2013_14 IDP Review.pdf - KZN Development Planning

2. FINANCIAL PLANUmzinyathi District Municipality reviewed the Financial Plan was last reviewed during2011/12financia year for implementation in the 2012/13 financial year, which includedthe current status, future plans and the gaps, as well as a strategy on eliminating thegaps. The Financial Plan will be reviewed during 2013/14 financia year to cater for thebilling in terms of revenue since the municipality took over the function from UthukelaWater as from the 01 July 2012.The Financial Plan is regarded as one of the key plans towards the successfulimplementation of the IDP. It cuts across all IDP issues, strategies and programmessince all of them require funding input. The financial plan has an impact on all otherdevelopment dimensions within the municipality. Hence, financial plan preparationwould always seek to find better ways and means of sourcing funding and managing itefficiently while expediting the implementation of IDP priority issues.2.1 Key Municipal Financial Challenges The district economy remains too dependent on government and social services; The GDP per capita value of the district economy is the second smallest inKwaZulu-Natal; Mining, manufacturing remain declining sectors but have some strength in theirresilient remnants; There is a weak social base, with the district having the highest levels ofunemployment and illiteracy in KwaZulu –Natal; Umzinyathi has the second lowest Human Development Index of all the districts inthe province; There are low levels of local demand as a result of low household income; The southern municipal clusters in particular have an outward focus (towards theMidlands in particular). There is substantial economic leakage from theseeconomies; There are low levels of reinvestment into productive sectors. The service sectordominates the economy and there is limited investment in tourism and agriculture; The District is largely rural, with a low population density. This means thatpurchasing power is diluted and service costs are higher;Draft 2013/2014 IDP Review Page 282Prepared by Umzinyathi District Municipality22 March 2013