By Thebe Mabanga
The Free State Provincial Treasury has prioritised enhanced oversight of departmental budgets, municipal finances, and infrastructure delivery for the current financial year and the next three years.
The province also aims to strengthen its revenue collection capacity while targeting reductions in overall costs, including the public service wage bill.
These priorities were outlined by Free State Finance MEC Moses Makume during the province’s budget vote on Tuesday.
Makume used this month’s commemoration of Freedom Day as the basis of his address.
“As we commemorate 31 years of freedom, we are reminded that democracy is not an event, but a journey: a continuous process that must be nurtured, deepened, and translated into real and lasting change in the lives of our people,” said Makume.
Makume then drew on the constitution’s values and objectives and suggested that the delivery of economic freedom is his department’s, and governments’s ultimate goal.
“Economic freedom is fundamental to human dignity.” he said.
“For millions of our people, the true measure of freedom lies in access to economic opportunities, quality services, and an enabling environment in which they can thrive.”
He noted that apart from improving lives, government must ensure that freedom is not undermined by corruption and waste.
Makume described the global economic environment as characterised by “protectionism, persistent inflationary pressures, geopolitical instability and structural shifts” in the wake of United States President Donald Trump tariffs programme.
“The proposed US tariffs present significant challenges and disruptions to international trade,” said Makume.
Regarding economic performance, Makume reported a 0.1% contraction in the Free State economy for 2024, with a projected 1.5% growth in 2025 driven by sectors including agriculture, trade, construction, finance, and transport.
He noted that improved growth will need economic reforms, public private partnerships, and support for small businesses.
“The focus should also be on job-creation, inclusive and sustainable growth,” the MEC said.
For the 2025/26 financial year, the Provincial Treasury is allocated a total amount of R384 million.
The administration function, which provides leadership and strategic management and ensures that there are appropriate support services to all other programmes received R 133 million.
Makume announced that the Provincial Treasury, in collaboration with the Office of the Premier, will be strengthening cybersecurity measures across the provincial administration and centralise the function, which is currently fragmented and makes the province vulnerable to cyber-attacks.
“This approach will ensure that the Free State Government is well positioned to mitigate cyber risks, protect public sector assets, and foster trust in digital government services.” said Makume.
On staff retention the province plans a skills audit, moderation of the wage bill and tighten control of the PERSAL system to eliminate ghost workers.
“We wish to reiterate the importance of the skills audit as a strategic and empowering intervention—not a punitive measure.” said Makume, who notes that a skills audit is purely to identify skills gap.
“While we value a skilled and motivated public service, the current wage bill is unsustainable.”
He said he hopes that civils service over the age of 55 will take up the R 11 billion offer announced in the national budget for workers over to retire early without incurring penalties.
Treasury will also be responsible for monitoring the province’s payroll system to eliminate any ghost workers and other leakages.
The province’s Sustainable Resource Management programme receives R65.8 million.
This programme provides professional advice and support on provincial economic analysis.
Makume said the province will undertake a review of baseline allocations and expenditure under this programme.
“We can no longer afford to allocate resources based purely on historical patterns without questioning effectiveness, efficiency, and relevance of such.” the MEC said about baseline allocations.
Makume said the province will undertake spending reviews in partnership with the National Treasury and other key stakeholders.
The review will, among a range of goals, be for identifying opportunities for cost-saving without compromising service delivery.
“Cost containment is not a financial strategy, but a moral imperative,” said Makume.
Treasury aims to strengthen oversight over infrastructure programmes.
“We must curb delays, budget overruns, and non-compliance in infrastructure delivery which tend to weaken development outcomes and erode public trust in government,” said Makume.
“We will further reinforce the Infrastructure Delivery Management System (IDMS) to improve the lifecycle management of infrastructure projects from conception to completion.”
The MEC and departmental heads will undertake quarterly reviews on infrastructure spending.
Makume said the support provided to municipalities in relation to infrastructure delivery will continue in this financial year.
“We are equally delighted that approval for the implementation of PINK II has been granted by the National Treasury; this programme seeks to enhance the efficiency of municipal infrastructure plans and implementation,” he said.
Makume said revenue collected at the end of February 2024 exceeded his department’s target.
In this year’s budget, Free State received R34 billion out of a total of R 633 billion, about 5,3 % of equitable share.
Makume said the province must reduce reliance on equitable share, which is currently constrained.
“The province must expand and strengthen its own revenue base — not as an optional reform, but as a strategic imperative. Every rand collected is a step toward better roads, better hospitals, safer communities, and a growing economy that benefits all,” he said.
The Asset and Liabilities Management programme, which includes procurement, receives R72.5 million.
“The financial capacity of our provincial departments and entities has experienced notable deterioration over the past two financial years,” said the MEC, who noted that this results in departments and entities struggling to meet their obligations to pay suppliers within the prescribed 30-day period.
The MEC also announced that the Financial Governance programme, which promotes accountability, is allocated R34.1 million. For the first time in nine years, the provincial PFMA audit outcomes included a clean audit. Ten of the 13 provincial departments received either clean or unqualified audit opinions for the 2023/24 financial year. The Provincial Treasury, the Legislature, and the Housing Fund achieved clean audits.
Makume added that Treasury will support municipalities through the Municipal Finance Management programme, which receives R78.4 million. This programme aims to promote and strengthen financial governance and management at the local government level.
Makume said he supports the call made President Cyril Ramaphosa during the State of the Nation Address to review the Local Government White Paper to modernise and strengthen the local government sphere.
This is the second phase of the reforms programme Operation Vuindlela.
“The Provincial Treasury has observed a concerning decline in the financial management capacity within our municipalities, which threatens the delivery of basic services.”
To address this, Treasury calls for timely submission of quality Annual Financial Statements, addressing revenue challenges and unfunded budgets and curbing unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).
Municipalities that have achieved clean Audits include Lejweleputswa and Thabo Mofutsanyana Districts; Tswelopele and Setsoto Local Municipalities.
“A major concern is most of our municipalities’ continued tabling of unfunded budgets, largely due to unsustainable revenue bases,” the MEC said.
To address this, a dedicated Municipal Revenue Team will provide targeted support to ten municipalities.
Makume said the department aims to increase the number of municipalities with funded budgets from seven to at least ten over the next three years.
Ten municipalities with the highest unauathorised, wasteful, irregular and fruitless expenditure will be proritised, with specialised support given to Matjhabeng and Maluti-a-Phofung Local Municipalities.
Municipalities must also implement and enforce credit control policies and by-laws while phasing in cost-reflective tariffs over the next 3–5 years.
“The absence of performance management in some municipalities is also of great concern and must be urgently addressed,” said the MEC.
The province is currently overseeing an Intervention in Mangaung Metro, together with the Office of The Premier and the Auditor General of South Africa to assist with the implementation of the Financial Recovery Plan.
Budget votes continue throughout this week.
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