Fact check: How accurate are DA's claims about Tshwane finances?

Fact check: How accurate are DA's claims about Tshwane finances?

- The DA has made several big claims about Tshwane's finances

- For example, they said they managed to pull the city out of R1 billion debt

- Here are their claims, fact-checked

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The DA and ANC have long argued about some of the governance problems in the City of Tshwane.

Mmusi Maimane, for example, recently claimed that when the DA took over the city, it was R1 billion in debt, and that they have since achieved a budget surplus.

But how do these claims compare with the reality?

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The ANC has disputed the DA's assertion that Tshwane was R1 billion in debt when the ANC left office. While records show that the ANC left the city with a budget surplus of R1.1 billion, this includes capital transfers, which are funds that all municipalities receive from the national treasury.

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When these transfers are excluded, the records show that, under the ANC, Tshwane had a budget deficit of R1.4 billion, Briefly.co.za has learned. A budget deficit is essentially when a government spends more money than it brings in through taxes and other sources.

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This supports the DA's claim that Tshwane was R1 billion in debt when they took over, according to AfricaCheck.

Additionally, in the 2016/2017 financial year, while the DA was in office, records obtained by Eyewitness News indicate that the city had a budget surplus of R730 million, when capital transfers are excluded. 

This means that the DA's claim that they took over Tshwane when it was R1 billion in debt and managed to turn that into a budget surplus is, in fact, correct.

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Source: Briefly.co.za

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