National Treasury has allocated R552.7 billion to local government over the 2025 Medium-Term Expenditure Framework (MTEF) period in a bid to boost service delivery, financial sustainability, and governance at municipal level.
According to the newly released Municipal Budget Circular for the 2025/26 Medium-Term Revenue and Expenditure Framework (MTREF), the funding includes R332.4 billion in the local government equitable share, R52.9 billion from the general fuel levy shared with metropolitan municipalities, and R167.4 billion in direct conditional grants.
A key initiative is the consolidation of municipal financial support into a new Local Government Financial Management Capability Development Programme.
The integrated support plan will include multi-year grants, pre-grant capacity assessments, and a scorecard system to monitor progress and improve service delivery.
The Treasury confirmed that the smart prepaid meters grant will continue as an indirect grant, receiving R2.3 billion over the MTEF.
“As indicated in the 2024/25 financial year, the National
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