Budgets

FINANCIAL PLAN, THREE-YEAR BUDGET PROJECTION AND SERVICES DELIVERY AND BUDGET IMPLEMENTATION PLAN (SDBIP)

  1. The Act requires, as a core component of the IDP, the production of a Financial Management Plan (FMP) that ‘….must include a budget projection for at least next three years….” (Section 26.(h)). The FMP forms the cornerstone of any planning and financial strategy of the Municipality within the limits of available financial resources. The IDP is accordingly supported by a realistic estimation of available funding in terms of the capital and operational budget of the municipality, encapsulated in its Medium Term Expenditure Framework (MTEF).
  2. Section 17(3) of the local Government: Municipal Financial Management Act, (Act N0. 56 of 2003)(MFMA) also requires that the Municipal Budget and the IDP are reconciled for a threee year budget period.
  3. This was finalized and adopted by Council on 28 May 2009. The Municipal budget comprises:
  • The complete overview of the income and Expenditure of the Municipality; and
  • The complete overview of the Capital Expenditure of the Municipality.