Recent media coverage carried bold, screaming and sensationalized headlines of, ‘undue cuts to Local Authorities budgets,’ by the Ministry of Local Government. The Ministry would like to rubbish these mischievous, baseless political mileage seeking gimmicks and pronounce the following:
1. It is disingenuous for Local Authority Finance Committee Chairpersons to announce in their Development Budget Speeches, as reported in the media, that the Ministry of Local Government had ‘cut’ their budgets when they know fully well that this is not true.
2. Contrary to what the media attributes to the Local Authority Finance Committee Chairpersons, the Revenue Support Grant for 2009/10 to Local Authorities from Central Government has increased by an average 30% of the 2008/09 budget. This notwithstanding the impact of the global financial crisis and economic downturn.
3. The total approved Revenue Support Grant budget for 2008/9 stood at BW P 2,471,230,972 while the total approved Revenue Support Grant budget for 2009/10 stands at BW P3,229,791,360 which represents a 31.60% increase of the 2008/9 to 2009/10 budget.
4. Hon. Minster Dr. Magaret Nasha stated in her Committee of Supply Speech to Parliament on Tuesday 24th February that, ‘Local Authorities get the largest share of the Ministry’s recurrent budget for the financial year 2009/10 as Revenue Support Grant with the remainder being shared by the Ministry’s eight departments.
5. The Minister went on to state that, ‘all councils’ recurrent allocations have seen an increase of between 22% and 40% when compared with the 2008/9 allocations’.
6. What the Councilors omitted to announce in their Recurrent Budget Speeches was that their individual Council shopping lists or requirements far outstripped Governments approved budget ceilings and that under such circumstances Local Authorities were compelled to forgo some of their planned purchases and activities.
7. Governments Revenue Support Grant represents almost 90% of the total estimated Local Authority income while the Councils own source of revenue represents only 10%. This is a skewed and unhealthy ratio which concerns Government and prompted calls to encourage Local Authorities to explore creative and innovative income generating streams to support themselves.
8. The difficult and trying circumstances of the current global economic downturn present a challenge for Local Authorities to be frugal in their fiduciary responsibility with public funds. The situation calls for strong, transparent and forthright leadership which places greater emphasis on financial prudence.
9. The Ministry of Local Government is alive to the fact that 2009 is an election year and that some in the Political Leadership may not be able to resist the temptation to sacrifice truth at the alter of political expediency when faced with fierce electoral competition. The Ministry of Local Government will however not countenance such political maneuvers.
Posted by:
Tigele Mokobi
Public Relations Unit
Ministry of Local Government
Tel: (+267) 3658529
Fax: (+267) 3972023
Email: tumokobi@gov.bw