A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 4

WHAT DO I VOTE ON?

4.3 Voting on the budget

Councillors must vote on budget resolutions that refer to speci fi c schedules required by the MFMA and regulations. In particular, councillors will vote on revenue, operating and capital expenditure and measurable performance objectives for each major functional area of the municipality.

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The term “vote” is often used to describe the summary budget line being approved. “votes” are always at a high level to ensure councillors focus on high level strategy and policy choices rather than minor budget items such as stationery. •

The following illustration shows a breakdown of revenue, expenditure and performance objectives for the “Electricity Vote”. It also further illustrates the concept of three budget processes.

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Understanding the Municipal Finance Management Act