SASSA Explains Why It Paid Grants to 75,000 Dead People
Systems are being improved to solve the problem
Budget
PRASA Can’t Say When Durban’s Northern Coast Line Will Open Again
Agreement not yet reached between Transnet and PRASA
Cooperation between SA and Japan to continue
Cooperation between SA and Japan to continue
South Africa and Japan continue to enjoy well-established diplomatic relations, which are particularly strong in the fields of trade and investment, science and technology and education, skills transfer and capacity building through development assistance.
This is according to Deputy President Paul Mashatile, who was speaking during an interview with the Foreign Correspondence Club of Japan as part of a working visit to the East Asian nation.
Full diplomatic relations with Japan were established in 1992, while in 2010, relations between the two countries were upgraded to a Strategic Cooperation Partnership.
This year marks 115 years of relations between the two nations.
READ | South Africa strengthens ties with Japan
Mashatile told the attendees that South Africa and Japan cooperate within the framework of the Partnership Forum held at a ministerial level, which covers the entire spectrum of sectoral cooperation.
The 13th Partnership Forum was held in 2022 in Tokyo and South Africa is expected to host the next session.
“Over the years, we have witnessed enhanced cooperation to foster closer relations through high-level engagements between our two countries. Japan is one of South Africa’s major economic partners with a sizeable investment in the South African economy, and the potential for increased investment exists,“ Mashatile said.
He stated that Japan is the fourth largest economy in the world and total bilateral trade between the two countries in 2024 was at R132 billion, with South Africa recording a trade surplus of R52 billion.
Development cooperation between South Africa and Japan involves technical assistance, research partnerships, financial loans, supplementary budget support through international organisations, and grassroots projects in collaboration with the Japan International Cooperation Agency (JICA).
In terms of multilateral cooperation, the Deputy President said Japan cooperates with Africa on the promotion of Africa’s developmental agenda, in line with Agenda 2063, through the Tokyo International Conference on African Development (TICAD) framework.
In addition, he said the two countries cooperate in the Group of 20 (G20) framework to strengthen efforts towards advancing international economic cooperation for the achievement of sustainable development.
The Deputy President reiterated the South African government’s key objectives, which include reducing poverty and the cost of living, driving economic growth and job creation, and building a capable and ethical State.
“We are committed to making sure that our country prospers, not only for us to attract investments, but also to ensure that South Africans, have an improved quality of life.”
Meanwhile, the Deputy President said South Africa continues to pursue strong bilateral relations with the United States, despite the recent withdrawal of South Africa’s ambassador to the United States of America (USA).
“Acknowledging the recent withdrawal of our Ambassador from the USA, as a country we maintain the position that South Africa should maintain strong bilateral relations with the USA. As a country, we are committed to improving mutually beneficial trade, political, and diplomatic relations with the USA,” the Deputy President said on Wednesday.
At the weekend, the Presidency stated that it remains committed to building a relationship with the USA, despite the “regrettable“ expulsion of the Ambassador.
Additionally, the Deputy President expressed gratitude to all Ministers, Deputy Ministers, senior government officials, the South African embassy, and all counterparts for contributing to the success of his brief visit.
In the past three days, the team has met with Prime Minister Shigeru Ishiba, Chief Cabinet Secretary, members of business, academia, research and numerous other stakeholders.
The Deputy President’s visit which began on Sunday, will conclude on Wednesday, 19 March. -SAnews.gov.za
Gabisile
Wed, 03/19/2025 - 12:35
249 views
Public Service and Administration Committee Will Be the ‘Ghostbuster’ of the Public Service
During the Finance Ministers' Budget Speech, the Finance Minister made a clear commitment that National Treasury will conduct “ghost audits” to eliminate so-called “ghost” employees in public administration.
The Portfolio Committee on Public Service and Administration agrees that the existence of these public service ghost employees, or, if you will, Casper – the unfriendly public service ghost, creates wastage in the public service wage bill and should be investigated. The ghosts also works directly against the this government's efforts to establish a professional, merit-based and independent public service.
While the committee commends the Minister's intention to hunt down these ghosts, it is also true that part of this committee's oversight duties over the public service and administration should be to join the hunt for Casper.
Members of the Portfolio Committee on Public Service and Administration today, therefore, decided to prioritise its efforts to become the ghostbusters of the public service by prioritising their requests for the following engagements:
- A joint sitting with the finance committee, for a briefing from the Minister of Finance and the Treasury on the strategy, scope and progress of ghost audits throughout the state.
- A oversight visits to all provinces, where the committee will engage with provincial government and other national departments on their strategies, scope and progress of ghost audits throughout the state, starting with the committee's oversight visits to Gauteng and North West next week.
- A special committee sitting with the Public Service Commission and the Department of Public Service and Administration to understand their current strategy, scope and progress of ghost audits throughout government departments.
These are just the initial steps that the committee will take to hunt down the public service ghosts and the puppet masters who sit behind them. We must never forget that behind every Casper sits a criminal who syphons taxpayer money into his pockets. These ghost salaries do not just disappear into the void, they are undoubtably funnelled into the pockets of criminals, who should be identified, arrested and prosecuted.
Public Service and Administration committee members have therefore committed to become Parliament's ghostbusting squad. We will show our sincere and urgent intention to play our part in professionalising the state and eliminating this wasteful expenditure.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Simelane commits to support Free State in delivering housing units
Simelane commits to support Free State in delivering housing units
Human Settlements Minister, Thembi Simelane, has pledged to support the Free State Province in its efforts to meet the 2024-2029 target to deliver housing units to qualifying beneficiaries.
Simelane made the commitment during an oversight visit to the Mangaung Metropolitan Municipality on Friday, as part of a nationwide assessment of municipal and provincial performance in human settlements programmes.
The visit aimed to address ongoing service delivery blockages within the province.
The visit also formed part of a country-wide municipal and provincial assessment of human settlements programme performance.
Addressing the provincial Human Settlements and Mangaung Municipality, Simelane discouraged working in silos between the provincial department and municipalities.
She emphasised that overcoming the housing backlog and ensuring the delivery of sustainable human settlements, can only be achieved through coordinated efforts.
While acknowledging the progress made to ensure the qualifying beneficiaries receive their houses, with some contractors already on the ground, the Minister expressed concern over several incomplete projects across the province.
“We are gearing ourselves for the current 2024-2029 Medium Term Development Plan (MTDP) to deliver on our mandate. With our limited budget, we are aligning our plans to ensure that we effectively use our allocated budget,” Simelane said.
The Minister reiterated the critical role that contractors play in delivering housing units and warned against those who have been given opportunities to “do the right thing and deliver houses.”
She also issued a stern warning to both contractors and officials who fail to meet their responsibilities, saying that there would be consequences against those who let down the people.
“A delayed project means one senior citizen is denied his or her constitutional right to adequate shelter,” Simelane said.
Simelane further undertook to visit the Metros every quarter, to ensure that housing and service delivery targets are being met.
She also underscored the importance of ensuring that every cent allocated to the department is spent towards improving the lives of deserving households.
Human Settlements MEC, Teboho Mokoena, challenged the Minister to consider visiting the province more frequently, suggesting every two months, and reiterated the province's commitment to improving service delivery.
Mokoena also emphasised budget constraints, which remains a challenge, noting that this will have an impact in the department’s programme.
“Progress is being made on several projects that were blocked including G-Hostel and Dark and Silver City. The qualifying beneficiaries are expected to incrementally move into the completed units during the 2025/2026 financial year,” Mokoena said.
The MEC highlighted the province’s struggle with completing housing projects due to a range of issues, including multiple contractor changes in due to non-performance, vandalism at abandoned sites after contract terminations, community disruptions and non-compliance issues, financial constraints, non-payment of completed work certificates, and bureaucratic delays in the approvals of variation orders and claims.
However, Mokoena assured that interventions are being implemented, including the appointment of new, reliable contractors, and regular monitoring and reporting, to ensure projects stay on track.
“Despite these challenges, the province has done exceptionally well in the provision of serviced sites. By January 2025, the province reported the successful delivery of 5 025 service sites against the 1755 2024/2025 target. Most of the sites delivered are in Fezile Dabi District Municipality,” Mokoena said.
Simelane is expected to return to the Free State to officially hand over completed units at Dark and Silver City Community Residential Units, as well as military veterans’ housing units at the Vista Park Catalytic Project, in Mangaung.
The Vista Park project is a massive development aimed at providing much needed housing opportunities.
The department said extension 2 of the project is expected to yield over 5 344 residential housing opportunities, while extension 3 will produce around 6 036 residential opportunities.
The project is also expected to deliver the Breaking New Ground (BNG) units, including social housing, First Home Finance, and student accommodation. – SAnews.gov.za
GabiK
Sun, 03/16/2025 - 14:41
235 views
Simelane commits to support Free Sate in delivering housing units
Simelane commits to support Free Sate in delivering housing units
Human Settlements Minister, Thembi Simelane, has pledged to support the Free State Province in its efforts to meet the 2024-2029 target to deliver housing units to qualifying beneficiaries.
Simelane made the commitment during an oversight visit to the Mangaung Metropolitan Municipality on Friday, as part of a nationwide assessment of municipal and provincial performance in human settlements programmes.
The visit aimed to address ongoing service delivery blockages within the province.
The visit also formed part of a country-wide municipal and provincial assessment of human settlements programme performance.
Addressing the provincial Human Settlements and Mangaung Municipality, Simelane discouraged working in silos between the provincial department and municipalities.
She emphasised that overcoming the housing backlog and ensuring the delivery of sustainable human settlements, can only be achieved through coordinated efforts.
While acknowledging the progress made to ensure the qualifying beneficiaries receive their houses, with some contractors already on the ground, the Minister expressed concern over several incomplete projects across the province.
“We are gearing ourselves for the current 2024-2029 Medium Term Development Plan (MTDP) to deliver on our mandate. With our limited budget, we are aligning our plans to ensure that we effectively use our allocated budget,” Simelane said.
The Minister reiterated the critical role that contractors play in delivering housing units and warned against those who have been given opportunities to “do the right thing and deliver houses.”
She also issued a stern warning to both contractors and officials who fail to meet their responsibilities, saying that there would be consequences against those who let down the people.
“A delayed project means one senior citizen is denied his or her constitutional right to adequate shelter,” Simelane said.
Simelane further undertook to visit the Metros every quarter, to ensure that housing and service delivery targets are being met.
She also underscored the importance of ensuring that every cent allocated to the department is spent towards improving the lives of deserving households.
Human Settlements MEC, Teboho Mokoena, challenged the Minister to consider visiting the province more frequently, suggesting every two months, and reiterated the province's commitment to improving service delivery.
Mokoena also emphasised budget constraints, which remains a challenge, noting that this will have an impact in the department’s programme.
“Progress is being made on several projects that were blocked including G-Hostel and Dark and Silver City. The qualifying beneficiaries are expected to incrementally move into the completed units during the 2025/2026 financial year,” Mokoena said.
The MEC highlighted the province’s struggle with completing housing projects due to a range of issues, including multiple contractor changes in due to non-performance, vandalism at abandoned sites after contract terminations, community disruptions and non-compliance issues, financial constraints, non-payment of completed work certificates, and bureaucratic delays in the approvals of variation orders and claims.
However, Mokoena assured that interventions are being implemented, including the appointment of new, reliable contractors, and regular monitoring and reporting, to ensure projects stay on track.
“Despite these challenges, the province has done exceptionally well in the provision of serviced sites. By January 2025, the province reported the successful delivery of 5 025 service sites against the 1755 2024/2025 target. Most of the sites delivered are in Fezile Dabi District Municipality,” Mokoena said.
Simelane is expected to return to the Free State to officially hand over completed units at Dark and Silver City Community Residential Units, as well as military veterans’ housing units at the Vista Park Catalytic Project, in Mangaung.
The Vista Park project is a massive development aimed at providing much needed housing opportunities.
The department said extension 2 of the project is expected to yield over 5 344 residential housing opportunities, while extension 3 will produce around 6 036 residential opportunities.
The project is also expected to deliver the Breaking New Ground (BNG) units, including social housing, First Home Finance, and student accommodation. – SAnews.gov.za
GabiK
Sun, 03/16/2025 - 14:41
82 views
Long-Suffering Durban Residents Could Wait Years for End to Water Crisis
Finance Minister on Wednesday said construction of Mkhomazi Water Project, which includes a new dam, will only start in November 2027
Government determined to tackle economic challenges
Government determined to tackle economic challenges
Deputy President Paul Mashatile has stressed the urgent need to tackle the nation’s pressing challenges in light of sluggish economic growth and has called for a collective effort to improve the quality of life for all citizens.
“As we embark on this journey, we must have a full appreciation that the first 15 years of democracy were characterised by high economic growth. However, the last decade and a half has been characterised by stagnant growth,” he said on Thursday.
According to the Deputy President, the stagnant growth of the past decade and a half has led to calls for immediate action to initiate structural reforms that would bolster gross domestic product (GDP) growth and create job opportunities.
“I must state from the onset that the responsibility of guiding South Africa to greater prosperity is not solely on the shoulders of the government. It is a shared responsibility among the business community, NGOs [non-governmental organisations], civil society and all those who aspire to see our country prosper.”
The Deputy President was speaking at the 7th BizNews Conference (BNC#7) at the Hermanus Municipal Auditorium in the Western Cape.
The BizNews Conference is an annual event focused on investment, business, and political issues.
The country’s second-in-command opened the dialogue with a reflection on South Africa’s democratic journey.
Mashatile underscored the issues plaguing the nation, including poverty, inequality, unemployment and corruption, which he believes threaten the fabric of South Africa’s democracy.
“They keep us, and if I may say so myself, awake at night because if we do not swiftly overcome these systemic economic issues, we shall experience perpetual unrest.”
Commitment to cooperation
He said the recent Budget Speech by the Minister of Finance highlights a step toward addressing these dilemmas.
According to the Deputy President, yesterday’s Budget was the product of a consensus reached within the Government of National Unity (GNU) following last month’s postponement.
“As I have indicated on several occasions, having a GNU Cabinet does not imply that we will agree on everything. There will be times when we do not view things the same way, but this does not spell the end of the GNU.”
However, Mashatile stressed GNU’s commitment to prioritising the needs of its citizens.
He also took the time to reinforce the credibility of the GNU amid scepticism about its longevity and effectiveness.
“Several coalition governments around the world have collapsed as a consequence of misunderstandings about the country’s Budget; this is but a reflection of democracy at work.”
The Deputy President assured attendees that the focus was on inclusive growth, job creation and addressing the high cost of living, while striving to build a capable and ethical State.
“We must do this to find solutions to the challenges that confront our nation,” he said. – SAnews.gov.za
Gabisile
Thu, 03/13/2025 - 13:30
273 views
How Much Does Our HIV Response Depend on US Funding?
Critical services in some high-burden districts have collapsed
Cabinet considers National Minimum Wage report
Cabinet considers National Minimum Wage report
Cabinet has received and considered a report by the Department of Employment and Labour on the progress made to protect and enhance the National Minimum Wage (NMW).
The National Minimum Wage Act, which was enacted in November 2018, laid the foundation for reducing income inequality and wage gaps, and continues to safeguard low-income workers in the country.
“From 1 March 2025, the National Minimum Wage increased by 4% from R27.58 to R28.79 per hour. This increase aims to provide essential economic support and much-needed relief to the six million workers earning within the National Minimum Wage bracket,” Cabinet said in a statement on Thursday.
READ | National Minimum Wage increases
The wage is the minimum amount of pay that an employer is legally required to remunerate employees for work done. No employee should be paid below the NMW.
Foundation learning
Meanwhile, Cabinet has also expressed its support for the strategic reorientation of the basic education sector towards foundation learning.
In January 2025, the Department of Basic Education announced and celebrated a record high matric pass rate of 87.4%.
However, just a month earlier the department had released systematic evaluation results from three different studies showing that nearly 80% of South African children cannot read for meaning, in any language by the age of 10.
To resolve this challenge the department has initiated a strategic reorientation that will have the following initiatives:
• Universal access to quality early childhood development through the mass registration of ECD centre, ensure each child in ECD receives a subsidy, support ECD centre with Learning and Teaching materials, offer support to practitioners to obtain teaching qualifications. The funding of this has been allocated in the 2025 National Budget.
• Review the norms and standards to increase teacher posts in foundation phase teaching
• Funza Lushaka Bursary will be re-oriented to prioritise bursaries to students who wish to teach in the foundation phase.
“This strategic reorientation will strengthen foundational literacy and numeracy skills of learners and ensure that they later be able to table on more complex subjects such as Maths, Science, Accounting and Economics amongst others,” Cabinet said. – SAnews.gov.za
DikelediM
Thu, 03/13/2025 - 14:32
44 views
Cabinet welcomes 2025 National Budget
Cabinet welcomes 2025 National Budget
Cabinet has welcomed the 2025 National Budget as it seeks to maintain a balance between South Africa’s fiscal framework, fund the priorities of the seventh administration while mitigating negative impact on poor and middle-income households.
The budget was tabled by the Minister of Finance, Enoch Godongwana, in the National Assembly, on Wednesday.
He outlined all the financial, economic and social commitments the government will prioritise in its planned expenditure and provided a detailed plan for 2025 spending. This includes proposals for revenue collection to help fund the government’s planned interventions and commitments.
“The allocation of over R1 trillion to infrastructure development over the Medium-Term Expenditure Framework (MTEF), the establishment of alternative infrastructure financing through a credit guarantee vehicle and the introduction of multiple bid windows on the Budget Facility for infrastructure is a demonstration of commitment to grow the economy through a strong infrastructure-build programme, whilst simultaneously improving service delivery.
“Mechanisms for private sector participation as announced with the Budget, which are part of Operation Vulindlela driven reforms, in the energy, transport and freight logistics sectors indicate government’s commitment to fast-tracking private sector investment and inclusive economic growth,” Minister in The Presidency, Khumbudzo Ntshavheni, said on Thursday.
Minister Ntshavheni was briefing the media in Cape Town, following Cabinet’s meeting on Wednesday.
Operation Vulindlela is aimed at stabilising the supply of electricity; creating a competitive and efficient freight logistics system; reducing the cost and improving the quality of digital communication; ensuring a stable, quality supply of water; and reforming the visa regime to facilitate skilled immigration and support tourism.
READ | Operation Vulindlela records notable progress
Since its establishment in 2020, Operation Vulindlela has made real progress in achieving these objectives.
In light of new and persistent spending pressures in health, education, transport and security, government decided to raise value-added tax (VAT) by 0.5 percentage points in each of the next two years, which will bring VAT to 16% in the 2026/27 financial year.
READ | Government proposes VAT increase over two years
The first 0.5 percentage point increase in the VAT rate will take effect on 1 May 2025 and the second 0.5 percentage point increase will take effect on 1 April 2026.
“Acknowledging the impact of the tax increases, the Budget provides for mitigation measures against the increases such as no increase in the fuel levy, above inflation increases to social grants, with old age and disability grants increasing by R130 to R2315 in 2025 and significant funding allocation to PRASA [ Passenger Rail Agency of South Africa] to improve passenger rail transport which will reduce household income spend on transport costs.
“Most significantly, the tax increases are going to finance sustainability of this country, by maintaining 11,000 teachers in the classrooms, 9300 health-workers in their jobs, the employment of 800 post-community service doctors and allow an additional 700, 000 children (4-years of age) access to early childhood development which is the necessary foundation education they need for a successful education journey,” Ntshavheni explained. –SAnews.gov.za
nosihle
Thu, 03/13/2025 - 11:49
58 views
Watch the Post-budget 2025: Live Briefing by the DA Here
Today at 13:00 the DA will hold a live briefing on what lies ahead after yesterday’s ANC VAT budget speech by Finance Minister Godongwana. The briefing will unpack why the DA will not support this budget in its current form, and what impact this budget would have on South Africa. The briefing will be addressed …
Government expenditure to reach R2.59 trillion in 2025/26
Government expenditure to reach R2.59 trillion in 2025/26
Consolidated government spending is expected to increase from R2.4 trillion in 2024/25 to R2.83 trillion in 2027/28, at an annual average of 5.6%.
Consolidated expenditure will reach R2.59 trillion in 2025/26.
This according to National Treasury’s 2025 Budget Review document.
The majority of that spend will fund the social wage, which includes spend on health, education, social protection (grants), community development and employment programmes.
“Over the medium-term, economic development is the fastest-growing function at an annual average rate of 8.1%, driven by higher allocations to infrastructure projects.
“Spending is highly redistributive, with the social wage making up 61% of total consolidated non-interest spending over the next three years,” the Budget Review read.
Consolidated government expenditure by function is as follows:
- Learning and Culture: R508.7 billion
- Health: R298.9 billion
- Social Development: R422.3 billion
- Community Development: R286.6 billion
- Economic Development: R289.8 billion
- Peace and Security: R266.1 billion
- General Public Services: R78.7 billion
- Contingency Reserve: R5 billion
Spending pressures
The 2025 Budget will fund spending pressures of R232.6 billion over the Medium-Term Expenditure Framework (MTEF) period, including “provisional allocations for frontline service delivery departments amounting to R70.7 billion”.
“These spending additions are partially offset by drawdowns on provisional allocations and contingency reserves, resulting in a net increase in non-interest expenditure of R142 billion.
“The main spending additions are for critical infrastructure investments, social protection and a higher-than-anticipated public-service wage agreement, alongside provisional allocations for critical frontline services,” the Budget Review said.
Spending additions over the medium-term are attributed mainly to:
- R46.7 billion for infrastructure investments.
- R35.2 billion to extend the COVID-19 social relief of distress grant until March 2026.
- R23.4 billion for the costs of the 2025 public service wage agreement.
- R8.2 billion to increase the value of social grants by more than inflation.
- R11 billion to implement early retirement measures in 2025/26 and 2026/27.
- R5 billion for the carry-through costs for the deployment of South African National Defence Force (SANDF) troops in the Democratic Republic of Congo.
- R4.6 billion in 2025/26 for public employment programmes.
- R3.2 billion in 2025/26 for national government’s share of the debt repayment for the South African National Roads Agency Limited (SANRAL). Gauteng province will pay R13.4 billion for its share of the debt repayment to SANRAL.
Addressing government debt
During the Budget Speech on Wednesday, Finance Minister Enoch Godongwana said government debt is expected to stabilise at 76.2% of gross domestic product in 2025/26, with the consolidated budget deficit expected to narrow to some 3.5% by 2027/28.
“[As] debt stabilises, a growing primary surplus will enable government to reduce debt-service costs as a proportion of revenue.
“Debt service costs will amount to R389.6 billion in the current financial year. This translates to 22 cents of every rand we raise in revenue. It is more than what we spend on health, the police and basic education.
“We must reverse this trend and prevent the cost of debt from taking away resources that could otherwise be spent on our pressing social needs, or to invest in growth. In this regard, our fiscal strategy stabilises debt service costs as a percentage of revenue in 2024/25 by maintaining a primary budget surplus,” he said. – SAnews.gov.za
NeoB
Wed, 03/12/2025 - 13:54
483 views
Government’s three-year plan to spend R1 trillion on infrastructure
Government’s three-year plan to spend R1 trillion on infrastructure
The South African government will spend more than R1 trillion over the next three years on public infrastructure in a show of government’s commitment to driving economic growth.
This is according to Minister of Finance Enoch Godongwana who delivered the 2025 Budget speech in Parliament on Wednesday.
“[Infrastructure] is a key pillar of our growth strategy. It is the bedrock for economic development, a key source of jobs, and an avenue to scale-up service delivery.
“This budget reflects that understanding. Allocations towards capital payments are the fastest growing area of spending by economic classification. Public infrastructure spending over the next three years will amount to more than R1 trillion,” Godongwana said.
Current infrastructure focus is geared towards:
• R402 billion on roads infrastructure
• R219.2 billion on energy infrastructure
• R156.3 billion on water and sanitation infrastructure
The Minister highlighted some of the key projects that will be underway.
“In transport, the South African National Roads Agency will spend R100 billion over the medium term to keep the national road network in good condition. Provincial roads departments will reseal over 16 000 lane-kilometres of roads in their areas of authority.
“The Passenger Rail Agency of South Africa is making steady progress to rebuild infrastructure to provide affordable commuter rail services.
“In water, we are investing in several large-scale dam projects that are ramping up or entering construction. The Mkhomazi Project is expected to commence construction in November 2027, transferring water to the Mngeni Water Supply System. This will increase the total capacity of the system to 5 million households in eThekwini and 4 district municipalities in KwaZulu Natal,” Godongwana said.
In the 2025 Budget Review, National Treasury explained that investment in economic infrastructure – mainly by state owned entities – accounts for some 81.5% of the medium-term estimate.
“These funds are used to expand power-generation capacity, upgrade and expand the transport network and improve sanitation and water services. Social services infrastructure accounts for 15.5% of the total, with the two largest sectors, health and education, contributing 4.4 % and 5.5% respectively,” the review read.
Public-Private Partnerships
The department explained that infrastructure reforms are “underpinned by a commitment to significantly increase partnerships with the private sector”.
Some of these measures and reforms include:
• From June 2025, projects below a total value of R2 billion will no longer have to clear onerous approval processes intended for large projects before proceeding.
• A clear framework is being established to receive and process unsolicited PPP proposals or bids from the private sector.
• New legislative amendments and regulations for municipal PPPs will also be introduced in 2025
• Revised manuals and guidelines on PPPs are being produced and will be made available to the public
“During 2025/26, a single structure overseen by the National Treasury will be established to coordinate state participation in project preparation and planning, public-private partnerships (PPPs), funding and credit guarantees.
“It will be established by merging two units currently in the Government Technical Advisory Centre that coordinate PPPs and capital appraisals with the Infrastructure Fund in the Development Bank of Southern Africa,” Treasury said. – SAnews.gov.za
NeoB
Wed, 03/12/2025 - 13:56
394 views
Social grants set to increase in April
Social grants set to increase in April
All social grants, barring the Social Relief of Distress (SRD) grant, are expected to increase from April this year.
Delivering the 2025 Budget Speech in Parliament on Wednesday, Finance Minister Enoch Godongwana said the number of social grant beneficiaries – excluding those receiving the SRD grant – is expected to rise to some 19 million in 2025/26 and 19.3 million in 2027/28 due to a growing population of older persons.
Godongwana said for 2025/26, social grants will be allocated some RR284.7 billion.
“As announced by the President in the State of the Nation Address, the SRD will be used as a basis for the introduction of a sustainable form of income support for unemployed people.
“The future form and nature of the SRD will be informed by the outcome of the review of active labour market programmes. This is expected to be completed by September 2025.
“The truth is that ours is one of the most comprehensive social safety nets among emerging economies. This reflects our commitment to addressing poverty and inequality, while keeping our spending sustainable,” he said.
The grant increases this year include:
- Old age grant will increase from R2185 to R2315
- War veterans grant will increase from R2205 to R2335
- Disability grant will go up from R2185 to R2315
- Foster care grant rises from R1180 to R1250
- Care dependency grant will increase from R2185 to R2315
- Child support grant will go up from R530 to R560
- The grant-in-aid will increase from R530 to R560
In the Budget Review, National Treasury said the budget for social grants is “increased by R8.2 billion over the medium term to account for higher costs of living”.
“An amount of R35.2 billion is allocated to extend the payment at the current [SRD] R370 per month per beneficiary, including administration costs,” the department said.
The Department of Social Development, which administers social grants, has been allocated R422.3 billion in 2025/26, which is expected to increase to R452.7 billion in 2027/28, at an average annual growth rate of 4.5%.
“This funding supports poverty reduction through social grants, the provision of risk benefits through social insurance and the delivery of welfare services, development initiatives, empowerment programmes, gender equality initiatives and advocacy for children, women, youth, the elderly and individuals with disabilities.
“Social grant spending makes up 81 percent of the allocation for this function. At an average annual growth rate of 5.3 percent, social protection spending increases above inflation over the medium term; however, social grant reform and efficiency savings will be necessary to ensure the sustainability of the social security system.
“[The] sector’s operational budget will be subject to conditions, including the need to improve biometric verification of recipients to achieve savings,” the National Treasury said. – SAnews.gov.za
NeoB
Wed, 03/12/2025 - 13:57
1791 views
Government allocates R19.1 billion for teachers over the medium term
Government allocates R19.1 billion for teachers over the medium term
The government has added R19.1 billion over the medium term to keep approximately 11 000 teachers in classrooms.
“Our learner-teacher ratios remain higher than we would like, meaning that we still need more teachers in classrooms,” Minister of Finance Enoch Godongwana said on Wednesday in Parliament.
According to the Minister, paying salaries constitute 76% of provincial education budgets.
“This means that only R24 out of every R100 of their budget is left for funding school infrastructure, meals for learners from poor backgrounds, and stationery and textbooks, amongst others.
“To prevent compensation of employees from crowding out other equally important areas of spending, R19.1 billion is added over the medium term to keep approximately 11 000 teachers in classrooms,” the Minister said during the Budget Speech.
He said the foundation to building the next generation of citizens who contribute economically and socially to the nation is in early childhood development (ECD).
“Despite this, the subsidy for ECD has not increased from the 2019 level of R17 per day, per child. To remedy this, an additional R10 billion over the medium term is allocated to increase the subsidy to R24 per day per child. The extra funding will also support increased access to ECD for approximately 700 000 more children, up to the age of four years old.”
Meanwhile, the Department of Higher Education is implementing a pilot student funding model for the “missing middle”, which refers to students from families with annual incomes ranging from R350 000 to R600 000.
The National Student Financial Aid Scheme will manage these loans using funds provided by the National Skills Fund, amounting to R1.5 billion in 2024/25 and R3 billion over the Medium-Term Expenditure Framework (MTEF) period.
“The apprenticeship and skills development levy systems will be reviewed. The goal, in collaboration with the private sector, is to double the number of artisans completing trade tests in the next three years through increased work-based learning opportunities.
“The arts, culture, sport and recreation sector is allocated R38.4 billion over the medium term to support school sports, national recreation events and selected sporting codes, as well as to preserve and promote the cultural, heritage and linguistic diversity of South Africa,” Treasury’s 2025 Budget Review document noted.
Health
Health spending will grow from R277 billion in 2024/25 to R329 billion in 2027/28 to support the equitable provision of public health services, including free primary healthcare.
“Like in provincial education, a significant portion of the provincial health budget is spent on the salaries and wages. R28.9 billion is added to the health budget, mainly to keep about 9 300 healthcare workers in our hospitals and clinics.
“It will also be used to employ 800 post-community service doctors, and to ensure that our pharmacies do not run out of medicines,” the Minister said.
National Health Insurance (NHI) policy
As part of strengthening the health system and preparing for the National Health Insurance (NHI) policy, the Department of Health will fund the development of a patient information system, a centralised chronic medicine dispensing and distribution system, and a facility medicine stock surveillance system.
Over the MTEF period, the indirect and direct conditional grants for NHI are allocated R8.5 billion and R1.4 billion respectively.
“Sustained allocations for direct and indirect infrastructure grants, including potential additional funding through the Budget Facility for Infrastructure (BFI), as outlined in the 2024 MTBPS, will focus on new or replacement buildings, upgrades, rehabilitation and maintenance.
“The total infrastructure allocation is R37.4 billion over the MTEF period, including provisional allocations from the BFI and new allocations for Siloam District Hospital and Tygerberg Hospital equipment through a public-private partnership in 2027/28,” National Treasury said. -SAnews.gov.za
nosihle
Wed, 03/12/2025 - 14:23
403 views
Economic development initiatives to spur economic growth
Economic development initiatives to spur economic growth
Over the next three years, government spending on economic development will be the fastest-growing function at an annual average rate of 8.1%, driven by higher allocations to infrastructure projects.
According to the 2025 National Treasury Budget Review, medium-term spending for economic development will grow from R252.4 billion in 2024/25 to R318.4 billion in 2027/28.
The Department of Land Reform and Rural Development will expedite the finalisation of outstanding land claims, prioritising older claims.
The department has been allocated R11.6 billion over the medium-term to settle about 844 land restitution claims, with R3 billion earmarked to allocate 138 000 hectares of land.
“Over the medium-term, the Department of Science, Technology and Innovation will invest R3 billion in the construction of the MeerKAT array and efforts to secure the hosting of part of the Square Kilometre Array.
“Guided by evidence and targeted public policy interventions, R2.9 billion will be invested annually in postgraduate development and research support. Additionally, R3.8 billion will be allocated annually to provide access to cutting-edge research infrastructure,” the Budget Review document said.
To enhance productivity, competitiveness and the green economy, government will spend R18.4 billion over the medium term to support businesses through various incentive programmes under the Department of Trade, Industry and Competition.
These programmes include the automotive investment scheme, business process outsourcing, film and television production incentives, special economic zones, clothing and textile competitiveness programmes, the industrial park revitalisation programme and industrial development support for electric vehicle production.
“The Department of Small Business Development is allocated R2.1 billion over the medium-term to support about 120 000 competitive small businesses, particularly those owned by women, youth and people with disabilities in marginalised areas, such as townships and rural regions.
“In addition, government has allocated R313.7 million over the medium-term for the establishment of micro, small and medium enterprise hubs to support business expansion,” National Treasury said.
Government will merge the comprehensive agricultural support programme grant and the Ilima/Letsema projects grant into a single grant with the existing consolidated baseline of R7.3 billion over the Medium-Term Expenditure Framework (MTEF) period.
This merger aims to streamline grant administration, improve resource allocation, and support commercial and subsistence farming.
“To minimise outbreaks of pests and diseases that affect agricultural production, the department will accelerate regulatory compliance and monitoring interventions costing R30.3 million over the medium term.
“The Independent Communications Authority of South Africa is allocated R102 million in 2025/26 for the second phase of the licensing of spectrum through an auction process.
“This is expected to increase investment in networks, improve network quality, contribute to economic growth and lower data costs,” National Treasury said. -SANews.gov.za
nosihle
Wed, 03/12/2025 - 14:29
234 views
Operation Vulindlela records notable progress
Operation Vulindlela records notable progress
Minister of Finance Enoch Godongwana has highlighted the real progress achieved by implementing structural reforms through Operation Vulindlela, which is a joint initiative between the Treasury and the Presidency.
Operation Vulindlela is aimed at stabilising the supply of electricity; creating a competitive and efficient freight logistics system; reducing the cost and improving the quality of digital communication; ensuring a stable, quality supply of water; and reforming the visa regime to facilitate skilled immigration and support tourism.
Since its establishment in 2020, Operation Vulindlela has made real progress in achieving these objectives.
“The energy reforms have created a 22 500 mega-watt pipeline of projects. More than 10 000 mega-watts are formally registered with NERSA [National Energy Regulator of South Africa], which is one of the last steps in the regulatory process. These projects will contribute to reducing power cuts.
“The Freight Logistics Roadmap was approved. The roadmap allows private sector participation and gives third-party access to any operator without discrimination in accordance with the network statement.
“The cost of a 1.5GB data bundle has declined by 51%, allowing individuals and small businesses to access more affordable data,” Godongwana said on Wednesday during his Budget Speech.
He noted that the water-use licenses backlog has been cleared, unlocking billions in investment and freeing projects that had stalled because of the backlog.
The water quality regulatory system was reinstated for the first time since 2014.
“This is the Green Drop, Blue Drop and No Drop certification that enables effective intervention in supporting failing municipalities to provide clean water to citizens. e-Visas for travellers from 34 countries have been introduced to significantly boost tourism. The trusted employer scheme has been established to fast-track visa process for major investors,” the Minister said.
These achievements have eased economic bottlenecks.
Building on the successes of the initiative, Phase 2 of Operation Vulindlela will focus on:
- Following through on existing reforms in energy, water, logistics and visa systems;
- Strengthening local government and improving the delivery of basic services;
- Harnessing digital public infrastructure as a driver of growth and inclusion; and
- Creating efficient, productive and inclusive cities. - SAnews.gov.za
nosihle
Wed, 03/12/2025 - 14:43
189 views
Budget: Social Grants to Increase and VAT Goes Up
Finance minister announces above-inflation grant increases
Government allocates R19.2 billion to upgrade PRASA signalling
Government allocates R19.2 billion to upgrade PRASA signalling
Government has provisionally allocated an additional R19.2 billion over the medium term for the Passenger Rail Agency of South Africa’s (PRASA) critical signalling upgrades.
Tabling the 2025 Budget Speech on Wednesday, Minister of Finance Enoch Godongwana, said the agency was making steady progress towards rebuilding infrastructure to provide affordable commuter rail services.
“To sustain this progress, we have provisionally allocated an additional R19.2 billion over the medium term for critical signalling upgrades. This will enable commuters from areas like Mamelodi, Kwa-Mashu, Motherwell and Khayelitsha to catch a train every 10 minutes, to get to and from work and significantly reduce the money that low-income households spend on transport.
“The allocation will also allow PRASA to maximise the potential of the 241 new trains delivered through the rolling stock renewal programme,” the Minister said in Parliament.
Despite the progress made, Godongwana said PRASA’s procurement system needed strengthening.
“The management of the entity is already instituting measures to strengthen their procurement weaknesses. This includes getting support from the National Treasury to build capacity and mitigate risks and undertaking live audits for large procurement projects,” the Minister said. - SAnews.gov.za
nosihle
Wed, 03/12/2025 - 14:53
131 views
Sin taxes adjusted above the expected inflation rate
Sin taxes adjusted above the expected inflation rate
Government will adjust the excise duties on alcohol and tobacco products at above the expected inflation rate in the 2025/26 financial year.
According to the 2025 National Treasury Budget Review document, government is proposing to increase excise duties on alcoholic beverages by 6.75%, while the tobacco excise duties are expected to increase by 4.75% for cigarettes, cigarette tobacco, and electronic nicotine and non-nicotine delivery systems (“vaping”).
The proposed increase for pipe tobacco and cigars is 6.75%.
“To ease the administrative burden of implementing adjustments on Budget Day, in future years, adjustments to excise duties will take effect from 1 April. Legislative provisions to deal with unusual clearances of cigarettes around Budget announcements have been in place since 2021 and may be extended,” National Treasury said.
Last November, government published a discussion paper, The Taxation of Alcoholic Beverages, for public comment.
“It proposes adjustments to the alcohol excise taxation policy framework, including the introduction of a three-tier progressive excise duty rate structure for wine and beer. Government will hold public consultations on the new excise framework during 2025.
“Considering that the details of the new alcohol excise taxation framework will be finalised only after the 2025 Budget, government has proposed to increase excise duties on alcoholic beverages by 6.75% for 2025/26,” National Treasury said.
Changes in specific excise duties for the 2025/26 financial year are as follows:
- Unfortified wine is currently at R5.57 / litre and the proposed excise duty rate is R5.95 / litre.
- Fortified wine is currently at R9.40 / litre and the proposed excise duty rate is R10.04 / litre.
- Sparkling wine is currently at R17.83 / litre and the proposed excise duty rate is R19.03 / litre.
- Ciders and alcoholic fruit beverages are currently at R135.89 / litre of absolute alcohol (231.02c / average 340ml can) and the proposed excise duty rate is R145.07 / litre of absolute alcohol (246.61c / average 340ml can).
- Spirits are currently at R274.39 / litre of absolute alcohol (R88.49 / 750ml bottle) and the proposed excise duty rate is R292.91 / litre of absolute alcohol (R94.46 / 750ml bottle).
- Cigarettes are currently at R21.77 / 20 cigarettes and the proposed excise duty rate is R22.81 / 20 cigarettes.
- Cigarette tobacco is currently at R24.47 / 50g and the proposed excise duty rate is R25.63 / 50g.
- SAnews.gov.za
nosihle
Wed, 03/12/2025 - 14:58
53 views
Government funds SARS to improve tax compliance
Government funds SARS to improve tax compliance
The South African Revenue Service (SARS) has been allocated R3.5 billion in the current financial year and an additional R4 billion over the medium term.
Tabling the 2025 Budget Speech on Wednesday, Minister of Finance Enoch Godongwana said broadening the tax base and improving the administrative efficiency of SARS allows government over time, to spread the tax burden more evenly and equitably.
With this budget allocation, SARS will focus on leveraging technology, data science and artificial intelligence to foster efficiency and transparency in tax administration while combating exploitation by criminal syndicates.
“By the end of February this year, SARS reported a significant increase in undisputed debt. This means billions of Rands are owed to the State. The revenue collector has also detected 156 000 taxpayers who are not registered or have not filed despite their substantial economic activity.
“I call on all South Africans to comply with the law and support SARS in its endeavour to collect the revenues that enable government to fund and provide critical services. I also want to emphasise the importance of tax compliance.
“I thank all compliant taxpayers who pay their fair share of taxes. I also encourage those that are not compliant to do the right thing. The rewards of higher tax compliance and efficiency take time. Once again, the investments we make today in SARS will allow the collector the time to make improvements,” Godongwana said in Parliament.
Over the past five years, SARS has made significant progress in rebuilding and modernising its systems by shifting to online services and automating many of its processes to improve service, detect fraud and enhance compliance.
“In 2025/26, SARS will focus on addressing the tax gap to improve revenue collection. This will be done by improving taxpayer compliance and trade facilitation by leveraging artificial intelligence and data science.
“SARS is deploying technologies to simplify its processes and enhance the single window platform to improve taxpayer and trader service. Adopting scanning technologies and intelligent image analysis will significantly reduce inspection times through ports of entry,” according to the 2025 National Treasury Budget Review document.
The traveller declaration system is being modernised to provide digital services to cross border travellers and state entities, reducing illicit financial flows and other risks. -SAnews.gov.za
nosihle
Wed, 03/12/2025 - 14:01
19 views
R150m boost for North West housing
R150m boost for North West housing
The North West Department of Human Settlements has received a multimillion rand boost that will aid it to meet its housing development targets.
The North West Provincial Legislature Portfolio Committee on Premier and Finance, chaired by Nathan Oliphant, has adopted a report on the second Adjustment Appropriation Bill for the 2024/2025 fiscal year.
This report approves the appropriation of an additional R150 million to the provincial Department of Human Settlements for housing development projects and related matters.
Oliphant said the funds will ensure that the department meets its obligations in terms of the informal settlements upgrading grant.
“As the department has been negatively affected by significant budget cuts, which affected various projects, we welcome the adjustment.
“During deliberations, the committee emphasised the need for heightened oversight in respect of this adjustment and to ensure no wastage,” he said on Tuesday.
The Adjustments Appropriation Bill is a legislative tool used to modify the allocation of funds originally specified in the main Appropriation Act, and addresses unexpected circumstances or changes in spending priorities.
This bill allows for both increases and decreases in the allocations set out in the main Appropriation Act, including adjustments based on shifts in the anticipated economic classification of spending.
Oliphant said the committee welcomes the confirmation from Provincial Treasury regarding their due diligence on the capacity and ability to spend the appropriated amount.
“We are furthermore happy that these service delivery resources will ensure contractor payment and further ensure that boots are on the ground, as our people don’t want stories -- they want decent housing, which the department has committed to."
Oliphant tabled the second Adjustment Appropriation Bill 2024/2025 committee report at the Legislature House sitting on Tuesday.
During his State of the Province Address (SOPA) last month, North West Premier Kagiso Lazarus Mokgosi announced that in the upcoming financial year, the province will construct 3 555 houses.
This initiative will encompass the completion of stalled projects, first home financing, and an asbestos removal programme.
Makgosi said the goal for catalytic projects in the current financial year was to deliver 249 units at a cost of over R82 million.
By the end of the last quarter, the provincial government successfully delivered 268 units and for the next financial year, they plan to deliver 500 units in mining towns, with a budget of R90.5 million. – SAnews.gov.za
Gabisile
Wed, 03/12/2025 - 10:46
71 views
Finance Minister to deliver Budget Speech 2025
Finance Minister to deliver Budget Speech 2025
Minister of Finance, Enoch Godongwana, is expected to deliver the 2025 Budget Speech in Parliament today.
The Budget Speech seeks to strike a balance between fostering economic growth and providing support for the most vulnerable in society, even with constrained resources.
Additionally, the Minister will present the Appropriation Bill and submit the 2025 Division of Revenue Bill, both of which Parliament will review and process in the coming months.
“Minister Godongwana will also introduce the Appropriation Bill and table the 2025 Division of Revenue Bill, which Parliament is expected to process in the following months. During the Budget Speech, the Finance Minister indicates the allocation of financial resources to the national government’s priorities outlined by President Cyril Ramaphosa in the State of the Nation Address.
“Mr Godongwana will outline all the financial, economic and social commitments the government will prioritise in its planned expenditure. He will provide a detailed plan for 2025 spending, including proposals for revenue collection to help fund the government’s planned interventions and commitments,” Parliament said in a statement.
The speech was initially scheduled for 19 February but was postponed to allow Cabinet to further deliberate on the best possible ways to fund the budget.
In a weekly newsletter, President Ramaphosa acknowledged the concerns raised following the postponement,
“The last-minute postponement was unfortunate. It gave rise to concern and uncertainty among South Africans, investors and the financial markets, who look to the budget for important signals about the state and direction of our economy.
“Decisions on how to spend public funds have implications for every South African. It is therefore essential that the concerns raised by different parties around the budget are properly addressed, in the interests of accountability, transparency and consensus-building,” the President said.
Members of the public are encouraged to follow the proceedings on Parliament TV (DSTV Channel 408), through a live stream on Parliament’s website, Parliament’s YouTube channel, and X page on following links:
- X (Twitter): https://twitter.com/ParliamentofRSA
- Facebook: https://facebook.com/ParliamentofRSA
- YouTube: https://www.youtube.com/ParliamentofRSA
A day after the Minister delivers the speech, the Deputy Director-General of the National Treasury Budget Office, Edgar Sishi, with National Treasury officials, are expected to visit Athlone High School in Cape Town to engage learners on the 2025 National Budget.
“The aim of this outreach programme is to raise awareness and educate the learners about national budget information. It will also outline the budget process and encourage engagement.
“Public participation in the budget process is essential for promoting transparency and accountability in governance. In February each year, the Minister of Finance tables the National Budget, which outlines budget allocations for national and provincial departments.
“By engaging the public, particularly the youth, this initiative promotes inclusive development, fosters trust in resource allocation and ensures the budget information is accessible to broader members of society,” National Treasury said in a statement. – SAnews.gov.za
NeoB
Wed, 03/12/2025 - 07:00
87 views