MUNICIPAL BUDGET OVERSIGHT
Transcript MUNICIPAL BUDGET OVERSIGHT
A sound management of municipal finance
dictates that governments must have a budget.
A municipal budget and budgeting as a practice
has progressively evolved into one of the critical
and complex processes used to regulate its
A municipal budget has a status of a legal
mechanism through which municipalities collect
and utilise public resources.
A municipal budget results out of a process.
This is commonly referred to as the budget process.
In general, the budget process consists of key
generic stages which are repeated annually, namely:
The Role of the Municipal Council in
the Budget Process
The municipal council’s role in the budget process is
intrinsically linked to its representative, policymaking
and oversight roles and functions.
Specifically, legislatures such as the municipal
council are measured by their effectiveness in
performing the representative, legislative and
Therefore, these key functions define the
involvement of the municipal council in all legislative
processes relevant to the budgets process.
The budget process is arguably one of the key
processes of governance that requires active
involvement of the municipal council.
While the executive and administrative structures
are primarily responsible for the preparation and
execution of the budget, the municipal council is
equally obliged to ensure that the entire budget
process promotes transparency, accountability,
The municipal council ensures that the budget
process is a political and democratic exercise
rather than purely a technocratic exercise.
The municipal council must also ensure that the
budget process is not reduced to balancing
income and expenditure but more about the best
way of addressing the needs of the public with
available financial resources.
Responsible stewardship for the use of public
Ensuring that public money is used in a
responsible and productive way.
Ensuring that value for money has been
achieved in the use of municipal financial
Purpose of Budget Oversight
To ensure executive compliance with the council’s
To improve the efficiency, effectiveness of
administrative budgetary operatives.
Review and determine financial priorities.
To evaluate budget performance.
To prevent abuse of public resources.
To inform the public on the how the municipality is
Approaches for Effective Budget
Requirements for Effective Budget
Ex ante Oversight
Ex post Oversight
Access to information
Council-executive relationship ( to address the
dominance of the executive)
Independent technical capacity
Non-partisan engagement on issues
Attitude and willingness to oversee the executive
What in your opinion are the major factors
that inhibit budget oversight