Thursday, November 05, 2009

More pain forecast ...

Honestly, I don't know how you guys cope in South Africa. The councils couldn't be bothered to collect from non-payers (townships mostly) so they hit the easy marks, that's you whitey (and some blacks) - yes, because they know where to find you, is why - in suburbia. I need so I take, goes the black man credo. No need to go into detail why these increases are happening since you know why. Look around. Oh, and while we're on the subject, Johannesburg is about to blow R45 million hosting the Miss World pageant next month. Pay up!

Miss World to cost Joburg R45m - News24


"Salaries are eroding the money for service delivery. People don't understand the technical details, and simply see a bunch of "fat cats" up there and a lack of service delivery on the ground."

Pretoria - Municipalities' plans to choke another 20% out of punch-drunk consumers this year will further constrain consumer spending.

National Treasury said that municipalities countrywide had budgeted for a 19.4% increase in operating income for the financial year beginning on July 1.

This is, according to North West University economics lecturer André Mellet, considerably more than the inflation rate, which is expected to be about 7% for this year and the next. He reckons consumers will struggle to pay so much more for their municipal services and arrears could further escalate.

Consumer expenditure is the foremost economic driver, he explains, and if it does not get into gear economic growth and job creation will fail to materialise.

Treasury also said that municipalities had budgeted for a 17.6% increase in operating expenditure, providing a 1.8% point buffer between the higher expenditure and income.

Mellet believes this is too narrow.

The planned expenditure was announced in the budgeting process, and expectations created among consumers. He reckons failure to adhere to these promises could spark further protest actions.

Theo Venter, a political analyst at the North West University, says higher electricity tariffs have already distorted municipal budgets. He adds that municipalities' staff expenditure has also got out of hand and is generally consuming much more than 40% of the budget.

"Salaries are eroding the money for service delivery. People don't understand the technical details, and simply see a bunch of "fat cats" up there and a lack of service delivery on the ground." - Sake24.com

2 Opinion(s):

Anonymous said...

Crumbling municipalities - check
Crumbling education system - check
Crumbling infrastructure - check
Crumbling Health - check
Corrupt government - check
Electricity 40% up - check
Proposed 1% SABC tax - check
20% Rates increase - check
White genocide - check
Highest crime - check
Highest rape - check
Highest child abuse - check
Corrupt police - check
Corrupt youth groups - check


Now for the positives:
New stadia - check
45Million Ms World pageant - check

Ummm...that's it folks. Feel free to add to the lists - my mind has shut down from depression...

Doberman said...

@ anon 6:19, ag jerre man, now me too..now that you put it that way.