Try GOLD - Free
Staff-related costs could cripple municipalities
Cape Times
|December 02, 2025
MUNICIPALITIES are spending beyond their means, with mounting affordability pressures and operating deficits in the 2025/26 financial year driven largely by rising “employee-related costs’, according to the National Treasury.
The National Treasury yesterday published the operating and capital budgets of municipalities as adopted by their respective councils for the 2025/26 Medium Term Revenue Expenditure Framework (MTREEF).
The aggregated budgeted revenue for 2025/26 is R675.8 billion. It is expected to increase to R712.6bn in 2026/27, and R753.5bn in 2027/28. While the total municipal expenditure in 2025/26 is estimated to be R698.0bn, increasing to R728.3bn in 2026/27 and R764bn in 2027/28.
“It is notable that municipalities will realise operating deficits on the operating budgets in the 2025/26 financial year as the total operating expenditure increases at a higher rate than the revenue projections. This is an indication that municipalities are spending beyond their means and a first sign of financial challenges.
This story is from the December 02, 2025 edition of Cape Times.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Cape Times
Cape Times
Boks scale new heights in a year to savour
WHILE this was not a World Cup-winning year for the Springboks — and if there had been a World Cup, they would surely have won it — the year 2025 is right up there in their “best ever” category.
4 mins
December 10, 2025
Cape Times
Transforming education to tackle South Africa’s youth unemployment crisis
THE G20 Leaders’ Summit is over, now the hard work to implement and apply its many declarations must start.
4 mins
December 10, 2025
Cape Times
The bottleneck holding back renewable energy for South African businesses
DISTRIBUTED or onsite renewable energy generation - commercial and industrial systems installed at factories, mines and other large energy users - is the quiet workhorse of South Africa’s energy transition.
4 mins
December 10, 2025
Cape Times
Springboks’ return poses challenge for Stormers
THE Stormers look set to bring back Sacha Feinberg-Mngomezulu, Damian Willemse and Cobus Reinach for Saturday’s Champions Cup showdown with La Rochelle in Gqeberha — but their return comes with a challenge.
1 mins
December 10, 2025
Cape Times
Ezeebit secures $2m funding to enhance cryptocurrency payment solutions in Africa
EZEEBIT, the FSCA-regulated stablecoin and cryptocurrency payment infrastructure company, has announced the close of a $2.05 million (R35m) seed funding round.
2 mins
December 10, 2025
Cape Times
How to love your job and build career satisfaction
MANY people don't like their jobs.
3 mins
December 10, 2025
Cape Times
Woltemade’s British humour helped him fit in at Newcastle United, says Howe
NEWCASTLE manager Eddie Howe said Nick Woltemade's British sense of humour helped him adapt to life in England, ahead of tonight's Champions League clash in the striker's native Germany against Bayer Leverkusen.
2 mins
December 10, 2025
Cape Times
Chile to vote for president
CHILEANS will elect a new president on Sunday, with an arch-conservative who has promised to expel hundreds of thousands of migrants strongly tipped to beat his leftist rival.
3 mins
December 10, 2025
Cape Times
Miller: SA20 will be good prep for Proteas ahead of 120 World Cup
DAVID Miller believes the upcoming Betway SA20 Season 4 will form a big part of the Proteas’ preparations for the ICC T20 World Cup next year.
2 mins
December 10, 2025
Cape Times
28 killed on Western Cape roads in first week of festive season
TWENTY-EIGHT people have been killed on Western Cape roads in the first week of the festive season.
2 mins
December 10, 2025
Listen
Translate
Change font size