By Johnathan Paoli
The National Treasury has reassured the public that essential government services will continue uninterrupted despite ongoing delays in the approval of the 2025/26 Appropriation Act.
With Parliament still deliberating on the fiscal framework and revenue proposals, concerns have arisen regarding the government’s ability to meet its financial obligations.
“The public should not be concerned about the delivery of critical government services, including, for example, the payment of social grants, while the Parliamentary process for the 2025 Budget is ongoing,” National Treasury said in a statement.
The delays stem from procedural disputes in Parliament, with opposition parties, particularly the Economic Freedom Fighters (EFF), raising legal objections to how the fiscal framework was processed by the Standing Committee on Finance.
The EFF has formally called for the withdrawal of the report on the fiscal framework, citing procedural irregularities. This has further slowed the legislative process required for passing the Appropriation Bill, which determines government spending for the financial year.
Despite these political hurdles, the National Treasury has outlined contingency measures to ensure the smooth continuation of government operations.
According to the Public Finance Management Act (PFMA), when a new budget is not yet enacted at the start of a financial year, funds may still be withdrawn from the National Revenue Fund to sustain state services.
The Treasury has clarified that, under Section 29 of the PFMA, government departments may continue drawing funds within specified limits: up to 45% of the total funds appropriated in the previous financial year may be withdrawn in the first four months (April to July 2025), with a further 10% permitted each month thereafter until the new budget is passed.
It said this ensured that vital services such as healthcare, education, and social grant payments remained unaffected.
The Treasury emphasised that while the government could continue spending under these provisions, no new policy initiatives or projects could commence until the Appropriation Act is enacted.
“Government departments will continue to function as normal, but they will not be able to launch new spending programmes that were not funded in the 2024/25 financial year,” the statement read.
Many South Africans are concerned about further delays on the budget vote and its impact on state services. The money that can be accessed will largely cover public servants’ salaries and essential services.
The EFF has indicated that it may pursue legal action should its demand for the withdrawal and reconsideration of the fiscal framework report be ignored.
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