National Treasury has published the adopted 2020/21 MTREF budgets on 2 December 2020 which is based on the mSCOA classification framework and covers the budget data submitted by 256 municipalities.
The publication can be accessed via the link below:
Click here to download the complete PDF version of the below documents:
Media statement 2020 MTREF
Interesting notes to take from the publication includes:
- Total Aggregated Revenue is budgeted to increase by 12.66% over the MTREF period from 2021 to 2023
- Total Aggregated Operating Expenditure is budgeted to increase by 11.48% over the MTREF period
- Total Aggregated Capital Expenditure is budgeted to increase by 0.77% over the MTREF period
- Total Aggregated Repairs and Maintenance are budgeted to increase by 11.21% over the MTREF period, with the bulk of repairs and maintenance planned to be allocated to infrastructure and transport assets
- Total Aggregated Debt Impairment is expected to increase by 75%
- Local Municipalities plan to improve their Net Cash position over the MTREF period from a deficit of R3,3 billion to a deficit of only R836 million, this equals a growth rate of 74.68%
- District Municipalities budgeted for a decrease of 185.69% in their Net Cash position over the MTREF period from a surplus of R86 million to a deficit of R74 million
- The Gauteng province budgeted for the largest increase in their Net Cash position while the Northern Cape is the only province that budgeted for a decrease in their Net Cash position over the MTREF period
The correct and accurate reporting of Budgets in the prescribed A1 Schedule and data strings format remains an important requirement of the Municipal Standard Chart of Accounts Regulation and sets a firm foundation for In-Year Reporting to take place.
Munsoft acknowledges all the efforts taken by National Treasury and Provincial Treasury together with municipalities to improve budget reporting and we encourage any municipality to seek assistance if they require help with budget reporting.
If you have any queries or require assistance with the budget process and reporting, you are welcome to contact your Service Delivery Manager and we will gladly assist.