Municipal Timeline

Table the draft budget and IDP before council

Posted on by The CAN Team

Section 16 of the Municipal Finance Management Act (MFMA) outlines the legal requirements for tabling  and approving a municipality’s annual budget.

Key Requirements Under Section 16

  1. Tabling the Budget by the Mayor
    • Deadline: The Mayor must table the annual budget at a council meeting at least 90 days before the start of the new financial year.
    • Implication: In practical terms, this means the budget must be tabled before 31 March, as South Africa’s municipal financial year begins on 1 July.
  2. Opening the Draft Budget for Public Comment
    • Once tabled, the draft budget and Integrated Development Plan (IDP) are opened for public comment, ensuring stakeholder participation.
    • Accessibility: The draft budget must be made available on the municipality’s website within five days of being tabled.
    • Purpose: This process allows residents, businesses, and other stakeholders to provide input on the budget, promoting transparency and inclusivity in municipal decision-making.
  3. Capital Expenditure Provisions
    • While the annual budget primarily focuses on the upcoming financial year, municipalities may allocate money for capital expenditure for up to three financial years.
    • Condition: Separate appropriations must be made for each of those years to maintain clarity and accountability.

Importance of Section 16

  1. Ensuring Financial Readiness
    Approving the budget before the start of the financial year ensures that municipalities are financially prepared to deliver services without disruption.
  2. Accountability and Oversight
    Tabling the budget in council at least 90 days before the start of the financial year allows councillors to review and debate the proposed financial plan. This oversight ensures the budget aligns with municipal priorities and is fiscally responsible.
  3. Promoting Transparency and Public Participation
    Requiring the budget to be tabled by 31 March and made publicly available encourages community involvement. This fosters trust in local government and ensures that budgets reflect the needs and priorities of residents.
  4. Alignment with Development Goals
    The budget is directly linked to the Integrated Development Plan (IDP), ensuring financial allocations support long-term municipal development goals.
  5. Facilitating Long-Term Planning
    Provisions for multi-year capital expenditure promote strategic planning and enable municipalities to undertake large-scale infrastructure projects efficiently.

Implications of Non-Compliance

Failure to comply with Section 16 can lead to:

  • Delays in service delivery due to the lack of an approved budget.
  • Erosion of public trust in the municipality’s governance.
  • Potential intervention by provincial or national authorities under Section 139 of the Constitution to ensure compliance.

Conclusion

Section 16 of the MFMA establishes critical deadlines and processes to ensure municipalities adopt timely, transparent, and participatory budgeting practices. By requiring the Mayor to table the budget by 31 March and opening it for public comment, the act fosters accountability and alignment with community priorities. This structured approach enables municipalities to plan effectively and deliver on their developmental and service delivery mandates.

The CAN Team