GCFO Kagiso Lerutla calls upon the Minister of Finance to consider municipalities in his budget speech

The COVID-19 pandemic has impacted economies worldwide, and South Africa is no exception. Municipalities have not been spared, as they continue to grapple with revenue generation due to the pandemic's impact and high rates of unemployment. As such, the Group Chief Financial Officer of the City of Ekurhuleni, Mr Kagiso Lerutla CA(SA), has called on the Minister of Finance, Mr Enoch Godongwana, to consider financial relief for municipalities in his upcoming budget speech .

In a statement released by Mr Lerutla, he expressed concerns over the significant decline in revenue generation for municipalities, which has affected their ability to provide basic services to communities. He emphasized that municipalities are at the forefront of service delivery and need financial support to continue providing critical services to communities.

"COVID-19 has hit municipalities hard, and we are experiencing a significant decline in revenue generation. Municipalities are at the forefront of service delivery, and the decline in revenue has impacted our ability to provide basic services to communities. We are therefore calling on the Minister of Finance, Mr Enoch Godongwana, to consider financial relief for municipalities to ensure that we can continue providing critical services to communities," Mr Lerutla said.

Mr Lerutla further stated that the high rates of unemployment have also contributed to the decline in revenue generation, as many households are unable to pay for basic services such as water and electricity. He emphasized the need for urgent financial intervention to ensure that municipalities can continue to provide services to communities.

"We also need to consider the impact of high rates of unemployment on revenue generation. Many households are unable to pay for basic services, and this has further impacted municipalities' ability to generate revenue. We urgently need financial intervention to ensure that municipalities can continue to provide services to communities," Mr Lerutla added.

It is imperative that the government considers the plight of municipalities and provides the necessary financial support to ensure that they can continue to provide critical services to communities. The provision of financial relief will not only benefit municipalities but also alleviate the burden on households, especially during these challenging times.