Finance MEC Kenetswe Mosenogi delivered the provincial budget speech in the provincial legislature in Mmabatho on Wednesday (19/3), outlining that the total budget amounts to R55.7 billion. She said preparing the budget required tough choices and strategic prioritisation of critical needs while working within limited resources.

“Despite economic challenges, the budget reaffirms our commitment to the priorities of the seventh administration, which are to drive inclusive growth and job creation, reduce poverty, tackle the high cost of living, and build a capable, ethical, and developmental state.”

‘Budget is heavily dependent on transfers’

The provincial allocation is expected to increase to R56.3 billion in 2026/27 and R58.3 billion in 2027/28, bringing the total medium-term expenditure framework (MTEF) allocation to R170.4 billion.

However, Mosenogi noted that the provincial budget is extremely dependent on transfers from the national government, consisting of the provincial equitable share and conditional grants.

The equitable share allocation amounts to R44.7 billion for 2025/26, increasing to R46.1 billion in 2026/27 and R47.5 billion in 2027/28. This allocation has been negatively impacted by a R3.6 billion reduction over the MTEF period due to adjustments stemming from updated data in the allocation formula.

An additional R320 million will be added to the budget for 2025/26, rising to R340.1 million in 2026/27 and R351.9 million in 2027/28, to cover a 1% salary shortfall from the wage settlement between labour and government.

Teacher assistant programme

Additionally, R81 million has been allocated for 2025/26 to continue the Presidential Youth Employment Initiative, specifically the teacher assistant programme under the Department of Education.

Conditional grants will also see significant allocations, with R9.5 billion earmarked for 2025/26, increasing to R17.8 billion over the final two years of the MTEF.

OFM News/Kekeletso Mosebetsi cg