IDP, Budgets, SDBIP, Workshop
Overview of South African Municipal Governance, Budgeting, and Community Participation
The South African government operates across three spheres—national, provincial, and local—which are distinct, interdependent, and interrelated (Section 40, Constitution). Municipalities, as part of the local sphere, are empowered to govern local government affairs autonomously, subject to national and provincial legislation (Section 151(1), Constitution). They have executive and legislative authority to administer matters outlined in Part B of Schedules 4 and 5 of the Constitution (Section 151(2)).
Municipal Authority and Responsibilities
Municipal authority is exercised through:
- Policy development and strategic planning
- Budget preparation, approval, and implementation
- Revenue collection, including rates and service fees
Municipalities must strive to achieve the objectives of local government (Section 152), such as ensuring sustainable service delivery and fostering community participation. The key stakeholders in a municipality are the council, administration, and community (Section 2, Municipal Systems Act).
Integrated Development Planning (IDP)
The IDP, defined as the primary strategic planning instrument (Section 35, Municipal Systems Act), guides all municipal activities and decisions. It spans a five-year term, aligned with electoral cycles, but must be reviewed annually to reflect performance and changing circumstances (Sections 25, 34, Municipal Systems Act).
Core components of the IDP (Section 26):
- Long-term development vision
- Current development assessment
- Development priorities, objectives, and strategies
- Spatial development framework
- Financial and operational strategies
- Disaster management plan
- Performance indicators and targets
Amendments to the IDP require council approval and public consultation, with a 21-day public comment period (Regulation 3).
Service Delivery and Budget Implementation Plan (SDBIP)
The SDBIP is a detailed plan linking the annual budget to service delivery targets (Section 69, MFMA). It outlines:
- Monthly revenue projections by source
- Quarterly service delivery targets and performance indicators
The draft SDBIP is refined during the budgeting process and finalized after budget approval. Changes to targets and indicators require council approval following adjustments to the budget (Sections 53, 54, MFMA).
The Annual Budget Process
The budget process involves:
- Establishing a budget steering committee for guidance.
- Draft budget preparation (tabled 90 days before the financial year).
- Public consultation and representation (Section 22, MFMA).
The budget must align with the IDP, be financially sustainable, and reflect developmental priorities. Components include operating and capital budgets, performance objectives, cash flow projections, and expenditure plans.
Community Participation in Municipal Affairs
Community participation is mandated to enhance municipal governance (Chapter 4, Municipal Systems Act). Mechanisms include public consultations on:
- IDP preparation and review
- Budget development and monitoring
- Performance assessments
Council deliberations on budgets or IDP amendments must remain open to the public.
Key Takeaways
Municipal governance in South Africa is heavily regulated, with strict processes for planning, budgeting, and public participation. Compliance with legislative requirements ensures transparency, accountability, and alignment with developmental goals.
This resource was prepared by Mare-Lise Fourie, a Municipal Finance Consultant. Mare-Lise was a keynote speaker at a webinar we hosted titled IDP and Municipal Budgeting. What you need to know. You can access the webinar here and below. Mare-Lise is the former City Treasurer of Pretoria and co-author of the definitive must read for all municipal accounting officers – Municipal Finance and Accounting, now in its third edition. OUTA has on numerous occasions asked Mare-Lise for assistance on budget and IDP analysis.