Budget 3.0: Treasury expects to save billions through expenditure reviews

CAPE TOWN - While a few spending adjustments are included in the third version of the 2025 budget, the National Treasury also expects to make billions in savings through expenditure reviews.

One notable saving through the adjustments is the withdrawal of the South African National Defence Force (SANDF) contingent from the Democratic Republic of Congo, which will realise a net reduction of R2 billion that was meant for the Department of Defence.

The National Treasury says budget reforms will also be used to improve the quality of spending and root out waste.

Finance Minister Enoch Godongwana says the government has undertaken spending reviews looking at more than R300 billion in government expenditure since 2013.

He says this was to identify duplications, waste and inefficiencies in how provinces and departments use funds.

This seems to be paying off, according to Godongwana, with billions in potential savings.

“We found potential savings of R37.5 billion over time through improved oversight and operational changes through these reviews.”

Godongwana says going forward, underperforming programmes will be closed as the 2026 medium-term budget process undergoes a massive “redesign”.

He says new reforms will target infrastructure planning and implementation in all provinces and municipalities.