Africa-Press – Namibia. THE Ongwediva Town Council tabled its provisional budget of N$172.3 million for the financial year 2023/24 on Thursday. The budget is subject to approval by the Ministry of Urban and Rural Development.
Tabling the budget, Ongwediva Mayor Taarah Shalyefu said that capital projects constitute a significant portion of the budget, amounting to N$39.1 million, which represents about 23% of the total budget.
Shalyefu further explained that the allocation of the budget to operational expenditure amounts to N$105.9 million, accounting for approximately 61% of the total budget.
Additionally, provisions for leave days, depreciation, and doubtful debts receive a combined allocation of N$27.3 million, representing 16% of the total budget.
“The total budget of N$172.3 million consists of capital projects, operational expenditure, and provisions,” said Shalyefu.
He also mentioned that the personal cost ratio to the operational budget stands at 33%, in compliance with the Ministerial Directive that specifies not exceeding 40%. However, Shalyefu clarified that this does not imply the availability of funds for additional personnel expenditure.
Regarding the budget allocation for overtime, Shalyefu said that it has been limited to 2.46% of the personnel budget, in line with the budget circular’s recommendation of not surpassing 2.5%.
Furthermore, Shalyefu indicated that the maintenance budget amounts to 15% of the operational budget, adhering to the budget circular’s directive of not falling below 10%.
The Local Authority Councillors’ allowances remained unchanged.
Shalyefu emphasized that there will be no tariff increases for the upcoming financial year. However, he noted that the council reserves the right to adjust the water tariff if NamWater announces an increase in bulk water purchases. This measure is aimed at preventing the distribution of water to consumers at a loss, which could negatively impact the town’s sustainable development.
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