City unhappy with budget allocation
By Mishkah Anthony
19 February 2009
The City of Cape Town is considering challenging Finance Minister Trevor Manuel’s lean budget allocation in the Constitutional Court.
That means that an expenditure cut as well as an increase in rates will be the city’s only way to make up a R100m shortfall.
Mayoral Committee Member for Finance Ian Nielson said Manuel’s proposed change would cripple the city’s funds.
“The national government has cut the City’s unconditional grant from the national fiscus, by an R100m a year, this means that we going to have to look very seriously at either increasing the rates or cutting the expenditure on important services delivery.”