Burdis, SuzanneLekhera, Thakane2026-01-122026-01-122024https://go.griffith.ie/handle/123456789/647The rising household consumer debt owed to municipalities in South Africa poses a serious threat to the financial stability and service delivery capabilities of local governments. This study delves into the complex issue of municipal consumer debt, focusing on the roles of national and local governments, the necessity of effective collaboration and coordination, and the importance of public trust, accountability, transparency, and balanced budgeting within the framework of fiscal federalism and responsible citizenry. National government in South Africa is tasked with setting policy and providing financial support, while local governments are responsible for implementing and managing services. The effectiveness of these roles is often hindered by fiscal imbalances, mismanagement, and increasing unpaid consumer debt, all of which jeopardise municipal financial stability. To address these issues, the study highlights the importance of robust collaboration and coordination between national and local governments. Effective communication and policy alignment are crucial for municipalities to maintain balanced budgets—a practice that ensures financial sustainability by managing revenues and expenditures to prevent deficits. Without balanced budgeting, municipalities will continue to face mounting debt, which undermines their ability to provide essential services. Rising consumer debt has eroded public trust and confidence in local governments, creating a vicious cycle where poor service delivery discourages citizens from paying for municipal services. Rebuilding this trust requires transparency and accountability in local governance. Municipalities must manage public funds responsibly, align budgets with community needs, and hold officials accountable for financial mismanagement. The study also explores the theme of fiscal federalism, emphasising the need for a balanced and cooperative relationship between national and local governments in managing public finances. Additionally, it underscores that an informed and engaged citizenry is essential for mitigating the impact of rising consumer debt. In conclusion, addressing the growing household consumer debt in South Africa necessitates a comprehensive strategy. This includes enhancing financial management practices at the local level, focusing on balanced budgeting, improving transparency and accountability, and fostering better socio-economic conditions to enable citizens to meet their financial obligations. Strengthening intergovernmental collaboration and promoting fiscal responsibility will better equip municipalities to overcome these challenges and ensure the continued delivery of essential services to their communities.AccountabilityBudgetingCollaborationGovernmentLocalMunicipalitiesPublicTransparencyTrustService DeliveryThesis