Page 221 - UGU Dstrct Mun IDP Report '21-22

Table 6.1.3.1: Draft Income Budget for 2018 / 2019 – 2020 / 2021
Income Description
2018 / 2019
2019 / 2020
2020 / 2021
2021/22
2022/23
2023/2024
Equitable Share
R 435,877,000
R 461,838,000
R 503,224,000
R 524 364 000
R 559 208 000
R 568 161 000
Municipal Infrastructure Grant
R 235,888,000
R 241,038,000
R 255,284,000
R 255 524 000
R 277 374 000
R 290 417 000
Water Services Infrastructure Grant
R 55,000,000
R 95,000,000
R 100,225,000
R 72 000 000
R 60 000 000
R 70 000 000
Financial Management Grant
R 1,865,000
R 1,865,000
R 1,800,000
R 1 750 000
R 1 950 000
R1 950 000
Expanded Works Programme Grant
R 3,250,000
R 0,00
R 0,00
R 3 611 000
Rural Roads Assets Management Grant
R 2 721 000
R 2 856 000
R2 859 000
Water Income
R 276,879,596
R 291,831,094
R 307,881,804
R 477 943 710
R 509 528 985
R 529 720 380
Sanitation Income
R 97,282,020
R 102,535,249
R 108,174,688
R 85 213 955
R 89 474 653
R 93 948 386
Interest on Investments
R 2,535,182
R 2,672,082
R 2,819,046
R10 786 012
R 11 325 313
R11 891 579
Interest on overdue accounts
R 508,485
R 535,943
R 565,420
Rental and Other Income
R 1,091,486
R 1,150,426
R 1,213,670
R8 080 536
R 8 484 563
R8 908 791
Total Revenue
R1,110,176,769
R1,198,465,794
R1,281,187,628
R 1 442 344 215
R 1 515 201 514
R 1 577 856 135
Source: Ugu District Municipality Draft Budget, 2021
6.1.3.1 Analysis of the Conditions of Grants
The equitable share serves as a subsidy to the municipalities to cater for the following three components: Basic Services Component; Institutional Component; and Community Services Component. In terms of 2018 Division of Revenue Bill which was approved in February 2018 together with the National Budget by Parliament provided the following allocation of Equitable Share:
Table 6.1.3.1: 2021 Allocation of Equitable Share
Source: Ugu District Municipality Draft Budget, 2022
N.B. An equitable share over the medium term is allocated to compensate for the rising costs of providing free basic services to the growing number of indigent households. This covers the likely above inflation increases in the costs of bulk water and electricity. This also allows for faster increases in the allocations to poorer and rural municipalities through the redistributive components of the equitable share formula.
Description
Allocation Per DORA
Amount
Basic Services
79,5%
416 869 380
Institutional
8,2%
42 997 848
Community Services
12,3%
64 496 772
TOTAL
524 364 000
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