RNM council unanimously approves 2020/2021 budget

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On Friday 29 May, the Ray Nkonyeni Municipality Council held a virtual meeting and
unanimously approved the 2020/2021 Budget which was presented by the Mayor on the
evening of Wednesday 27 May 2020.

The virtual meeting of the RNM Council considered the 2020/2021 Budget of more than R1, 1
billion as it was presented on Wednesday 27 May 2020 by Her Worship of RNM, Cllr Nomusa
Mqwebu. What was noticed during the meeting is that all the speakers expressed happiness
about the budget process and also all that is contained in the budget.
What may be one of the good news to RNM citizens about the approved budget is that the
increase for rates and service charges has been reduced from the initial 6% from the Draft Budget
considered at the end March, to the projected inflation for 2020/21 of 4, 5% whilst electricity in
the RNM areas of distribution will be increased by 8, 1% instead of the initial 13% of which
increase is subject to NERSA approval. “After thorough consideration of the current
economic decline, the negative effects that are as a result of COVID-19 outbreak, and also
considering National Treasury Circular Number 99, we, as a caring government that is in
touch with its citizens, then decided to reduce the increases for rates, tariffs of charges
and electricity”, emphasized the Mayor during her presentation on Wednesday, and these words
were welcomed by all Councillors during the meeting.

The budget which has taken into consideration many other factors, is meant to ensure that the municipality is able to meet the current challenges, repair of road infrastructure, mainly potholes which are allocated more than
R22 million. What is also noticeable about this budget is that it provides for mitigation of triple
challenges of Poverty, Inequality and Unemployment whilst the bulk of the Capital Budget is
directed to infrastructural projects in rural communities in the main.
This approved 2020/2021 budget which will start to be operational on 01 July 2020 has a
PROJECTED INCOME of R1, 181, 901, 640. 00); TOTAL EXPENDITURE (both operating and
capital) of R1, 162, 499, 316. 00; and NET RESERVES of R19, 402, 324.00.

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