The National Assembly has passed the Division of Revenue Bill and the Special Appropriation Bill, which were tabled by the Minister of Finance in February, as part of the national Budget.
The Division of Revenue Bill sets out how government funds are shared across national, provincial and local government, with a strong focus on improving the capacity of municipalities to deliver services where people live.
The Bill aims to ensure that public money is used to provide basic services, support economic growth and job creation, and keep government debt under control.
As part of this effort, government is investing R12.8 billion over the medium term to expand Early Childhood Development (ECD) programmes.
At the same time, R800 million in 2026/27 is being redirected to protect key priorities, including R446 million for the National School Nutrition Programme, R13 million for learners with severe to profound intellectual disabilities, and R342 million to progressively equalise the salaries of Grade R educators.
A further R175 million has been allocated to implement the e-Cares system to improve data collection and strengthen the management of Early Childhood Development (ECD) services.
Additional funding shifts include R109 million for agriculture to modernise systems such as e-certification and animal traceability, ensuring the sector becomes more efficient and competitive.
Following extensive engagement with the National Treasury, the Parliament Budget Office and other stakeholders, the Standing Committee on Appropriations welcomed the proposed allocations.
However, the Committee stressed that their success will depend on strong governance, effective oversight and responsible spending.
“The Committee has recommended that the Minister of Finance ensure the National Treasury presents a clear plan to stabilise the public service wage bill so that rising personnel costs do not crowd out spending on critical services and infrastructure.
“It has also called for a full cost-benefit analysis on the use of implementing agents, such as the Development Bank of Southern Africa, to deliver infrastructure projects on behalf of municipalities. National Treasury is required to report back to Parliament on these matters twice a year,” Parliament said.
The Special Appropriation Bill provides an additional R13.5 billion for the 2025/26 financial year to address urgent and unforeseen spending needs.
This mechanism allows government to respond quickly to pressing national priorities without waiting for the next budget cycle.
This funding will support Parliament and key departments, namely Home Affairs, National Treasury, Transport and Communications and Digital Technologies.
A significant portion is allocated to the Passenger Rail Agency of South Africa (PRASA), an entity of the Department of Transport, to procure new locomotives, repair trains, and improve commuter rail services – helping millions of South Africans travel safely and affordably.
Funding has also been allocated to Sentech to help resolve its ongoing dispute with the South African Broadcasting Corporation over approximately R1.6 billion in unpaid fees, while also supporting the long-term financial sustainability of the entity.
The Committee further welcomed the allocation of R2.081 billion for the rebuilding of Parliament and R1.116 billion for the Electoral Commission of South Africa to support the 2026 local government elections.
This election funding is recognised as a necessary, once-off constitutional cost to ensure free, fair and credible elections.
Both Bills will now be referred to the National Council of Provinces for concurrence.