Latest news with #R91.835
The South African
09-07-2025
- Business
- The South African
SARS gets largest chunk of Treasury Budget to help collect YOUR money
South Africa's National Treasury has been allocated R91.835 billion over the medium-term expenditure framework (MTEF), with the South African Revenue Service (SARS) receiving the lion's share to boost revenue collection and system modernisation. Tabling the Treasury's Budget Vote in Parliament on Tuesday, Finance Minister Enoch Godongwana said the department's budget – excluding direct charges – is projected to grow at an average annual rate of 6.2% between 2024/25 and 2027/28. 'The largest component is for transfers to SARS, which is allocated R45.760 billion – 49.8% of the department's total budget,' the Minister noted. This allocation includes an R8 billion increase compared to the 2024 budget estimates, targeted at modernising tax collection systems, expanding staff capacity, enhancing debt collection, and implementing e-invoicing for VAT and instant payment infrastructure. R3.422 billion for compensation of employees for compensation of employees R6.983 billion for goods and services for goods and services R78.554 billion for transfers and subsidies for transfers and subsidies R89 million for capital asset payments for capital asset payments R2.786 billion for financial asset payments Godongwana outlined major review initiatives aimed at restoring fiscal sustainability and enhancing public sector efficiency: Audit of 'ghost workers' in the public service using linked financial and administrative databases. Infrastructure conditional grant review, focusing on reasons for underspending and poor project delivery at provincial and municipal levels. Review of executive remuneration in public entities to develop a consistent, mandate-based compensation framework across Schedule 3 entities. These reforms form part of the Treasury's broader 2025/26 Annual Performance Plan, which emphasises job creation, poverty reduction, and greater inclusion through more effective government spending. South Africa has completed all 22 recommended actions required by the Financial Action Task Force (FATF) to exit the grey list. An on-site assessment is now scheduled before the next FATF Plenary in October 2025, which could lead to South Africa's formal removal from the grey list. 'Our efforts to remove South Africa from the grey list are succeeding,' said Godongwana. In line with this, a General Laws Anti-Money Laundering and Combating Terrorism Financing Bill is being prepared for public comment and will be tabled in Parliament in Q3 2025. R4.8 billion in unpaid taxes recovered by SARS through State Capture-related investigations. by SARS through State Capture-related investigations. Professional disbarments issued by SAICA and other bodies. issued by SAICA and other bodies. The Enablers Project , launched by the Financial Intelligence Centre , is tracking illicit fund flows from the State Capture era. , launched by the , is tracking illicit fund flows from the State Capture era. A 10-year ban on Bain & Co has been imposed, pending litigation. on Bain & Co has been imposed, pending litigation. A central register is now operational to track dismissed or resigned officials who left during disciplinary processes – strengthening accountability across government. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
09-07-2025
- Business
- IOL News
Godongwana plans reviews of ghost workers, exec remuneration to enhance the fiscus
Finance Minister Enoch Godongwana said there were new reviews that Treasury planned to conduct, including an audit of ghost workers in the public service, an infrastructure conditional grant review, and a review of the remuneration of executives and board members of public entities Image: Phando Jikelo / GCIS Finance Minister Enoch Godongwana has set forth a strategic vision for the National Treasury aimed at achieving sustainable public finances, including wide-ranging spending reviews, while enhancing the effectiveness of revenue collection. The department's budget for the medium term stands at R91.835 billion, reflecting an average growth rate of 6.2% from 2024/25 to 2027/28. The largest portion of this budget of R45.760 billion (49.8%) is earmarked for transfers to the South African Revenue Service (Sars). This allocation marks an R8bn increase over the 2024 Estimate of Expenditure, highlighting the government's commitment to bolster Sars' operational and capital projects, which are pivotal in recovering the country's revenue streams. "Part of this increase is to improve effectiveness in revenue collection by enhancing theirability to collect debt through better systems, increasing staff capacity and modernising theirprocesses to establish e-invoicing for VAT, instant payment systems and upgrades ofcustoms infrastructure," Godongwana said. The National Treasury's core function, as articulated by officials, centres on achieving sustainable public finances through robust controls. The Annual Performance Plan for 2025/26 presents a clear path to advancing key outcomes such as job creation, poverty alleviation, and broader financial inclusion. Godongwana said efforts to enhance spending efficiency were now more critical than ever. Since 2013, 276 spending reviews have been conducted, with the Treasury committed to implementing recommendations arising from these assessments. A thorough review of public employment and labour market activation programmes has recommended rationalising 37 initiatives across 16 governmental departments. "I will be going to Cabinet to get commitment from colleagues to implement the outstanding recommendations arising out of these spending reviews," Godongwana said. "This includes our review of government spending on the numerous public employment and labour market activation programmes across government, which has recommended the rationalisation of the 37 programmes across 16 departments." Beyond this, Godongwana said there were new reviews that Treasury planned to conduct, including an audit of ghost workers in the public service, an infrastructure conditional grant review, and a review of the remuneration of executives and board members of public entities. To restore fiscal sustainability, Godongwana said Treasury was focused on achieving a growing primary surplus, ensuring that the public debt-to-GDP ratio stabilises and curbing reliance on borrowing. Through a growing primary surplus, the public debt-to-GDP ratio will stabilise over time and ensure that the government does not rely on additional borrowing to cover its non-interest expenses," he said. He said plans were underway to implement additional fiscal measures as public comments on recent technical papers were reviewed. Treasury is also addressing critical issues surrounding disaster risk financing. In light of climate change-induced disasters that have recently impacted regions like Eastern Cape and KwaZulu-Natal, Godongwana said the government is prepared to implement the National Disaster Risk Financing Strategy—an initiative aimed at proactive budgeting and responsive fiscal planning. Ongoing reforms in the financial sector aim to foster greater inclusivity and consumer protection. The draft Conduct of Financial Institutions (COFI) Bill seeks to consolidate existing laws into a cohesive framework that enhances regulatory oversight, ensuring fair treatment for financial consumers. In a concerted effort to strengthen South Africa's position against illicit financial activities, a General Laws Anti-Money Laundering and Combating Terrorism Financing Bill is nearing finalisation. This legislation is a critical step towards fortifying the country's response to financial crimes. Sars' persistent investigations have already yielded R4.8bn in tax recovery, while collaborative efforts with professional bodies ensure consequence management for those implicated in wrongdoing. The interventions detailed are part of a broader strategy to achieve fiscal stability and foster sustainable economic growth through transparent governance and robust public finance management.
