South Africa: Provinces Report Slight Increase in Spending

The South African provinces have spent R198.4 billion, or 24.8 percent of the allocated main budget of R798.6 billion during the first quarter of the 2025/26 financial year.

This spending represents an increase of 1.7 percent or R3.3 billion compared to the same period of the previous financial year.

This is according to the statement released by the National Treasury in terms of Section 32 of the Public Finance Management Act (PFMA).

The report covers provincial receipts and payments for the first quarter (April to June 2025) of the 2025/26 financial year.

“Spending on education amounted to R85.1 billion or 25.4 percent of the sector’s main budget of R334.5 billion. Spending was R3.5 billion (4.3 percent) higher compared to the same period of the previous financial year.

“Provinces spent R68.1 billion against the main budget of R270.8 billion providing health services during the first quarter of 2025/26. This spending is R787.6 million (1.1 percent) lower than the spending recorded over the same period in 2024/25,” National Treasury said on Friday.

Social development expenditure at the end of the first quarter of 2025/26 amounted to R5.5 billion of the total main budget of R23.3 billion. This represents a decrease of 3.1 per cent or R177.9 million compared to the same period in 2024/25.

Personnel expenditure (compensation of employees) amounted to R122.8 billion or 24.6 per cent of the R499.6 billion main budgets as at 30 June 2025. This represents an increase of 5 per cent or R5.9 billion compared to the same period of the 2024/25 financial year.

Aggregate spending on goods and services is R41.3 billion or 25.2 per cent of the R163.7 billion main budget. This is 2.5 per cent or R1.1 billion lower compared to the same period in 2024/25, reflecting tighter control in this category of spending.

For the year to date, payments for capital assets (capital spending) amount to R8.7 billion or 20.1 percent of the R43 billion main budget. The spending rate has decreased by 6.8 percent or R635.1 million compared to the same period in the previous financial year, pointing to slower delivery of capital projects in the first quarter.

Provinces collected R5.9 billion or 22.4 percent of the budgeted own revenue of R26.3 billion target for the year.

Own revenue collections were higher by R399 million or 8 percent compared to the same period in the previous financial year, reflecting improved provincial revenue performance.

The budgeted figures are based on the 2025 Estimates of Provincial Revenue and Expenditure documents, which were presented to the provincial legislatures between March and June 2025.

By SAnews.gov.za.