- Overall budget decreased by 14%
- Reduction in cash flow leading to lower investments blamed for own source income drop
- Final Recurrent Budget ceiling for the council amount to about P250 million
- Revenue Support Grant shows a decrease of about P40 million (14%) from 2024/2025 financial year of over P280 million
- Income from own source has also reduced from over P11 million to about P10 million
North West District Council (NWDC) has experienced a decrease in its overall budget and income from own source of revenue this financial year.
Presenting proposed budget estimates for 2025/2026, finance committee chairperson, Baoketsi Diare revealed that the overall budget for North West District Council has decreased by P41 638 010.00 (14%) from P291 721 250.00 to P250 238 400.00.
He also indicated that the income from own source has also reduced from P11 648 940.00 in 2024/2025 approved budget to P10 918 000.00. This reduction he said was due to reduction in cash flow leading to lower investments.
Meanwhile, the chairperson has indicated that the 2025/2026 Final Recurrent Budget ceiling for the council amount to P250 238 400.00 which comprise of P239 320 400.00 being Revenue Support Grant (RSG) and P10 918 000.00 of income from own sources.
“Revenue Support Grant shows a decrease of P40 907 070.00 (14%) from 2024/2025 financial year of P280 227 470.00. Included in the Revenue Support Grant is the P10 696 326.00 for operational costs of clinics as they will be relocating to Council during this current financial year.”
However, he noted that Personnel Emoluments and other contractual operations for clinics are not included in the above allocation.
The largest share of the budget which amounts to P119 976 210.00 (47%) went to Personnel Emoluments which provides for employees’ salaries, members’ allowances, transfer allowance, pension, overtime and scarce skill allowance.
“The vote has decreased by P22 134 213.00, as the overtime vote has decrease due to budgetary constraints and also terminal benefits for Councilors’ end of term has reduced as the Council only budget for one to two Councilors in case they exit before end of term due to unforeseen circumstances.”
Special Expenses vote which provides for Relief of Destitute Persons, food and accommodation, school stationery to mention but a few has the second largest share of the budget at P76 499 030.00 which accounts for 30%. The largest share of the budget under special expenses goes to relief of destitute at P37 952 950.00 (49%), Security Services and school stationery at P14 698 200.00 (19%) and P5 786 000.00 (7%) respectively.
The chairperson noted that the vote shows an overall increase of P2 918 283.00 (3%) from P73 580 747.00 in 2024/2025 approved budget.
The third largest share of P30 759 060.00 (12%) of the budget goes to Running Expenses which has decreased by P16 771 975.00 (54%) from P47 531 035.00 in 2024/2025 financial year approved budget. This vote according to Diare caters for maintenance of grounds and buildings, fuel and lubricants, lighting, gas and water to mention but a few.
“The remaining balance of the budget which amounts to P23 004 100.00 which represents 9% of the budget goes to Establishment Expenses. This vote has decreased by P5 494 945.00 (19%) from P28 499 045 approved budget in 2024/2025 financial year.”
In analysing the departmental allocations, the chairperson noted that the top four departments with the largest share of the budget are Social & Community Development, Civil & Mechanical, Human Resource & Administration and Education with P70 294 870.00 (28%), P27 429 810.00 (10%), P23 240,790.00 (9%) and P23 024 950.00 (9%) respectively.
