Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 4 : Municipal Budgets18. Funding of expenditure |
| (1) | An annual budget may only be funded from— |
| (a) | realistically anticipated revenues to be collected; |
| (b) | cash-backed accumulated funds from previous years' surpluses not committed for other purposes; and |
| (c) | borrowed funds, but only for the capital budget referred to in section 17(2). |
| (2) | Revenue projections in the budget must be realistic, taking into account— |
| (a) | projected revenue for the current year based on collection levels to date; and |
| (b) | actual revenue collected in previous financial years. |