BULAWAYO City Council recorded a rare budget surplus of $8,7 million from January to November 2014, but noted that reduced expenditure over the year was mainly due to cashflow constrains.
A financial statement review prepared by financial director Kimpton Ndimande and seen by The Source shows that income for the period amounted to $84,3 million against expenditure of $75,8 million.
However, Ndimande said the income was against a budget of $95 million, while the city had budgeted to spend a similar ammount.
“Accrued income from January to November 2014 surpassed the figure for accrued expenditure resulting in a surplus of
$8 677 530. Expenditure has remained subdued because of the cashflow constraints,” he said.
Last year, the council had tabled a $156 million budget anchored on domestic financing, but Ndimande said unpaid rates continue to be a major headache and that means it may not meet the target.
Domestic debtors top the list at $49,9 million followed by industrial and commercial debtors at$39 million while government departments owe the council more than $3 million.
– The Source