South Africa’s National Treasury has been allocated R91.835 billion over the medium-term expenditure framework (MTEF), with the South African Revenue Service (SARS) receiving the lion’s share to boost revenue collection and system modernisation.
Tabling the Treasury’s Budget Vote in Parliament on Tuesday, Finance Minister Enoch Godongwana said the department’s budget – excluding direct charges – is projected to grow at an average annual rate of 6.2% between 2024/25 and 2027/28.
“The largest component is for transfers to SARS, which is allocated R45.760 billion – 49.8% of the department’s total budget,” the Minister noted.
This allocation includes an R8 billion increase compared to the 2024 budget estimates, targeted at modernising tax collection systems, expanding staff capacity, enhancing debt collection, and implementing e-invoicing for VAT and instant payment infrastructure.
Budget breakdown (2024/25 – 2027/28):
- R3.422 billion for compensation of employees
- R6.983 billion for goods and services
- R78.554 billion for transfers and subsidies
- R89 million for capital asset payments
- R2.786 billion for financial asset payments
Key reform initiatives
Godongwana outlined major review initiatives aimed at restoring fiscal sustainability and enhancing public sector efficiency:
- Audit of “ghost workers” in the public service using linked financial and administrative databases.
- Infrastructure conditional grant review, focusing on reasons for underspending and poor project delivery at provincial and municipal levels.
- Review of executive remuneration in public entities to develop a consistent, mandate-based compensation framework across Schedule 3 entities.
These reforms form part of the Treasury’s broader 2025/26 Annual Performance Plan, which emphasises job creation, poverty reduction, and greater inclusion through more effective government spending.
FATF Grey List progress
South Africa has completed all 22 recommended actions required by the Financial Action Task Force (FATF) to exit the grey list. An on-site assessment is now scheduled before the next FATF Plenary in October 2025, which could lead to South Africa’s formal removal from the grey list.
“Our efforts to remove South Africa from the grey list are succeeding,” said Godongwana.
In line with this, a General Laws Anti-Money Laundering and Combating Terrorism Financing Bill is being prepared for public comment and will be tabled in Parliament in Q3 2025.
State capture response and accountability measures
- R4.8 billion in unpaid taxes recovered by SARS through State Capture-related investigations.
- Professional disbarments issued by SAICA and other bodies.
- The Enablers Project, launched by the Financial Intelligence Centre, is tracking illicit fund flows from the State Capture era.
- A 10-year ban on Bain & Co has been imposed, pending litigation.
- A central register is now operational to track dismissed or resigned officials who left during disciplinary processes – strengthening accountability across government.
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