Question
QUESTION 3 (25) The slow spending of capital budgets by most municipalities is a national concern as it has a negative impact on service delivery.
QUESTION 3 (25) The slow spending of capital budgets by most municipalities is a national concern as it has a negative impact on service delivery. In most cases the hockey stick phenomenon that exists (i.e. spending increases in the last six months of the year) is a direct result of poor planning by municipalities. Going forward and to address weak planning process, all municipalities will be required to table the following supporting documents to Council, as part of the budget pack, when they table their budgets by 29 March 2019: Service Delivery and Budget Implementation Plan (SDBIP); and Procurement Plan. This is also in terms of the requirements and spirit of the MFMA and its Municipal Budget and Reporting Regulations. Adapted: MFMA Circular No.94, Municipal Finance Management Act No.56 of 2003 3.1 In the context of the above statement, critically discuss the budget processes and budget cycle of a municipal budget from the initiation phase to its ultimate approval. (15) 3.2 Discuss the legislative framework supporting sound financial management in local government.
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