The national treasury reallocated R60m to the province’s human settlements development subsidy to be spent in the current financial year. Finance and Destea MEC Ketso Makume made this information known when he presented the 2025/26 second adjustment budget.

The budget adjustment follows correspondence from the National Treasury, which reallocated R150m previously assigned to other provinces, with the Free State receiving R60m.

This additional funding will be directed toward accelerating housing projects, particularly the CRC units in Bloemfontein and Welkom, often referred to as hostel projects.

Strong spending performance

“The Free State received the allocation because of its strong spending performance. The Department of human settlements had already spent 91.2% of its original allocation,” said Makume.

“We are confident that this additional R60m will be fully utilised to complete key housing projects, ensuring residents receive their homes without delay.” 

Through the virement process, money is shifted from underutilised items to areas where it can be effectively spent, ensuring compliance with the Public Finance Management Act, he said.

The provincial treasury identified underspending across departments as a concern. Photo: Facebook/Free State Department of Economic Development and Tourism

The provincial department wants to allocate R3.49m to the education department for the training and development of educators. Priority will be given to strengthening skills in mathematics, science, and accounting, with progress monitored across all grade levels up to Grade 12.

“The impact of this investment will be assessed through improved learning outcomes and teacher performance,” he said.

The provincial treasury identified underspending across departments as a concern. “Some departments have struggled to align expenditure with approved operational plans, resulting in spending levels falling below expected targets during the final quarter of the financial year.”

Risk of underperformance

“This has limited the province’s ability to efficiently reallocate funds through internal adjustments and raised concerns about delayed service delivery.”

Additional challenges include shortages in critical vacant positions within departments such as health, education, and sport, which continue to affect implementation capacity.

Weak planning and late execution of projects often lead to financial pressures toward the end of the financial year, increasing the risk of underperformance, he said.

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OFM News/Zenande Mpame mvh