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PULSE - Limpopo Local Government Capital Expenditure Review June 2023

Limpopo is currently showing the strongest increase in the Provincial Construction Forecast Model, as the nominal value of the construction  pipeline (based on approvals and tenders) increased by 61.9 percent y-y over the 12 months up to June 2023. 

This report focuses on budgetary and actual capital expenditure at local government level in the Limpopo province for the 2021/22 and 2022/23 fiscal periods as reported by National Treasury. It drills down to key focus such as capital expenditure in housing, health, energy sources, road transport, water management and waste water management for a better understanding of key areas that may have a more direct impact on the provincial construction market and to improve monitoring of capital expenditure at a local government level.

Limpopo’s aggregated local government capital budget was increased by 10 percent in the 2022/23 fiscal period (nominal terms) to R7bn, spread across 26 municipalities. Actual expenditure for the 2022/23 fiscal period however increased by only 3 percent to R4.7bn, having spent just 68 percent of the annual capital budget. This is a worse performance compared to 2021/22 when 72 percent of the capital budget was spent. This means R2.2bn was left unspent in 2022/23, up from R1.7bn unspent in the previous fiscal period, a total of R4bn over the last two years.

This report is accompanied by a quarterly dataset of capital budgets and actual expenditure, by local government, from September 2021 – June 2023, under Basic Subscription / Statistics. 

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