The City of Johannesburg has tabled its 2015-2016 Budget which focuses on capital expenditure‚ entrepreneurship development, the green economy, housing and youth employment.

The annual budget of R52.6 billion was announced by City of Johannesburg Member of the Mayoral Committee for Finance‚ Geoffrey Makhubo, on Tuesday.

This is the first time that any city budget in South Africa exceeds the R50 billion mark.

The budget, Makhubo said, is made up of R42.7 billion in operating expenditure and almost R10 billion for capital expenditure.

“This budget was prepared mindful of the tough economic environment. Growth in global economies continues to be constrained, marked by a slowdown in Europe and deceleration in China and emerging market economies. Emerging markets like South Africa are, therefore, faced with the risk of capital outflows as well as lower commodity prices,” he said.

The domestic economy also continues to be affected by electricity supply constraints, labour market disruptions, skills shortages, budget deficit and exchange rate risks to the economy.

Detailing the budget, Makhubo announced that the sustainable services cluster, which oversees and coordinates the bulk of the city’s service delivery obligations has been located R25.9 billion for the operating budget.

Environment and Infrastructure Services

Environment and infrastructure services (EISD) is allocated an operating budget of R234 million for the 2015/16 financial year and a multi-year capital allocation of R77.5 million.

EISD will take the leading policy role in the areas of biodiversity conservation; integrated waste management; investment in ecological infrastructure; the rehabilitation of the Princess Mine Dump; air quality; climate change and energy diversification including green energy initiatives.

Through these initiatives, Makhubo said the city intends to create a Johannesburg that protects its air, water and soil and manages its waste to build a better environments for future generations.

Housing allocation

The housing department was allocated an operating budget of R864 million in the 2015/16 financial year and a multi-year capital budget allocation of R2.7 billion.

This budget will be utilised for investment in bulk infrastructure, such as roads and storm-water management systems; to transform existing infrastructure in areas such as Kliptown, Diepsloot, Braamfischerville, Orange Farm, Dark City in Poortjie, Rabie Ridge, Eldorado and Princess.

This segment of the budget will also build new inclusive mixed-use settlements including South Hills; as well as hostel refurbishment and upgrades to transform the Orlando Women’s Hostel, Dube Hostel, and Jabulani Hostel, amongst others.

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