PROVINCIAL BUDGET OF R47.9 BILLION TABLED

MEC for Finance, Economic Development and Tourism Ketso ‘Toto’ Makume

By: Neo Ntsele

On Tuesday, 17 March, MEC for Finance, Economic Development and Tourism Ketso ‘Toto’ Makume delivered the budget speech for the 2026/27 financial year at Bloemfontein City Hall.

MEC Makume presented a budget focused on boosting economic recovery, enhancing revenue collection, and improving public service delivery.

This year’s budget reflected a notable reduction of R332.6 million.

MEC Makume announced a R47.9 billion budget for the 2026/27 financial year, marking a 1.6% increase over the previous year’s allocation.

Growth is projected to rise from 1.1 percent in 2025 to 2.4 percent by 2029.

To further improve the fiscal outlook, the province anticipates saving R261 million from the Early Retirement and Voluntary Exit Programme in 2026/27, R206 million in 2027/28, and R210 million in 2028/29.

MEC Makume emphasized the need for improved municipal conditions to ensure the province functions better for everyone.

To bolster and stabilize local government, the MEC stated that the provincial government, through the Office of the Premier, COGTA, and Provincial Treasury, is currently intervening in eight municipalities, including Mangaung Metro, under Section 139 of the Constitution.

Additionally, intervention teams have been assigned to these municipalities to address financial, institutional, governance, and service delivery issues.

The budget speech showed positive momentum, especially for small and medium enterprises.

The MEC noted a slight improvement in the payment of suppliers within the required 30-day timeframe.

“Timely payment of suppliers is not only a legislative requirement but also a crucial factor for economic sustainability,” stated MEC Makume.

The province reaffirmed its commitment to strengthening financial discipline and rebuilding trust in public financial management.

MEC Makume affirmed that budget spending must be closely aligned with the 2024–2029 Medium Term Development Plan’s key priorities: promoting inclusive growth and job creation, reducing poverty and addressing the high cost of living, and developing a capable, ethical, and developmental state.

The Department of Education is allocated just over R20 billion.

The Department of Health receives R15 billion.

The Department of Social Development is allocated more than R1.4 billion.

The Department of Sport, Arts, Culture and Recreation receives R685.3 million.

The Department of Public Works and Infrastructure is allocated just above R2.3 billion.

The Department of Community Safety, Roads and Transport will receive R3.5 billion.

The Department of Agriculture, Rural Development and Environmental Affairs will receive R1 billion.

The Department of Human Settlements is allocated R1.1 billion.

The Department of Economic Development and Tourism is allocated R533.3 million.

The office of the Premier is allocated R658.3 million in 2026/27 and R656.2 million in the following year.

Cooperative Governance and Traditional Affairs (COGTA) is allocated R483.5 million.

Provincial Treasury is allocated R403.9 million in 2026/27 and R411.7 million in the following year.

MEC Makume reiterated that budget spending must be firmly aligned with the 2024–2029 Medium Term Development Plan’s key priorities, fostering inclusive growth and job creation, alleviating poverty and addressing the high cost of living, and building a capable, ethical, and developmental state.