EThekwini Municipality Mayor, James Nxumalo unveiled the Municipality’s ambitious R41.6 billion budget for the 2016/17 financial year.

This is made up of R34.9 billion operating budget and R6.7 billion capital budget.

Amidst tough economic challenges, the Municipality has presented the 2016/17 draft budget that puts transformation and development as priorities.

Provisions in the budget continue to support government’s commitment to broadening service delivery and expanding investment in infrastructure, while taking into account the constrained fiscal environment.

“It is our responsibility to manage finances in a prudent and sustainable way, empower our people, accelerate service delivery, assist the needy and provide interventions to the challenges faced by our communities,” said eThekwini Mayor James Nxumalo, speaking on the budget.

“It is a pro-poor budget and is focused on alleviating poverty and social imbalances through job creation, youth development and advancing the economy by creating an enabling platform for business to flourish,” Nxumalo noted.

Tariff increases for the 2016/17 financial year were affected by various factors including the cost of bulk purchases from Eskom and Umgeni Water, the adverse impact of the current economic climate, coupled with unfavourable external financial pressures on services and the decrease in consumption of water and electricity.

The budget is currently available for comments and community hearings will start on 19 April 2016.

The budget will be presented to communities, business and traditional leadership, stakeholders, thereafter it will be adopted at the end of May 2016.