The Ministry of Finance has asked councils to prepare and submit their medium-term budgets.
In a circular published by the ministry, the councils have been asked to share information on their medium-term budgets for the years 2025-2027, by September 19.
The finance ministry is required, under the State Finance Act, to prepare the annual budget of the state and submit to the Parliament two months prior to the start of the fiscal year in which the budget is being formulated.
The finance ministry said that councils should prepare and submit medium-term budgets in accordance with the rules for determining grants, preparing council budgets and implementing budgets. The circular highlights that the councils should be aware of the income and expenditure of the funds separately when preparing the budget.
The circular noted that the state block grant to councils should be budgeted in such a way that it does not exceed the amounts proposed for block grants to councils in this year's medium-term budget and next year's fiscal strategy. These figures will be reviewed in next year's medium-term budget.
The councils will be finalising the budget after the approval of next year's medium-term budget in accordance with the Decentralisation Act.