National Treasury Publishes Municipal Budgets to Boost Transparency and Community Accountability for 2025/26–2027/28 Cycle

Additionally, quarterly Section 71 reports provide updates on how actual municipal spending and revenue collection compare to the planned budget figures.

The National Treasury has released the full operating and capital budgets of municipalities across the country as formally adopted by their respective municipal councils. The move is intended to enhance transparency, strengthen democratic oversight, and empower communities to hold their local governments accountable for financial planning and service delivery obligations.

According to the Treasury, the published documents reflect the municipalities' financial outlook for the upcoming 2025/26 Medium Term Revenue and Expenditure Framework (MTREF), offering insight into revenue expectations, spending priorities, infrastructure plans, and projected financial health over the next three years.

The municipal budgets are accessible on the National Treasury website and have been compiled using financial submissions from municipal managers, who are required by law to provide their annual budgets to both the National and Provincial Treasury offices.

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Strengthening Oversight and Financial Governance

This information forms the backbone of the Treasury’s In-Year Management, Monitoring and Reporting System (IYM)—a key tool used to track municipal financial performance and ensure compliance with the Municipal Finance Management Act (MFMA).

Additionally, quarterly Section 71 reports provide updates on how actual municipal spending and revenue collection compare to the planned budget figures. This helps identify over- or under-performance early and supports corrective intervention where necessary.

All financial records are also uploaded onto the Municipal Money open data portal, enabling citizens, researchers, journalists, and oversight bodies to monitor local government spending patterns. The platform can be accessed via:

👉 www.municipalmoney.gov.za

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💰 Key Budget Highlights (2025/26–2027/28)

• Revenue Growth

  • 2025/26: R675.8 billion

  • 2026/27: R712.6 billion

  • 2027/28: R753.5 billion

• Total Expenditure

  • 2025/26: R698.0 billion

  • 2026/27: R728.3 billion

  • 2027/28: R764.0 billion

  • Represents a 7.4% increase from the previous year's adopted budget.

• Operating Deficits Emerging

  • Municipalities are expected to run operating deficits in 2025/26 as expenditure rises faster than revenue—signaling financial strain.

  • However, deficits are projected to narrow in later years.

• Projected Surpluses

  • 2025/26: R8.5 billion

  • 2026/27: R12.3 billion

  • 2027/28: R16.7 billion

  • This marks a turnaround from the R1.9 billion deficit in the 2024/25 adjusted budget.

• Cost Pressures

  • Employee costs: 27%

  • Bulk purchases (water and electricity): 35% Rising tariffs, declining sales volumes, and affordability challenges are contributing factors.

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🏗️ Infrastructure and Capital Spending Outlook

• Capital Expenditure

  • 2025/26: R78.9 billion (1.9% increase)

  • However, the share of capital expenditure relative to total spending is gradually declining.

• Infrastructure Breakdown

  • New infrastructure: R45.7 billion (57.9%)

  • Renewal of assets: R14.9 billion (18.8%)

  • Upgrades: R18.4 billion (23.3%)

• Sector Focus

  • Trading services account for more than half of capital spending:

    • 2025/26: 52.1%

    • 2026/27: 54.7%

    • 2027/28: 56.7%

• Repairs & Maintenance

  • 2025/26: R38.3 billion

  • 2026/27: R40.6 billion

  • 2027/28: R42.7 billion

  • These figures now form part of mandatory Section 71 reporting.

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🏛️ Empowering Communities Through Data

National Treasury officials emphasized that publishing municipal financial information ensures transparency, supports participatory governance, and helps residents monitor whether municipal spending aligns with service delivery priorities such as water, electricity, roads, waste management, and infrastructure maintenance.

By improving access to data, the Treasury aims to build public trust, encourage civic responsibility, and promote accountable local governance across all municipalities.