PIETERMARITZBURG, KWAZULU-NATAL — Significant strides in financial governance have been recorded across KwaZulu-Natal municipal budgets for the upcoming financial cycle, with a dramatic decrease in the number of councils operating on unfunded financial plans. KwaZulu-Natal Finance MEC Francois Rodgers has officially welcomed these improvements, emphasizing that the shift toward fiscal discipline is a critical step for ensuring sustainable and reliable service delivery for communities across the province.
A Sharp Decline in Unfunded Financial Plans
According to recent assessments by the KwaZulu-Natal Treasury, the province has seen a massive turnaround in municipal financial health. Out of the 49 local and district councils that successfully tabled and approved their financial plans for the 2026/27 cycle, an impressive 43 have been certified as fully funded. This compliance aligns perfectly with Section 18 of the Municipal Finance Management Act (MFMA).
This marks a stark improvement from the previous financial year. Following the 2025/26 adjusted budgets, as many as 19 municipalities were forced to adopt unfunded plans. For the new 2026/27 financial year, that number has plummeted to just six.
Identifying the Non-Compliant and Pending Councils
Despite the overall positive trend, the provincial Treasury highlighted specific municipalities that still require urgent financial intervention.
The six municipalities that have adopted unfunded budgets for the new cycle are:
- Mpofana
- iMpendle
- iNkosi Langalibalele
- eMadlangeni
- Ulundi Local Municipality
- uThukela District Municipality
Additionally, the Treasury provided updates on several councils with pending or undetermined financial statuses:
- eNdumeni Local Municipality: The funding status remains undetermined because the council had not yet officially approved its budget at the time of the Treasury’s assessment.
- Amajuba District Municipality: The council informed the Treasury that it adopted its budget on June 29, 2026. Its funding status is currently undergoing assessment.
- iNkosi Langalibalele Local Municipality: Although listed among the unfunded, this municipality re-tabled its 2026/27 budget on June 25, 2026. This revised submission is still awaiting reassessment.
Warnings on Legal Compliance and Service Delivery
While celebrating the broader compliance, MEC Rodgers did not mince words regarding the municipalities still flouting financial regulations. He cautioned that passing unfunded budgets is not just a poor administrative choice, but a direct contravention of the MFMA and its associated regulations.
Rodgers warned that such unlawful practices severely undermine provincial financial stability and directly compromise the delivery of essential, day-to-day services to residents.
“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 stated.
Treasury Commitment to Fiscal Governance
Looking ahead, the KwaZulu-Natal Treasury reaffirmed its dedication to partnering with local municipalities to build robust financial management frameworks. The department is actively encouraging all councils to maintain open lines of communication with provincial officials.
The ultimate goal, according to the Treasury, is to ensure that every municipality develops credible, fully funded budgets that strictly adhere to the core principles of sound fiscal governance.
