Acts Online
GT Shield

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

Chapter 7 : Responsibilities of Mayors

53. Budget processes and related matters

 

(1) The mayor of a municipality must—
(a) provide general political guidance over the budget process and the priorities that must guide the preparation of a budget;
(b) co-ordinate the annual revision of the integrated development plan in terms of section 34 of the Municipal Systems Act and the preparation of the annual budget, and determine how the integrated development plan is to be taken into account or revised for the purposes of the budget; and
(c) take all reasonable steps to ensure
(i) that the municipality approves its annual budget before the start of the budget year;
(ii) that the municipality's service delivery and budget implementation plan is approved by the mayor within 28 days after the approval of the budget; and
(iii) that the annual performance agreements as required in terms of section 57(1)(b) of the Municipal Systems Act for the municipal manager and all senior managers—
(aa) comply with this Act in order to promote sound financial management;
(bb) are linked to the measurable performance objectives approved with the budget and to the service delivery and budget implementation plan; and
(cc) are concluded in accordance with section 57(2) of the Municipal Systems Act.

 

(2) The mayor must promptly report to the municipal council and the MEC for finance in the province any delay in the tabling of an annual budget, the approval of the service delivery and budget implementation plan or the signing of the annual performance agreements.

 

(3) The mayor must ensure—
(a) that the revenue and expenditure projections for each month and the service delivery targets and performance indicators for each quarter, as set out in the service delivery and budget implementation plan, are made public no later than 14 days after the approval of the service delivery and budget implementation plan; and
(b) that the performance agreements of the municipal manager, senior managers and any other categories of officials as may be prescribed, are made public no later than 14 days after the approval of the municipality's service delivery and budget implementation plan. Copies of such performance agreements must be submitted to the council and the MEC for local government in the province.