The Minister of Finance, Mr Enoch Godongwana, presented the National Treasury budget vote totalling R91.835 billion, reflecting an average growth rate of 6.2% from 2024/25 to 2027/28.
The largest allocation goes to the South African Revenue Service (SARS), which receives R45.760 billion – or 49.8% of the department’s budget – for operations and capital projects over the medium term.
Many interpret the increased funding for SARS as a response to revenue collection shortfalls caused by capacity constraints and inadequate enforcement tools. “Part of this increase is to improve effectiveness in revenue collection by enhancing their ability to collect debt through better systems, increasing staff capacity and modernising their processes to establish e-invoicing for VAT, instant payment systems and upgrades of customs infrastructure,” said the Minister.
He added that the core function of the Treasury is to ensure sustainable public finances. “And for this we require sound controls to realise our goals such as job creation, lowering poverty and greater inclusion.”
Mr Godongwana outlined that sustainability of public finances would be supported through spending reviews assessing the effectiveness of government expenditure. These reviews recommended rationalising 37 employment and labour market activation programmes across 16 departments.
He further announced a review of ghost workers in the public service, along with the remuneration of executives and board members of state-owned entities.
On the escalating public debt, he said: “Through a growing primary surplus, the public debt-to-GDP ratio will stabilise over time and ensure that the government does not rely on additional borrowing to cover its non-interest expenses.”
These efforts are part of a broader process to reform the national budget framework. “At the start of the 2025 MTEF process, the National Treasury announced a comprehensive review of the budget process. The review process has now been completed,” he noted.
A new procurement regime aimed at curbing expenditure leakages and promoting inclusive economic growth has also been introduced. The new system ensures that “all government contracts are awarded in accordance with a system that is fair, equitable, transparent, competitive and cost effective,” with preference given to “the advancement of persons disadvantaged by unfair discrimination,” the Minister said.
“These measures in their entirety represent the department’s efforts in achieving sustainable public finance, advocating coherent economic policy, ensuring sound financial controls and management of public finances, and increased public infrastructure investment,” he said.
Parliamentary Support and Oversight
During the debate on the budget vote, the Chairperson of the Standing Committee on Finance, Dr Joseph Maswanganyi, expressed unequivocal support for the budget. He said that after reviewing the Treasury’s performance and strategic plans, the committee is of the view that Treasury is on the right track.
“In light of local and global economic challenges,” he added, “it is crucial to make difficult decisions now and this budget does that because its aim is to restore public finances to a sustainable path.” He also noted that the budget includes tax increases and spending cuts to reduce the fiscal deficit, while protecting essential social and economic programmes.
Infrastructure and Reporting Concerns
Dr Maswanganyi raised concerns about infrastructure investment tracking, stating that R1.3 trillion had been earmarked for infrastructure development. However, he warned that this commitment is “not adequately reflected in the budget planning reporting, budget performance instruments of the department.” He called for a standalone performance indicator to address this.
On SARS, he welcomed the increased allocation, stating: “We thank the minister for heeding to calls for increased budgetary allocation to SARS to stimulate revenue collection efforts.”
He also addressed the issue of municipalities defaulting on employee pension contributions, stating that the committee would meet with SALGA: “There must be consequences for such employers. People can’t work for the rest of their lives only to be told that their municipalities were not contributing towards their pensions.”
Criticisms from Opposition Parties
Mr David Van Rooyen (MK) criticised the Treasury’s historical performance: “We stand here to remind our people that a functional Treasury serves as a glue that holds government financial operations together… But the same can’t be said about it.”
He described the department’s track record as “characterised by years of unfulfilled promises and missed targets” and he alleged that Treasury has failed to build a capable state. “These have remained big fat lies,” he said.
Ms Wendy Alexander (DA) took a different tone, saying: “I want to address the National Treasury not as the steward of our public purse, but as a citizen committed to rebuilding a fractious country.” She emphasised the need for fiscal discipline: “Without our fiscal discipline and evidence-based policies, the GNU will lack the backbone to address South Africa’s urgent challenges.”
She pledged her party’s commitment to oversight: “We are not here as passive participants; we are here active agents of reform. And every rand allocated, every policy implemented, and every employment made we will scrutinise them.”
Ms Omphile Maotwe (EFF) rejected the budget outright, stating: “In 15 years, Treasury has failed to present a practical economic growth strategy.” She criticised the department for focusing on short-term budget balancing rather than long-term planning and described its growth forecasts as inaccurate.
“What we need,” she argued, “is increased state spending on Eskom, healthcare, education, defence and industrialisation. Not the austerity culture of this Treasury.”
Mr Nhlanhla Hadebe (IFP) raised concerns over ballooning public debt. He noted that debt servicing, projected at over R300 billion, is now the second-largest budget item after education, with the debt-to-GDP ratio exceeding 75%.
“Our economy is caught in a trap of low growth, high debt and shrinking fiscal space,” he warned. Despite this, Treasury's economic growth projection remains just above 1% – which he argued is insufficient. He criticised the focus on fiscal consolidation, stating it leaves the poor “to fend for themselves while waiting for a trickle-down recovery.”
Abel Mputing
9 July 2025
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