What Happened
Delegates from the National Treasury, along with representatives from the Department of Cooperative Governance and Traditional Affairs (CoGTA), the Development Bank of Southern Africa (DBSA), and the Western Cape Provincial Treasury, recently engaged in a two-day Mid-Year Budget and Performance Assessment in George. This event, held on February 24 and 25, 2026, focused on critical areas such as service delivery, financial health, governance, institutional arrangements, and budget preparation.
Why It Matters
The National Treasury’s engagement is part of an ongoing oversight and support initiative aimed at enhancing municipal operations. Mr. Sifiso Mabaso, Director at National Treasury, emphasized the importance of cooperative governance in ensuring sustainable municipal operations. The discussions included strategic planning and site visits to infrastructure projects, highlighting the need for improved financial management at the municipal level.
What’s Next
In addition to the municipal assessments, the National Treasury is implementing a multi-pronged approach to manage the government’s wage bill, which accounts for nearly one-third of consolidated expenditure. This includes a staggered early-retirement program and auditing the government payroll. The recent three-year wage agreement aims to stabilize public finances, while the government plans to enhance the management of provincial and municipal operations to address persistent financial weaknesses.
