The 2026 MTEF Budget Guidelines and What This Means for Us

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National Treasury has officially released the 2026 Medium Term Expenditure Framework (MTEF) Technical Guidelines and they’re a game-changer. Endorsed by the Cabinet on 23 July 2025, these guidelines mark the beginning of a bold new phase in how public money is planned, prioritised, and spent.

What is the MTEF and Why Does It Matter?

The MTEF sets the spending framework for the next three years. It helps government departments plan their budgets with discipline and transparency, while staying focused on South Africa's development goals. These 2026 guidelines go beyond the usual planning tools. They introduce budget reforms to make spending more efficient, strategic, and aligned with national priorities.

What’s New in 2026?

• Targeted and Responsible Savings (TARS)

  Departments must identify low-performing or outdated programmes, and propose cuts or redesigns. This frees up funds for urgent national priorities like jobs and infrastructure.

• Spending Reviews

  Evidence-based analysis will guide budget decisions. Departments must show performance and value for money.

• Digital Transformation

  Budget planning and tracking will be done through tech tools like Microsoft Planner and PowerApps for real-time accountability.

• Early Retirement Programme

  Still on the table for 2025/26 and 2026/27, this initiative aims to manage the public wage bill and create efficiencies.

Key Principles

• Stabilise and reduce the debt-to-GDP ratio

• Achieve and grow a primary budget surplus

• Prioritise spending on high-impact programmes

• Limit compensation budgets and manage headcount strategically.

What Happens Next?

• National and provincial departments must adhere strictly to the new budget calendar.

• Budget submissions must include baseline reviews, efficiency savings, and alignment to Strategic Priority 1: Inclusive Growth and Job Creation.

• New programme structures or conditional grant changes must be submitted by the deadlines (10 July and 30 July 2025, respectively).

In Summary

This isn’t business as usual. The 2026 MTEF Guidelines signal a more focused, transparent, and accountable era of budgeting. Public entities and departments must step up, because the goal is clear: every rand spent must deliver real results for South Africans.

📄 Read the full guidelines at on the National Treasury website.