This week’s question is:
How does the City’s budget cycle work? What is the difference between the annual budget, a midterm budget and an adjustment budget?
Dalu Cele, Ward 101 councillor, answered:
The budget cycle usually starts with the annual review of the Integrated Development Planning (IDP) process that is conducted by a municipality prior to the presentation of the annual budget.
All the stakeholders and constituents within the municipal boundary (all residents) may provide input into the IDP.
An annual budget is a plan that outlines the expected revenue and expenditure of a municipality in a fiscal year.
In terms of an adjustment budget, a municipality is allowed only one adjustment budget within a financial year.
This is a revision of an approved annual budget that can be tabled in a municipal council for approval for the adjustments to the annual budget to take effect.
A midterm or medium-term budget is a 3-year financial plan for a municipality, taking into consideration that some projects may go beyond the fiscal year.
Do you have a question for a ward councillor?
As a local newspaper, the Northcliff Melville Times provides a platform for residents to learn about, understand and follow local government.
As an extension of that, there is a weekly column called Councillor’s Corner which is a platform for you, our readers, to voice your concerns or questions for ward councillors to respond to.
Different, willing, ward councillors will respond to a question each week.
Email your burning question to aimeed@caxton.co.za and let’s get the ball rolling.
