1. The National Treasury does not provide financial assistance to municipalities. An operational deficit indicates that the municipality’s operating expenses exceeds the revenue. Failure to contain costs while not realising anticipated revenue collection levels results in operating deficits. The first approach is for the municipality to implement cost containment measures and reduce the operating expenses.
Given that Sedibeng is a delegated municipality, the Gauteng Provincial Treasury will continue to support the municipality to ensure that it adopts a funded budget going forward.
2. Currently the municipality does not have a financial recovery plan. However, reference should be made to chapter 13 of the Municipal Finance Management Act, (Act No. 56 of 2003) on the process to be followed for resolution of financial challenges.