South African municipalities are owed a staggering R37,7-billion by households, while the government owes them some R3,4-billion, a report released by the National Treasury on Thursday revealed.

It showed that total aggregated consumer debt, to municipalities and metros, stood at R62,3-billion as at September 30, 2010. Of this, government accounted for R3,4-billion or 5,5%. Households accounted for the largest component at R37,7-billion or 60,6% of the total.

The budget statement for local government for the first quarter of the 2010/11 financial year showed the country's metropolitan municipalities were owed a total of R35,4-billion at September 30, 2010.

This is an increase of R3,9-billion or 12,4% from the same period last year. The biggest percentage growth from the previous year was in the City of Johannesburg, where it increased 23,5% or R2-billion.

Nelson Mandela Bay's (Port Elizabeth) debtors book increased 16,5% or R275-million, the Ekurhuleni metro's 15,1% or R1,1-billion and Cape Town's by 11,8% or R558-million.

The statement covers revenue and expenditure, and conditional grant spending of municipalities for the period July 1 to September 30, 2010.