Finance Minister Enoch Godongwana said government departments have asked for an extra R717 billion over the next three years, and that the money does not exist.
He set out the National Treasury’s position in his Medium-Term Budget Policy Statement (MTBPS) and in an interview on 702. Daily Investor reported that the Treasury has added only R71.1 billion to main budget spending for those three years.
“This translates to an average of R226 billion for each coming year. This amount does not exist in the budget. This is all above the existing baseline,” Godongwana said.
According to the report, departments want the money to meet service delivery duties and to move ahead with large projects. These projects are often announced before a department has secured funding, either from its own budget or from the Treasury.
Godongwana said saying no to Cabinet colleagues is hard. “In this process of trimming projects and fighting, it takes a toll on you. Because your colleagues in Cabinet come and ask you for this money that does not exist,” he said.
“People think that there is a money pot somewhere that we at the National Treasury are trying to hide, which is not the case. We do not have the money,” he added.
The minister said the Treasury publishes what SARS collects and what the state spends every month. He said it also publishes how much the government borrows.
“We borrow almost R2 billion a week to fund the government,” Godongwana said.
According to the National Treasury, government debt has peaked at 78.4% of GDP and is starting to fall. Daily Investor reported that the state still spends R1.2 billion a day to service its debt. That leaves less for healthcare, education and other services.
The report said the state could borrow more to meet the requests. It said this would harm the country’s financial health and the Treasury’s standing with investors. It could also push South Africa into a debt spiral, where new debt is issued to pay old debt.
Godongwana became Finance Minister in 2021. Since then, the Treasury has kept spending growth below the rate of inflation, the report said. This has led to three primary budget surpluses in a row.
In the current financial year, departments asked for R200 billion in special funding, and the Treasury approved R10.6 billion. This includes R823 million for the army’s deployment to help the police. It also includes R516 million for the Madlanga, Khampepe and Nkabine commissions of inquiry.
The R71.1 billion added for the next three years goes first to healthcare, education, state capacity and infrastructure, according to the report.
Godongwana said in the MTBPS that extra funding will not be granted automatically for operational pressures. Departments and provinces were told to manage new costs by cutting waste in administration and moving funds within their existing budgets.
Source: this article is based on reporting by Daily Investor. Image: Daily Investor. Written with the help of AI and published by the Tzaneen Voice News desk. See our Editorial Standards.
Kgomotso Maake covers news and politics for Tzaneen Voice. Kgomotso reports on government, Parliament, municipalities, courts, crime and service delivery across South Africa, with a close eye on how national decisions reach towns like Tzaneen and the wider Limpopo province. Stories are written in plain English and focus on the facts: who made the decision, what it means, and what happens next.