KZN Finance Unveils R158 Billion Budget Plan to Spur Growth, Jobs, and Financial Discipline

Addressing the KwaZulu-Natal Legislature on Tuesday, Rodgers painted a cautiously optimistic picture of the province’s economic recovery.

KwaZulu-Natal Finance MEC Francois Rodgers has tabled an ambitious R158.478 billion budget for the 2025/2026 financial year, unveiling a comprehensive strategy aimed at stimulating economic growth, creating jobs, and stabilising the rising cost of living in the province.

Addressing the KwaZulu-Natal Legislature on Tuesday, Rodgers painted a cautiously optimistic picture of the province’s economic recovery. He pointed to positive economic indicators, including an increase in the province’s equitable share from the national budget and additional allocations through conditional grants, which he said signal a gradual rebound from previous fiscal challenges.

Rodgers said that while the recovery is encouraging, discipline and focus are now paramount to achieving tangible outcomes. “What is required now is discipline with a sharp focus on the end objective – growth in our economy, job creation, and stabilising and reducing the cost of living,” he stated.

Strengthening Financial Oversight and Cutting Waste

One of the budget’s central themes is a renewed commitment to financial discipline and efficient expenditure. Rodgers emphasised that the provincial Treasury will continue to conduct rigorous financial oversight and monitoring to curb unnecessary spending by provincial departments.

To this end, the Executive Council has adopted a cost-containment instruction to eliminate non-essential government spending. “Cutting the nice to haves to protect the must haves,” Rodgers explained. A key example is the decision to scrap the use of rental vehicles for government business. Instead, vehicles will be procured in accordance with National Treasury guidelines – a move aimed at reducing long-term costs.

“When the Government of Provincial Unity (GPU) assumed office, KwaZulu-Natal was projected to overspend by more than R10 billion. However, through strict control measures, we have reduced that figure to R4.9 billion,” Rodgers revealed.

Boosting Transparency and Accountability

To enhance transparency and accountability in financial management, Rodgers announced several digital tools and new systems that will be rolled out in the new fiscal year. Chief among them is the introduction of an e-procurement system, which is currently awaiting approval. This digital tool aims to eliminate price inflation and irregularities during the Supply Chain Management (SCM) and tendering processes.

“This system will yield enormous savings for the province and reduce irregularities in the procurement process,” said Rodgers. The system is expected to improve value for money and ensure that public funds are spent more responsibly.

Another technological upgrade set for implementation is the launch of departmental financial dashboards from April 2025. These dashboards will offer real-time insights into departmental metrics such as outstanding creditors and debtors, cash flow, and expenditure forecasts. Rodgers said this tool will empower the Executive Council and oversight bodies with critical information to make informed financial decisions.

In addition, the provincial Treasury is exploring the creation of an Information Centre that will support government departments and suppliers with data on tenders, public-private partnerships (PPPs), and service delivery initiatives. The centre will also focus on the "Operation Pay on Time" campaign, which aims to improve timely payments to service providers.

Building a Resilient, Inclusive Economy

Rodgers reiterated that the province’s long-term financial recovery hinges on efficient public service delivery and the strategic use of limited resources. He pledged to continue working closely with the Premier and the provincial executive to ensure sound financial governance and to advocate for programs that tackle poverty, inequality, and unemployment.

“In my capacity as MEC, I will continue to regularly engage the Premier and the executive on good financial practices. We will be consistent in our advocacy for efficient expenditure and the prioritisation of programmes aimed at alleviating poverty, inequality, unemployment, effective service delivery and building a sustainable economy,” he said.

Budget Breakdown: Focus on Social Services

Social services remain the biggest beneficiaries of the 2025/2026 provincial budget, receiving 79.9% of the total allocation. Education, Health, and Social Development were the top three departments by funding:

• Education: R66.69 billion – the largest share of the budget.

• Health: R56.21 billion – second-largest allocation.

• Social Development: R3.61 billion – essential for community support and welfare programs.

Other key departmental allocations include:

• Transport: R13.83 billion – to support road infrastructure and connectivity.

• Economic Development, Tourism and Environmental Affairs: R3.61 billion – to stimulate economic growth and promote tourism.

• Human Settlements: R3.55 billion – for housing development and community upgrades.

• Agriculture and Rural Development: R2.76 billion – for food security and rural economic stimulation.

• Public Works and Infrastructure: R2.04 billion – for building and maintaining public facilities.

• Sport, Arts and Culture: R1.6 billion – promoting cultural development and youth engagement.

• Co-operative Governance and Traditional Affairs (CoGTA): R1.93 billion – supporting local governance and traditional leadership.

• Community Safety and Liaison: R275 million – for improving safety and crime prevention initiatives.

Smaller allocations were made to:

• Office of the Premier: R817 million.

• Provincial Legislature: R851 million.

• Provincial Treasury: R710 million.

A Call for Continued Support and Shared Responsibility

Rodgers closed his address with a strong call for collaboration and responsibility at all levels of government and society. “It’s a painful process, but one that must be sustained and supported. Our shared goal must be to leave behind a province that is financially stable, socially cohesive, and economically prosperous,” he concluded.

The 2025/2026 budget marks a pivotal moment in KwaZulu-Natal’s fiscal journey, with a strong focus on accountability, innovation, and inclusive development. As the province works to rebuild its financial standing, these strategic reforms may lay the foundation for long-term stability and prosperity.