KZN Sees Sharp Rise in Municipalities Adopting Funded Budgets

KwaZulu-Natal has recorded a significant improvement in municipal financial planning, with most municipalities adopting funded budgets for the 2026/27 financial year. Finance MEC Francois Rodgers welcomed the progress, saying stronger budget discipline is essential for improving governance and ensuring reliable service delivery across the province.

Majority of municipalities submit funded budgets

According to the KwaZulu-Natal Treasury, 43 of the 49 municipalities that had tabled and approved their 2026/27 budgets were assessed as having funded budgets in line with Section 18 of the Municipal Finance Management Act (MFMA).

The Treasury said the latest assessment marks a substantial improvement compared with the previous financial year. Following the 2025/26 adjusted budgets, 19 municipalities had adopted unfunded budgets. That number has now fallen to six municipalities for the 2026/27 financial year.

The municipalities that approved unfunded budgets are:

• Mpofana Local Municipality

• iMpendle Local Municipality

• iNkosi Langalibalele Local Municipality

• eMadlangeni Local Municipality

• Ulundi Local Municipality

• uThukela District Municipality

Treasury continues monitoring outstanding budgets

The provincial Treasury noted that eNdumeni Local Municipality had not approved its budget at the time of the assessment, leaving its funding status undetermined.

The funding status of Amajuba District Municipality is also still being assessed after the municipality informed the Treasury that it adopted its budget on 29 June 2026.

Treasury further reported that iNkosi Langalibalele Local Municipality re-tabled its 2026/27 budget on 25 June, although the revised budget has not yet been reassessed.

Officials said they will continue engaging with municipalities to monitor compliance and ensure that all approved budgets meet the legal funding requirements.

MEC warns against unlawful unfunded budgets

While welcoming the overall improvement, Francois Rodgers expressed concern that several municipalities continue to approve unfunded budgets despite clear legal requirements under the MFMA. He said unfunded budgets weaken financial stability, limit municipalities' ability to deliver essential services and breach the provisions of the Municipal Finance Management Act and its associated regulations.

Rodgers said the Government of Provincial Unity will continue taking action against non-compliance while also supporting municipalities in strengthening their financial management practices. He encouraged municipalities to work closely with the KwaZulu-Natal Treasury to ensure future budgets are credible, fully funded and aligned with the principles of sound fiscal governance, adding that responsible financial planning remains essential for sustainable local government and improved service delivery.