9.1 Introduction

نویسنده

  • Sasha Peters
چکیده

Municipalities make an important contribution to poverty alleviation and economic development, through providing free basic services (FBS) to poor households and investing in infrastructure and associated services that are critical for economic activity (National Treasury, 2008). To deliver these services effectively, municipalities rely on two important sources of revenue. One is from the national sphere (local government equitable share allocation (LES) and conditional grants), while the other is the municipality’s own revenue, which is composed mainly of property rate taxes and charges for providing water, electricity, refuse removal, sanitation and other services. However, one critical question is what happens when the ability of municipalities to generate adequate levels of own revenue is constrained. To this end, the issue of non-payment, also referred to as municipal consumer debt, poses a serious threat to the financial health of municipalities in South Africa.

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تاریخ انتشار 2012