Treasury implores metro municipalities to spend effectively on service delivery

The National Treasury has established that many metropolitan municipalities are underspending on their budgets, noting that this denies residents service delivery. 

It has now launched an incentive-based grant for government spending capped at R54 billion over six years. 

This lifeline works on a performance review system, where funds are released to meet specific performance targets. 

Treasury’s Director General Duncan Pieterse said when funds are not used, they are re-allocated to other municipalities or sent back to the revenue fund.  

“While it contributes to the overall health of the National Revenue Fund [NRF] when funds are returned, the ultimate objective of those funds is to improve service delivery in those areas, and we would much rather those funds be spent there.”