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

Chapter 4 : Municipal Budgets

29. Unforeseen and unavoidable expenditure


(1) The mayor of a municipality may in emergency or other exceptional circumstances authorise unforeseeable and unavoidable expenditure for which no provision was made in an approved budget.


(2) Any such expenditure—
(a) must be in accordance with any framework that may be prescribed:
(b) may not exceed a prescribed percentage of the approved annual budget:
(c) must be reported by the mayor to the municipal council at its next meeting; and
(d) must be appropriated in an adjustments budget.


(3) If such adjustments budget is not passed within 60 days after the expenditure was incurred, the expenditure is unauthorised and section 32 applies.