EThekwini leads the Urban Settlement Development expenditure list

EThekwini remains the leading Metro countrywide in terms of spending the Urban Settlements Development Grant (USDG).

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EThekwini spends 100% in the past 5 years

However, it came as shock when the National Treasury and the Department of Human Settlements decided to to reduce the allocation for the Urban Settlement Development Grant (USDG).

The city has been spending 100% of the USDG for at least the past five years.

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EThekwini was also on track to spend 100% of the allocated funds by end of June in 2023.

As at end of February in 2023, eThekwini had already spent 54% of the initially allocated funds.

Other Municipalities and Metros

In comparison to other Metros, this is their expenditure at the same period:

• · Buffalo City: 53.6%
• · City of Cape Town: 45.2%
• · City of Johannesburg: 39.3%
• · City of Tshwane: 37.9%
• · Mangaung: 35.9%
• · Nelson Mandela Bay: 34.6%
• · City of Ekurhuleni: 31.7%

The decision to partially withdraw the funding comes as a surprise given that eThekwini had recently written to National Treasury and the Department of Human Settlements.

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The Municipality says it has advised them about the city’s plans to spend the 100% allocation as the Metro had done in the past.

The Municipality adds that it is also unfortunate that funding is being withdrawn during the year instead of at the end of the financial year when the final spend for the year would have been clearer.

The EThekwini Municipality says they will be engaging the two national departments further about this matter.

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