STATEMENT BY THE CITY’S MAYORAL COMMITTEE MEMBER FOR FINANCE, COUNCILLOR JOHAN VAN DER MERWE
The City of Cape Town’s 2018/19 Capital Adjustments Budget was approved by Council today. The tabling of adjustments budgets is part of the normal annual government process to ensure good governance and prudent financial management. This budget has no detrimental impact on the provision of basic services. Read more below:
An amount of R443,8 million has been included in the adjustments budget which is about 6% of last year’s R6,8 billion capital budget. Unspent funds are not lost, but are added to the current capital budget.
This brings the City’s current capital budget for 2018/19 to approximately R8,85 billion.
The Municipal Finance Management Act (MFMA) allows for an adjustments budget that may authorise the spending of funds that were unspent at the end of the previous financial year. This relates to instances where the underspending could not reasonably have been foreseen and thus could not have been included in the current budget for the new financial year.
The City will do everything in its power to ensure that its capital budget is spent as efficiently and timeously as possible within the framework of the law, due process and the realities that affect performance on the ground.