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

Chapter 4 : Municipal Budgets

31. Shifting of funds between multi-year appropriations


When funds for a capital programme are appropriated in terms of section 16(3) for more than one financial year, expenditure for that programme during a financial year may exceed the amount of that year’s appropriation for that programme, provided that—

(a) the increase does not exceed 20 per cent of that year’s appropriation for the programme;
(b) the increase is funded within the following year’s appropriation for that programme;
(c) the municipal manager certifies that—
(i) actual revenue for the financial year is expected to exceed budgeted revenue; and
(ii) sufficient funds are available for the increase without incurring further borrowing beyond the annual budget limit;
(d) prior written approval is obtained from the mayor for the increase; and
(e) the documents referred to in paragraphs (c) and (d) are submitted to the relevant provincial treasury and the Auditor-General.