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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 4 : Municipal Budgets

21. Budget preparation process

 

(1) The mayor of a municipality must—
(a) co-ordinate the processes for preparing the annual budget and for reviewing the municipality's integrated development plan and budget-related policies to ensure that the tabled budget and any revisions of the integrated development plan and budget-related policies are mutually consistent and credible:
(b) at least 10 months before the start of the budget year, table in the municipal council a time schedule outlining key deadlines for—
(i) the preparation, tabling and approval of the annual budget;
(ii) the annual review of—
(aa) the integrated development plan in terms of section 34 of the Municipal Systems Act; and
(bb) the budget-related policies;
(iii) the tabling and adoption of any amendments to the integrated development plan and the budget-related policies; and
(iv) any consultative processes forming part of the processes referred to in subparagraphs (i), (ii) and (iii).

 

(2) When preparing the annual budget, the mayor of a municipality must—
(a) take into account the municipality's integrated development plan:
(b) take all reasonable steps to ensure that the municipality revises the integrated development plan in terms of section 33 of the Municipal Systems Act, taking into account realistic revenue and expenditure projections for future years;
(c) take into account the national budget, the relevant provincial budget, the national government's fiscal and macro-economic policy, the annual Division of Revenue Act and any agreements reached in the Budget Forum;
(d) consult—
(i) the relevant district municipality and all other local municipalities within the area of the district municipality, if the municipality is a local municipality;
(ii) all local municipalities within its area, if the municipality is a district municipality;
(iii) the relevant provincial treasury, and when requested, the National Treasury: and
(iv) any national or provincial organs of state, as may be prescribed; and
(e) provide, on request, any information relating to the budget—
(i) to the National Treasury; and
(ii) subject to any limitations that may be prescribed, to-
(aa) the national departments responsible for water, sanitation, electricity and any other service as may be prescribed;
(bb) any other national and provincial organ of states, as may be prescribed; and
(cc) another municipality affected by the budget.