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South Africa’s National Treasury has released its 2026 Medium-Term Expenditure Framework (MTEF) Technical Guidelines, urging all government departments and public entities to realign their budgets with national priorities amid increasing fiscal pressure.
The guidelines, published on 23 July 2025, form the backbone of the next three-year budgeting cycle. They call for greater discipline, improved value for money, and a renewed focus on service delivery—particularly in key areas like health, education, policing, and infrastructure.
“Departments are expected to reprioritise existing baselines. New funding will only be considered if it supports the core functions of government,” Treasury said in its official circular.
What the 2026 Guidelines Emphasise
The Technical Guidelines reflect Treasury’s continued efforts to manage ballooning debt, slow economic growth, and rising service delivery demands. According to the statement, all budget proposals submitted must:
- Focus on existing service delivery responsibilities
- Align with the National Development Plan (NDP) and Presidential Priorities
- Demonstrate cost-efficiency and eliminate duplication
- Be informed by recent performance evaluations and audit outcomes
- Prioritise programmes that are pro-poor and labour-intensive
Treasury also highlighted the importance of digitisation, infrastructure maintenance, and job creation in driving long-term stability and growth.
Timeline: What Happens Next?
- Departments must submit baseline inputs and budget proposals by August 2025.
- The Medium-Term Budget Policy Statement (MTBPS) is expected in October 2025.
- The final Budget 2026 will be tabled in February 2026.
Treasury warned departments against submitting unfunded mandates or unrealistic cost escalations. The statement reinforces that there will be no automatic inflationary increases and any requests for additional resources must be clearly motivated.
Accountability and Cost Control
In a bid to strengthen accountability, Treasury emphasized that any new spending must be accompanied by clear performance indicators. Provinces and municipalities are also expected to align their planning and spending to the national framework.
The 2026 MTEF arrives at a time when South Africa continues to grapple with weak economic growth, load-shedding disruptions, and rising demands on the fiscus due to unemployment and inequality.
