Budget 26/27

In this video we explain how local government budgets are created and what mechanisms exist to ensure accountability in local government budgeting.

Just as the national Minister of Finance delivers a national budget every year in his budget speech, every local municipality must prepare and publish its own annual budget.

Section 215 of the Constitution requires that these budgets must adhere to national legislation. Municipal budgets are accordingly regulated by the Local Government: Municipal Finance Management Act of 2003 (the MFMA) along with the Municipal Budget and Reporting Regulations made under it.

The budget must set out the estimated revenue and expenditure of the municipality. That is, the budget must show what the income and the expenses of the municipality will be over the coming financial year commencing on 1 July.
Additionally, the budget must set out projected income and expenditure figures for the next two years. All municipal budgets thus involve a three-year planning period.

The budget is divided into two main parts: the operating budget and the capital budget. The operating budget reflects the cost of the day-to-day running of the municipality, while the capital budget reflects expenditure on capital projects such as services infrastructure for water, sanitation, waste disposal sites and roads.

While the operating budget lapses at the end of the financial year, the capital budget may extend over a three-year period.

This video is part of the Civics Academy Local Government Series. In these videos we explore how local government functions and how we, as responsive citizens, can engage it. Most videos in this series are available in English, Afrikaans and IsiXhosa. Check out our videos on www.civicsacademy.co.za

In this video we set out the legal basis for the right to participate and spell out the municipal processes the public has the right to participate in.

Democracy means “government by the people”. The people therefore have a right to participate in municipal processes and have their opinions taken into consideration. Local government plays a key role in facilitating public participation. Chapter 4 of the Municipal Systems Act requires municipalities to involve communities in decision-making processes and to consult and cooperate with the community.

In terms of the Act, local communities have the right to contribute to decision making, to submit recommendations and complaints to the municipal council, to be informed of council meetings and decisions, be updated about council affairs, and attend open meetings. Chapter 4 of the Act also requires information to be accessible to all people.

The specific processes, which require the public to take part, are:

1. 1. Drafting of municipal legislation or by-laws;
   2. Drafting of the Independent Development Plans;
   3. Financial matters for example the compilation of the budget, the conclusion of contracts and Public Private Partnerships, and the determination of tariffs and property taxes;
   4. Performance management.

The ward committee is the forum where we can best engage with the municipality. There are general guidelines on how to conduct ourselves. We need to be prepared and gather all necessary information on the relevant topic. We also need to speak calmly, respect the guidance of the chairperson and be mindful of other people’s opinions. When lodging a complaint we should provide as much detail as possible.

This video is part of the Civics Academy Local Government Series. In these videos we explore how local government functions and how we, as responsive citizens, can engage it. Most videos in this series are available in English, Afrikaans and IsiXhosa. Check out our videos on www.civicsacademy.co.za