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

Chapter 4 : Municipal Budgets

Purchase

(1)	An annual budget may only be funded from—

(a)	realistically anticipated revenues to be collected;

(b)	cash-backed accumulated funds from previous years' surpluses not committed for other purposes; and

(c)	borrowed funds, but only for the capital budget referred to in section 17(2).

(2)	Revenue projections in the budget must be realistic, taking into account—

(a)	projected revenue for the current year based on collection levels to date; and

(b)	actual revenue collected in previous financial years.