Submit budget estimates to the Ministry of Local Government



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Local Authorities are funded through the Ministry of Local Government, which is responsible for maintaining and developing a framework for local government finance

  • Local Authorities are funded through the Ministry of Local Government, which is responsible for maintaining and developing a framework for local government finance

  • The framework should meet Government Macro-economic and fiscal policy requirements

  • It should also support the government policy on the delivery of services to the people



Each year Local Authorities Prepare budget which goes through Finance committee of Council and Full council

  • Each year Local Authorities Prepare budget which goes through Finance committee of Council and Full council

  • submit budget estimates to the Ministry of Local Government.

  • MLG meets LAs to discuss budget estimates.

  • Ministry of Local Government consolidates and submits to Ministry of Finance and Development Planning;

  • The budgets submitted to Parliament as part of the Ministry of Local Government budget for both capital and recurrent budget.



Urban Councils receive 70% of their budget as Revenue Support Grant (RSG) from Central Government. 30% is funded from own sources



  • District Councils receive 97% of their budget as Revenue Support Grant (RSG) from Central Government the remaining 3% is funded from their own sources

  • Own sources for district councils include

  • - Service fees (e.g. water)

  • - Staff housing rentals

  • The new Local Government Bill which is currently in parliament seeks to introduce property rating to district councils

  • RSG for Councils is issued on a quarterly basis



  • Development budget is fully funded by Central Government guided by prevailing Local and National Development Plans and policies.

  • Councils may fund some minor development projects if they have funds from their “General Fund” or savings.



  • Local Government (District Councils) Act and Townships Act empower Councils to raise short to medium term borrowing from commercial banks

  • Such loans are raised against their own sources of revenue [and not RSG]

  • Overdraft facility should not exceed 1/3 of revenue (except with approval of the Minister)

  • Loans can be secured on the revenue and assets of Councils



  • Donor funds are not directly given to Local Authorities

  • These are channeled through Ministry of Finance and Development Planning and Ministry of Local Government- currently declining

  • Ministry of Local Government will then be required to make quarterly progress reports to Ministry of Finance and Development Planning



  • Councils control funds sub vented to them

  • Councils are required to cause accounts for preceding financial year balance.

  • This should be within 3 months from end of financial year.



Abstract of such accounts are submitted to Auditor General for auditing.

  • Abstract of such accounts are submitted to Auditor General for auditing.

  • Audit reports are submitted to the Finance Committee of Council and later to Full Council.

  • Audit reports are also examined by the Local Authority Public Accounts Committee (LAPAC), which is separate from Parliamentary Public Accounts Committee.



Dependency on Government Grant.

  • Dependency on Government Grant.

  • Community not willing to pay for services.

  • Recession.

  • Limited own income sources.

  • Highly subsidized services which do not consider actual cost of service.

  • Councils not able to raise expected own revenue



Development of a tariff model that will reflect actual cost of services.

  • Development of a tariff model that will reflect actual cost of services.

  • LAs have to as a matter of urgency explore other sustainable sources of revenue.

  • Considering PPP models.

  • Council to set up investments arm/body.

  • Outsourcing of services.

  • Intensify revenue collection through credit control unit



  • KEA LEBOGA

  • Botswana

  • “our pride , your destination”





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