(1)Local governments shall have the right and obligation to formulate, approve and execute their budgets and plans provided the budgets shall be balanced.

(2)Local governments shall always accord national priority programme areas preferential budget outlays.

(3)Where the Local Government Finance Commission becomes aware that a local government council budget significantly detracts from priority programme areas, the Commission shall inform the council, and the President through the Minister for appropriate action.

(4)A local government budget shall reflect all revenues to be collected or received by the local government, and to be appropriated for each year.

(5)A local government budget for the ensuing financial year shall always take into account the approved development plan of that local government, the Charter for Fiscal Responsibility and the budget framework paper for that year.

(6)The chairperson of a local government shall, not later than the first day of April, cause to be prepared and laid before the council, the estimates of revenue and expenditure of the council for the next financial year.

(7)The council shall, not later than the 31st day of May, consider and approve the budget and work plan of the council.

(8)The council may revise the development plan, where necessary, to harmonise it with the approved budget.

(9)The approved budget shall take effect on the first day of July in each year.