MTREF Budget 2021/22 – 2023/24 & Budget Related Policies

The 2021/22 MTREF budget is prepared in compliance with the MFMA (No 56 of 2003). The MTREF is a financial plan that enables the municipality to achieve its vision and mission through the IDP Strategy which is informed by the development agenda and community/stakeholder inputs.

Section 153 of the Constitution requires that ‘a municipality must structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community’. The MFMA, together with the Municipal Systems Act (2000), aims to facilitate compliance with this constitutional duty by ensuring that municipalities’ priorities, plans, budgets, implementation actions, and reports are properly aligned.

The 2021/22 – 2023/24 medium-term expenditure framework (MTEF) is tabled amid the widespread apprehension about the poor health of the country’s finances in the wake of the COVID-19 pandemic. The Minister of Finance, Mr. Tito Mboweni, tabled an optimistic budget that seeks to set a recovery plan for the year ahead. On the positive side, the Minister mapped out the path to reducing the budget deficit and did not raise taxes which is important for economic recovery. However, there are still many risks and the longer-term economic outlook remains subdued unless policies that will stimulate the economy are implemented. The GDP is expected to grow by 3.3% in 2021 as it rebounds from the -7.3% y/y collapse of last year and GDP growth of 2.2% in 2022.

Budget and Related Policies