This amount is expected to increase to 331.7 billion rand in 2015/16 and 352 billion rand in 2016/17.
(READ MORE: S.African municipalities underspend on budget)
The Treasury department in its Medium Term Revenue and Expenditure Framework (MTREF) reported a total municipal expenditure in 2014/15 being estimated to be 336.3 billion, increasing to 355.6 billion rand in 2015/16 and 374 billion rand in 2016/17.
According to the Treasury, the expenditure for 2014/15 is 19.4 per cent higher than the 2013/14 MTREF.
The local government also reported 2014/15 financial year having a net deficit estimate of 645.5 million rand, a position that is expected to improve significantly to reflect surpluses of 1.4 billion rand and 1.6 billion rand respectively in the two outer years of the MTREF period.
The Treasury also noted budget for utilities during the budget period increasing.
“Municipal operating expenditure on the trading services consisting of water, electricity, waste water management and waste management is budgeted to increase from 131 billion rand in 2013/14 to 142 billion rand in 2014/15,” read a Treasury statement.
“Bulk purchases of electricity and water are expected to grow to 96.9 billion rand by 2016/17 representing 31.2 per cent of total operating expenditure; bulk purchase of electricity from Eskom is a significant contributing factor to this growth.”
Capital expenditure has increased by 10.8 per cent compared to the 2013/14 MTREF.
(READ MORE: S.Africa projects expenditure growth by 7.6% in the next three years)
“Of the overall budget of municipalities, capital expenditure in aggregate represents 18.6 per cent in 2014/15, 18.4 per cent in 2015/16 and 17 per cent in 2016/17.”
The 2014/15 capital budget reflects a 42.5 billion rand investment in new infrastructure which is 68 per cent of the total capital budget.
The Treasury statement added that investment in the renewal of existing assets will be approximately R20 billion or 32 per cent of the capital budget.