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BCC considers another supplementary budget

by Staff reporter
15 Aug 2019 at 07:33hrs | Views
BULAWAYO City Council (BCC) is considering another supplementary budget despite residents having rejected a recent bid by city fathers to increase rates and tariffs by nearly 50%.

Residents and other stakeholders rejected a recent bid by city fathers to unveil a supplementary budget that would have seen its $212 million 2019 budget increased to $475 million.

Council argued that the $212 million budget had been eroded by inflation, a situation negatively affecting service delivery.

Town clerk Christopher Dube said despite the rejection, the city fathers were considering another supplementary budget to also factor in the interbank rate.

"We have not abandoned plans for a supplementary budget factoring in the current economic situation.

"In fact, what we had proposed under the previous supplementary budget was very low and so we are considering another supplementary budget given the situation now. For example, the interbank rate, we have to keep pace with it, otherwise service delivery will grind to a halt," Dube said in a telephone interview.

Prices of goods and services have been following the interbank rate after government outlawed the multi-currency system as a precursor to the return of a fully-fledged local currency.

Inflation has also been on an upward trend, causing price hikes of goods and services in what Dube said the local authority could not ignore if it is to be able to continue offering services.

Meanwhile, city fathers begin the 2020 budget consultations in various locations tomorrow, Dube confirmed. The budget consultations will be facilitated by councillors in their respective wards.

A few months ago, the BCC cried out that it was technically insolvent, blaming the local authority's financial woes on the unforgiving harsh economic climate.

A latest council report of the finance and development committee shows that the local authority owes various service providers several millions of dollars.

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Source - newsday

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