Finance Ministry Calls on Councils to Submit Medium-Term Budgets

The Ministry of Finance has issued a directive requesting local councils to prepare and submit their medium-term budgets for the years 2025-2027 by 19 September. 

This request was outlined in a circular published by the ministry. Under the State Finance Act, the finance ministry is mandated to prepare the annual state budget and present it to Parliament two months before the commencement of the fiscal year for which the budget is being prepared.

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The ministry emphasised that councils should adhere to the established guidelines for determining grants, preparing council budgets, and implementing these budgets. The circular stressed the importance of clearly distinguishing between income and expenditure when drafting the budget.

Furthermore, the circular advised that the state block grant allocations to councils must be budgeted to ensure they do not surpass the amounts proposed in this year’s medium-term budget and the next year’s fiscal strategy. These figures are subject to review in the following year’s medium-term budget.

The finalisation of council budgets will take place after the approval of next year’s medium-term budget, in accordance with the Decentralisation Act.