The Public Service Accountability Monitor has responded to the 2025 Budget by agreeing with President Cyril Ramaphosa that addressing dire governance, public spending and service delivery is critically important. Here PSAM tracks specific policy commitments made by the President to see how well-financed they will be according to the Finance Minister’s Budget speech.
Promise 1 Local government spending and basic service delivery
“We will work with our municipalities to establish professionally managed, ring-fenced utilities for water and electricity services to ensure that there is adequate investment and maintenance… We will review the funding model for municipalities as many of them do not have a viable and sustainable revenue base.” The finance minister committed to: increase local government equitable share from R99.5 billion in 2024 to R106.1 billion in 2025.
PSAM comment: While the proposed reforms to the revenue generating services of local government (refuse collection, water and sanitation and electricity) are welcome; we call on the National Treasury and Cabinet to ensure robust, thorough transparency in how these potentially far-reaching reforms are crafted. It is not immediately evident what these entail. The PSAM is cautiously optimistic about whether these most recent interventions to fix local government will yield any successes where others have failed dismally.
Promise 2 Procurement reform
“We will fast-track the regulations of the Public Procurement Act to ensure businesses owned by women, youth and persons with disabilities receive equitable opportunities in government contracts.” No specific reference was made to this was made in the Budget speech.
PSAM comment:
Public procurement is central to meeting South Africa’s development and equity needs. The National Treasury’s efforts to collaborate with a range of stakeholders to develop regulations complementary to the Public Procurement Act (2024) are encouraging and important. However, resourcing the implementation of key aspects of the Act continue to be of concern and stand as barriers to effective procurement reform in South Africa. Additionally, slow progress in universal modernisation of information technology and communication systems across all spheres of government constitutes major barriers to ensuring regular, comprehensive publication of key procurement data.
Promise 3 Water
“We will complete the establishment of the National Water Resource Infrastructure Agency to unlock much greater investment in water projects.” No reference was made to the National Water Resources Agency despite key questions relating to its funding modalities. However, R156.3 billion is allocated for water infrastructure in 2025/26). Water infrastructure maintenance and water delivery continues to deteriorate, particularly at the municipal level. In 2024, 2024, President Cyril Ramaphosa approved the South African National Water Resources Infrastructure Agency SOC Limited Bill. The Bill permits the Agency to mobilise funding and refinancing of national water infrastructure. It remains to be seen whether the establishment of the Agency will result in the much-needed improvements in water infrastructure delivery and financing.
Promise 4 Digital governance
“As we work to reform the public service and build the capability of the state, we will harness technology to transform the way that government works.” The Minister briefly mentioned digital communications and digital public infrastructure as a component of the second phase of Operation Vulindlela with limited detail on progress to date.
PSAM comment: The lack of a government-wide modern, digital system has adverse impacts on a range of services, including law enforcement and access to justice, revenue collection, public procurement and social services (passports, IDs etc). PSAM calls on the Presidency Department of Communications and Digital Technologies to prioritise the finalisation of the Digital Transformation Roadmap in line with the 2024-2029 medium-term development plan and to adhere to international standards.
Promise 5 National Health Insurance
“We will proceed with the preparatory work for the establishment of the NHI.” No reference. (However the overall health budget increases from R277.2 billion to R298.8 billion.)
PSAM comment: The recent cuts to United States President’s Emergency Plan For AIDS Relief (PEPFAR) funding will place strain on health budgets and oblige budget and policymakers to make some challenging decisions. It is therefore vital for more robust and clear decision-making that places the development of an equitable health system in order to avoid regressions in the progress made to date on NHI planning.
Promise 6 Tackling corruption
“We will ensure that the (Investigating Directorate Against Corruption) is fully resourced and has access to the information that it needs to prosecute state capture cases and hold those responsible to account. We are establishing a world-class digital forensics lab to support the investigation of complex corruption and financial crime with cutting edge tools and expertise.” No explicit budget allocation was mentioned in the speech. However, the Minister stated that funds would be “allocated for enhancing the financial forensic and accounting capabilities in our law enforcement institutions, to further strengthen our ability to detect and prosecute complex economic crimes.”
PSAM comment: This omission is concerning. In the coming days, we will seek to interrogate whether the President’s promises to fully resource the Investigating Directorate Against Corruption in addition to addressing state capture recommendations are reflected in departmental allocations over the medium term.
Promise 7 Public service strengthening and reform
“We are strengthening the role of the Public Service Commission in the appointment of the key people who direct the affairs of our state such as Directors-General, Deputy Directors-General, Chief Executive Officers of SOEs and board members and other senior positions.” No reference in the Budget Speech.
PSAM comment: The independence of the Public Service Commission (and its funding structure) is fundamental. While a budget of R216 million over the medium term is allocated to the Public Service Commission with a focus on “professionalising provinces”, it is not clear how this relates to the broader PSC reform goals. There have been encouraging public service legislative reforms proposed in recent months; it is especially important for the Executive to clearly outline the funding modalities of a more independent Public Service Commission.
Promise 8 Implementing State Capture recommendations
“We are making steady progress in the implementation of the recommendations of the State Capture Commission, including signing into law several legislative reforms. The Special Investigating Unit and Asset Forfeiture Unit report that over R10 billion has been recovered in state capture related cases. This year, the Department of Justice and Constitutional Development will report on the review of the anti-corruption architecture by the National Anti-Corruption Advisory Council.” There is no direct reference in the Budget Speech. However, the Minister indicated that the allocation of funds to enhance “the financial forensic and accounting capabilities in our law enforcement institutions, to further strengthen our ability to detect and prosecute complex economic crimes” is a response to the State Capture Commission and Financial Action Task Force (FATF).
PSAM comment: Despite the clear, urgent need; there has been slow progress with the implementation of the recommendations of the Zondo Commission. In addition to responding to the report of the National Anti-Corruption Advisory Council and coordinating South Africa’s anti-corruption architecture; we call on the Presidency and National Treasury to provide a cogent picture of the resources allocated to this work.
