Note to Broadcasters: Please find attached soundbites in English and Afrikaans by Gerhard Strydom
The Democratic Alliance (DA) rejected the Adjustment Budget partially approved by majority vote of the ANC-led Matlosana Municipality on 05 March 2026.
An Adjustment Budget is meant to correct financial deviations, not compound financial risk. An unfunded budget cannot simply be “adjusted” into compliance.
The adjustment budget fails to address the fundamental problem that the original budget was unfunded. While operating revenue has adjusted upward by R157.67 million, operating expenditure budget has increased by R341 million, resulting in a net deterioration of R183.33 million. This adjustment deepens the operating deficit instead of correcting it.
Increasing spending without matching income undermines financial sustainability and increases the risk of cash flow shortages, late payments to creditors, further adverse audit findings, and service delivery collapse.
An unfunded budget cannot be made compliant through increased spending without credible collectable revenue. It was not demonstrated how the additional revenue will be realised, nor how the increased expenditure will be sustained without further compromising cash flow, creditor payments, and service delivery.
The Democratic Alliance cannot responsibly support an Adjustment Budget that worsens financial sustainability and perpetuates non-compliance with basic budgeting principles.