Parliament, Tuesday, 29 July 2025 – On Wednesday, 30 July, the National Council of Provinces will, consider and vote on the Appropriation Bill. This is following the conclusion of its Policy Debates on departmental budgets and adoption of the Appropriation Bill by the National Assembly (NA) on 23 July 2025.
The NCOP plays a crucial role in the budget process by ensuring that the interests of provinces are taken into account in the allocation and use of public funds. While the Appropriation Bill is a Section 77 money bill that originates in the National Assembly, the NCOP provides a platform for provinces to engage with and respond to national budget decisions.
The adoption of the Bill marks a critical stage in the national budget process, as the House decides on the allocation of funds to various government departments and programmes.
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
The Appropriation Bill is first introduced and passed by the NA, as it is a money bill in terms of Section 77 of the Constitution. The Bill was passed by the NA on 23 July 2025 and was subsequently sent to the NCOP. The NCOP will consider the Bill on 30 July 2025 at 9h00.
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 National Council of Provinces considers the Appropriation Bill in three main stages:
Stage 1: Consideration by Select Committee
The NCOP refers the Bill to its Select Committee on Appropriations. The Committee scrutinises how the budget impacts service delivery across national departments and how it affects provinces, and allows permanent delegates and special delegates to raise concerns or make recommendations.
Following its consideration of the Bill the Committee, report will be submitted to the House for adoption.
Stage 2: Consideration of Department Votes and Schedule
Each department’s budget allocation (called a “Vote”) is considered in the House. Political parties may make short speeches on how they intend to vote, called declarations of Vote. Votes are taken on each department’s funding.
As this is a money Bill, the Bill is decided by individual votes of members. Each delegate, including Special Delegates designated by each of the provincial legislatures, has one vote. Where all delegates attend and vote, this will be a total of 90 votes (ten delegates per province) which is the full membership of the NCOP. A vote is carried if supported by the majority of Delegates present and voting.
Stage 3: Consideration of Appropriation Bill and Report of the Select Committee on Appropriations
Once the Votes and Schedule of each department have been individually adopted, The Committee report on the Bill as a whole is presented to the House by the Chairperson of the Select Committee on Appropriation.
Political parties make declarations on how they intend to vote on the Bill as a whole. The Bill as a whole is then put to a vote by the House.
The NCOP may either pass or reject the Appropriation Bill. However, the NCOP cannot amend the Bill but may propose amendments to the Bill. If it rejects the Bill, it must send it back to the NA together with the proposed amendments. The NA may still override the NCOP’s rejection by passing the Bill again.
STEP 5. FINALISATION
It is only after the NCOP has passed the Bill that it can be said to have been passed by Parliament as Parliament consists of the NCOP and the NA.
Once passed by both Houses of Parliament, the Bill will be sent to the President for assent and becomes an Act of Parliament after being signed by the President. The law authorises government departments to spend public funds for the financial year as approved by Parliament.
ISSUED BY THE PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA
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