Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 4 : Municipal Budgets17. Contents of annual budgets and supporting documents |
| (1) | An annual budget of a municipality must be a schedule in the prescribed format— |
| (a) | Setting out realistically anticipated revenue for the budget year from each revenue source; |
| (b) | appropriating expenditure for the budget year under the different votes of the municipality; |
| (c) | setting out indicative revenue per revenue source and projected expenditure by vote for the two financial years following the budget year; |
| (d) | setting out— |
| (i) | estimated revenue and expenditure by vote for the current year; and |
| (ii) | actual revenue and expenditure by vote for the financial year preceding the current year; and |
| (e) | a statement containing any other information required by section 215(3) of the Constitution or as may be prescribed. |
| (2) | An annual budget must generally be divided into a capital and an operating budget in accordance with international best practice, as may be prescribed. |
| (3) | When an annual budget is tabled in terms of section 16(2), it must be accompanied by the following documents: |
| (a) | Draft resolutions— |
| (i) | approving the budget of the municipality; |
| (ii) | imposing any municipal tax and setting any municipal tariffs as may be required for the budget year; and |
| (iii) | approving any other matter that may be prescribed; |
| (b) | measurable performance objectives for revenue from each source and for each vote in the budget, taking into account the municipality's integrated development plan; |
| (c) | a projection of cash flow for the budget year by revenue source, broken down per month; |
| (d) | any proposed amendments to the municipality's integrated development plan following the annual review of the integrated development plan in terms of section 34 of the Municipal Systems Act; |
| (e) | any proposed amendments to the budget-related policies of the municipality; |
| (f) | particulars of the municipality's investments; |
| (g) | any prescribed budget information on municipal entities under the sole or shared control of the municipality; |
| (h) | particulars of all proposed new municipal entities which the municipality intends to establish or in which the municipality intends t o participate: |
| (i) | particulars of any proposed service delivery agreements, including material amendments to existing service delivery agreements; |
| (j) | particulars of any proposed allocations or grants by the municipality to— |
| (i) | other municipalities; |
| (ii) | any municipal entities and other external mechanisms assisting the municipality in the exercise of its functions or powers; |
| (iii) | any other organs of state; |
| (iv) | any organisations or bodies referred to in section 67(1); |
| (k) | the proposed cost to the municipality for the budget year of the salary, allowances and benefits of— |
| (i) | each political office-bearer of the municipality; |
| (ii) | councillors of the municipality; and |
| (iii) | the municipal manager, the chief financial officer, each senior manager of the municipality and any other official of the municipality having a remuneration package greater than or equal to that of a senior manager; |
| (l) | the proposed cost for the budget year to a municipal entity under the sole or shared control of the municipality of the salary, allowances and benefits of— |
| (i) | each member of the entity's board of directors: and |
| (ii) | the chief executive officer and each senior manager of the entity; and |
| (m) | any other supporting documentation as may be prescribed. |