The metro’s budget for 2015/16 has just been announced, and once again they have managed to slap us with increases greater than the inflation rate – amazing achievement this.
I would hazard a guess that not too many residents perused the budget summary in the Advertiser.
The item which caught my jaundiced eye was, what will our money be spent on: bulk services, salaries, repairs and maintenance, depreciation.
Depreciation! How is money spent on depreciation – R2.1 billion?
As an accountant, depreciation to me is the write off cost of capital expenditure over a number of years.
No money is spent on depreciation.
The money is spent when purchasing the capital equipment.
Of course, there is also R1.4 billion for provision for bad debts.
I suppose this is for the prior to elections hand-out for the core non-paying voters (what a caring government we are).
Residents like me get a quick cut-off letter if we don’t pay on due date.
Also interesting is the government grants received – R4.9 billion.
Somehow we only manage to spend R3.6 billion.
Should we ponder on where the large difference goes?
In case anyone is wondering, I attended last year’s budget presentation in one of the town halls.
I raised the depreciation point not being a cash cost.
Before the presenter could answer me, a number of ANC supporters and councillors told him to ignore the question and move on. So much for transparency.
Roll on 2016. Maybe some more voters get a flashing vision and realise they’ve been taken for a massive scam – a better life for all.
