervening in struggling metros to support inner-city renewal projects.
Treasury Focuses On Municipal Revenue Collection
Godongwana said improving municipal trading services remains a critical priority, particularly as South Africa heads into a local government election year and pressure mounts on municipalities to improve service delivery.
According to the minister, funds transferred from the Department of Human Settlements to Treasury will help address challenges linked to metro trading services.
[Leon Schreiber Tightens Crackdown On Illegal Immigration With Mass Deportations]
He said, “Municipalities are a great challenge. Each metro has its own challenge. The degree of the challenges differs from metro to metro.”
Godongwana added that Treasury’s approach would not only target underperforming municipalities but also departments failing to settle outstanding municipal bills.
“We have tried to quantify what is owed to them. Provincial governments owe municipalities about R14 billion. National government owes about R8.2bn.”
National Treasury To Drive Inner-City Renewal In Metros
The minister also confirmed that Treasury would take a more direct role in driving inner-city renewal initiatives across major metropolitan municipalities.
The Times Post understands that the intervention forms part of broader efforts to improve infrastructure, service delivery and financial sustainability in urban centres facing mounting operational pressures.
Godongwana further stated that Treasury would support municipalities in repairing failing water infrastructure as part of efforts to improve essential services.
