Adjustment Budget 2018/2019

Click here to download the PDF for the Adjustment Budget 2018/2019

Some of the key items identified during the mid-term assessment for review were:

• Electricity Revenue – Favourable variance of R 151,610 million (13%) for the year, due to higher user’s consumption than budget – target exceeded.
• Water Revenue – Unfavourable variance of –R 78,071 million (-18%) for the period due to lower actual billing for the period. Target unlikely to be reached, consideration should be given for a downward adjustment.
• The need to address overspending on overtime for the year to date of R 47,096 million. (Budget R 40,678 million vs Actual R 87,775 million), to avoid possible unauthorised expenditure.
• Bulk purchases – Unfavourable variance of R 121,767 million (12%), electricity bulk purchases are higher than targeted for the period.

Following the mid-year performance review the following adjustments are to be made onto the municipal budget through the adjustment budget :

(a) To adjust the operating revenue upwards by R 317,126 million to the revised amount of R 7,655 billion.
(b) To adjust the operating expenditure upwards by R 101,297 million to the revised amount of R 6,405 billion
(c) To increase the capital expenditure by R 255,744 million to the revised amount of R 1,386 billion.