The 2025 Appropriation Bill, a fundamental element of the Budget, has successfully completed its legislative journey through Parliament. The National Council of Provinces (NCOP) yesterday passed the legislation, marking the end to what has been a tortuous and sometimes acrimonious budgetary process.
The passing of the Bill secures the government’s ability to allocate funds for the 2025/26 financial year.
The Bill will now be sent to President Cyril Ramaphosa for assent, as mandated by the Constitution, after which it will become law.
The Appropriation Bill outlines how government funds will be distributed among various departments and entities. It serves as the legal mechanism that authorises the use of public funds, enabling the delivery of essential services, infrastructure development, and social programs such as healthcare, education, and social grants. Additionally, it supports initiatives aimed at fostering economic growth. The Bill’s passage is vital to the functioning of government operations, ensuring that departments can implement their approved spending plans for the upcoming financial year.
In May, Finance Minister Enoch Godongwana tabled the third iteration of the Budget after the first two versions were rejected because they proposed to increase the rate of value-added tax.
The Bill was passed by the National Assembly on 23 July. It was then referred to the NCOP’s Select Committee on Appropriations for review and consideration. The committee reported back to the NCOP plenary sitting, which adopted the Bill on 30 July.
During the plenary sitting, 51 Members of Parliament voted in favour of the Bill, while nine opposed it, with no abstentions recorded. The Economic Freedom Fighters and the uMkhonto weSizwe Party opposed the legislation, extending their dissent to all the departmental budget votes.
The Government of National Unity partners – the African National Congress, Democratic Alliance, Inkatha Freedom Party, Patriotic Alliance, Freedom Front Plus (FF Plus), and United Democratic Movement – supported the Bill. However, the FF Plus abstained from voting on the Employment and Labour budget, consistent with its position in the National Assembly last week.
Deputy Finance Minister David Masondo warned the National Assembly last week that failure to pass the Bill by the end of July would prevent the government from withdrawing funds by October. Such a delay would have severely disrupted the government’s ability to finance essential services and meet its obligations.
Total government spending for the 2025/26 year is set at R2.3 trillion. Of this, R1.17 trillion will be allocated to national departments, including health, education and police. A further R1.1 trillion will go towards social grants, transfers to provinces and municipalities, and debt servicing.
