National Treasury Releases 2025/26 Municipal Budgets: R675.8 Billion Revenue Projected as SA Pushes for Accountability and Growth
South Africans now have full access to the inner workings of their local governments as the National Treasury has made public the adopted operating and capital budgets for municipalities across the country. These figures, covering the 2025/26 Medium Term Revenue and Expenditure Framework, offer a clear view of how councils plan to collect and spend money over the next three years. This move boosts transparency, letting communities keep a closer eye on how their rates and taxes are used – a key step in holding leaders to account for better services.
The release comes at a time when many municipalities face cash flow troubles and service delivery gripes, with calls growing for smarter spending to tackle unemployment and inequality. By putting these budgets online, Treasury aims to spark public involvement, ensuring funds go to real needs like roads, water, and jobs. With total revenue eyed at R675.8 billion for 2025/26, rising to R753.5 billion by 2027/28, the focus is on balancing books while pushing growth. Here’s a deeper look at the key highlights, what they mean for everyday life, and how this ties into bigger economic goals.
Breaking Down the Numbers: Revenue and Spending Trends
The aggregated budgets show municipalities expect to rake in R675.8 billion in revenue for 2025/26, climbing to R712.6 billion in 2026/27 and R753.5 billion in 2027/28. This cash comes from sources like property rates, service charges, and grants, giving councils the means to run towns and cities.
On the spending side, total outlays are set at R698.0 billion for 2025/26, up to R728.3 billion the next year, and R764 billion by 2027/28. This is 7.4% higher than last year’s plans, showing a push for more investment despite tight times. Employee costs and bulk buys like electricity take the biggest slices, at 27.0% and 35.0% of spending.
A worry is the operating deficit in 2025/26, where spending outpaces revenue, hinting at budgets stretched thin. But things look up in outer years, with surpluses expected. After factoring in loans and own funds, a net surplus of R8.5 billion is on the cards for 2025/26, growing to R16.7 billion by 2027/28 – a sign of better financial health ahead.
Capital spending, key for building infrastructure, hits R78.9 billion in 2025/26, up 1.9% from last year but dropping as a share of total spend over time. Trading services like water and electricity take over half this pot, focusing on fixes that keep taps running and lights on.
Why Transparency Matters: Tools for Public Oversight
These budgets are not just numbers – they are legal plans municipal managers must submit to Treasury and provinces. Treasury crunches them to track trends and spot issues early. The info feeds into the In-Year Management System, where quarterly reports under Section 71 show actual spending vs budgets.
All this data lands on the Municipal Money portal at www.municipalmoney.gov.za, an easy tool for anyone to check their council’s finances. It lets you see if money goes to promised projects or gets wasted. This openness fights corruption and pushes for better delivery, as seen in past cases where public scrutiny led to fixes.
For example, metros like Johannesburg and Cape Town often show big spends on upgrades, while smaller spots focus on basics. But challenges like unpaid bills mean some councils struggle, leading to service cuts. Treasury’s release urges locals to dive in and hold leaders accountable.
Economic Context: Balancing Deficits and Growth
The figures show councils spending beyond means in 2025/26, but surpluses loom later – a sign of cautious planning. This ties to SA’s push for fiscal discipline amid slow growth. With GDP expected at 1.3% in 2025, steady municipal finances help by funding jobs in construction and services.
Employee costs, a big chunk, reflect calls for efficient staffing without bloating payrolls. Bulk buys highlight reliance on Eskom and water boards, where price hikes strain budgets. Treasury urges smarter energy use and own revenue sources to ease this.
Capital budgets lean on new builds at 57.9% of spend, with less for fixes – a worry as old pipes and roads crumble. Experts call for more renewal funds to avoid breakdowns like recent water crises.
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