The DLM reported that many factors have negatively affected its budget. For example, capital projects are mostly in indigent areas and the income base is minimal; and salary increases negotiated by bargaining council and job evaluation implementation constituted a large percentage of its budget. The DLM reported that its ageing infrastructure, equipment and fleet are expensive to maintain. The recession and inflation resulted in higher maintenance of these capital projects. The Dikgatlong Local Municipality reported that incorrect allocation of the equitable share due to outdated population figures hampers the development of rural areas and indigent communities like Holpan, Stillwater and Longlands.