National Treasury Briefs Parliament on 2025 Appropriation Bill
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CAPE TOWN, 23 April 2025 — The National Treasury presented the 2025/26 Appropriation Bill to the Standing Committee on Appropriations, detailing legislative processes, budget allocations, and financial provisions for the upcoming fiscal year. The briefing, led by Acting Deputy Director-General Dr. Randela Randela, emphasized constitutional and legislative frameworks that underpin the Bill.
The Appropriation Bill, tabled in Parliament on 12 March 2025, proposes R1.17 trillion in state expenditure. Of this, 72.17% (R843.6 billion) is allocated to transfers and subsidies, while compensation of employees accounts for 18.38% (R214.9 billion). Notable allocations include R294.1 billion to Social Development, R131.1 billion to Cooperative Governance, and R120.9 billion to the Police.
Spending additions for 2025/26, amounting to R102.4 billion, focus on critical infrastructure, public-service wage agreements, social protection, and frontline services. Key investments include R14.1 billion in infrastructure, R35.2 billion for the COVID-19 Social Relief of Distress Grant, and R22.2 billion in provisional allocations for education, healthcare, and security services.
The Treasury highlighted fiscal constraints and offsetting measures such as drawdowns on reserves and proposed tax increases. These measures result in a net increase of R58.6 billion in non-interest expenditure compared to the previous year.
The Bill also outlines strict conditions for the use of funds, including limits on unspent fund transfers, accountability for unauthorised expenditure, and provisions for urgent spending prior to the Bill’s promulgation under section 29 of the PFMA.
Departments began the fiscal year under transitional spending rules, capped at 45% of the previous year’s appropriations for the first four months, pending the Bill’s passage.
The National Treasury reiterated that all amendments and allocations must align with the fiscal framework and the Division of Revenue Act, with mechanisms in place for ministerial oversight, delegation, and reporting to Parliament.
