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title: What are budgeting limitations?
description: Montana law prohibits municipal officials from overspending beyond approved budgets. Learn key limitations and personal liability risks under the Budget Act.
---

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December 3, 2025

# What are budgeting limitations?

## Budgeting Limits for Montana Municipalities: Legal Boundaries and Fiscal Accountability

There are a number of provisions included in the Local Government Budget Act 7‐6‐4001, MCA ,that impose significant limitations upon municipal officials. Among the more significant of these budgeting limitations are:  
• A municipal official may not make an expenditure of public funds or incur an obligation to expend public funds in excess of the total appropriation approved by the governing body. An official who violates this limitation is personally liable for the amount of the expenditure, 7‐6- 4005, MCA.  
• The final budget must be balanced so that planned appropriations do not exceed the available resources and anticipated revenues during the fiscal year, 7-6‐4030, MCA

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