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Government Essays & Research Papers

Financial Problems In Local Government

Topic: Government

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1 LOCAL GOVERNMENT’S FINANCIAL CHALLENGES A fresh look at local government’s deliver obligations and resource requirements is needed. HILDEGARDE FAST makes the case for a differentiated approach. It is common knowledge that many municipalities in South Africa are financially in dire straits. In the public discourse, the focus is often on operational issues such as poor revenue collection, unsustainable debt burdens, and lack of financial management capacity. In seeking to understand the financial challenges facing municipalities, it is important first to take a step back and ask broader questions, namely: What is local government required to do? Where should the resources come from? And is there a need to change the current intergovernmental fiscal system to ensure that local government can do its job? Constitutional mandate Municipalities are given five over-arching tasks in Chapter 7 of the Constitution: to govern in a democratic manner, to ensure the provision of bas...

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