Metro debt mounts

Money owed to metropolitan municipalities has grown by almost 20 percent over the past year, according to a local government revenue and expenditure statement released by Treasury

The statement covers the period July 1 last year, to June 30 this year.

“Metropolitan municipalities were owed R36.6 billion in outstanding debt as at June 30, 2011. This represents an increase of R6.0 billion, or 19.7%, from the fourth quarter of the 2009/10 financial year.”   

According to the statement, Johannesburg’s outstanding debt is the highest of any metro.

“The City of Johannesburg’s share in this increase is R3.6 billion, or 60%. [Its] outstanding debt has grown by 44 percent year-on-year, the highest of any metro.”   

Among other things, the statement also finds municipalities’ cash flow situations have improved compared to previous quarters of  this financial year.

“This is largely as a result of significant under expenditure of  both the operating and capital budgets by municipalities,” it says.