On Thursday, the Emfuleni Local Municipality (Evaton, Sebokeng, Vaal Oewer, Vanderbijlpark and Vereeniging) approved its seventh unfunded draft budget for the 2025/26 financial year, which will have far-reaching consequences for residents.
This unfunded budget means projected expenditure will exceed expected revenue, potentially hampering service delivery and causing further financial instability.
The draft budget highlights the Municipality’s reliance on external funding sources, such as the National Treasury’s (NT) budget facility for infrastructure, to execute critical projects. The NT has emphasised that municipalities with unfunded budgets have to put forward credible funding plans to serve residents. This was not done.
The NT recommends that municipalities ensure realistic revenue projections and align expenditure to maintain fiscal discipline. Although the specific assessment is not detailed in the budget, the general guidelines underscore the need for transparent financial planning.
Emfuleni’s budget includes significant tariff hikes, such as 15,3% for water and 10,74% for electricity.
These hikes were met with public outcry as residents feel they are unfair in light of the Municipality’s ongoing service delivery failures, such as power outages, water shortages and general infrastructure problems.
The Freedom Front Plus also criticised the Municipality for its unauthorised expenditure, lack of proper oversight and failure to hold officials accountable.
Emfuleni’s unfunded budget, combined with the proposed tariff increases and a history of financial mismanagement, underscores the urgent need for comprehensive fiscal reform.
Engagement with the NT and adherence to its guidelines will be crucial in developing a sustainable financial plan that ensures service delivery and restores the public’s faith in the Municipality.
