During the previous dispensation in South Africa, black South Africans were viewed as temporary sojourners in urban areas and therefore the rendering of municipal services was perceptibly free (being incorporated into the nominal rental payable for the government-owned houses people rented). Both infra-structural and social development in the black townships was a central government function and funds provided for in budget allocations from Parliament. Today that situation no longer exists as both infrastructure and social development is the direct responsibility of local government, which ultimately has to raise the bulk of its funding from the services it provides. Municipalities countrywide have outstanding municipal debt in excess of R30 billion arising from unpaid user payments for essential services. The struggle to balance income and expenditure means that cost efficiency is an important element of successful financial managem