Return to search

Improving decision making through analysing the economic impact of budget allocation at the city of Cape Town

Local government is at the forefront of engagement between the government and South Africa’s people, delivering basic services to communities. Following the transition to a democratic government in 1994, the country was demarcated in a manner that provides complete coverage by local government. Annually, managing the administration of service delivery implementation at local government level costs the country many billions. Much of the revenue used by local government in providing services is derived from income from sale of basic services and property rates, augmented by allocations from national and provincial government, equitably shared amongst municipalities. Local government has autonomy in its operations, but is strictly governed by a collection of cascading legislation, introduced to protect the interests of the people. The primary objective of the research was to investigate the efficacy of budget expenditure in local government, in particular the City of Cape Town as a metropolitan municipality. With an annual budget approaching R30 billion, the aim was to establish how the budget was determined and allocated to the service menu provided by the City, and to investigate whether better methods of allocating expenditure could be developed. A mixed research methodology was followed, relying on quantitative methods for analysing survey data statistically, while providing for detailed qualitative methods in interviewing and studying the specific case in detail. The theoretical perspective most suited to this research was found to be that of pragmatism, for its flexibility of interpretation, practicality and space for multiple perspectives. A constructivist epistemology was adopted to provide for the interplay between object and subject in constructing meaning. This research focused on examination of applicable legislation, secondary data in reports, and statistical analysis of opinion surveys of municipal officials involved in budgeting at different levels and interviews with key stakeholders. The findings indicate that budget allocation can be improved upon in a number of ways, despite complying with a myriad of restrictive and onerous regulations applicable to local government. It was found that the administration is fragmented in its operations and that the structure of necessity favours isolated service delivery rather than integration. Further, that compliance impacts negatively on time spent in planning and pursuit of strategic intent to the extent that Reporting often becomes a more important deliverable than basic services. The size of the City hinders common understanding, and introducing any change in political vision requires particular attention.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:9684
Date January 2013
CreatorsKaiser, Gisela Noelle
PublisherNelson Mandela Metropolitan University, Faculty of Engineering, the Built Environment and Information Technology
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Doctoral, PhD
Formatxiv, 291 leaves, pdf
RightsNelson Mandela Metropolitan University

Page generated in 0.0022 seconds