Provinces Spend Close to Budget, While Costs Rise in Health and Education
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According to a National Treasury Media Statement, South Africa's provinces spent R810.9 billion in the fourth quarter of the 2025/26 financial year. This represents 99.1 per cent of the adjusted budget of R818.4 billion. Compared to the same period in 2024/25, expenditure rose by R46.7 billion ( 6.1%). Treasury described this as sustained year on year growth in provincial spending.
Source: National Treasury 2025/26 Aggregated expenditure trends by province as at 31 March 2026
Education and Health Lead the Way
Education remained the largest spending area. Provinces spent R339.2 billion on education, which is 99.7 per cent of the sector's adjusted budget of R340.3 billion. This is R21 billion, or 6.6 per cent, more than the same period last year.
Health spending followed closely. Provinces spent R276.6 billion against an adjusted budget of R278.3 billion. This is an increase of R16.1 billion, or 6.2 per cent, year on year.
Social development spending came in at R23.4 billion against a budget of R23.6 billion, up 4.9 per cent, or R1.1 billion, compared to the previous year.
Wage Bill Still the Biggest Cost Driver
Personnel costs, known as compensation of employees, made up the largest share of spending. Provinces spent R499.2 billion on personnel, or 99.7 per cent of the R500.5 billion adjusted budget. This is R27.6 billion, or 5.8 per cent, higher than the previous year.
Spending on goods and services reached R170.9 billion, or 99 per cent of the R172.6 billion budget. This is R11 billion, or 6.9 per cent, higher than the same period last year.
Capital Spending Improves, But Still Lags Behind
Capital spending, the money used for infrastructure and physical assets, came to R43.5 billion. This is 91.8 per cent of the R47.4 billion adjusted budget. While this is the weakest spending category in percentage terms, it still grew by R3.7 billion, or 9.4 per cent, year on year. Treasury said this indicates improved execution of capital projects in 2025/26.
Source: National Treasury 2025/26 Payments for capital assets expenditure by province as at 31 March 2026
Revenue Collection Beats Target
Provinces collected R27.6 billion in their own revenue, which is 103.5 per cent of the adjusted target of R26.7 billion. This is R1.4 billion, or 5.3 per cent, more than the same period last year, a sign of improved provincial revenue performance.
About the Figures
These figures are based on the 2025 Adjusted Estimates of Provincial Revenue and Expenditure (AEPRE) documents presented to the respective provincial legislatures in November 2025 and March 2026. These were tabled in provincial legislatures in November 2025 and March 2026, and they include allocations from the Appropriation Act, 2025 and the Division of Revenue Act, 2025.
The statement was published under Section 32 of the Public Finance Management Act, 1999, and the underlying data comes from Section 40(4) PFMA reports submitted by provincial departments, verified and consolidated by provincial treasuries before reaching National Treasury.