THE Free State provincial government has increased its 2025/26 budget by R1.256 billion, with health and education receiving the largest shares.
This was announced by the MEC for Finance, Economic Development and Tourism, Ketso Makume, in the Provincial Legislature on Tuesday.
The adjustment budget is intended to address in-year budget pressures, conditional grant rollovers, and revenue adjustments, while ensuring frontline services remain a priority.
“Our fiscal challenges remain very much before us, and there is no better time than now for us to pull together, exercise discipline and collectively strive for fiscal sustainability,” Makume said in his presentation.
Of the total R1.256 billion increase, R1.153 billion comes from national allocations, while R102.75 million represents provincial adjustments.
Conditional grant rollovers total R183.27 million, equitable share rollovers to seven departments add R53.179 million and revenue adjustments contribute R43.301 million.
The Provincial Legislature added R6.27 million from retained revenue.
Health leads departmental allocations with R415.159 million, including R381.895 million for employee compensation, recruitment of unemployed doctors and essential goods and services.
An additional R20.426 million is earmarked for continuation of PEPFAR-funded services, with R12.838 million from equitable share rollovers.
“Our approach has been informed by the need to protect the fiscus, prioritise frontline services and ensure that limited resources are deployed in a manner that delivers the greatest impact for our people,” Makume said.
Education receives R476.945 million, with R303.919 million for staff compensation and R166.825 million for Early Childhood Development subsidies.
The per-child subsidy increases from R17 to R24 for centre-based programmes and from R6 to R9 for non-centre-based programmes, expanding access to early learning.
Conditional grant rollovers add R6.201 million.
Other departments received targeted increases to meet operational and development pressures as follows:
- Social Development: R8.902 million for prior-year commitments
- Sport, Arts, Culture and Recreation: R4.2 million for refurbishment, security and operational costs
- Economic Development and Tourism: R7.5 million for tourism, township economy revitalisation and SMME support
- Public Works and Infrastructure: R63.841 million to address municipal services pressures
- Community Safety, Roads and Transport: R166 million, including R159 million for the Welisizwe Rural Bridges Programme
- Human Settlements: R18 million for operations and equipment replacement
- Agriculture, Rural Development and Environmental Affairs: R45.705 million to contain a recent Foot and Mouth disease outbreak and fund conditional grant rollovers
- Office of the Premier: R10.037 million
- Provincial Legislature: R23.135 million
- Provincial Treasury: Budget reduced by R2.968 million after reprioritisation
Looking ahead, Makume highlighted the challenges of the 2026 Medium Term Expenditure Framework (MTEF).
“The 2026 MTEF budget framework remains constrained, and it is imperative that we make deliberate and strategic decisions to stimulate provincial growth and job creation,” he said.
The province’s strategic priorities include inclusive growth and job creation, reducing poverty and building a capable, ethical and developmental state.
“Let us collectively work to place the Free State province on a path of long-term fiscal sustainability,” Makume said.
“Together we are strong and together we can succeed.”