BonaPeople: Sikelelwa Foslara
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Sikelelwa Foslara – Revenue enhancement strategy: The post pandemic solution
The objective of any successful revenue enhancement strategy is to build and improve on current payment levels and then to recover arrear debt. Covid-19 exposed a lot of loopholes in local government revenue management and within a few weeks of the pandemic, one could already start to see the potential impact on cashflow and how the crisis would impact long-term sustainability.
Revenue management is an integral part of any business that strives to succeed, this also includes municipalities. With the pressures that Covid—19 has put on the national fiscal, it is even more crucial that municipalities should be self-sufficient as they can no longer be solely dependent on the National Treasury for funding. In order, for municipalities to be able to deliver on their service delivery mandate, it is prudent that municipalities must be able to generate their own revenue.
In April 2020, the Chartered Institute of Goverment Finance Audit and Risk Officers (CIGFARO) made the following comment, “Each municipality must have its financial system, which is the backbone and driver to manage the raising of revenue and the related collections.” Municipal revenue collections are usually done internally by the municipality.