THE Free State government has spent 59 percent of its 2025/26 budget in the first seven months of the financial year, slightly ahead of its own benchmark, according to Finance, Economic Development and Tourism MEC Ketso Makume.
Delivering his adjustment budget speech to the Provincial Legislature on Tuesday, Makume said departments had shown “some improvements” in expenditure, recording R27.071 billion spent by the end of October against an allocated budget of R45.856 billion.
The provincial benchmark for this point in the year is 58 percent.
Makume said the province continued to face long-standing cost pressures on the compensation of employees, worsened by budget cuts and wage agreements.
He said measures to curb the growth of the wage bill remained in place, including tighter control of PERSAL activations by the Office of the Premier and Provincial Treasury.
As part of those efforts, the Early Retirement Programme without penalties – reintroduced for the 2025/26 and 2026/27 financial years – is expected to generate savings by allowing higher-earning senior officials to be replaced by younger staff appointed at entry-level salary scales.
“To date we have received 204 applications from various departments, excluding the Department of Education, which is currently finalising its list,” Makume said.
All applications have been approved by the respective executive authorities and the province now awaits a decision from National Treasury.
On infrastructure, Makume reported spending of R2.979 billion by the end of October – 57 percent of the R5.249 billion allocated for the year.
He emphasised that infrastructure delivery remained central to stimulating economic growth and employment creation in the province.
The MEC also noted improved oversight, saying departmental MECs had attended the first and second quarterly performance review meetings as committed.
“This collective commitment is fundamental to strengthening oversight and improving service delivery for the benefit of our communities,” he said.
Despite what Makume described as a “challenging fiscal environment”, the province’s revenue performance has been strong.
By the end of October, the Free State had collected R802 million, or 66 percent of the projected R1.220 billion annual revenue target.
In light of this improved performance, Makume announced that in-year revenue estimates would be revised upward by R43.103 million.
The adjustment budget tabled on Tuesday is expected to guide departmental spending for the remainder of the financial year as the province continues to balance service delivery demands with tightening fiscal conditions.