5.2 Despite the major challenges reported, some of the significant improvements presented related to improved capital spending from 66, 7% in 2005/06 to 76, 2% in 2007/08. The main reason cited for non- spending of capital budget by the municipalities was the lack of capacity and technical skills in the Engineering/Technical Departments. Furthermore, the Municipal Infrastructure Grant (MIG) spending declined from 100% to 84% in the reported period.