SA legislation makes provisions for when the national budget hasn't been tabled

JOHANNESBURG - While the delivery of the Budget Speech has been postponed, South Africa’s legislation allows for government to continue with its functions even after the financial year.

Finance Minister Enoch Godonwana was on Wednesday set to table the budget, as well as the Appropriation Bill.

However, due to disagreements in the Government of National Unity (GNU), the event was postponed to 12 March.

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But what does the country's laws say about the executive's failure to table a budget within a financial year? 

Legislation makes provisions for when the national budget has not been tabled by the end of the financial year.

Section 29 of the Public Finance Management Act prescribes that funds may be withdrawn from the relevant revenue fund for the services of the state or a province during that financial year as direct charges against the fund until the budget is passed.

National Treasury Director-General, Dr Duncan Pieterse, explained: "There's a process by which departments can spend up to a certain limit, 45% in the first four months of the previous year’s appropriation and then other provisions kick in thereafter."

The section also stipulates that the state or a province may not withdraw funds exceeding 10% of the total amount appropriated in the previous annual budget for the following months.