On March 18, 2025, Hon. MEC for Finance, Tourism and Economic Development, Ketso Toto Makume, presented the 2025/26 Appropriation Budget at the Fourth Raadsaal in Bloemfontein.
The budget focuses on three key priorities:
- Inclusive economic growth and job creation
- Reducing poverty and tackling the high cost of living
- Building a capable, ethical, and developmental state
With a focus on fiscal consolidation and infrastructure investment, the budget aims to drive economic growth and job creation. The MEC called for collective efforts to build a government that meets its financial obligations, supports businesses, and fosters a prosperous Free State.
Key Highlights:
• For the first time in nine years, the provincial PFMA audit outcomes showed no adverse or disclaimer opinions, with 10 out of 13 departments, including the Provincial Legislature, receiving clean or unqualified audits.
• The Department of Education received an additional R93 million through the Performance-Based Incentive System to enhance infrastructure delivery.
Budget Overview:
• Total provincial fiscal framework: R45.8 billion
• Equitable share: R34.8 billion (5.2% increase from last year)
• Conditional grants: R9.8 billion (0.9% increase)
• Provincial revenue: R1.2 billion (3.3% decrease)
• The province will receive R249.5 million in 2025/26 from the national wage agreement, increasing in the following years.
Allocations by Department:
• Health: R3.9 billion for infrastructure, HIV/AIDS programs, and health personnel training.
• Education: R1.8 billion for infrastructure, school nutrition, and early childhood development.
• Agriculture and Rural Development: R285.8 million for farmer support and poverty relief.
• Community Safety, Roads and Transport: R2.4 billion for road maintenance and public bus subsidies, including R201 million for the Welisize Rural Bridge Programme.
• Human Settlements: R991.7 million for sustainable settlements and informal settlement upgrades.
• Sport, Arts, Culture, and Recreation: R239.4 million for community library infrastructure and sports activities.
The budget outlines more than R28.7 billion for key socio-economic programmes over the 2025 MTEF period.
fsbudget2025
