With unpaid bills owed to the City of Johannesburg rising from about R15-billion in 2014/15 to nearly R72-billion in 2024/25, the Centre for Development and Enterprise (CDE) cautions that the City’s budget is “increasingly disconnected from reality”.
In the second issue of the independent think tank’s new report series, ‘Johannesburg Matters: Fixing South Africa’s growth engine’, which highlights the multiple crises confronting the City of Johannesburg and presents recommendations, the CDE warns that the City is falling into a dangerous financial spiral.
It noted the non-payment of rates and utility bills by residents, amid the City’s lack of service delivery and failing infrastructure, and stressed that the municipality’s financial situation was more serious than just a budget deficit.
“Johannesburg’s budget is increasingly disconnected from reality. The City spends money it does not collect, imposing ever-higher costs on a shrinking rates base and stagnant economy, while squeezing infrastructure investment and turning its suppliers into de facto lenders,” the report found.
CDE executive director Ann Bernstein explained that the City registers its bills to residents and businesses as revenue, assuming that it can catch up.
