National Treasury has moved to assure the public that critical government services will not be affected as Parliament continues to consider the 2025 budget.
This year, the budget was tabled on 12 March, instead of the customary February – eliciting questions and comments on government’s ability to deliver services while budget approval is still being considered.
In a statement issued on Wednesday, National Treasury referred to Section 29 of the Public Finance Management Act (PFMA), which allows funds to be withdrawn from the National Revenue Fund if the national annual budget is not passed before the start of the financial year.
“The funds withdrawn from the Revenue Fund may be utilised only for services for which funds were appropriated in the previous annual budget or adjustments budget. Up to 45 percent of the total amount appropriated in the previous annual budget, may be withdrawn from the Revenue Fund.
“During each month thereafter, up to 10 percent of the total amount appropriated in the previous annual budget, may be withdrawn. In aggregate, the amount withdrawn may not exceed the total amount appropriated in the previous annual budget," the department explained.
It added that these funds are not additional to funds appropriated for the relevant financial year, and "any funds withdrawn must be regarded as forming part of the funds appropriated in the annual budget for that financial year.”
Although the financial year starts on 1 April, the department noted that the Appropriation Bill is always passed later.
“This situation means that every year, departments incur spending before the Appropriation Act takes effect. Therefore, as in previous years, government departments will continue to spend as normal because funds may be withdrawn from the National Revenue Fund for the requirements of departments, from 1 April 2025 until the Appropriation Bill for the 2025/26 financial year is passed by Parliament,” the department said.
"Although expenditure may be incurred, it may not be for new requirements. [This means] requirements not funded in the 2024/25 financial year. Any new spending programmes, projects or policy adjustments may only commence after the Appropriation Act is enacted," the department said.
The department emphasised that the public should not be concerned about the delivery of critical government services, including among others, the payment of social grants, while the Parliamentary process for the 2025 Budget is ongoing.
“Despite the flexibility allowed by the Public Finance Management Act, the National Treasury is committed to supporting Parliament in its consideration and timely passage of the 2025 Budget,” the department said. – SAnews.gov.za
