The question is not simply how much money the state budgets, but whether that money actually makes a difference. This is the key question TLU SA is putting to the government ahead of the 2026 Medium-Term Budget Policy Statement (MTBPS).
The Minister of Finance, Enoch Godongwana, will table the statement in Cape Town on Wednesday, 21 October 2026, at 14:00.
The mid-term budget focuses mainly on adjustments and corrections to existing budgets rather than major new allocations. However, it provides an important opportunity to review existing spending plans and, where necessary, redirect available funds to achieve better outcomes.
According to TLU SA, this process should go hand in hand with a critical assessment of how public funds are managed and spent.
“It is not enough to say that R300 million has been allocated to education. The question is what happened to that money. Were the intended outcomes achieved? Were purchases made through fair and transparent tender processes? Were adequate controls in place to prevent corruption, misappropriation and waste resulting from a lack of expertise?” asks Bennie van Zyl, General Manager of TLU SA.
TLU SA believes that reporting on government spending should go far beyond the amounts spent by departments. The public should be able to see which projects have been completed, which services have been delivered and whether the intended benefits for communities have materialised. This would allow future budget decisions to be based on performance rather than spending alone.
This requires reliable record-keeping, transparent procurement processes and adequate control measures within departments and other state institutions. There must also be clear accountability when funds are not used for their intended purpose.
“We must stop treating the amount spent as the measure of performance. Real performance lies in the outcome. If money has been allocated to infrastructure, that infrastructure must function. If money has been allocated to education, it must contribute to better education provision. There must be evidence that the spending has achieved its purpose,” says Van Zyl.
TLU SA believes that the MTBPS should specifically be used to identify where existing spending patterns need to be adjusted, reprioritised or strengthened to achieve better outcomes with the available funds. When programmes fail to deliver the desired results, the reasons should be investigated and, where appropriate, funds should be redirected towards more efficient and productive uses.
A key consideration in any budget adjustments or reprioritisation during the MTBPS process should be the impact on economic growth. South Africa’s ability to create jobs, reduce poverty and broaden its tax base depends to a large extent on a growing economy and businesses that can operate sustainably.
When economic growth stagnates, job creation is constrained and poverty increases. This aggravates social problems and can contribute to an environment in which crime continues to rise.
“We must ask whether the government’s spending patterns promote economic growth. Do they create an environment in which businesses can expand, jobs can be created and more people can become economically self-sufficient? Or is money being spent without delivering a sustainable return for the country?” asks Van Zyl.
According to TLU SA, the MTBPS should also show how existing infrastructure budgets and service delivery programmes have performed, and where adjustments are needed to better support economic development. For agriculture, this includes the maintenance of roads, water infrastructure and electricity supply, as well as rural safety. When these basic requirements are not met, production costs increase and businesses’ ability to grow and create jobs is constrained.
The organisation also points to infrastructure work taking place in certain municipalities ahead of the upcoming elections. Where repairs gain momentum after years of neglect, the question arises as to why this work could not have been carried out earlier and on a continuous basis.
“It is positive when infrastructure is repaired and communities can see the results. The important question, however, is whether this momentum will continue after the election. Infrastructure maintenance should form part of normal municipal management, not something that only becomes visible before an election,” says Van Zyl.
TLU SA believes that sustainable service delivery depends not only on budget allocations, but also on the expertise and management capacity required to plan and implement projects properly. The mere availability of funding does not guarantee good results. Departments and municipalities must have the necessary capacity to spend funds responsibly and measure the outcomes.
The organisation calls on the government to use the MTBPS as an opportunity to critically reassess existing programmes, reprioritise funding where necessary, and place greater emphasis on transparent reporting, measurable outcomes and spending patterns that support sustainable economic growth.
“The country’s resources are limited. Every spending decision must therefore be assessed in terms of the value it creates for South Africa. Taxpayers should not only know how much money has been spent, but also what has been achieved with it. We must ensure that available funds are managed and spent correctly so that they genuinely benefit the country’s people and economy,” concludes Van Zyl.
