ANC says cash crunch dooms poll promises

18 August 2015 - 02:11 By Olebogeng Molatlhwa

The ANC's lofty election promises are in grave danger of not materialising. Falling revenue is putting pressure on the state's coffers, with the inevitable result that budgets for crucial projects will be revised downwards.In discussion documents prepared for the meeting of the party's national general council in October - a midterm review of policies by branches - the ANC concedes that budget constraints will limit its ability to see through projects trumpeted in its 2014 election manifesto.These include:Creating 6million work opportunities by 2019;Delivering a million housing units by the time of the next poll;Providing basic services and infrastructure to all informal settlements;Connecting 1.6million homes to the electricity-supply grid."The problem is that business- as-usual funding models and programmes do not come close to compensating for the steep slide in [government] revenue."In light of this, the impact on efforts to implement our election priorities is bound to be challenging. There will almost certainly be less funding available as budgets are revised downwards," the ANC says in its discussion documents.The admission is made as the ANC prepares for the hotly contested local government election next year, during which voter satisfaction with the party's ability to provide services will be put to the test.But if the falling number of service delivery protests is anything to go by the ANC might not have too much to worry about.According to Municipal IQ, there were only 59 protests in the five months to the end of May, compared with 191 last year."It is intuitive that poor [municipal] audit outcomes would be mirrored with higher levels of service delivery protests, but this is not necessarily the case."The best-performing provinces in terms of service delivery - KwaZulu-Natal, Western Cape and Gauteng - are all subject to a high proportion of service delivery protests, reflecting other pressures, such as urbanisation," said Municipal IQ's Karen Heese"The municipal hot spot monitor suggests that 2015 is off the [protest] high peaks of 2014, suggesting that some of the reforms to local government are yielding some positive outcomes."..

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