StatsSA: Municipalities are financially viable

Briefing media on the 2016 financial census of municipalities in Pretoria, Lehohla said municipalities managed to collect R27 billion more in revenue compared to 2015.

Lehohla says municipalities collected R330 billion in revenue compared to the R306 billion during the previous financial year.

He says municipalities in the Northern Cape, Free State, Mpumalanga and Limpopo showed the highest increases in revenue.

"If one looks at those figures one would argue that municipalities are viable. The graphs show a grow in purchases in both electricity and water," he says.

Despite the increased revenue, some municipalties are struggling to manage their debt. Monies owed jumped 7.5% compared to 2015.

"In some municipalities it went down a bit, in others it went up. We know that payment, including by government departments, have not been forthcoming so the cycle of debt seems to be a problem.”