Pretoria: National Treasury has been allocated R91.835 billion over the medium-term, with the South African Revenue Service (SARS) receiving the largest component of the transfers. Tabling National Treasury’s Budget Vote in Parliament, Finance Minister Enoch Godongwana revealed that the department’s budget, excluding direct charges, over the medium-term is R91.835 billion, marking an average growth rate of 6.2% from 2024/25 to 2027/28.
According to South African Government News Agency, the largest portion of this budget is dedicated to SARS, which is set to receive R45.760 billion-amounting to 49.8% of the department’s budget for operations and capital projects over the medium-term. This allocation represents an increase of R8 billion compared to the 2024 Estimate of Expenditure, aimed at boosting revenue collection through improved debt collection systems, increased staffing, and the modernization of processes such as e-invoicing for VAT, instant payment systems, and customs infrastructure upgrades.
Last week, National Treasury published monthly debt collection data from SARS for the first time to enhance transparency and monitor progress. The budget allocation per economic classification over the medium-term includes R3.422 billion for employee compensation, R6.983 billion for goods and services, R78.554 billion for transfers and subsidies, R89 million for capital assets payment, and R2.786 billion for financial assets payment.
National Treasury’s Annual Performance Plan for 2025/26 outlines ambitious programs to achieve goals like job creation, poverty reduction, and greater inclusion. Minister Godongwana emphasized the importance of reviewing government spending to restore financial sustainability and efficiency. Planned reviews include auditing ghost workers, assessing infrastructure grants, and reviewing remuneration frameworks for public entity executives.
The Minister also addressed South Africa’s progress with the Financial Action Task Force (FATF) grey list. South Africa has completed all 22 recommended actions and awaits an on-site assessment to verify continued implementation of anti-money laundering and counter-terrorism financing reforms. If successful, South Africa could be delisted from the grey list at the FATF’s Plenary in October 2025. The government is finalizing a General Laws Anti-Money Laundering and Combating Terrorism Financing Bill for further public comment and parliamentary tabling in 2025.
Substantial progress has been made on implementing the State Capture Commission recommendations, with SARS recovering R4.8 billion in unpaid taxes and professional bodies enforcing consequence management. The Financial Intelligence Centre has launched the ‘Enablers Project’ to trace state capture funds, and a 10-year ban has been imposed on Bain and Co, currently under litigation.