NMBM BUDGET ADJUSTMENT INCREASE WARD COUNCILLORS DISCRETIONARY FUND ALLOCATIONS
Published: March 13, 2026<< BACK TO NEWS
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In a clear indication of a responsive and caring government, the Nelson Mandela Bay Municipality Council has decided to increase the Ward Councillor Discretionary Allowance from R100 000 to R150 000 per Ward Councillor, bringing the total allocation from R6 million to R9 million per financial year. The allowance increase was approved in a full Council meeting held recently.
The Ward Councillor Discretionary Allowance (or Ward Councillor Discretionary Fund) is a limited allocation provided by a municipality to enable ward councillors to respond to urgent, small-scale community needs and social support initiatives within their wards. The purpose of the fund is to allow councillors to assist vulnerable residents, support community-based activities, and address minor but pressing issues that fall outside normal municipal service delivery programmes.
These funds are not intended for personal use by councillors but must be utilised strictly for community benefit and in line with approved municipal policies and procedures. The administration and use of the allowance are guided primarily by the Municipal Finance Management Act, Act 56 of 2003, which regulates municipal expenditure and financial accountability, as well as the Municipal Systems Act, Act 32 of 2000, which promotes community participation and responsive local governance. In addition, municipalities usually adopt Council-approved policies and oversight mechanisms to ensure the fund is used transparently, responsibly, and strictly for legitimate community development purposes.
The Speaker of Council, Councillor Eugene Johnson, said the decision by Council to approve the increase was based on the realities that Ward Councillors face on the ground.
"Ward Councillors are at the forefront of the challenges faced by our communities. They need to be in a position to respond through different interventions, one of those being the ability to positively contribute to the socio-economic conditions experienced by our residents. The funds might not be enough, but if properly utilised, they can contribute to poverty alleviation, grassroots sport development and addressing other community-based social challenges," said Speaker of Council, Johnson.
The Ward Councillor Discretionary Allowance is not the only funding mechanism that supports development within municipal wards. Municipalities also implement wardlevel development through various funding streams provided through national transfers, municipal budgets, and intergovernmental programmes.
These include conditional grants such as the Municipal Infrastructure Grant (MIG), which funds essential infrastructure projects such as roads, sanitation, water supply and community facilities in underserved areas, as well as the Local Government Equitable Share, which assists municipalities in providing basic services to indigent households.
In addition, municipal capital budgets informed by the Integrated Development Plan (IDP) allocate funding for ward-based infrastructure and service delivery projects identified through community participation processes. Other programmes such as the Community Works Programme (CWP), the Neighbourhood Development Partnership Grant (NDPG), and other provincial or national initiatives further contribute to socioeconomic development at ward level.
Collectively, these funding mechanisms enable municipalities to address community needs, improve service delivery, and promote sustainable development across wards.
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