National Treasury has published its third-quarter “Section 71” snapshot of municipal finances, laying out what cities and towns billed, collected and spent between October and December. The Section 71 report is a legally required, in-year update that tracks operating income (like rates and service charges), day-to-day spending, capital projects and cash on hand, as well as the national transfers that flow to municipalities via the equitable share and conditional grants.
The data shows where pressure is building: higher bulk costs for electricity and water, rising consumer arrears, and uneven delivery on capital budgets. It also details how much of the transferred grant funding has actually been spent, flagging underspending risks and cash-flow strains that can slow service delivery. By breaking results down per municipality, the report highlights differences in collection rates, creditor backlogs (including Eskom accounts) and progress on infrastructure projects—key indicators for the health of local services and the reliability of revenue streams that underpin them.
Read the full announcement.