Improving Fiscal Sustainability in South African Local Governments: A Six-Pillar Conceptual Framework Applied to Three Case Studies
- Posted
- Server
- Preprints.org
- DOI
- 10.20944/preprints202506.2157.v1
South African municipalities struggle financially as a result of apartheid, rapid urban growth, and an increasing need for services. Past segregation has made equality in fiscal spending and government services more difficult to achieve. Municipalities also struggle because their funding is limited and their systems are out-of-date, while citizens require more and improved infrastructure and services. The constant shortage of funds hampers sustainable growth and the wellbeing of many residents, most of all those in rural and poorly equipped areas, proving that traditional budget plans are not sufficient and need to be improved. This research provides a detailed six-pillar conceptual framework to focus on municipal financial sustainability and reform in local governance. These pillars help achieve the goals of identifying fiscal weaknesses, improving the use of resources, creating more options for raising funds, reforming fiscal policies, involving citizens, and preserving online security. Case studies of three South African municipalities were used to determine how well the framework works in practice. They consist of the Alexandra Renewal Project, Mbizana, and Umsobomvu local municipalities. Every case had different results and issues, providing new ideas about the framework’s strong points and where it could be improved. Although some municipalities have improved their handling of finances and the way they involve the public, others need to catch up in diversifying their activities and digital administration. The framework gives cities a clear plan to address the shortage of funds, promote transparency, and restore public faith. For an application to work well, it needs strong policy support, training of staff, and integration of new technology in financial management. Overall, this framework adds important support for strengthening local governments in South Africa and in other developing areas with the same financial problems.