KwaZulu-Natal Finance MEC Francois Rodgers has commended the significant improvement in the number of municipalities adopting funded budgets for the 2026/27 financial year, describing it as an important step towards strengthening financial governance and ensuring sustainable service delivery across the province.
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 provincial Treasury noted that eNdumeni Local Municipality had not approved its budget at the time of the assessment.
The department said the latest assessment marks an improvement from the previous financial year, when 19 municipalities adopted unfunded budgets following their 2025/26 adjusted budgets. The number has since declined to six municipalities for the 2026/27 financial year.
The municipalities that adopted unfunded budgets are Mpofana, iMpendle, iNkosi Langalibalele, eMadlangeni, Ulundi Local Municipality, and uThukela District Municipality.
The KwaZulu-Natal Treasury said the status of eNdumeni Local Municipality's budget remains undetermined, while the funding status of Amajuba District Municipality's budget is still being assessed after the municipality informed Treasury that it adopted its budget on 29 June 2026.
The Treasury also noted that iNkosi Langalibalele Local Municipality re-tabled its 2026/27 budget on 25 June 2026, but the revised budget has not yet been reassessed.
While welcoming progress, Rodgers said the provincial government remains concerned about municipalities that continue to approve unfunded budgets, warning that the practice undermines financial stability and compromises the delivery of essential services to communities.
He reiterated that adopting unfunded budgets contravenes the MFMA and its associated regulations.
“We welcome the improvement in funded budgets, reflecting stronger compliance and financial discipline. However, unfunded budgets remain unlawful and undermine service delivery. The Government of Provincial Unity will continue to act against non-compliance while supporting municipalities to improve," Rodgers said.
He reaffirmed KZN Treasury’s commitment to working with municipalities to strengthen financial management practices.
“Municipalities are encouraged to continue engaging with Treasury to ensure that their budgets are credible, funded, and aligned with the principles of sound fiscal governance.” – SAnews.gov.za
