When must an annual budget be approved by the LGF?

The requirement for an annual budget to be approved by the Local Government Finance (LGF) typically aligns with the need for financial planning and accountability within municipalities. Approving the budget before June 30 is significant because it ensures that the local government has a financial plan in place at the start of the new fiscal year, allowing for smooth execution of budgeted activities and programs.

This timeline is crucial for effective cash flow management, giving authorities enough time to allocate resources efficiently, plan for expenditures, and make necessary adjustments based on revenue projections. Additionally, this pre-June 30 approval helps comply with statutory obligations and transparency for taxpayers and stakeholders, as it provides clarity on how public funds will be utilized in the forthcoming fiscal cycle.

In contrast, the other options either do not align with typical fiscal cycles or represent much less practical or timely points for budget adoption.