Underspending is a Betrayal of Public Trust
Natalie Nyathi
President Cyril Ramaphosa has warned municipalities about the serious issue of underspending their allocated budgets, calling it a betrayal of public trust and likening it to treason against South African citizens. His remarks were made during a session in the National Council of Provinces (NCOP), where he discussed the impact of failing to use funds meant for important services.
Ramaphosa expressed concern about municipalities returning unspent funds to the National Treasury, stating that this undermines the government’s ability to deliver essential services like housing, education, water, and roads. “When allocated funds are not spent and returned to Treasury, it delays vital projects that affect our citizens,” he said.
He noted that underspending not only halts infrastructure development but also damages public trust in government. This loss of trust can lead to dissatisfaction and protests, making it harder for the government to meet people’s needs.
The President attributed the problem of underspending to poor planning and management within municipalities. He emphasized the need for tougher consequences for officials who fail to manage budgets effectively. “We must ensure that those responsible are held accountable,” he stated.
To tackle these challenges, the national government is actively working with municipalities to address chronic underspending. Initiatives like budget monitoring forums, coordinated by the National Treasury, aim to track spending and identify issues early. The Department of Cooperative Governance is also focused on improving the financial and institutional capacity of local governments.
Ramaphosa mentioned capacity-building programs organized by the Municipal Infrastructure Support Agent to help with skills shortages in areas like planning and project management. An interministerial committee has been set up to support struggling municipalities, showing the government’s commitment to improving local governance.
“One of our main goals is to build a capable and developmental state,” he said, highlighting the importance of coordination and accountability among government levels. He introduced the Metro Trading Services Reform Program to help increase investment in infrastructure and enhance service delivery.
As municipalities continue to face challenges in providing basic services, Ramaphosa’s warnings serve as a call to action, urging local governments to prioritize effective budget management for the benefit of all South Africans.
