Abstract
This study aimed to provide a better understanding of the alignment between the municipal budget, service delivery, and local economic development (LED). It investigated the extent to which service delivery, based on the municipal budget, in two townships in the City of Ekurhuleni, namely Tokyo Sexwale, Boksburg, and KwaThema, Springs, has contributed to economic activity, in the form of business development. It examined the local economic development theories in South Africa, the municipal budget process, and the importance of the development of Integrated Development Plans (IDP) at the local government level. The Deductive Method was used in the study, which is an approach under qualitative data analysis, premised on the review of literature looking at the relationship between the City of Ekurhuleni budget, service delivery as undertaken by the City, and LED. The study found that there is a positive relationship between municipal budget, service delivery, and LED.