COGTA calls for review of hackneyed funding model for municipalities
Municipalities generate a majority of their budgets from charging customers for rates, water, electricity, and other services.
FILE: COGTA Minister Velenkosini Hlabisa. Picture: GCIS
JOHANNESBURG - The Department of Cooperative Governance and Traditional Affairs (COGTA) is calling for a review of the current funding model for municipalities, saying it no longer works.
Municipalities generate a majority of their budgets from charging customers for rates, water, electricity, and other services.
A small percentage of the municipal budget is funded by the national government.
On Monday, COGTA is hosting a youth and women dialogue on the review of the 1998 White Paper on local government at the Birchwood Hotel in Boksburg.
Speaking at the event, COGTA Minister Velenkosini Hlabisa said the funding model for local government cannot be a one-size-fits-all.
“We need to hear your views about what funding model must be done to ensure that our municipalities are able to deliver services. The 90% collection by municipalities and 10% by the national government has proved to not be working.”