Update on Government Spending – What Accountants Should Know
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National Treasury has issued a Media Statement explaining how government spending is managed while Parliament is still finalising the 2025/26 Budget.
🧾 Why is there a delay?
The 2025 Budget was tabled later than usual, on 12 March 2025, instead of in February.
Parliament is still reviewing the budget, starting with the fiscal framework, and will pass the Appropriation Act by 31 July 2025 at the latest.
💸 Can government still spend money?
Yes. According to law (Public Finance Management Act, Section 29), government departments can keep operating and spending even if the budget hasn’t been officially passed yet. Here’s how it works:
For the first 4 months of the financial year (April to July), up to 45% of last year’s budget can be used.
After that, 10% per month can be used, as long as it doesn’t exceed the previous year’s total.
✅ What spending is allowed?
Departments can continue funding existing services like social grants, healthcare, and education.
But they can’t start any new projects or programmes until the 2025 Appropriation Act is approved by Parliament.
🔍 Why it matters for accountants
There’s no interruption to critical public spending, but new budget allocations and policy changes will only take effect once the Act is passed.
When advising clients with government contracts or grant funding, note that no new allocations can be disbursed until after July.
