For a soundbite of Parliament Spokesperson, Mr. Moloto Mothapo, click on this link: https://iono.fm/e/1578629
Parliament, Tuesday, 22 July 2025 - On Wednesday, 23 July, the National Assembly will, following the conclusion of its Budget Vote Debates on departmental budgets, consider and vote on the Appropriation Bill. This marks a critical stage in the national budget process, as the House decides on the allocation of funds to various government departments and programmes. The National Council of Provinces (NCOP), for its part, is scheduled to consider the Appropriation Bill on 30 July, after the NA's consideration of the Bill and conclusion of its own Policy Debates on departmental Budget Votes.
STEP 1: THE BUDGET IS TABLED IN PARLIAMENT
Each February, the Minister of Finance presents a package of budget documents to Parliament.
These include:
• The Fiscal Framework and Revenue Proposals: outlining the country’s economic outlook, tax policies, and how much revenue government expects to collect.
• The Division of Revenue Bill: showing how money will be shared between national, provincial, and local governments.
• The Appropriation Bill: allocating specific amounts of money to each national department and programme.
Parliament must consider these money bills and budget instruments in a specific order.
STEP 2: PARLIAMENT APPROVES THE FISCAL FRAMEWORK FIRST
The Fiscal Framework sets out government’s macroeconomic and fiscal policy, including revenue targets, economic assumptions, debt levels, and overall expenditure ceilings. It provides the foundation upon which the rest of the budget is built. The Fiscal Framework must be adopted within 16 days after the tabling of the national budget.
Once the Fiscal Framework is approved, Parliament can proceed to the rest of the budget process.
STEP 3: PARLIAMENT CONSIDERS THE DIVISION OF REVENUE BILL
Next, Parliament passes the Division of Revenue Bill, which explains how money will be distributed to the three spheres of government: national, provincial, and local. This is vital for service delivery at every level of government.
STEP 4: INTRODUCTION OF THE APPROPRIATION BILL
Once the overall spending plan and revenue sources are approved, Parliament turns its attention to the Appropriation Bill. The Appropriation Bill is the law that gives the government permission to use public funds for various departments and services. It forms part of the national budget and includes a Schedule—a list of departments (called “Votes”) and the amount of money each will receive. This Bill lists how much money each national department will receive. Each allocation is called a “Vote.”
The Bill is referred to the Standing Committee on Appropriations, which oversees the whole Bill, and to the portfolio committees, which review the budgets of individual departments they oversee.
PARLIAMENTARY COMMITTEES AND THE BILL?
Once the budget is presented, the Standing Committee on Appropriations carefully examines the entire Bill. The specific sections or “Votes” of the budget are also sent to relevant portfolio committees, such as the committee on health or education, for their expert input.
If any portfolio committee feels changes should be made to a department’s budget, they must request the Standing Committee to make that recommendation.
3. NATIONAL ASSEMBLY'S CONSIDERATION
The National Assembly considers the Appropriation Bill in three main stages:
Stage 1: First Reading
• This is the first debate on the Bill.
• Members of Parliament discuss whether they agree with the overall principles of the Bill.
• If the House votes “no” at this stage, the entire Bill is rejected and does not continue.
Stage 2: Consideration of Each Department’s Vote
• Each department’s budget allocation (called a “Vote”) is discussed one by one.
• Political parties may make short speeches, called declarations, on each Vote.
• Votes are taken on each department’s funding.
If one vote is rejected, the House would consider the remaining votes to gain a full picture of where each party stands before sending the Bill back to the Appropriation Committee for changes.
Stage 3: Approval of the Full Schedule and Second Reading
If all Votes are approved, Parliament then looks at the full Schedule (the complete list of funding allocations). If the Schedule is accepted, the Bill goes to the Second Reading, which is the final vote for the House to pass the Bill.
4. WHAT IF NATIONAL ASSEMBLY DOESN’T AGREE?
If the House rejects the Bill First Reading or Second Reading then the Bill must be revised and reintroduced. Parliament must pass the Appropriation Bill within four months of the financial year starting.
If Parliament delays the Public Finance Management Act (PFMA) allows government to continue spending up to 45% of the previous year’s budget (for the first four months of the financial years) to keep services running. However, no new programmes or changes to allocations can be made until the new budget is approved.
STEP 5: ONCE PASSED, THE BUDGET IS IMPLEMENTED
After Parliament passes the Appropriation Bill:
• Government departments receive funds and begin spending as planned.
• Parliament continues to monitor spending through its oversight committees.
• The Auditor-General audits spending and reports back to Parliament.
• Where mismanagement or underspending is found, Parliament can take corrective steps.
WHAT IF PARLIAMENT WANTS TO CHANGE THE BUDGET?
Parliament has the power to amend the budget but must follow strict rules set by the Money Bills Amendment Procedure and Related Matters Act. The changes must be fiscally responsible, align with the approved Fiscal Framework and consider public needs, economic priorities, and national stability.
ISSUED BY THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA
Enquiries: Moloto Mothapo
Arrange a tour