Local governments underspent their capital budgets by R27 billion for the 2023/24 financial year, marking an increase of R7 billion compared to the previous year, 2022/23. Cumulatively, 66% of the annual capital budget of R78.6 billion was spent. Metropolitan municipalities underspent by R10 billion, achieving an expenditure rate of 71%, down from 76% in 2022/23. Local municipalities underspent by R13 billion, with an expenditure rate of 62%, compared to 70% in the previous year, while District Councils underspent by R3.8 billion, reflecting an expenditure rate of 59%, a decline from 67% in 2022/23.
This indicates a weakening in expenditure rates across all three tiers of local government, despite a 9% increase in capital budget allocations for 2023/24. Overall, actual expenditure ended flat. Although metropolitan municipalities showed some improvement, the 6% increase in capital expenditure to R24.7 billion fell short of expectations, given the 13% increase in their 2023/24 capital budgets. District Councils, despite a 2% increase in their capital budgets, saw a 9% decline in actual expenditure to R5.4 billion. Similarly, aggregated expenditure by other local municipalities dropped by 4% to R21.6 billion, despite an 8% increase in budgetary allocations.
The Local Government Capital Expenditure Dataset, incuding more detailed capital and operating expenditure for all local governments across the country, is available for downlaod to subscribers here.
