Presenting the Department of Provincial and Local Government budget overview in Parliament yesterday, Director-General Lindiwe Msengana-Ndlela said the budget followed on defined strategic tasks as identified by government.

This includes transferring R58.3 billion to local government over the next three years to provide basic services, infrastructure development and maintenance, capacity building as well as improving municipal systems.

Ms Msengana-Ndlela said the money, supplemented by local revenue, would enable the 284 municipalities to plot, over the medium term, ways "to increase capacity to the programmes of government"

The funds would be distributed from numerous municipal infrastructure and development grants.

The allocation is likely to rescue many municipalities from bankruptcy, emanating from financial mismanagement, billing problems and flawed revenue collection systems.

In addition to budgeting for the provision of water, sanitation, electricity and operational costs, the primary focus would be building and maintaining roads, community halls, sports and recreational facilities.

At least R23.6 million has been allocated to the Municipal Demarcation Board with supplementary funding to the Independent Electoral Commission through the home affairs department.

The trio is currently planning for local government polls due late this year.

The National House of Traditional Leadership got R24.7 million with the Commission on Traditional Leadership Disputes and Claims receiving R13 million.

During his budget speech, Finance minister Trevor Manuel added about R48.8 billion to the baseline allocations of provinces and municipalities, to fast-track integration, service delivery and development.

This is consistent with President Thabo Mbeki's directive to realign and strengthen the two spheres of government to deliver on its strategic goals of poverty alleviation, development and economic growth at municipal level. - BuaNews