3.7 The Engcobo Local Municipality The Engcobo Local Municipality (ELM) reported that its budget has grown by 5.7 percent. The ELM said that the salary budget has increased by 10 percent. The ELM reported that it is 98 percent capital grant dependent and 89 percent operational grant dependent. The ELM further reported that 42 percent of its operational budget was used to pay for salaries. On grant spending the ELM reported that all grants were 100 percent spent.