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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 4 : Municipal Budgets

20. Matters to be prescribed


(1) The Minister, acting with the concurrence of the Cabinet member responsible for local government—
(a) must prescribe the form of the annual budget of municipalities; and
(b) may prescribe—
(i) the form of resolutions and supporting documentation relating to the annual budget;
(ii) the number of years preceding and following the budget year for which revenue and expenditure history or projections must be shown in the supporting documentation;
(iii) inflation projections to be used with regard to the budget;
(iv) uniform norms and standards concerning the setting of municipal tariffs, financial risks and other matters where a municipality uses a municipal entity or other external mechanism for the performance of a municipal service or other function;
(v) uniform norms and standards concerning the budgets of municipal entities; or
(vi) any other uniform norms and standards aimed at promoting transparency and expenditure control.


(2) The Minister may take appropriate steps to ensure that a municipality in the exercise of its fiscal powers in terms of section 229 of the Constitution does not materially and unreasonably prejudice—
(a) national economic policies, particularly those on inflation, administered pricing and equity;
(b) economic activities across municipal boundaries; and
(c) the national mobility of goods, services, capital or labour.