ISSN 2039-2117 (online) ISSN 2039-9340 (print) Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy Vol 6 No 1 January 2015 359 Analysing the Concept of Municipal Budgeting and Service Delivery Pattern in a South Africa’s District Municipality Emmanuel Imuezerua Elizabeth Chinomona Faculty of Management Sciences, Vaal University of Technology, P.Bag X021, Vanderbijilpark. 1900 Email: chakubvae@hotmail.com/emmaimuez@gmail.com Doi:10.5901/mjss.2015.v6n1p359 Abstract Budget allocation and expenditure patterns in South African municipalities have been a matter of concern as it affects its service delivery. The South African government has clear policies which state that municipalities and municipal officials should be sensitive to community views and problems. The recognition of municipality as a sphere of government enhances the status of municipalities which gives them the role of providing community services. To this end, there is a need for efficacy of financial management and accurate budgeting mechanisms to transform the municipalities into a better place. This accumulation of service delivery and the deteriorating infrastructure has placed a burden on municipal budgets. The inadequate financial management capacity for example, in the area of budgeting skills and its allocation, has given rise to the current ineffective service delivery in municipalities. The inadequacy in the area of budgeting skills and allocation as it affects service delivery motivated this research. The study also investigated how budgetary allocation and expenditure patterns can lead to optimal delivery of services for the benefit of the community it serves. Using SPSS 22.0 this study tested the validity and reliability of the measurement instruments used. Managerial implications of the findings are discussed and limitations and future research directions are indicated. Keywords: Municipality, Budgeting, Service delivery, Financial accounting, Financial resources 1. Introduction The history of local authority in South Africa during the 20th century was that of racial segregation (Fataar 2003; Soudien 2010). The pre 1994 government made cities in South Africa develop along unequal social and economic lines. It was the primary role of local government during this era, to create local separation and inequality. Accordingly, Pieterse (2002) noted that the crisis in local government was a key force which led to the national reform process that began in the 1980’s against the distortion of human settlements, which contributed to the collapse of the apartheid local government. In an effort to redress the apartheid legacies, the government elected in April 1994 reformed previous legislations and policies to address issues pertaining to separation, inequality, poverty and to establish new transitional local authorities (Jansen 2003; Allais 2012). The municipal system in South Africa is thus largely understood in terms of service delivery. The Local Government White Paper of 1998 (section b, 2.1) reiterates the responsibilities of the local governments’- to include the provision of a basic level of service delivery with the following objectives: • to enable municipalities extend affordable basic services to all South Africans; • to support municipalities in improving the performance of service delivery systems; and • to assist coordination between sectorial delivery programmes. The Constitution of the Republic of South Africa, 1996, as amended has clear policies which state that municipalities and municipal officials should be sensitive to community views and problems. The recognition of municipality as a sphere of government in Chapter 7 of the Constitution of South Africa, 1996, as amended enhances the status of municipalities which gives them the role of providing community services. To this end, there is a need for effective financial management and accurate budgeting mechanisms to transform the municipalities into a better place. The municipality has executive and legislative authority vested in its municipal council and the right to govern the affairs of its community, subject to national and provincial government legislation, as provided for in the South African Constitution. The municipal authority, by virtue of its developmental role, is expected to structure and manage the administration; budgeting and planning processes in a way that prioritises the basic needs of the community it serves (Haycock, 2005). Hence, optimum performance is vital in order to eradicate the accumulation in the delivery of social