A Guide for Councillors

Part 4 Understanding the Municipal Finance Management Act

The forthcoming medium-term budget Planning for the forthcoming medium-term budget begins a year in advance. This gives the council enough time to review the IDP, consult stakeholders and adjust the budget accordingly. Council approves a set of dates for different stages in preparing the budget. Councillors plan their consultation and feedback meetings to meet these deadlines. The budget cycle The budget activities are listed below. Councillors should be aware of the process and the deadlines that they need to meet.

Step-by-step budget process cycle This table illustrates the six steps in the budget process for the forthcoming medium- term budget:

Step

Process

schedule key dates establish consultation forums review previous processes.

• • • •

1 Planning

review IDP through an assessment or evaluation of past performance set service delivery targets and objectives for next three years, consult on tariffs, review indigent policy, credit control and free basic services consider local, provincial and national issues, the previous year’s performance and current economic and demographic trends. prepare budget revenue and expenditure projections draft budget policies consult and consider local, provincial and national priorities. table budget, IDP, and budget-related policies before council consult and consider formal local, provincial and national inputs or responses. • • council approves budget and budget-related policies council approves changes to the IDP. • • • • • • • •

2 Strategising

3 Preparing

4 Tabling

5 Approving

approve SDBIP publish SDBIP with budget and annual performance agreements and indicators.

• •

6 Finalising

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The Role of Councillors in Municipal Finance Management