Finance Minister reports progress in Eskom debt relief for municipalities

Finance Minister Enoch Godongwana announced progress on Eskom debt relief plan, with 70 municipalities approved and compliance improving from 55% to 76% since March, supported by National Treasury and provincial finance teams.

Addressing parliament on Wednesday Godongwana called on government departments to pay their dues to help municipalities continue services and meet payments to Eskom and water boards.

“Many of our municipalities face serious governance planning and financial management challenges. More municipalities stand to benefit from this write-off of debt if they comply with the conditions of the programme. We implore provincial and national departments owing municipalities to pay their dues. This will enable municipalities to pay waterboards and Eskom, so that utilities can deliver these services to citizens,” he added.

Following several calls for the minister to provide clarity around the future of the Social Relief Distress (SRD) grant, the minister was not clear on the way forward.

“This temporary grant has been extended several times. A sustainable fiscal approach requires that any permanent addition to spending must be funded through permanent revenue sources or reprioritization from within the existing fiscal envelope,” said Godongwana.

Godongwana also downgraded the economic growth forecast for 2024 to 1.1% from 1.3% in February. He said the policy statement outlines the government’s strategy to lift the economy to a higher and more inclusive growth path. The strategy is anchored on maintaining macro-economic stability, implementing structural reforms, supporting growth-enhancing infrastructure and building state capability.

Photo Credit: Parliament of the Republic of South Africa

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